ALVET TheraVet SA

• Cash position of €3.19 million at December 31, 2022, giving financial visibility up to beginning of 4th 2024 quarter
• 2022 sales performance within targets in the European market
• New distribution agreements concluded in some high potential markets

Regulatory News:

TheraVet (ISIN: BE0974387194 - ticker: ALVET) (Paris:ALVET) (Brussels:ALVET), a pioneering company in the management of osteoarticular diseases in pets, today announces its Full-Year results for the year to December 31, 2022.

The Company also informs its shareholders and the entire financial community of the availability of the preparatory documents for the ordinary general meeting of the Company to be held on June 1, 2023 at 5 p.m. (CEST) at 1070 Brussels, Allée de la Recherche 4.

All documents relating to this general meeting are available on request from the company, or can be consulted on the company's website under Shareholders / General Meetings.

Enrico Bastianelli, Chief Executive Officer of TheraVet, stated: “Since the IPO of TheraVet in June 2021, we have been committed to deploying therapeutic innovations to treat osteoarticular pathologies in companion animals. Started in June 2022, the execution of our marketing strategy, based on a direct and indirect sales model, has so far met the objectives we set for ourselves in Europe while experiencing certain delays in the United States. We intend, through new agreements, to accelerate the international deployment of our range in high-potential countries.”

Full-Year 2022 financial results

€ (Belgian GAAP)

December - 22

December - 21

Revenue

94,037

12,348

Other operating income

1,904,880

2,181,390

Stock of finished goods and work in progress

144,524

54,843

Produced fixed assets

1,507,741

1,930,219

Operating grants

53,508

54,199

Other operating income

199,107

142,129

Total operating income

1,998,917

2,193,738

Purchases and expenses

(3,680,826)

(3,364,356)

COGS

(211,396)

(63,972)

R&D expenses

(593,224)

(1,152,580)

Corporate and listed company related expenses

(190,573)

(174,932)

Marketing & Sales expenses

(240,268)

(199,622)

G&A expenses

(1,317,502)

(1,009,862)

Staff expenses

(1,124,566)

(762,085)

Other operating charges

(3,297)

(1,303)

EBITDA

(1,681,910)

(1,170,618)

Depreciation and amortization

(1,094,792)

(558,294)

EBIT

(2,776,702)

(1,728,912)

Financial income

427,044

261,088

Profit/loss for the period before taxes

(2,349,658)

(1,467,824)

Income taxes on the result

34,030

126,974

Net Profit/loss

(2,315,628)

(1,340,850)

Net Cash

3,185,671

5,631,418

Starting in June 2022 with the launch of its new BIOCERA-VET line, TheraVet has continued its commercial deployment in the United Kingdom, Ireland, Spain and the United State. The Company generated €0.09 million of revenue, mainly in Europe.

A total of 534 units1 of BIOCERA-VET products were sold in Europe, a performance within the sales objectives set by the Company in this market.

In Europe, BIOCERA-VET® Osteosarcoma accounted for 15% of total sales, highlighting the potential and the interest generated by innovative orthopedic solutions. Building on this momentum, TheraVet intends to consolidate its position in Europe by partnering with new distributors in Germany and Italy while strengthening its links with its distribution partners in Belgium, France, the United Kingdom and Spain.

In the United States, sales were by direct sales only due to delays in setting up the distribution activities. As of mid-October owing to the ACVS Surgery Summit (American College of Veterinary Surgeons) in Portland, Oregon, direct sales have started to gain traction over the last weeks of the year.

Finally, TheraVet announced the signing of a distribution agreement on February 21, 2023 with Vetpharma, a leading company in the marketing of veterinary products and services, to cover 24 new countries, including new high-potential territories such as the Scandinavian countries, Brazil, South Africa, Australia and Japan. This new agreement makes the BIOCERA-VET® range available on five continents while addressing an estimated population of more than 150 million dogs2.

The Company also generated €1.51 million of “produced fixed asset” as a result of the activation of research and development expenses related to the BIOCERA-VET® and VISCO-VET® programs.

The development of preclinical and clinical programs as well as the marketing plan of BIOCERA-VET® products are in accordance with the Company development plan as reflected by the “Purchases and expenses" globally aligned with last year expenses :

• COGS increased by €0.15 million as compared to 2021 as the results of the marketing of the new range of BIOCERA-VET® products and sale increase;
• R&D expenses decreased by €0.56 million as compared to 2021, reaching €0.59 million. The decrease is mainly the result of (i) a decrease in the expenses related to VISCO-VET® development and GMP manufacturing process validation (€0.39 million in December 2022 as compared to €0.84 million in December 2021) and of (ii) a slightly decrease in BIOCERA-VET® development expenses as compared to 2021 expenses (€0.21 million in December 2022 vs €0.29 million in December 2021);
• Corporate and listed company related expenses increased by €0.02 million as compared to 2021 and related to the agreement with Rotschild&Co (market maker contract) and Degroof Petercam (sponsor research agreement);
• Marketing & Sales expenses increased by €0.04 million as compared to 2021 related to the commercial launch of BIOCERA-VET® and the attendance to international and national relevant conferences and congresses;
• G&A expenses increased by €0.31 milllion as compared to 2021 mainly as the results of:
  • the increase of the operational consultants in order to structure and streghten the Company (increase of €0.16 million as compared to 2021);
  • the recruitment of new independant board members to strengthen the Board of the Company.
• Staff expenses increased to €0.36 million as compared to 2021 as result of the strenghtening of the Company organization.

