STRASBOURG, France--(BUSINESS WIRE)--Regulatory News:
Transgene (Paris:TNG), a biotech company that designs and develops virus-based immunotherapies, published its financial results for 2017 and provided an update on the progress of its clinical pipeline, preclinical pipeline and its technology platforms.
Philippe Archinard, Chairman and Chief Executive Officer of Transgene,
commented:
“In 2017, Transgene made significant progress across
all aspects of its business and launched seven clinical trials. These
studies are designed to demonstrate the potential of our therapeutic
vaccine and oncolytic virus immunotherapeutics in combination with ICIs.
As a result, we remain on track to communicate t clinical data on five
products before the end of 2018.
“With the launch of our Invir.IOTM platform, we also confirmed our positioning at the forefront of innovation in the field of oncolytic viruses, an area of immense promise. With Invir.IOTM, we design novel virotherapies against cancer with multiple and complementary modes of action to better control the tumor microenvironment and to attack tumors much more effectively. The signings of collaborative agreements with BioInvent and Randox are the first steps of the acknowledgement of this potential. They cumulate with our ongoing clinical developments of Pexa-Vec and TG6002.
“Our expertise in both therapeutic vaccines and oncolytic viruses, confirmed by recent achievements, allows us to look at 2018 with confidence.”
Clinical Pipeline Review
TG4010: combination trial with nivolumab (ICI); collaborations with Bristol-Myers Squibb
TG4010 is a therapeutic vaccine being developed for the treatment of advanced-stage non-squamous non-small cell lung cancer (NSCLC). TG4010’s mechanism of action, excellent safety profile and existing clinical data make it a very suitable candidate for combinations with other therapies.
Treating lung cancer remains an important medical need despite recent
progress. There is a clear need to increase both the number of patients
responding to treatment (response rate) and the duration of response to
achieve better patient outcomes. New positive clinical data from the ICI
pembrolizumab in first-line lung cancer patients were recently
announced. As a result, we expect most first-line patients, particularly
in the US, to receive an ICI as a monotherapy or in combination with
chemotherapy depending on the level of PD-L1 expression of the patients’
tumor cells.
Transgene, with its company-sponsored first-line trial
assessing TG4010 in combination with nivolumab and chemotherapy, is well
positioned both in Europe and in the US to prosper in this changed
environment. We continue to believe that the addition of TG4010 could be
crucial in improving outcomes for first-line patients.
|
TG4010
+ Opdivo® (ICI) Phase 2 |
Non-small cell lung cancer (NSCLC) – 1st line
Trial of TG4010 in combination with nivolumab and with
chemotherapy in patients
|
||
|
TG4010
+ Opdivo® (ICI) Phase 2 |
Non-small cell lung cancer (NSCLC) – 2nd line
Trial of TG4010 in combination with nivolumab, which is being
provided by Bristol-Myers
|
Pexa-Vec: ongoing Phase 3 trial, ongoing Phase 2 combination trials
Pexa-Vec is Transgene’s lead oncolytic virus drug candidate. It is designed to selectively target and destroy cancer cells through intracellular viral replication (oncolysis), and by stimulating the body’s immune response against cancer cells. Its mechanism of action and tolerability profile make it an appropriate candidate for use in combinations.
Advanced liver cancer remains an important medical need. The approaches
currently being developed are aimed at increasing treatment response
rates and improving overall survival. The registration of nivolumab in
the US as a second-line treatment, together with existing data, suggest
that patients could also respond positively to an ICI as a first-line
treatment.
Transgene’s development of Pexa-Vec as a first-line
treatment combined with both the current standard of care (sorafenib)
and nivolumab, could play an important role in the future treatment of
hepatocellular carcinoma.
|
Pexa-Vec
(PHOCUS) Phase 3 |
Advanced liver cancer (hepatocellular carcinoma - HCC) – 1st line
|
||
|
Pexa-Vec
+ Opdivo® (ICI)
|
Advanced liver cancer (hepatocellular carcinoma - HCC) – 1st line
|
Pexa-Vec is also being developed for the treatment of other solid tumors.
Ongoing
trials are expected to deliver results in 2018.
|
Pexa-Vec
cyclophosphamide Phase 1/2a |
HER2 negative breast cancer and soft tissue sarcoma (METROmaJX)
|
||
|
Pexa-Vec
+ Yervoy® (ICI)
(ipilimumab) Phase 1 |
Solid tumors (ISI-JX)
|
||
|
Pexa-Vec Neo-adjuvant |
Solid tumors
|
Our partner SillaJen has also published clinical data that further demonstrate the potential of Pexa-Vec. It presented a poster at ASCO GU featuring the results of a clinical trial in patients with renal cell carcinoma and liver metastases (n=17). The disease control rate reached 76%, with one complete response, confirming that Pexa - Vec, administered intravenously as a monotherapy, can induce antitumor activity.
