Novartis delivers strong sales growth, robust margin expansion and major innovation milestones. Raises FY guidance

On April 25, 2023 Novartis reported strong growth to start 2023, driven by our in-market growth brands, in particular Entresto, Kisqali and Kesimpta (Press release, Novartis, APR 25, 2023, View Source [SID1234630450]). The Pluvicto and Scemblix launches continue on their strong trajectory, and the Leqvio launch is progressing steadily. In addition, we are driving R&D productivity by prioritizing high-value medicines across our five core therapeutic areas. Our pipeline momentum gives us confidence in our growth outlook, highlighted by the NATALEE Phase 3 positive readout for Kisqali in early breast cancer, and we look forward to upcoming readouts for iptacopan in multiple indications and Pluvicto in earlier lines of therapy. Our strong start to the year and confidence in our growth drivers allow us to raise guidance for the full year 2023."

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Key figures1

Q1 2023

Q1 2022

% change

USD m

USD m

USD

cc

Net sales

12 953

12 531

3

8

Operating income

2 856

2 852

0

9

Net income

2 294

2 219

3

14

EPS (USD)

1.09

1.00

9

20

Free cash flow2

2 720

1 392

95

Core operating income

4 413

4 083

8

15

Core net income

3 614

3 251

11

18

Core EPS (USD)

1.71

1.46

17

25

Strategy Update

Our focus

With our new focused strategy unveiled in 2022, Novartis is transforming into a "pure-play" Innovative Medicines business. We have a clear focus on five core therapeutic areas (cardiovascular, immunology, neuroscience, solid tumors and hematology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy, and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.

Our priorities

Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.
Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.
Strengthening foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.
Sandoz planned spin-off

The planned spin-off remains on track for the second half of 2023. Completion of the transaction is subject to certain conditions, including consultation with works councils and employee representatives (as required), general market conditions, tax rulings and opinions, final Board of Directors endorsement and shareholder approval in line with Swiss corporate law. The transaction is expected to be tax neutral to Novartis.

Financials

First quarter

Net sales were USD 13.0 billion (+3%, +8% cc) in the first quarter driven by volume growth of 16 percentage points, price erosion of 4 percentage points and the negative impact from generic competition of 4 percentage points.

Operating income was USD 2.9 billion (0%, +9% cc), mainly driven by higher sales. Other income from legal matters was more than offset by higher restructuring and impairment charges.

Net income was USD 2.3 billion (+3%, +14% cc), mainly due to higher operating income and higher interest income.

EPS was USD 1.09 (+9%, +20% cc), growing faster than net income, benefiting from lower weighted average number of shares outstanding.

Core operating income was USD 4.4 billion (+8%, +15% cc). Core operating income margin was 34.1% of net sales, increasing by 1.5 percentage points (+2.2 percentage points cc).

Core net income was USD 3.6 billion (+11%, +18% cc), mainly due to higher core operating income and higher interest income.

Core EPS was USD 1.71 (+17%, +25% cc), growing faster than core net income, benefiting from lower weighted average number of shares outstanding.

Free cash flow amounted to USD 2.7 billion (+95% USD), compared to USD 1.4 billion in the prior year quarter, mainly due to higher operating income adjusted for non-cash items and favorable changes in working capital.

Innovative Medicines net sales were USD 10.6 billion (+3%, +7% cc), with volume contributing 16 percentage points to growth. Sales growth was mainly driven by Entresto, Pluvicto, Kesimpta and Kisqali partly offset by generic competition mainly for Gilenya. Generic competition had a negative impact of 5 percentage points. Pricing had a negative impact of 4 percentage points. Sales in the US were USD 4.1 billion (+11%) and in the rest of the world were USD 6.5 billion (-1%, +5% cc).

Sandoz net sales were USD 2.4 billion (+4%, +8% cc), with volume contributing 15 percentage points to growth. Sales growth was mainly driven by Europe, which benefited from strong volume growth driven by continued momentum from prior year launches and a strong cough and cold season. Pricing had a negative impact of 7 percentage points. Ex-US sales grew by +12% in cc. Global sales of Biopharmaceuticals grew to USD 518 million (+11%, +17% cc), driven by ex-US growth.

