Biotalys Reports Half-Year 2023 Financial Results and Business
Highlights
Press release - regulated information
- Strategic
partnership with Syngenta to collaborate on the research and
development and commercialisation of a new bio-insecticide
- Field trials
with Evoca™* continue to demonstrate competitive performance in
fruits and vegetables; trials now ongoing for additional crops such
as blueberries and hemp
- Update on
regulatory approval process for Evoca
- Successful CFO
succession with Douglas Minder in function since July 1st
- Private
placement of new shares for €7 million at market value
- Cash and cash
equivalents amounted to €32 million end of June 2023
- Management to
host a conference call and live webcast today at 15:00 CEST / 14:00
BST / 09:00 EDT, details below
Biotalys (Euronext - BTLS), an Agricultural
Technology (AgTech) company developing protein-based biocontrol
solutions for crop and food protection, today announces its key
business achievements and consolidated financial results for the
first half of 2023, prepared in accordance with International
Accounting Standard 34 ‘Interim Financial Reporting’ as adopted by
the European Union. The full half year report including the interim
financial results is available here on the Biotalys website.
Patrice Sellès, Chief Executive Officer
of Biotalys, noted:
“Throughout the first half of 2023, Biotalys made significant
progress in the buildup of its pipeline, technology and platform
validation with industry leaders. We are continuing to work with
the EPA to obtain regulatory approval in the U.S. for Evoca, the
company’s first biocontrol solution, to help address the needs of
growers seeking safer tools to make their crop protection
strategies more sustainable. At the same time, we are working with
partners on the future market positioning of Evoca, as well as on
continuing to improve cost of goods for this important first
product.”
H1 2023
operational
highlights
In the first half of this year, Biotalys
continued to seal partnerships, prepare for the launch of Evoca,
and strengthen its patent portfolio.
- In April 2023,
Biotalys entered into a strategic partnership with Syngenta to
collaborate on the research, development and commercialization of a
new bio-insecticide to counter the threat of pest resistance and
advance sustainable agriculture.
- Evoca, Biotalys’
first protein-based biocontrol, further demonstrated its efficacy
in recent global field trials in preparation for its U.S. market
introduction. Announcing the results of over 160 field trials in
partnership with industry leaders Biobest and Beck Ag
across various high-value crops in May 2023, Evoca outperformed
leading chemical and biological solutions in several trials.
- Earlier this year, Biotalys
announced a major advance in manufacturing efficiency for Evoca,
strengthening the production and distribution path for the product.
The scientific breakthrough, based on the development of multiple
proprietary yeast strains, increased the production efficiency of
Evoca’s bioactive ingredient by 50 to 70%.
- Following the successful outcome of
the feasibility study with Novozymes at the end of last year,
Biotalys and Novozymes have been further exploring manufacturing
possibilities for a next generation of Evoca based on Novozymes’
production hosts to create significant cost of goods and scaling
advantages. The companies are also exploring collaborations beyond
Evoca to address the need for effective and more sustainable
protein-based biocontrols in new markets and
indications.
- In March 2023, Biotalys announced a
succession plan for its Chief Financial Officer. The transition was
successfully completed as planned with the promotion of Douglas
Minder to CFO, effective 1 July 2023.
- Biotalys continued to
strengthen its patent portfolio to protect its science and
products. In H1 2023, two additional patents were granted to the
company in India and Australia, both patents providing further IP
protection relating to antibodies binding to fungal plant
pests.
- Early in 2023, Biotalys
earned Top 100 status in Forward
Fooding’s FoodTech 500 list, climbing to #65.
Biotalys was also honored in its inaugural FoodTech 500 $100
Million Club. A highly competitive event with thousands of
nominations from 50+ countries, the FoodTech 500 ranks global
entrepreneurial talent at the intersection of food, technology and
sustainability.
Regulatory update for
Evoca
-
The U.S. Environmental Protection Agency
(EPA) has recently changed its review process and no
longer sets dates for expected decisions to applicants. Biotalys
continues to work with the EPA as it reviews the submitted
regulatory dossier. Pending regulatory approval, Biotalys is
preparing for the start of the market calibration with Evoca in
2024 and for the launch of the commercial version of the product in
2026.
- In
Europe, the rapporteur Member State is The
Netherlands where the CTGB
(College voor
de Toelating
Gewasbeschermingsmiddelen en
Biociden) is currently reviewing
the regulatory dossier. Importantly, the authority has recently
approved the sale of cucumbers treated with Evoca in greenhouse
trials. While normally crops used in such trials have to be
destroyed, as they are treated with products that are not yet
authorized, the Dutch authority granted an exemption allowing sale
of cucumbers treated with Evoca in greenhouse trials. This decision
reinforces Biotalys’ confidence that the product is safe to
use.
