Abivax Net Loss Rises as Hepatitis B Study Fails

The Tip Desk · June 30, 2016 · 2 min read

The biotechnology company reported a net loss of 8.274 million euros for the first half of 2016.

Abivax reported a net loss of 8.274 million euros for the first half of 2016, an increase of 15% compared to the 7.170 million euro loss recorded during the same period in 2015,. The biotechnology company, which targets the immune system to eliminate viral diseases, attributed the result to the pace of expenses generated by its primary research and development programs.

Operating losses rose 31% to 10.617 million euros from 8.107 million euros in the first half of 2015. Research and development costs represented 86% of total operating expenses, up from 83% in the first half of 2015. The company said this increase reflects intensified clinical research and accelerated pre-clinical activity. Specifically, external studies and subcontracting for clinical, toxicology, and industrial process development accounted for 76% of other external purchases and charges, compared to 67% in the prior year.

These expenditures supported the acceleration of major programs, including phase I and IIa studies for ABX 464, a lead product targeting HIV/AIDS. The company is currently conducting a second Phase IIa study for ABX 464, known as ABX464-004, which involves 28 patients,. This study measures the time elapsed before viral load rebounds after treatment is interrupted. Abivax expects to make preliminary results from this study public before the end of 2016.

In contrast, the development of ABX 203, an immunotherapy for chronic Hepatitis B, faced a setback. A futility analysis conducted in June 2016 indicated that achieving the primary endpoint of the ABX 203-002 study was improbable. The study, which took place across seven Asia-Pacific countries, evaluated the ability of ABX 203 to control the virus after the cessation of nucleoside analogue treatments,. The company said the development strategy for ABX 203 is currently under review.

Abivax also restructured its operations to consolidate research at its Montpellier site. This process included the closure of the Evry site on April 30, 2016, and a move to new facilities on the CNRS-Languedoc Roussillon campus. The closure resulted in a 251,000 euro increase in salaries and social charges. Other costs associated with the move included 30,000 euros for technical equipment transport and 64,000 euros for rent at the Evry premises.

Financial resources as of June 30, 2016, included 1.101 million euros in available cash, 25.015 million euros in term account investments, and 2.005 million euros in SICAV/OPCVM. The company said these resources will cover operational needs at least until the end of 2017.

Market performance declined significantly during the period. As of June 30, 2016, the share price was 4.59 euros, representing a 78% decrease compared to its introduction price one year prior.