Q1 key growth drivers

Underpinning our financial results in the quarter is a continued focus on key growth drivers including:

Entresto

(USD 1,399 million, +32% cc) sustained robust demand-led growth, with increased patient share across all geographies

Pluvicto

(USD 211 million) with strong US launch performance, with demand continuing to exceed supply

Kesimpta

(USD 384 million, +100% cc) sales growth across all geographies driven by increased demand and strong access

Kisqali

(USD 415 million, +81% cc) grew strongly across all geographies, based on increasing recognition of its overall survival and quality of life benefits in HR+/HER2- advanced breast cancer

Promacta/Revolade

(USD 547 million, +15% cc) grew across most regions, driven by increased use in chronic ITP and as first-line and/or second-line treatment for severe aplastic anemia

Tafinlar + Mekinist

(USD 458 million, +18% cc) sales grew across all geographies, driven by demand in BRAF+ adjuvant melanoma and NSCLC indications

Ilaris

(USD 328 million, +19% cc) showed continued growth across all geographies

Scemblix

(USD 76 million, +202% cc) continued its strong launch uptake demonstrating the high unmet need in CML

Leqvio

(USD 64 million) launch progressing steadily including expansion into new geographies

Jakavi

(USD 414 million, +13% cc) sales grew in Emerging Growth Markets, Europe and Japan, driven by strong demand in both myelofibrosis and polycythemia vera

Piqray

(USD 116 million, +61% cc) sales grew mainly in the US, benefiting from indication expansion into PIK3CA-related overgrowth spectrum (PROS)

Lutathera

(USD 149 million, +22% cc) sales grew mainly in the US and Japan due to increased demand

Cosentyx

(USD 1,076 million, -4% cc) continued demand growth across key geographies, offset by revenue deduction adjustments in the US. Ex-US sales grew +17% (cc)

Sandoz Biopharmaceuticals

(USD 518 million, +17% cc) driven by ex-US growth

Emerging Growth Markets*

Overall, grew +14% (cc). China returned to growth post COVID lockdowns. (+1% cc, USD 829 million), with Innovative Medicines growing +5%

*All markets except the US, Canada, Western Europe, Japan, Australia, and New Zealand

Net sales of the top 20 Innovative Medicines products in Q1 2023

Q1 2023

% change

USD m

USD

cc

Entresto

1 399

28

32

Cosentyx

1 076

-7

-4

Promacta/Revolade

547

11

15

Tasigna

462

0

4

Tafinlar + Mekinist

458

14

18

Lucentis

416

-20

-15

Kisqali

415

74

81

Jakavi

414

6

13

Kesimpta

384

97

100

Xolair

354

-4

2

Sandostatin

329

3

5

Ilaris

328

15

19

Zolgensma

309

-15

-14

Gilenya

232

-62

-60

Pluvicto

211

nm

nm

Exforge Group

186

-7

-1

Galvus Group

183

-15

-9

Diovan Group

158

-17

-11

Lutathera

149

19

22

Gleevec/Glivec

147

-26

-21

Top 20 products total

8 157

4

8

nm= not meaningful

R&D update – key developments from the first quarter

New approvals

Pluvicto

In April FDA approved Millburn facility for commercial production of Pluvicto. Expected to contribute meaningfully to supply in Q3 after the anticipated approval of additional lines

Tafinlar + Mekinist

Approved in the US for the treatment of pediatric patients ≥1 year of age with low-grade glioma with a BRAF V600E mutation who require systemic therapy

Hyrimoz (adalimumab)

FDA approved biosimilar Hyrimoz (adalimumab-adaz) high-concentration formulation to treat seven indications covered by the reference medicine, Humira

EC approved (April 3, 2023) citrate-free high concentration formulation of adalimumab biosimilar to treat all indications covered by the reference medicine, Humira