Private placement
- In June 2023, Biotalys successfully
closed a private placement for €7 million. The company issued
1,135,257 new shares (approximately 3.67% of the company’s shares
outstanding prior to the transaction) at €6.166 per share to deepen
its relationship with existing shareholders, Agri Investment Fund
BV (A.I.F.) and the Belgian Sovereign Wealth Fund (“Federale
Participatie- en Investeringsmaatschappij NV” – SFPIM).
New board member
(post-period)
- Connected to the private placement,
Biotalys nominated Agri Investment Fund BV (A.I.F.), represented by
Patrik Haesen, to the Board of Directors, which
was approved by the Special Shareholders Meeting of 21 August 2023.
Patrik Haesen is currently Chief Executive Officer of A.I.F. and
General Manager Investments at M.R.B.B., the holding company of the
Farmers Union in Belgium. He has in-depth expertise in audit,
finance and investment. He also is a director in Arvesta, Acerta
and Iscal Sugar and in several other innovative AgTech companies.
Mr. Haesen holds a Master’s degree in commercial engineering (KU
Leuven) and a European Master in public administration (KU Leuven
and Corvinus University in Budapest), as well as a postgraduate
degree in finance (EHSAL, Management School).
* Evoca™: Pending Registration. This product is
not currently registered for sale or use in the United States, the
European Union, or elsewhere and is not being offered for sale.
Select financial information
|
In € thousands |
June 30, 2023 |
June 30, 2022 |
|
Other operating income |
1,318 |
|
1,140 |
|
|
Research and development expenses |
(8,661 |
) |
(7,574 |
) |
|
General and administrative expenses |
(2,771 |
) |
(2,596 |
) |
|
Marketing expenses |
(741 |
) |
(718 |
) |
|
Other operating expenses |
- |
|
- |
|
|
Operating loss |
(10,855 |
) |
(9,748 |
) |
|
Loss of the period |
(10,664 |
) |
(9,892 |
) |
|
Net cash used in operations |
(8,516 |
) |
(9,559 |
) |
|
Net cash outflow of the period |
(2,208 |
) |
(10,547 |
) |
|
Cash and cash equivalents |
31,886 |
|
45,560 |
|
-
Other operating income for the first half of 2023
amounted to €1.3 million and related to R&D tax incentives
received and grants awarded to support R&D activities.
-
Research and development expenses amounted to €8.7
million for the first half year, an increase of €1.1 million
compared to the same period in 2022. These increases primarily
related to higher costs for external consultants and wages (+€0.7
million), increased depreciations and maintenance costs for lab
equipment, and additional IT costs.
-
General and administrative expenses amounted to
€2.8 million for the first half of 2023, compared to €2.6 million
for the same period in 2022. The increase was mainly driven by
higher wage costs related to the wage index increases and to a
lesser extent the expansion of the team.
- Net cash
used in operating activities decreased by €1.0 million, to
€8.5 million for the six months ended 30 June 2023. This decrease
was primarily caused by changes in working capital driven by
advances received from various project grants.
Outlook
-
Biotalys expects to initiate the market calibration of
Evoca in 2024 with Biobest in selected U.S. states
upon registration of the product. In the meantime, the company is
focusing its field trial program with Evoca in a broader number of
crops such as blueberries and hemp where demand for safe and
sustainable solutions is high.
-
In addition, Biotalys is now conducting field trials with the
next generation of Evoca on a
wide variety of fruits and vegetables to work towards market
introduction of a commercial version of the product in 2026.
-
The company expects to advance the product pipeline in H2 2023,
with the planned promotion of the BioFun-6 program
into development stage while progressing other current pipeline
programs further in the discovery stage.
-
Looking ahead, Biotalys plans to leverage the AGROBODY
Foundry™ platform and
pipeline to expand into new markets and crops, and will continue to
explore strategic collaborations with the potential to create
additional value.
-
While maintaining the planned investment in the product pipeline
and the technology platform, the company has decided to pause its
sole bactericide program (BioBac-1) and focus
its activities
on the
fungicide and
insecticide
programs where the commercial opportunity is
higher.
-
Excluding the funds raised in the private placement of June 2023,
the company expects cash burn for FY 2023 to be
slightly lower than in FY 2022 (2022: €22 million).