Finally, the amortization of development expenses related to the BIOCERA-VET® and VISCO-VET® programs results in an operating loss of €2.8 million and a net loss of €2.3 million.

The Company’s cash and cash equivalents at December 31, 2022 amounted at €3.19 million, allowing it to fund operation at least until the beginning of the fourth quarter of 2024.

Operational hightlights

On March 28, 2023, the Company released an update on its development and product portfolio strategy. The full information is available through the following link.

Annual Report 2022

The 2022 annual report ended December 31, 2022 will be published on April 25, 2023 and will be available on the Company’s website, www.theravet-finances.com.

The statutory auditor has issued an unmodified report dated April 25, 2023 on the Company’s annual accounts as of and for the year 2022 ended December 31, 2022, and has confirmed that the accounting data reported in the accompanying press release is consistent, in all material respects, with the accounts from which it has been derived.

Financial calendar 2023

Ordinary General Meeting : June 1st, 2023

Half-year activity update : July 11, 2023

Half year financial results: September 6, 2023

About TheraVet SA

TheraVet is a veterinary biotechnology company specialising in osteoarticular treatments for companion animals. The Company develops targeted, safe and effective treatments to improve the quality of life of pets suffering from joint and bone diseases. For pet owners, the health of their pets is a major concern and TheraVet’s mission is to address the need for innovative and curative treatments. TheraVet works closely with international opinion leaders in order to provide a more effective response to ever-growing needs in the field of veterinary medicine. TheraVet is listed on Euronext Growth® Paris and Brussels, has its head office in Belgium (Gosselies) with a US subsidiary in South Carolina. For more information, visit the TheraVet website or follow us on LinkedIn / Facebook / Twitter

Forward-looking statements

This release may contain forward-looking statements. Forward-looking statements may include statements regarding the Company's plans, objectives, goals, strategies, future events, the safety and clinical activity of TheraVet’s pipelines and financial condition, results of operation and business outlook. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. These risks, uncertainties and other factors include, among others, those listed and fully described in the “Risk Factors” section in the Annual Report. TheraVet expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.

Statements of operations and comprehensive loss

 

31.12.2022

31.12.2021

Operating

1.998.916

2.193.738

Revenue

94.037

12.348

Stocks of finished goods and work and contracts in progress: increase (decrease)

144.524

54.843

Produced fixed assets

1.507.741

1.930.219

Other operating income

252.615

196.327

Non-recurring operating charges

 

 

Operating charges

4.775.618

3.922.649

Goods for resale, raw materials and consumables

211.396

63.972

Purchases

146.696

206.459

Stock: increase/decrease

64.700

-142.487

Services and other goods

2.341.568

2.536.995

Remuneration, social security costs and pensions (+)/(-)

1.124.566

762.085

Amortisations of and other amounts written down on formation expenses, intangible and tangible fixed assets

908.651

558.294

Increase, decrease in amounts written off stocks contracts in progress and trade debtors : appropriations (write-backs) … (+)/(-)

186.141

 

Provisions for risks and charges - appropriations (uses and write-backs) … (+)/(-)

 

 

Other operating charges

3.297

1.303

Operation charges carried to assets as restructuring costs

Non-recurring operating charges

 

 

Operating profit (loss) (+)/(-)

(2.776.702)

(1.728.912)

 

 

31.12.2022

31.12.2021

Financial income

473.836

310.197

Recurring financial income

473.836

310.197

Income from financial fixed assets

10.067

9.481

Other financial income

463.768

300.716

Non-recurring financial income

 

 

Financial charges

46.792

49.109

Recurring financial charges

46.792

49.109

Interest and other debt charges

30.009

26.452

Other financial charges

16.782

22.657

Non-recurring financial charges

 

 

Profit (loss) for the period before taxes (+)/(-)

(2.349.658)

(1.467.824)

Transfer from postponed taxes

 

 

Transfer to postponed taxes

 

 

Income taxes (+)/(-)

(34.030)

(126.974)

Taxes

13.591

2.596

Adjustment of income taxes and write-back of provisions

47.621

129.570

Profit (loss) for the period (+)/(-)

(2.315.628)

(1.340.850)

Transfer from untaxed reserves

 

 

Transfer to untaxed reserves

 

 

Profit (loss) for the period available for appropriation (+)/(-)

(2.315.628)

(1.340.850)

Profit (loss) for the period (+)/(-)

(2.315.628)

Profit (loss) per share for the period (+)/(-) – Direct

(0.718)

Profit (loss) per share for the period (+)/(-) – Diluted

(0.716)