Regulatory updates

Entresto

Positive CHMP opinion for pediatric heart failure indication. If approved, this would support extension of regulatory data protection in Europe to November 2026

Denosumab biosimilar

FDA accepted BLA for proposed biosimilar denosumab. The application includes all indications covered by the reference medicines Prolia and Xgeva

Results from ongoing trials and other highlights

Kisqali

Ph3 NATALEE trial met its primary endpoint (iDFS) at an interim analysis. Kisqali plus ET significantly reduced the risk of disease recurrence, compared to ET alone, demonstrating consistent benefit in a broad population of patients with stage II and III HR+/HER2- early breast cancer, including those with no nodal involvement. Data will be presented at an upcoming meeting and submitted to regulatory authorities

Cosentyx

Long-term data from the pivotal SUNSHINE and SUNRISE trials evaluating Cosentyx in moderate-to-severe HS, demonstrated continued improvement in treatment response rates with over 55% of patients achieving a HiSCR at Week 52 and over 50% of patients demonstrating a meaningful reduction in pain. Data published in Lancet and presented at the 2023 AAD annual meeting

Zolgensma

Data from two long-term follow-up studies, LT-001 and LT-002, show continued efficacy and durability of Zolgensma up to 7.5 years post-dosing, across a range of patient populations, with an overall benefit-risk profile that remains favorable. All pre-symptomatic children treated maintained or achieved all assessed motor milestones. Data presented at the 2023 MDA conference

R&D Portfolio Prioritization

Novartis continues to focus its R&D portfolio prioritizing high value medicines with transformative potential for patients. During the quarter, a comprehensive review of R&D projects resulted in decisions to discontinue or out-license projects for reasons including strategic fit and commercial potential, representing approximately 10% of the Novartis pipeline.

FAP-2286

Acquired FAP-2286 (Ph1/2), a potential first-in-class radioligand therapy with the respective radioligand imaging agent, from Clovis Oncology

Bicycle Peptides

Novartis entered into research collaboration on bicyclic peptides with Bicycle Therapeutics

Capital structure and net debt

Retaining a good balance between investment in the business, a strong capital structure and attractive shareholder returns remains a priority.

In Q1 2023, Novartis repurchased a total of 31.5 million shares for USD 2.8 billion on the SIX Swiss Exchange second trading line under the up-to USD 15 billion share buyback announced in December 2021. In addition, 1.2 million shares (for an equity value of USD 0.1 billion) were repurchased from associates. In the same period, 10.5 million shares (for an equity value of USD 0.3 billion) were delivered as a result of options exercised and share deliveries related to participation plans of associates. Novartis aims to offset the dilutive impact from equity based participation plans of associates over the remainder of the year. Consequently, the total number of shares outstanding decreased by 22.2 million versus December 31, 2022. These treasury share transactions resulted in an equity decrease of USD 2.5 billion and a net cash outflow of USD 2.7 billion.

As of March 31, 2023, net debt increased to USD 15.1 billion compared to USD 7.2 billion at December 31, 2022. The increase was mainly due to the USD 7.3 billion annual dividend payment and net cash outflow for treasury share transactions of USD 2.7 billion, partially offset by USD 2.7 billion free cash flow in Q1 2023.

As of Q1 2023, the long-term credit rating for the company is A1 with Moody’s Investors Service and AA- with S&P Global Ratings.

2023 outlook raised due to strong growth momentum

Barring unforeseen events; growth vs prior year in cc

Innovative Medicines

Sales expected to grow mid-single digit (from low-to-mid single digit)

Core OpInc expected to grow high single to low double digit (from mid-to-high single digit)

Novartis ex. Sandoz

(IM + Corporate)

Sales expected to grow mid-single digit (from low-to-mid single digit)

Core OpInc expected to grow high single digit to low double digit (from mid-to-high single digit)

Novartis incl. Sandoz

(IM + Sandoz + Corporate)*

Sales expected to grow mid-single digit (from low-to-mid single digit)

Core OpInc expected to grow high single digit (from mid-single digit)

* Novartis Group guidance, assuming Sandoz would remain within the Group for the entire FY 2023

Barring unforeseen events; growth vs prior year in cc

Sandoz

Sales expected to grow mid-single digit (from low-to-mid single digit)

Core OpInc expected to decline low double digit, reflecting required stand-up investments to transition Sandoz to a separate company and continued inflationary pressures

Our guidance assumes that no Sandostatin LAR generics enter in the US in 2023. We continue to expect that the planned Sandoz spin-off is completed in H2 2023.