Auditor
statement
The condensed consolidated financial statements
for the six-months’ period ended 30 June 2023 have been prepared in
accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by
the European Union. They do not include all the information
required for the full annual financial statements and should
therefore be read in conjunction with the financial statements for
the year ended 31 December 2022. The condensed consolidated
financial statements are presented in thousands of Euros (unless
stated otherwise). The condensed consolidated financial statements
have been approved for issue by the Board of Directors. The
statutory auditor, Deloitte Bedrijfsrevisoren/Reviseurs
d’Entreprises, represented by Pieter-Jan Van Durme, has performed a
limited review of the interim financial report. The interim
financial report 2023 and the review opinion of the auditor are
available on www.biotalys.com.
Upcoming IR events
- 23 August 2023:
Biotalys’ management will host a webcast on the HY23 financial
figures and business highlights (see below for details)
- 13 September
2023: Biotalys' management will meet with institutional investors
at the Berenberg Food & Chemicals Conference in London
(UK)
- 26-27 September
2023: Biotalys’ management will meet with investors at the World
AgriTech Conference in London (UK)
- 9 -10 October
2023: Biotalys’ management will meet with institutional investors
in Paris (France)
- 14 November
2023: Biotalys’ management will meet with institutional investors
at the AgTech Answers Conference organized by Roth MKM in New York
(US)
- 16 November
2023: Biotalys’ management will meet with institutional investors
at the Global Agriculture Forum organized by Kepler Cheuvreux
(virtual)
- 16 November
2023: Biotalys’ management will present to retail investors at the
VFB Biotech event in Ghent (Belgium)
- 30 November
2023: Biotalys’ management will meet with institutional investors
at the Canaccord Genuity AgriFood Tech conference (virtual)
Live webcast and conference call
Company management will host a live webcast to
discuss its half-year 2023 results and recent business performance
today, 23 August 2023 at 15:00 CEST / 14:00 BST / 09:00 AM EDT.
Webcast link:
https://edge.media-server.com/mmc/p/4fyq6uyq
Dial-in details: To ask questions live to the
management, please also register for the conference call via
https://register.vevent.com/register/BIb590908b4b514a3c8cdadbeb329437d6
About Biotalys
Biotalys is an Agricultural Technology (AgTech)
company developing protein-based biocontrol solutions for the
protection of crops and food and aiming to provide alternatives to
conventional chemical pesticides for a more sustainable and safer
food supply. Based on its novel AGROBODY™ technology platform,
Biotalys is developing a strong and diverse pipeline of effective
product candidates with a favorable safety profile that aim to
address key crop pests and diseases across the whole value chain,
from soil to plate. Biotalys was founded in 2013 as a spin-off from
the VIB (Flanders Institute for Biotechnology) and has been listed
on Euronext Brussels since July 2021. The company is based in the
biotech cluster in Ghent, Belgium. More information can be found on
www.biotalys.com.
For further information, please
contact
Toon Musschoot, Head of IR & CommunicationT:
+32 (0)9 274 54 00E: Toon.Musschoot@biotalys.com
Important
Notice
Biotalys, its business, prospects and financial
position remain exposed and subject to risks and
uncertainties. A description of and reference to these risks
and uncertainties can be found in the 2022 annual report on the
consolidated annual accounts and the full half-year report.
