- New milestone partnerships signed with 2 pharmaceutical
companies in 2020
- Near fourfold increase in annual sales invoicing to € 10.2
million, and IFRS based sales up 20%
- Redeployment plan completed, driving a 17% Opex
reduction
- Strong improvement of free cash flow, at € -2.1 million
compared to € -14.3 million a year earlier, and € 11.0 million of
cash available at the end of 2020
Regulatory News:
Voluntis (Euronext Growth Paris, Ticker: ALVTX - ISIN:
FR0004183960), a leader in the field of digital therapeutics, today
announced its full year 2020 results as approved by the Board of
Directors at its March 29, 2021 meeting. The audit procedures on
the accounts have been performed. The certification report will be
issued after completion of the procedures required for the
publication of the Annual Financial Report.
€m
2019
2020
Sales invoicing
2.7
10.2
Revenues
3.7
4.4
Adjusted EBITDA
(13.4)
(3.4)
EBITDA
(12.5)
(9.1)
Operating income
(14.8)
(11.1)
Net income
(15.8)
(12.1)
Free cash flow
(14.3)
(2.1)
Shareholders’ Equity
1.7
(4.6)
Available cash
5.1
11.0
Cash and cash equivalents net of
financial debts
(2.5)
2.9
On this occasion, Pierre Leurent, CEO of Voluntis, said: "One
year after the presentation of our new strategic roadmap, I am very
proud of the progress we have made. We are on track on all key
indicators, whether it is the conclusion of agreements, with new
milestone partnerships with two leading pharmaceutical companies,
the improvement of our results, thanks to the optimization of our
cost structure, or our financial visibility with a growing cash
flow. I would like to take this opportunity to congratulate all our
employees who actively participated in this success.
This is just a step and we are more focused than ever on our
medium-term goals, with the desire to bring new digital
therapeutics to market and to expand our portfolio of innovative
solutions, both with our current partners and with new ones. We
operate in a market for digital therapeutics that will be worth
nearly $ 9 billion by 2025 and in the two largest therapeutic areas
in the global pharmaceutical industry, oncology and diabetes.
With our robust and widely replicable digital therapeutics
platform, we have the capability to go much further, notably
through the efficient and responsible use of the data collected.
The recent discussions initiated with potential new partners
confirm this ambition and give us the prospect of significant value
creation for our shareholders. »
Implementation of the new strategic plan
As part of the new strategic roadmap presented in March 2020,
Voluntis is committed to establishing major partnerships with
leading pharmaceutical companies to commercialize its digital
therapeutics, with a priority on oncology.
This ambition led to the collaboration with Bristol-Myers
Squibb, announced in March 2020, to develop digital therapeutic
solutions for the management of cancer patients' symptoms and their
remote monitoring by healthcare professionals. This collaboration
complements the portfolio of programs in development in oncology
based on Theraxium Oncology, Voluntis' platform for digital
therapies in oncology.
In parallel, the company announced in July 2020 a global
licensing agreement with Biocon Biologics in diabetes, the second
priority therapeutic area. This global agreement is based on
Insulia®, the FDA-cleared and CE-marked digital therapeutic
developed by Voluntis for patients with type 2 diabetes treated
with basal insulin.
These collaborations add to the company's portfolio with a total
of 10 digital therapeutics co-developed and/or commercialized with
pharmaceutical partners, demonstrating the power and replicability
of the Theraxium platform.
Strong increase in sales invoicing
Thanks to these large-scale partnerships, sales invoicing,
consisting primarily of all upfront payments, milestone payments
and recurring commercialization-related license revenues, have
increased 3.8 times compared to 2019 (€ 2.7 million) to reach €
10.2 million in fiscal year 2020.
After application of the accounting adjustments related to the
spreading of a portion of revenues over the duration of contracts
(IFRS 15), 2020 revenues amounted to € 4.4 million (€ 3.7 million
in 2019). The difference between commercial invoicing and revenue
is recognized in deferred income, which amounted to € 9.9 million
at the end of 2020, compared with only € 3.8 million at the end of
2019, and will be progressively recognized in revenue over the
coming years.
