On October 14, 2020 Median Technologies (Paris:ALMDT), The Imaging Phenomics Company, reported its results for the first half of 2020 (Press release, MEDIAN Technologies, OCT 14, 2020, View Source [SID1234568488]). On October 12, 2020, the Board of Directors of Median Technologies approved the consolidated financial statements for the first six months of 2020.
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Strong revenue growth, accelerated investments and initial promising results for iBiopsy
For the first half of 2020, Median Technologies recorded revenue of €5.9m, an increase of 47.9% compared with the first half of 2019. This figure was entirely attributable to the iCRO business unit1, which provides imaging solutions and services for clinical trials in oncology. The iBiopsy platform is currently in the R&D stage and is not yet generating revenue.
Median increased its investment in the development and validation of its imaging phenomics platform iBiopsy during the first-half 2020. The company also signed its first partnership with the Assistance Publique – Hôpitaux de Paris, AP-HP, structured iBiopsy around three clinical development plans and launched the first phases of clinical validation. During H1, Median announced promising results on a preliminary study to evaluate the risk of tumor recurrence in patients with hepatocellular carcinoma (HCC).
As of June 30, 2020, the iCRO business unit’s order intake worldwide was well ahead of the forecasts issued for the first half period, despite the health crisis caused by the Covid-19 outbreak. At the end of H1 2020, the order backlog2 stood at €53.6m, an exceptional increase of 40% relative to the order backlog as of December 31, 2019. During the first half, order intake included phase III studies sponsored by major pharma companies in Europe, and further strengthened the order backlog. To date, the backlog includes 28 phase III trials, which represents a substantial increase since 2019 and testifies to the relevance of Median’s offering and the quality of its imaging services. Considering this order backlog, Median has total confidence in revenue it stands to generate over the coming quarters.
Summary financial information (consolidated financial statements under IFRS)
The increase in personnel expenses in H1 2020, compared to the same 2019 period, stemmed from new recruitments for the iBiopsy business unit following the release of the first tranche of the European Investment Bank (EIB) loan, as well as the increase in headcount for the iCRO business unit, in line with the sharp growth in order intake. Overall, the company’s average headcount stood at 117 people in H1 2020, up 36% from 86 people in H1 2019. Meanwhile, the rise in external charges was primarily due to the increased use of consulting radiologists (due to the number of trials underway) to provide medical image reading services for the iCRO activity.
As a result of these items, Median recorded an operating loss of €4.5m in H1 2020, compared with a loss of €4.2m in H1 2019. Consolidated net income came to -€4.6 million compared with -€4.2million as of June 30, 2019.
As of June 30, 2020, cash and cash equivalents were €19.4m. This figure includes a received payment of €15m, as part of the first instalment of the €35m loan granted by the EIB. As a reminder, this loan is aimed at accelerating investment in Median’s innovation program for the iBiopsy imaging phenomics platform. Cash and cash equivalents also include a €1.4m Research Tax Credit.
During the first half of 2020, excluding impacts from the first tranche of the EIB loan and the Research Tax Credit, Median spent €4.6m in cash, with a burn rate of €3.7m in the first quarter, dropping to €0.9m in the second quarter
Events after the reporting period and Company outlook
The iCRO business performance indicators for Q3, 2020 will be published on October 20. The iCRO business unit is expected to continue generating positive momentum worldwide. Meanwhile, the development plan for imaging phenomics platform iBiopsy is moving forward in line with expectations. Since closing its H1 2020 accounts, the company has issued initial promising results on the use of the iBiopsy technology in the context of evaluating cancer patient response to immuno-oncology drugs.
"The results obtained are much better than our initial forecast for the first half of this year, and the second quarter of 2020 marked our seventh consecutive quarter of revenue growth," said Fredrik Brag, Median co-founder and CEO. "The business strategy implemented in 2019, focusing on key pharma accounts and strengthening our relationships with existing clients, has yielded huge rewards. Our order intake hit an all-time high for the first six months of the year. We are now entering a period of high transformation of our order backlog in revenues. Meanwhile, we are pushing ahead with our iBiopsy clinical and technological validations, in line with our clinical development plans, starting with small patient cohorts and moving on to larger cohorts. This approach will continue to take shape thanks to clinical partnerships, such as the one signed in March with AP-HP."