ALVET EGEIRO Pharma

• Number of BIOCERA-VET kits sold increased by 19% compared to the 1st half of 2023, and by 72% in the 2nd quarter of 2024 compared to 2nd quarter 2023

• Net sales increase by 12.1%1 compared to the 1st half of 2023

• Net operating loss reduced by 23% compared to the 1st half of 2023 with operating charges reduced by 13%

• Cash position of €0.7 million on June 30, 2024, giving financial visibility up to November 2024

• Suspension of the ViscoVet clinical trial and associated expenses pending its anticipated results

• The Company continues assessing several refinancing options

• The Board of Directors will reconvene on September 26th, 2024 to assess the situation of the Company’s net assets value and will put in place any required measures, in accordance with the processes provided for by Belgian legislation

Regulatory News:

TheraVet (ISIN: BE0974387194 - ticker: ALVET), a pioneering company in the management of osteoarticular diseases in pets, today announces its financial results ended June 30, 2024, and the publication of its half-year financial report.

Recent operational highlights

• Commercial launch of BIOCERA-VET® Equine, a BIOCERA-VET® version specifically adapted for equine dental and orthopaedic surgeries in March 2024;

• Commercial launch in additional important European markets: Germany & Italy;

• Early termination of recruitment in the pivotal multicentric European study assessing VISCO-VET in canine osteoarthritis and associated expenses waiting for results ;

• Available cash of €0.7 million on June 30, 2024, covering operational activities until November 2024.

2024 half-year financial results

Financial information as of June 30, 2024

All amounts are in € (Belgian GAAP) (1)

30.06.2024

6 months

31.12.2023

12 months

30.06.2023

6 months

Revenue

56,058

117,839

55,266

Of which net sales of finished goods, excluding credit notes related to sales in the previous reporting period1

58,169

n.c.

51,886

Other operating income

434,195

1,148,747

606,172

Variation of stocks of finished goods and work and contracts in progress

(4,409)

(8,817)

(8,746)

Produced fixed assets

394,356

960,216

554,887

Operating Grants

3,800

76,813

2,606

Other operating income

40,448

120,535

57,424

Total Operating products

490,253

1,266,585

661,438

Operating charges

(1,075,352)

(2,377,685)

(1,233,841)

Goods for resale, raw materials, and consumables

(48,829)

(74,588)

(39,839)

R&D Expenses

(90,100)

(370,139)

(206,318)

Expenses related to the listed company

(81,779)

(121,067)

(54,437)

Marketing and commercial expenses

(86,705)

(186,617)

(73,297)

General & administrative expenses

(442,747)

(847,623)

(414,643)

Staff

(322,358)

(770,425)

(441,626)

Other operating charges

(2,833)

(7,226)

(3,681)

Gross Operating result

(585,099)

(1,111,100)

(572,403)

Amortization & Depreciation

(379,161)

(1,064,009)

(686,722)

Net Operating result

(964,260)

(2,175,109)

(1,259,125)

Financial result

115,560

558,635

353,968

Result before taxes

(848,700)

(1,616,474)

(905,157)

Income taxes

 

45,766

 

Net result

(848,700)

(1,570,708)

(905,157)

Net Cash & Cash equivalents at the end of the period

713,562

1,147,082

1,753,562

(1) The accounts presented at 30.06.2024 and 30.06.2023 have not been reviewed by the Statutory Auditors

In the first half of 2024, TheraVet generated revenue of €56,058. When excluding credit notes related to revenue generated during the first half of 2023, net sales of finished goods increased by 12.1% compared to the first half of 20231.

In the first half of 2024, commercial expansion continued with the launch of the BIOCERA-VET® range in Germany and Italy, important markets in Europe, for which distribution has been entrusted to Alcyon Italia, the leading distributor of innovative orthopaedic products in Italy.

As announced in the 2023 annual report, given the delay in setting up operations and in distributing BIOCERA-VET® in the United States, the distribution agreement with InVictos LLC has been terminated, and advanced discussions are underway to enable its rapid replacement. This lack of distribution support partly explains the lower-than-expected contribution of the United States to the Company's sales in the first half of 2024.

TheraVet also changed its distributor in Spain to enable to work with a more established player with a larger commercial coverage in Spain, the Canary Islands and the Balearic Islands.

The two sales channels (direct and indirect) resulted in the sale of 300 kits, compared with 252 in the first half of 2023, an increase of 19%. The second quarter was more dynamic, with a growth of 72% compared with the second quarter of 2023 and of 4% in the number of kits sold as compared to the first quarter of 2024.

The first sales of BIOCERA-VET Equine were recorded during the period. The BIOCERA-VET Bone Surgery range still accounts for most sales, i.e. 90%, and is 33% up on the first half of 2023. The BIOCERA-VET® Osteosarcoma range showed a decline of 44% compared with the first half of 2023, despite a recovery in sales during the second quarter of 2024.

The Company also generated €394,356 of “capitalized production” because of the activation of development expenses related to the BIOCERA-VET® and VISCO-VET® programs during the first half of 2024, representing a decrease of €160,531 as compared to the first half of 2023.