Foreign exchange impact

If late-April exchange rates prevail for the remainder of 2023, the foreign exchange impact for the year would be negligible on net sales and negative 3 to negative 4 percentage points on core operating income. The estimated impact of exchange rates on our results is provided monthly on our website.

Key figures1

Group

Q1 2023

Q1 2022

% change

USD m

USD m

USD

cc

Net sales

12 953

12 531

3

8

Operating income

2 856

2 852

0

9

As a % of sales

22.0

22.8

Core operating income

4 413

4 083

8

15

As a % of sales

34.1

32.6

Net income

2 294

2 219

3

14

EPS (USD)

1.09

1.00

9

20

Core net income

3 614

3 251

11

18

Core EPS (USD)

1.71

1.46

17

25

Cash flows from
operating activities

2 957

1 649

79

Free cash flow2

2 720

1 392

95

Innovative Medicines

Q1 2023

Q1 2022

% change

USD m

restated3

USD m

USD

cc

Net sales

10 570

10 230

3

7

Operating income

2 675

2 627

2

11

As a % of sales

25.3

25.7

Core operating income

4 088

3 672

11

18

As a % of sales

38.7

35.9

Sandoz

Q1 2023

Q1 2022

% change

USD m

restated3

USD m

USD

cc

Net sales

2 383

2 301

4

8

Operating income

319

394

-19

-14

As a % of sales

13.4

17.1

Core operating income

504

513

-2

3

As a % of sales

21.1

22.3

Corporate

Q1 2023

Q1 2022

% change

USD m

restated3

USD m

USD

cc

Operating loss

-138

-169

18

16

Core operating loss

-179

-102

-75

-78

Vivesto publishes Annual Report for 2022

On April 24, 2023 Vivesto AB, an oncology-focused R&D company, reported that the Annual Report for 2022 has been published. The Annual Report is attached as a PDF and is available on the company’s website, View Source (Press release, Vivesto, APR 25, 2023, View Source [SID1234630445]).

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For further information:
Erik Kinnman, Chief Executive Officer
Phone: +46 18-50 54 40
E-mail: [email protected]

IngenOx Therapeutics Zabadinostat Approved by Hong Kong Drug Office to Start Liver Cancer Clinical Trial

On April 24, 2023 IngenOx Therapeutics, the Oxford biopharma company reported that the Hong Kong Drug Office had given approval for a Phase II clinical trial to proceed in treatment-resistant hepatocellular cancer (HCC) patients, combining its drug zabadinostat with an immune checkpoint inhibitor (Press release, IngenOx Therapeutics, APR 24, 2023, View Source [SID1234632031]).

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Immune checkpoint inhibitors (ICI) are being increasingly used in the treatment of advanced HCC liver cancer. Although some patients show lasting responses, the development of resistance to therapy is common. Collaborative academic research has shown that IngenOx’s zabadinostat reverses resistance to immune checkpoint resistance in pre-clinical HCC models.

These results provide a scientific rationale for the clinical development of zabadinostat in combination with an ICI, as a therapy for liver cancer which has become resistant to checkpoint blockade therapy. IngenOx is supporting the Phase II clinical trial which is designed to test the safety and effectiveness of zabadinostat combined with a checkpoint inhibitor in ICI-resistant HCC patients, compared with a tyrosine kinase inhibitor such as lenvatinib or sorafenib.

Obtaining Hong Kong Drug Office Approval and issuing the Clinical Trial Certificate is a key milestone in moving the study towards to first-patient-in.