TG4001: trial in combination with avelumab (ICI); collaboration agreement with Merck KGaA and Pfizer
TG4001 is a therapeutic vaccine that has demonstrated good tolerability, a significant HPV clearance rate and promising efficacy results. Its mechanism of action and good safety profile make TG4001 a good vaccine candidate to be combined with other therapies.
|
TG4001
+ Bavencio® (ICI)
(avelumab) |
HPV-positive head and neck cancer – 2nd line
|
TG6002: first-in-human trial started
A new-generation oncolytic immunotherapy, TG6002 has been designed by Transgene to combine the mechanism of oncolysis (targeted breakdown of cancer cells) with local production of the chemotherapy (5-FU) directly in the tumor. This approach aims at attacking solid tumors on several fronts while avoiding the chemotherapy-associated side effects.
|
TG6002
|
Glioblastoma
|
||
|
TG6002 Phase 1 |
Gastro-intestinal adenocarcinoma
|
TG1050: First part of the results featured at the AASLD in October 2017
TG1050 is a therapeutic vaccine designed for the treatment of chronic hepatitis B. TG1050’s technology (T101) is being developed in China through the joint-venture between Transgene and Tasly Biopharmaceutical Technology.
|
TG1050
+ Standard of care Phase 1/1b |
Chronic hepatitis B
|
Invir.IOTM: New Industry Leading OV Platform
In September 2017, Transgene announced the launch of Invir.IO™ a patented cutting-edge technology platform designed to generate a new generation of multifunctional oncolytic viruses capable of enhancing the tumor micro-environment’s modulation. Novel oncolytic virus therapeutics based on Invir.IO™ have the capacity to incorporate several transgenes encoding for a range of specific anticancer weapons. By using this approach and working alongside external collaborators to provide access to clinically relevant transgenes, Transgene aims to develop OV therapeutics that can transform the treatment of cancer.
Transgene has already demonstrated that oncolytic viruses from the Invir.IO™ platform attack tumors on several fronts and, in addition to the remarkable oncolytic properties of Vaccinia viruses, may:
- induce immunogenic death of cancer cells, and
- allow the expression of several anticancer weapons such as cytokines, chemokines, enzymes, monoclonal antibodies or mini-antibodies (SdAbs, single-domain antibodies) in the tumor.
Transgene is currently evaluating 10 preclinical Invir.IO™ OVs to identify the most appropriate candidates to take into clinical development to address a number of priority indications.
To complement its in-house expertise, Transgene signed two collaborative research agreements in 2017 to gain access to partners’ transgene sequences, coding for anticancer agents, to be incorporated into an Invir.IO™ patented oncolytic virus owned by Transgene. The resulting oncolytic viruses have the potential to be significantly more effective than the combination of these agents administered separately:
- Incorporating an anti-CTLA-4 antibody from BioInvent alone or together with other anticancer weapons. The local expression of anti-CTLA-4 antibodies in the tumor should reduce Treg mediated-immunosuppression in the tumor, thus increasing antitumor activity. This approach is expected to have a much better safety profile compared to the systemic use of anti-CTLA-4 antibodies;
- Incorporating one or more SdAbs generated by Randox in order to combine the effects of oncolytic viruses with the therapeutic properties of SdAbs, which will be expressed directly in the tumor micro-environment, in order to directly or indirectly stimulate effector cells in solid tumors.
In 2018, Transgene plans to invest approximately two thirds of its preclinical research spending on its Invir.IO™ platform and OV candidates. Transgene expects to obtain preclinical proof of concept for its lead candidates OVs in 2018 and to be in a position to initiate the first clinical trials with Invir.IO™ designed virotherapies in 2019.
Research Collaboration with Servier
In June 2017, Transgene signed a collaboration agreement with Servier to generate an original engineering process of allogeneic CAR-T cell therapies by applying Transgene’s viral vectorization technology and capabilities. The aim is to improve the engineering performance of the process by reducing the number of steps.Transgene received €1 million as upfront payment. The collaboration also generates R&D service fees as well as potential success fees.
Intellectual Property
In 2017, Transgene filed several patent applications on new technologies, including Invir.IOTM developments.More than 20 patents were granted and ensure the protection of Transgene’s innovations.
Key Financials for 2017
- Net cash burn for 2017 was reduced to €28.1 million compared to €30.6 million in 2016.