The inventory of finished products and work in progress, valued at €4,409 as of December 31, 2023, decreased by €4,409 during the first half of 2024.

1 Clarification note: during the first half of 2024, TheraVet issued credit notes related to sales made during the first half of 2023. These credit notes relate to product returns by a distributor. These credit notes are included into the revenues of the first half of 2024, thereby leading to a biased view of actual net sales during the first half of 2024. When applying the value of these credit notes to the revenues of the first half of 2023, actual net product sales in the first half of 2024 have increased by 12.1% compared to the first half of 2023.

Other operating income of €40,448 as of June 30, 2024, compared to the amount of €57,424 as of June 30, 2023, represents a decrease of €16,976 because of the decrease in payroll and the public financial contributions received in this context.

The decrease in “Operating charges" reflects the continued focus on increasing the Company’s operational efficiencies:

- COGS have increased by €8,990, to rebuild inventories built up at the end of 2022 tand largely consumed during 2023 following the continued expansion of the BIOCERA-VET® products in several countries; - R&D expenses of €90,100 as of June 30, 2024, decreased by €116,218 compared to the first half of 2023. This reduction is explained by the particularly important R&D activities performed in 2023 compared to H1 2024; - Listed company expenses are amounting to €81,779, which represents an increase of €27,342 compared to the first half of 2023 and resulting from the stock market communication activities and the Company’s search for new financing sources during H1 2024; - Marketing & Sales expenses amount to €86,705, representing an increase of €13,408 as compared to first half of 2023, explained by the commercial launch of the equine product range; - G&A expenses represent €442,747 an increase by €28,104 compared to the first half of 2023. This limited increase results from the inflation’s impact on the Company’s administrative expenses, despite the ongoing focus on optimizing the Company’s structural expenses since 2023; - Staff expenses reached €322,358 by June 30, 2024, compared to €441,626 as of June 30, 2023. This decrease of €119,268 is explained by an increase in organizational and process efficiencies in the second half of 2023 and the first half of 2024.

Finally, the amortization of development expenses related to the BIOCERA-VET® Bone Surgery and VISCO-VET® programs represents €379,160 as of June 30, 2024, and resulted in an operating loss of €964,260 compared to €1,259,125 as of 30 June 2023 and a reduced net loss of €848,700 million compared to €905 157 as of June 30, 2023.

Post-closing event as of June 30, 2024

Ms Sabrina Ena, COO of the Company, has left the Company in August 2024 to take on a new role as CEO of the EU Biotech School in Gosselies (Belgium). The Company wishes her great success in this new challenge.

On August 29, 2024, the Company has increased its capital by €19,028.10 following the issuance of 190,281 new shares, related to the conversion of 42 convertible obligations issued as part of its equity line put in place with IRIS Capital. Following this capital increase, the Company’s new capital is valued at €341,241.70.

On September 11, 2024, the Company decided to put on hold all operating expenses related to its ViscoVet clinial trial to limit their impact on the Company’s current cash position, as delivery of the results is not expected until December 2024.

Next key milestones of the next 2024 half-year

The Company is currently concentrating all its efforts on refinancing and/or any alternative solution.

The Board of Directors will reconvene on September 26th, 2024 to review and act as needed on the Company’s net assets value, in accordance with the processes provided for by Belgian legislation.

2024 Half-year report

The 2024 half-year financial report ending June 30, 2024, will be published September 12, 2024, and will be available on the Company’s website (www.theravet-finances.com).

Going Concern

At the end of the reporting period, the Company's equity remained above the share capital.

The current accounting loss is due to the fixed costs of running the Company, and to the development costs of the VISCO-VET® and BIOCERA-VET® projects, which are not covered by a grant. Cash flow has been sufficient to cover these costs.

Based on the current scope of its activities and best estimates of annual cash consumption, revenue and grants, as well as the absence of any significant impact of the political situation on its activities, the Company estimates that its cash and cash equivalents as of June 30, 2024, should be sufficient to finance its operations until November 2024. These circumstances indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.

The Company is currently considering several options for raising additional funds, whether through equity financing, collaboration, or a strategic tie-up with another player in the animal healthcare market. Based on its operating budgets, the management believes that the Company will be able to meet its financial obligations for the 2 months following the date of these financial statements.

In addition, the Board of Directors has formally noted on September 11, 2024 that the value of the Company’s net assets on June 30, 2024 stands at €(116 345), if all non-amortized R&D assets are excluded from its valuation, meaning a value below the threshold of 50% of its share capital (which is valued at €322 394 on June 30, 2024). The Board of Directors will reconvene on September 26th, 2024 to review this situation and take any relevant measures, in line with the processes provided for by Belgian legislation.

Financial calendar for 2025

Full-year financial results: April 22, 2025 Ordinary General Assembly: June 05, 2025 Half-year business update: July 8, 2025 Half-year financial results: September 11, 2025

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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240911853430/en/

TheraVet Chief Executive Officer Enrico Bastianelli investors@thera.vet Tel: +32 (0) 71 96 00 43

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 Tel: + 32 (0) 489 57 76 52