David Kerr, CMO of IngenOx and Professor of Cancer Medicine at the University of Oxford, commented:

"The compelling findings from the pre-clinical studies give us increased confidence that we can recapitulate these encouraging results in man. Our sophisticated trial design will give us clinical data to seek accelerated approval from the regulatory authorities but stay true to our commitment to precision medicine by generating additional potential biomarkers to further improve clinical outcomes."

NANOBIOTIX Provides Business Update and Reports Full Year 2022 Financial Results

On April 24, 2023 NANOBIOTIX (Euronext: NANO – NASDAQ: NBTX – the "Company"), a late-clinical stage biotechnology company pioneering physics-based approaches to expand treatment possibilities for patients with cancer, reported an update on operational progress and reported financial results for the year ended December 31, 2022, and announced the filing of its universal registration document (URD) for the financial year ended December 31, 2022 with the French financial market authority (Autorité des marchés financiers or AMF), as well as of the Annual Report on Form 20-F for the financial year ended December 31, 2022 with the U.S. Securities and Exchange Commission (SEC) (Press release, Nanobiotix, APR 24, 2023, View Source [SID1234630481]).

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"2022 was a year that saw a leap forward in our ambition of bringing our lead nanotherapeutic candidate, NBTXR3, to elderly patients with head and neck cancer through the recruitment of the first patients across all major regions in our pivotal Phase 3 study, NANORAY-312," said Laurent Levy, co-founder of Nanobiotix and chairman of the executive board. "This past year also tested our agility. Against continued volatility in the capital markets, our team was proactive in prioritizing critical development programs, driving efficiencies to reduce expense and extending our operating runway without hampering our development capability. Moreover, while our team rightly focused on delivering our near-term priorities, we also continued to build our leadership for the future with the addition of our Global Chief Clinical and Medical Affairs Officer, Leonard A. Farber, M.D., and the establishment of our multi-national, multi-disciplinary Scientific Advisory Board. I am confident that the momentum we built in 2022 has positioned us for continued success in 2023 and am grateful to all involved in supporting our mission."

2022 Operational Highlights, Pipeline Status and Upcoming Milestones

Strengthened executive leadership with appointment of Leonard Farber, M.D., as Chief Clinical and Medical Affairs Officer
Established Nanobiotix Scientific Advisory Board with leading global radiation, medical and surgical oncologists involved in oncology treatment decision-making, clinical trial investigation and patient recruitment to further support clinical development of NBTXR3
Chief Medical Officer (CMO) candidate with strategically aligned experience in oncology and immuno-oncology is expected to join the organization in Q3 2023
Priority Registration Pathway in Locally Advanced Head & Neck Squamous Cell Carcinoma (LA-HNSCC), Local Control as Single Agent Activated by Radiotherapy (RT):

NANORAY-312 Phase 3 trial evaluating RT-activated NBTXR3 ± cetuximab vs RT ± cetuximab in elderly patients with LA-HNSCC
Initiation across core geographical sites in Europe, Asia (in collaboration with LianBio), and the United States with 104 sites activated across 25 countries
Futility analysis to be conducted following 25% of planned PFS events expected in H1 24
Initial Phase 3 interim efficacy and safety data expected after 67% of planned PFS events in H2 2024
Study 102 Phase 1 trial evaluating RT-activated NBTXR3 in LA-HNSCC
Completed enrollment in expansion phase
Interim update in February 2022 reported ongoing median overall survival of 17.9 months in the all-treated population (n=56) and 23.0 months in evaluable patients (n=44)
Final safety and efficacy data expected in H2 2023
Priority Pathway in Immunotherapy for Recurrent/Metastatic Head & Neck Squamous Cell Carcinoma (R/M HNSCC), Priming Immune Response Prior to an Anti-PD-1 Treatment:

Study 1100 Phase 1 dose escalation and expansion trial evaluating RT-activated NBTXR3 followed by an anti-PD-1 in patients with advanced cancers
Completed enrollment in the escalation phase, established recommended Phase 2 dose (RP2D) and initiated enrollment in expansion cohorts
Phase 1 escalation data update presented at the Society for Immunotherapy of Cancer (SITC) (Free SITC Whitepaper) 2022 annual conference; Objective reduction in target lesion/s, seen in 71% of evaluable patients, resulted in durable control in both anti-PD-1 naive and resistant lesions including 8 patients achieving over 6 months disease control and 5 patients with over 12 months
Study 1100 Phase 1 data update anticipated at a time to be determined
Phase 3 registrational program for patients with unresectable locoregional recurrent (LRR) or recurrent or metastatic HNSCC resistant to previous anti-PD-1/PD-L1 therapy
Received preliminary feedback from FDA suggesting a single, randomized, controlled trial including a pre-specified comparative analysis of overall response rate (ORR) may support accelerated approval, subject to confirmation of clinical benefit based on overall survival (OS) results from the same trial
Company plans to consult with incoming CMO prior to continuing discussions with FDA on potential registration pathway for an NBTXR3-immunotherapy approach, and expects to provide an update in Q3 2023
Expanding NBTXR3 Opportunity, Collaborating with World-Class Partners to Validate Tumor-Agnostic, Combination-Agnostic Therapeutic Profile:

Ongoing collaboration with The University of Texas MD Anderson Cancer Center
Determined RP2D for NBTXR3 in pancreatic ductal adenocarcinoma (PDAC) and demonstrated positive preliminary qualitative efficacy data
Preliminary Phase 1b dose escalation safety data in PDAC expected in H2 2023
Completion of enrollment in Phase 1b dose expansion trial for PDAC expected in H2 2023
Determination of RP2D for NBTXR3 in non-small cell lung cancer (NSCLC) expected in H2 2023
Initial Phase 1b/2 data for NBTXR3 in combination with an immunotherapy in patients with esophageal cancer expected in 2024
Full Year 2022 Financial Results

Revenue and Other Income: No revenue was recognized for the year ended December 31, 2022. The limited revenue during the year ended December 31, 2021, was mainly derived from the charging-back of external contract research organization costs incurred on behalf of former partner PharmaEngine in connection with the now terminated license and collaboration agreement.

Total other income increased significantly to €4.8 million for the year ended December 31, 2022, compared to €2.6 million and €2.5 million for the years ended December 31, 2021, and 2020, respectively, mainly due to higher research tax credit.

Research and Development ("R&D") Expenses: R&D expenses consist primarily of preclinical, clinical, and manufacturing expenses related to the development of NBTXR3 and totaled €32.6 million for the twelve-month period ended December 31, 2022, as compared to €30.4 million for the twelve months ended December 31, 2021. The increase in net R&D expenses was primarily due to increases in development costs related to the Company’s priority pathways, including initiation of its pivotal Phase 3 registration study, NANORAY-312, continuation of Expansion Study 102 and its ongoing immunotherapy combination Study 1100 as well as increases in personnel related expenses.

Selling, General and Administrative ("SG&A") Expenses: SG&A expenses decreased by €1.6 million, or 8.1%, from €19.4 million for the year ended December 31, 2021, to €17.9 million for the year ended December 31, 2022. This year-over-year decrease reflects the Company’s efforts to rationalize SG&A and internalize certain functions.

Net loss: Net loss attributable to shareholders was €57.0 million, or €1.64 per share, for the twelve-month period ended December 31, 2022. This compares to a net loss of €47.0 million, or €1.35 per share for the year ended December 31, 2021. Our operating loss decreased from €52.6 million in 2021 to €46.7 million in 2022; this operating loss improvement was offset mainly by a negative €6.9 million one-time debt valuation impact in 2022 as well as higher debt interest charges, together with €3.1 million lower foreign exchange gains.

Cash and Cash Equivalents: As of December 31, 2022, Nanobiotix had €41.4 million in cash and cash equivalents, compared to €83.9 million as of December 31, 2021.

Financial Guidance: Based on the current operating plan and financial projections, Nanobiotix anticipates that the cash and cash equivalents of €41.4 million as of December 31, 2022, in conjunction with its previously announced equity line financing will fund its operations into the third quarter of 2023.