Improvement across all income statement indicators
The roadmap presented in 2020 also called for a redeployment of
the company's human resources and an adaptation of its
organization, both in France and in the United States, in
connection with the repositioning of the commercial strategy
towards indirect sales by partner pharmaceutical companies. This
move has resulted in an adjustment of the workforce, from 113
employees at the end of 2019 to 72 at the end of 20201, while
preserving the innovation capacity of the Group.
Thanks to higher revenues and lower operating expenses, Voluntis
recorded a significant improvement in its adjusted EBITDA, to €
-3,4 million from € -13,4 million in 2019.
Despite the impact of the IFRS 15 accounting standard, the net
loss amounted to € -12.1 million, a significant improvement of €
+3.7 million year-on-year, with a net loss halved in H2 2020 (€ 4.0
million) vs H1 2020 (€8.1 million).
Strengthening the financial structure
The increase in cash flow linked to partnerships and the
strategic reduction in the cost structure have led to a very
significant improvement in free cash flow, which stands at € -2.1
million in 2020 compared with € -14.3 million in 2019.
In addition, Voluntis has put in place new financing to
consolidate its financial structure and obtained a net total of €
11.7 million in 2020, including € 6 million in non-dilutive
financing (PGE French state-guaranteed loan and R&D innovation
loan from Bpifrance Financement) and € 5.7 million in a fundraising
from Debiopharm Innovation Fund, a corporate fund of the Swiss
company Debiopharm, and Indigo, the personal holding company of
Eric Carreel, Chairman and co-founder of Withings. This capital
increase allowed to partially offset the impact of the net loss on
shareholders’ equity, which amounted to € -4.6 million at the end
of the year.
At the end of 2020, Voluntis had a cash position of € 11.0
million, compared with € 5.1 million at the end of 2019. Thanks to
this solid cash position and taking into account the cash flows
expected in 2021, Voluntis believes it has the necessary resources
to cover its financial needs, at least over the next 12 months.
Confirmation of financial objectives
Thanks to the good commercial dynamics and the respect of the
roadmap, Voluntis confirms its short- and medium-term financial
objectives:
- On the commercial side, Voluntis is aiming
to sign new cooperation agreements in 2021.
- On the financial side, based on its current
available information, the company confirms its annual commercial
invoicing objective of between € 8 and 12 million, and still
targets a positive free cash flow in the second half of the
year.
Beyond that, Voluntis confirms the commercial potential of the
agreements signed since December 2019.
Thus, all the agreements signed since December 2019 could
generate, subject to compliance with certain contractual
conditions, up to € 25 million in cumulative commercial billings
between 2020 and 2024 (including a significant portion of the €
10.2 million billed in 2020), mainly consisting of upfront and
milestone payments.
The commercial launch of the co-developed solutions, anticipated
to occur gradually between 2021 and 2024, would also enable
Voluntis to receive licensing revenues for the use of its Theraxium
platform and proprietary digital therapeutics. These could
cumulatively represent tens of millions of euros per year, based on
negotiated revenues per patient and the projected number of
end-users.
About Voluntis
Voluntis creates digital therapeutics that empower people with
chronic conditions to self-manage their treatment every day, thus
improving real-world outcomes. Voluntis’ solutions, combining
mobile and web apps, use clinical algorithms to deliver
personalized recommendations to patients and their care teams. For
example, these recommendations are used to adjust treatment dosage,
manage side effects or monitor symptoms.
Leveraging its Theraxium technology platform, Voluntis has
designed and operates multiple digital therapeutics, especially in
oncology and diabetes. Voluntis has long-standing partnerships with
leading life science companies. Based in Cambridge, MA, and Paris,
France, Voluntis is a founding member of the Digital Therapeutics
Alliance. For more information, please visit: www.voluntis.com
Mnemo: ALVTX - ISIN: FR0004183960
Alternative Performance Indicators :
Commercial invoicing: reflects commercial activity and
the achievement of technical or regulatory milestones during the
period, which are often deferred or spread out in accordance with
IFRS 15 (Upfront payments, exclusivity fees and perpetual licenses
+ Development and integration services + Saas fees, royalties,
maintenance & support)
EBITDA: recurring operating income before depreciation,
amortization and provisions.
Adjusted EBITDA: corresponds to the EBITDA amended with
the variation in prepaid income and deferred charges pursuant to
the application of IFRS 15 (income invoiced for items over which
control has not been transferred, expenses for the execution of
items produced under customer contracts and not yet
transferred).