Statement of Financial Position

ASSETS

31.12.2022

31.12.2021

FORMATION EXPENSES

635.415

818.975

FIXED ASSETS

5.306.204

4.476.839

Intangible fixed assets

5.084.070

4.263.509

Tangible fixed assets

28.578

29.841

Land and buildings

 

 

Plant, machinery and equipment

23.064

20.401

Furniture and vehicles

5.514

9.440

Leasing and other rights

 

 

Other tangible fixed assets

 

 

Tangible assets under construction and advance payments made

 

 

Financial fixed assets

193.556

183.489

Affiliated companies

181.631

171.564

Participating interests

8.749

8.749

Amounts receivable

172.882

162.815

Other financial fixed assets

11.925

11.925

Amounts receivable and cash guarantees

11.925

11.925

CURRENT ASSETS

3.560.167

6.155.650

Amounts receivable after more than one year

 

 

Trade debtors

 

 

Other amounts receivable

 

 

Stocks and contracts in progress

91.013

197.330

Stocks

91.013

197.330

Raw materials and consumables

0

25.607

Work in progress

13.226

45.576

Finished goods

0

9.268

Goods purchased for resale

77.787

116.880

Contract in progress

 

 

Amounts receivable within one year

235.098

279.243

Trade debtors

34.019

6.916

Other amounts receivable

201.079

272.327

Current investments

 

 

Cash at bank and in hand

3.185.671

5.631.418

Deferred charges and accrued income

48.385

47.659

TOTAL ASSETS

9.501.785

11.451.463

LIABILITIES

31.12.2022

31.12.2021

 

 

 

EQUITY

7.521.135

9.647.627

Contributions

10.172.459

10.172.459

Available

322.394

322.394

Issued capital

322.394

322.394

Beyond capital

9.850.065

9.850.065

Share premium account

9.850.065

9.850.065

Revaluation surplues

 

 

Reserves

 

 

Legal reserve

 

 

Reserve not available

 

 

In respect of own shares held

 

 

Others

 

 

Untaxed reserves

 

 

Available reserves

 

 

Accumulated profits (+)/ losses (-)

(4.272.294)

(1.956.667)

Investment grants

1.620.971

1.431.835

PROVISIONS AND DEFERRED TAXES

Provisions for liabilities and charges

 

 

Deferred taxes

 

 

AMOUNT PAYABLE

1.980.651

1.803.836

Amounts payable after more than one year

897.058

909.568

Financial debts

897.058

909.568

Subordinated loans

37.500

62.500

Other loans

859.558

847.068

Trade debts

 

 

Advances received on contracts in progress

 

 

Other amounts payable

 

 

Amounts payable within one year

1.075.548

884.468

Current potion of amounts payable after more than one year

151.033

92.055

Financial debts

 

 

Credit institutions

 

 

Other loans

 

 

Trade debts

136.156

540.165

Suppliers

136.156

540.165

Bills of exchange payable

 

 

Advances received on contracts in progress

 

 

Taxes, remuneration and social security

239.943

173.004

Taxes

28.527

16.674

Remuneration and social security

211.415

156.330

Other amounts payable

548.415

79.245

Accruals and deferred income

8.045

9.800

TOTAL LIABILITIES

9.501.785

11.451.463

Cash Flow Statement

Cash flow Statement

31.12.2022

31.12.2021

 

 

 

Free cashflow

(1.404.282)

(869.908)

Net cash used in operations

373.092

(339.325)

Net cash (used in)/from investing activities

(1.554.457)

(3.094.450)

Net cash (used in)/from financing activities

139.900

7.767.640

 

 

 

Net cash (decrease)/increase

(2.445.747)

3.463.956

cash & cash equivalents at opening

5.631.418

2.167.461

cash & cash equivalents at closing

3.185.671

5.631.418

1 Including Elvetis first binding order as per the agreement signed in December 2022; invoiced in 2023

2 1 to 2% of the dog population is subjected to orthopedic surgeries each year, from which 10 to 20% requires a bone graft. 20 to 50% of bone grafts are bone subsititutes such as BIOCERA-VET depending on veterinary surgeon preferences, availability of autograft or other bone substitutes. However, these estimates – based on EU & US epidemiological data – can also be impacted by the number for veterinary surgeons, access to operating rooms and surgical equipment, by the owner awareness of treatments, price and affordability of procedures, owner willingness to pay, insurance coverage, etc

View source version on businesswire.com: https://www.businesswire.com/news/home/20230424005727/en/

TheraVet Chief Operating Officer

Sabrina Ena investors@thera.vet Tel: +32 (0) 71 96 00 43

Chief Corporate Officer Julie Winand investors@thera.vet

NewCap

Investor Relations and Financial Communications Théo Martin / Nicolas Fossiez theravet@newcap.eu Tel: +33 (0)1 44 71 94 94

Press Relations Arthur Rouillé theravet@newcap.eu Tel: +33 (0)1 44 71 00 15

NewCap Belgique Press Relations

Laure-Eve Monfort lemonfort@newcap.fr Tél. : + 32 (0) 489 57 76 52