Going Concern: We have prepared our consolidated financial statements assuming that we will continue as a going concern. We experienced net losses of €57.0 million in 2022 and a net decrease in cash and cash equivalents of €42.5 million in 2022. At December 31, 2022, our accumulated deficit was €227.3 million and we had negative working capital of €22.7 million. We expect to continue to incur significant expense related to the development and manufacturing of nanotechnology product candidates such as NBTXR3 and conducting clinical studies. Additionally, we may encounter unforeseen difficulties, complications, development delays and other unknown factors that require additional expense. As a result of these expenditures, we expect to continue to incur significant losses in the near term. Additionally, the EIB loan contain covenants that require maintenance of minimum cash and cash equivalent balances that limit the availability of cash resources to pursue operational needs.

The Company’s covenant obligations entail that the current cash and cash equivalents are only sufficient to fund our operating expenses into the third quarter of 2023. Violation of the covenant would result in immediate repayment of all or part of the loan outstanding (if and when requested by the EIB), together with accrued interest, prepayment fees and all other accrued or outstanding amounts. However, Nanobiotix has obtained a 15 million euros temporary waiver, until July 31, 2023, and has reached an agreement in principle with the EIB to automatically extend it until January 31, 2024 should a business development partnership, collaborative or strategic alliance have become effective before July 31, 2023. If the company secures this extension period, or if the company obtains appropriate funding prior, the Company is not expected to be in breach of this temporary waiver as of July 31, 2023.

The Company is also pursuing additional funding through one or more possible new partnerships, collaborative or strategic alliances; or from the use of the equity line (PACEO) signed with Kepler Cheuvreux, financing from institutional or strategic investors, from the capital markets, or a combination of the above. However, the Company cannot guarantee if or when any such transactions will occur or whether they will be on satisfactory terms.

While the Company has taken and will continue to take actions to obtain new funding and manage costs through operating expense reduction plans, as necessary, the above factors indicate substantial risk about the Company’s ability to continue as a going concern as there is no assurance that the Company will be successful in satisfying its future cash needs.

Subsequently, the Executive Board determined it is appropriate to prepare consolidated financial statements as of and for the period ended December 31, 2022, applying a going concern basis, assuming the Company will continue to operate for the foreseeable future. The supervisory board of the Company has reviewed and closed the FY 2022 on April 24, 2023.

Availability of the Full Year 2022 Financial Reports

The URD and 20-F are available on the Nanobiotix website at View Source In addition, the URD is available on the AMF website (www.amf-france.org) and the 20-F is available on the SEC website (www.sec.gov).

The Company’s 2022 URD includes its:

2022 annual financial report including the report on corporate governance
Reports from the Company’s statutory auditors and information on their fees
Required information in relation to the Company’s share buyback program
Conference Call and Webcast

Nanobiotix will host a conference call and live audio webcast on Tuesday, April 25, 2023, at 8:00 AM EDT / 2:00 PM CEST, prior to the open of the U.S. market. During the call, Laurent Levy, chief executive officer, and Bart van Rhijn, chief financial officer, will briefly review the Company’s year-end results and an update on business activities before taking questions from participants.

Details for the call are as follows:

Live (US): 1-877-423-9813

Live France: 0 800 912 848

Live (international): 1-201-689-8573

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About NBTXR3

NBTXR3 is a novel, potentially first-in-class oncology product composed of functionalized hafnium oxide nanoparticles that is administered via one-time intratumoral injection and activated by radiotherapy. The product candidate’s physical mechanism of action (MoA) is designed to induce significant tumor cell death in the injected tumor when activated by radiotherapy, subsequently triggering adaptive immune response and long-term anti-cancer memory. Given the physical MoA, Nanobiotix believes that NBTXR3 could be scalable across any solid tumor that can be treated with radiotherapy and across any therapeutic combination, particularly immune checkpoint inhibitors.