This announcement contains statements which are
"forward-looking statements" or could be considered as such. These
forward-looking statements can be identified by the use of
forward-looking terminology, including the words ‘aim’, 'believe',
'estimate', 'anticipate', 'expect', 'intend', 'may', 'will',
'plan', 'continue', 'ongoing', 'possible', 'predict', 'plans',
'target', 'seek', 'would' or 'should', and contain statements made
by the company regarding the intended results of its strategy. By
their nature, forward-looking statements involve risks and
uncertainties and readers are warned that none of these
forward-looking statements offers any guarantee of future
performance. Biotalys’ actual results may differ materially from
those predicted by the forward-looking statements. Biotalys makes
no undertaking whatsoever to publish updates or adjustments to
these forward-looking statements, unless required to do so by
law.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL
POSITION
|
ASSETS (in thousands of
euros) |
Note |
30
June 2023 |
31 December 2022 |
|
Non-current assets |
|
11,859 |
11,755 |
|
Intangible assets |
|
562 |
596 |
|
Property, plant and equipment |
5 |
5,245 |
5,335 |
|
Right-of-use assets |
5 |
3,638 |
3,667 |
|
Deferred tax assets |
|
164 |
125 |
| Other
non-current assets |
|
2,250 |
2,031 |
|
|
|
|
|
|
Current assets |
|
35,352 |
37,762 |
|
Receivables |
|
507 |
820 |
| Other
financial assets |
|
2,108 |
2,100 |
| Other
current assets |
6 |
851 |
746 |
| Cash
and cash equivalents |
7 |
31,886 |
34,096 |
|
|
|
|
|
|
TOTAL ASSETS |
|
47,211 |
49,517 |
|
EQUITY AND LIABILITIES(in thousands of
euros) |
Note |
30 June 2023 |
31 December 2022 |
|
|
|
|
|
|
|
|
|
|
Equity attributable to owners of the parent |
|
35,187 |
|
38,114 |
|
|
| Share
capital |
8 |
46,198 |
|
44,548 |
|
|
| Share
premium |
8 |
15,542 |
|
10,164 |
|
|
|
Accumulated losses |
|
(30,326 |
) |
(19,661 |
) |
|
| Other
reserves |
|
3,772 |
|
3,064 |
|
|
|
|
|
|
|
|
|
Total equity |
|
35,187 |
|
38,114 |
|
|
| |
|
|
|
|
|
Non-current liabilities |
|
6,414 |
|
5,443 |
|
|
|
Borrowings |
9 |
5,196 |
|
5,338 |
|
|
|
Employee benefits obligations |
|
18 |
|
16 |
|
|
|
Provisions |
|
90 |
|
89 |
|
|
| Other
non-current liabilities |
10 |
1,110 |
|
- |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
5,610 |
|
5,960 |
|
|
|
Borrowings |
9 |
1,167 |
|
1,163 |
|
|
| Trade
and other liabilities |
|
3,109 |
|
4,204 |
|
|
| Other
current liabilities |
10 |
1,334 |
|
592 |
|
|
|
Total liabilities |
|
12,024 |
|
11,402 |
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
47,211 |
|
49,517 |
|
|
The accompanying notes are an integral part of
these condensed consolidated financial statements. Please see the
full interim report available on www.biotalys.com.
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME FOR THE 6 MONTHS
ENDED 30 JUNE
|
in € thousands |
Note |
2023 |
|
2022 |
|
| Other
operating income |
12 |
1,318 |
|
1,140 |
|
|
Research and development expenses |
13 |
(8,661 |
) |
(7,574 |
) |
| General
and administrative expenses |
13 |
(2,771 |
) |
(2,596 |
) |
| Sales
and marketing expenses |
13 |
(741 |
) |
(718 |
) |
|
Operating loss (EBIT) |
|
(10,855 |
) |
(9,748 |
) |
|
Financial income |
|
422 |
|
141 |
|
|
Financial expenses |
|
(191 |
) |
(269 |
) |
|
Loss before taxes |
|
(10,624 |
) |
(9,877 |
) |
| Income
taxes |
|
(40 |
) |
(15 |
) |
|
LOSS FOR THE PERIOD |
|
(10,664 |
) |
(9,892 |
) |
|
|
|
|
|
|
Other comprehensive income (OCI) |
|
|
|
| Items
of OCI that will be reclassified subsequently to profit or
loss |
|
|
|
|
Exchange differences on translating foreign operations |
|
(3 |
) |
9 |
|
|
|
|
|
|
|
TOTAL COMPREHENSIVE LOSS
OF THE PERIOD |
|
(10,667 |
) |
(9,883 |
) |
| |
|
|
|
|
Basic and diluted loss per share (in €) |
14 |
(0.34 |
) |
(0.32 |
) |
| |
|
|
|
|
Loss for the period attributable to the owners of the Company |
|
(10,664 |
) |
(9,892 |
) |
| |
|
|
|
|
Total comprehensive loss for the period attributable to the owners
of the Company |
|
(10,667 |
) |