Free cash flow: cash flow from operations + cash flow
from investing activities
Consolidated income statement
€ 000'
31/12/2020
31/12/2019
Revenue
4 398
3 660
Other Operating Income
791
1 012
Total Income
5 189
4 672
Labor Costs
(9 133)
(11 430)
Other Operating Expenses
(5 108)
(5 758)
Operational Depreciations
(2 052)
(2 312)
Operating profit
(11 103)
(14 827)
Financial income
(718)
(986)
Taxes
(303)
(0)
Net income (group share)
(12 124)
(15 813)
Cash flow statement
€ 000'
31/12/2020
31/12/2019
Operating activities
Net income
(12 124)
(15 814)
Depreciation, amortisation and
provisions
2 155
1 363
Depreciation, amortisation and provisions
- IFRS 16
381
754
Other elements without cash impact
952
648
Net change in operating working capital
requirements
7 265
881
Net cash flows from/(used in) operating
activities
(1 372)
(12 168)
Investment activities
Proceeds/(purchase) from/(of) tangible and
intangible assets
(679)
(2 019)
Proceeds/(purchase) from/(of) non-current
financial assets
(70)
(128)
-
-
Net cash flows from/(used in) investing
activities
(749)
(2 147)
Financing activities
Proceeds from capital increase
5 723
-
Proceeds/(repayment) from/(of) borrowings
and interests paid
2 727
362
Proceeds/(repayment) from/(of) borrowings
and interests paid - ifrs 16
(429)
(709)
Net cash flow from/(used in) financing
activities
8 021
(347)
CASH FLOW VARIATION
5 900
(14 662)
Net foreign exchange difference
(11)
2
OPENING CASH BALANCE
5 121
19 783
CLOSING CASH BALANCE
11 010
5 122
Consolidated balance sheet
€ 000'
31/12/2020
31/12/2019
Assets
Intangible assets
2 071
2 694
Tangible assets
405
3 313
Non-current financial assets
251
258
Other non-current assets
1 091
364
Non current assets
3 817
6 629
Receivables
844
541
Other current financial assets
-
-
Other current assets
2 180
4 984
Cash on hand
11 010
5 121
Current assets
14 035
10 647
Total
17 852
17 277
31/12/2020
31/12/2019
Liabilities
Shareholder equity
(4 629)
1 742
Financial debt (non current)
6 062
4 452
LT provisions and other non current
liabilities
7 219
852
Non current liabilities
13 281
5 304
Financial debt (current)
2 088
3 201
Payables and other current liabilities
7 112
7 029
Current liabilities
9 200
10 230
Total
17 852
17 277
Warning
This press release contains forward-looking statements about the
Voluntis Group and its business, including its prospects and
product development. Voluntis believes that these forward-looking
statements are based on reasonable assumptions. However,
forward-looking statements are not guarantees of future
performance, as they relate to future events and depend on
circumstances that may or may not occur in the future, and on
various risks and uncertainties, including those described in the
2019 Annual Financial Report and the 2020 Half Year Financial
Report published by Voluntis on April 30, 2020 and September 29,
2020, respectively, a copy of which is available on the Group's
website (www.voluntis.com), and on changes in economic conditions,
financial markets and markets in which Voluntis is present. The
forward-looking statements contained in this press release are also
subject to risks that are unknown to Voluntis or that Voluntis does
not consider material at this time. The occurrence of some or all
of these risks could cause the actual results, financial
conditions, performance or achievements of Voluntis to differ
materially from the results, financial conditions, performance or
achievements expressed in such forward-looking statements. Voluntis
disclaims any responsibility to update these forward-looking
statements.
1 Excluding subcontractors
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version on businesswire.com: https://www.businesswire.com/news/home/20210330005916/en/
ACTUS Media relations Vivien Ferran vferran@actus.fr +33 (0)1 53
67 36 34
ACTUS Investor relations Jérôme Fabreguettes-Leib
voluntis@actus.fr +33 (0)1 53 67 36 78
Voluntis Chief Financial Officer Guillaume Floch
investisseurs@voluntis.com +33 (0)1 41 38 39 20