NBTXR3 is being evaluated in locally advanced head and neck squamous cell carcinoma (HNSCC) as the primary development pathway. The company-sponsored Phase 1 dose escalation and dose expansion study has produced favorable safety data and early signs of efficacy; and a Phase 3 global registrational study was launched in 2021. In February 2020, the United States Food and Drug Administration granted regulatory Fast Track designation for the investigation of NBTXR3 activated by radiation therapy, with or without cetuximab, for the treatment of patients with locally advanced HNSCC who are not eligible for platinum-based chemotherapy—the same population being evaluated in the Phase 3 study.

Nanobiotix has also prioritized an Immuno-Oncology development program—beginning with a Company-sponsored Phase 1 clinical study evaluating NBTXR3 activated by radiotherapy in combination with anti-PD-1 checkpoint inhibitors for patients with locoregional recurrent or recurrent/metastatic HNSCC, or lung or liver metastases from any primary cancer eligible for anti-PD-1 therapy.

Given the Company’s focus areas, and balanced against the scalable potential of NBTXR3, Nanobiotix has engaged in a strategic collaboration strategy with world class partners to expand development of the product candidate in parallel with its priority development pathways. Pursuant to this strategy, in 2019 Nanobiotix entered into a broad, comprehensive clinical research collaboration with The University of Texas MD Anderson Cancer Center to sponsor several Phase 1 and Phase 2 studies to evaluate NBTXR3 across tumor types and therapeutic combinations.

LIXTE Biotechnology Reports First Spanish Site Activated to Begin Accrual of Patients for a Phase 1b/2 Clinical Trial of LIXTE’s Lead Anti-Cancer Compound, LB-100, Added to Doxorubicin as First-Line Treatment of Advanced Soft Tissue Sarcoma

On April 24, 2023 LIXTE Biotechnology Holdings, Inc. (Nasdaq: LIXT) ("LIXTE") a clinical-stage drug discovery company developing pharmacologically active drugs for use in cancer treatment, reported that the Spanish Sarcoma Research Group (Grupo Español de Investigación en Sarcomas, or GEIS) completed its first site initiation visit in preparation for the advanced soft tissue sarcoma (ASTS) clinical trial at Fundación Jiménez Díaz University Hospital (Madrid) (Press release, Lixte Biotechnology, APR 24, 2023, View Source [SID1234630479]).

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Fundación Jiménez Díaz University Hospital is the home base of Dr. Javier Martín-Broto, Coordinating Investigator of the clinical trial, GEIS Co-Founder, and an internationally recognized expert in sarcoma research and therapy. Three additional GEIS-associated cancer research centers, located in Valencia, Barcelona, and Madrid, Spain, are expected to be activated in the near-term, with Phase 1b patient accrual planned to begin by mid-May 2023.

The Phase 1b portion of the clinical trial to determine the recommended phase 2 dose (RP2D) is expected to be completed within approximately nine months from commencement. Subsequently, up to ten more clinical sites are expected to join the international Phase 2 portion of the study to enter up to 150 patients, randomized to standard cytotoxic chemotherapy with doxorubicin alone, versus doxorubicin plus LB-100. Given the lack of effective first-line treatments for ASTS, this trial has been designed to provide data expected to be sufficient to justify proceeding to a Phase 3 comparative study.

John S. Kovach, MD, Founder and CEO of LIXTE, said, "We are very pleased to finally have an opportunity to test whether LB-100 improves the treatment of ASTS. GEIS has been very patient, having had to wait several months for various regulatory approvals to introduce LB-100 into a European clinical trial program. The fact that this trial design is still relevant attests to the slow pace of finding better treatments for this disease."

For a more complete description of the science underlying the study developed by Dr. Martín-Broto and his colleagues, please see:

LIXTE Biotechnology Announces Approval of a Phase 1b/2 Randomized Trial of Doxorubicin +/-Lb-100 in Advanced Soft Tissue Sarcomas to be Conducted by the Spanish Sarcoma Group

The Spanish Sarcoma Group Will Lead a European Consortium to Evaluate the Ability of Lixte Biotechnology Holdings’ LB-100 to Improve First Line Therapy for Advanced Soft Tissue Sarcomas