(9,883 |
) |
The accompanying notes are an integral part of
these condensed consolidated financial statements. Please see the
full interim report available on www.biotalys.com.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN
EQUITY FOR THE 6 MONTHS ENDED 30
JUNE
|
(in thousands of euros) |
Attributable to equity holders of the Company |
Total Equity |
|
Share capital |
Share premium |
Other reserves |
Accumulated losses |
|
|
Share-based payment reserve |
Currency translation reserve |
|
|
|
Balance at 31 December 2021 |
81,969 |
31,303 |
1,473 |
|
25 |
(55,855 |
) |
58,915 |
|
|
Share-based payments |
- |
- |
847 |
|
- |
- |
|
847 |
|
| Exercise of ESOP Warrants |
125 |
91 |
(91 |
) |
- |
- |
|
125 |
|
| Total
comprehensive loss |
- |
- |
- |
|
9 |
(9,892 |
) |
(9,883 |
) |
|
Balance at 30 June 2022 |
82,094 |
31,394 |
2,229 |
|
34 |
(65,747 |
) |
50,004 |
|
|
(in thousands of euros) |
Attributable to equity holders of the Company |
Total Equity |
|
Share capital |
Share premium |
Other reserves |
Accumulated losses |
|
|
Share-based payment reserve |
Currency translation reserve |
|
|
|
Balance at 31 December
2022 |
44,548 |
10,164 |
3,035 |
|
29 |
|
(19,662 |
) |
38,114 |
|
|
Share-based payments |
- |
- |
723 |
|
- |
|
- |
|
723 |
|
| Exercise of ESOP Warrants |
16 |
12 |
(12 |
) |
- |
|
- |
|
16 |
|
| Issuance of shares |
1,634 |
5,366 |
- |
|
- |
|
- |
|
7,000 |
|
| Total
comprehensive loss |
- |
- |
- |
|
(3 |
) |
(10,664 |
) |
(10,667 |
) |
|
Balance at 30 June 2023 |
46,198 |
15,542 |
3,746 |
|
26 |
|
(30,326 |
) |
35,187 |
|
The accompanying notes are an integral part of
these condensed consolidated financial statements. Please see the
full interim report available on www.biotalys.com.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 6 MONTHS ENDED 30 JUNE
|
in € thousands |
Note |
2023 |
|
2022 |
|
| |
|
|
|
| CASH FLOW FROM
OPERATING ACTIVITIES |
|
|
|
|
Operating result |
|
(10,855 |
) |
(9,748 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
Depreciation, amortization and impairments |
|
888 |
|
771 |
|
|
Share-based payment expense |
|
723 |
|
855 |
|
|
Changes in provisions |
|
- |
|
4 |
|
|
R&D tax credit |
|
(355 |
) |
(203 |
) |
|
Other |
|
(41 |
) |
- |
|
|
|
|
|
|
| Changes
in working capital: |
|
|
|
|
Receivables |
|
447 |
|
(52 |
) |
|
Other current assets |
|
(106 |
) |
(397 |
) |
|
Trade and other payables |
|
(953 |
) |
(831 |
) |
|
Other current and non-current liabilities |
|
1,861 |
|
62 |
|
|
Cash used in
operations |
|
(8,392 |
) |
(9,539 |
) |
|
|
|
|
|
| Taxes
paid |
|
(124 |
) |
(20 |
) |
|
|
|
|
|
|
Net cash used in
operating activities |
|
(8,516 |
) |
(9,559 |
) |
| |
|
|
|
| CASH FLOW FROM
INVESTING ACTIVITIES |
|
|
|
|
Interest received |
|
251 |
|
- |
|
|
Purchases of property, plant and equipment |
5 |
(224 |
) |
(328 |
) |
|
Investments in other financial assets |
|
(8 |
) |
- |
|
|
|
|
|
|
|
Net cash provided by / (used in) investing
activities |
|
20 |
|
(328 |
) |
| |
|
|
|
| CASH FLOW FROM
FINANCING ACTIVITIES |
|
|
|
|
Repayment of borrowings |
9 |
(211 |
) |
(207 |
) |
|
Repayment of lease liabilities |
9 |
(438 |
) |
(416 |
) |
|
Interests paid |
|
(79 |
) |
(164 |
) |
|
Proceeds from issue of equity instruments of the Company |
8 |
7,016 |
|
126 |
|
|
|
|
|
|
|
Net cash provided by (used in) financing
activities |
|
6,289 |
|
(661 |
) |
| |
|
|
|
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(2,208 |
) |
(10,547 |
) |
| |
|
|
|
|
CASH AND CASH EQUIVALENTS at beginning of period |
|
34,096 |
|
56,107 |
|
|
Effect of foreign exchange rates |
|
(2 |
) |
- |
|
| CASH
AND CASH EQUIVALENTS at end of period, calculated |
|
31,886 |
|
45,560 |
|
The accompanying notes are an integral part of
these condensed consolidated financial statements. Please see the
full interim report available on www.biotalys.com.
- Biotalys kondigt financiële resultaten en bedrijfshoogtepunten
aan voor H12023
- Biotalys Reports HY 23 Financial Results and Business
Highlights
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