- Cash available at year-end 2017: €41.4 million, compared to €56.2 million at the end of 2016. This cash balance includes €13.5 million (net) raised from a private placement concluded in November 2017.
- Net operating expenses of €36.0 million in 2017, compared to €33.0 million in 2016.
- Net loss of €32.2 million in 2017, compared to a loss of €25.2 million in 2016.
“We were able to reduce our cash burn in 2017 despite accelerating our development plan, starting numerous clinical trials, and making a planned milestone payment to SillaJen of €3.8 million. Operating costs remain under good control which has allowed the Company to allocate most of its financial resources to strategic clinical and preclinical operations. Our current cash resources, including the funds we raised in the private placement in November 2017, will allow us to deliver a number of important clinical milestones in the second half of 2018,” said Jean-Philippe Del, Vice President, Finance.The financial statements for 2017 as well as management’s discussion and analysis are attached to this press release (Appendices A and B).
Financial Outlook 2018
Transgene expects its cash burn for 2018 to be comparable to 2017. The Company has the financial resources to execute its strategy through mid-2019.
The Board of Directors of Transgene met on March 21, 2018, under the chairmanship of Philippe Archinard and closed the 2017 financial statements. Audit procedures have been performed by the statutory auditors and the delivery of the auditors’ report is ongoing. The Company’s registration document, which includes the annual financial report, will be available in April 2018 on Transgene’s website, www.transgene.fr.
A conference call in English is scheduled on March 21st at 6:00 p.m. CET.
Webcast link to English language conference call:
https://ssl.webinar.nl/webcast/transgene/20180321_1/
Participant telephone numbers:
|
France: +33 1 7075 0711
United Kingdom: +44 333 3000 804 United States: +1 631 913 1422 |
Confirmation code: 71 857 783# |
A replay of the call will be available on the Transgene website (www.transgene.fr) following the live event.
Notes to editors
Transgene (Euronext: TNG), part of
Institut Mérieux, is a publicly traded French biotechnology company
focused on designing and developing targeted immunotherapies for the
treatment of cancer and infectious diseases. Transgene’s programs
utilize viral vector technology with the goal of indirectly or directly
killing infected or cancerous cells. The Company’s lead clinical-stage
programs are: TG4010, a therapeutic vaccine against non-small cell lung
cancer, Pexa-Vec, an oncolytic virus against liver cancer, and TG4001, a
therapeutic vaccine against HPV-positive head and neck cancers. The
Company has several other programs in clinical development, including
TG1050 (chronic hepatitis B) and TG6002 (solid tumors).
With its
proprietary Invir.IOTM, Transgene builds on its expertise in
viral vectors engineering to design a new generation of multifunctional
oncolytic viruses.
Transgene is based in Strasbourg, France, and
has additional operations in Lyon, as well as a joint venture in China.
Additional
information about Transgene is available at www.transgene.fr.
Follow
us on Twitter: @TransgeneSA
Disclaimer
This press release contains
forward-looking statements, which are subject to numerous risks and
uncertainties, which could cause actual results to differ materially
from those anticipated. There can be no guarantee that (i) the results
of pre-clinical work and prior clinical trials will be predictive of the
results of the clinical trials currently underway, (ii) regulatory
authorities will agree with the Company’s further development plans for
its therapies, or (iii) the Company will find development and
commercialization partners for its therapies in a timely manner and on
satisfactory terms and conditions, if at all. The occurrence of any of
these risks could have a significant negative outcome for the Company’s
activities, perspectives, financial situation, results and
development.For a discussion of risks and uncertainties which could
cause the Company’s actual results, financial condition, performance or
achievements to differ from those contained in the forward-looking
statements, please refer to the Risk Factors (“Facteurs de Risques”)
section of the Document de Référence, available on the AMF website (http://www.amf-france.org)
or on Transgene’s website (www.transgene.fr).
Forward-looking statements speak only as of the date on which they are
made, and Transgene undertakes no obligation to update these
forward-looking statements, even if new information becomes available in
the future.
Appendix A: 2017 Financial Statements
CONSOLIDATED BALANCE SHEET, IFRS
,(In € thousands)
| ASSETS |
December 31, |
December 31, |
||
| CURRENT ASSETS | ||||
| Cash and cash equivalents | 1,643 | 4,855 | ||
| Other current financial assets | 39,762 | 51,352 | ||
| Cash, cash equivalents and other current financial assets | 41,405 | 56,207 | ||
| Trade receivables | 2,564 | 2,385 | ||
| Inventories | 270 | 221 | ||
| Other current assets | 14,497 | 15,242 | ||
| Assets available for sale | - | - | ||
| Total current assets | 58,736 | 74,055 | ||
| NON-CURRENT ASSETS | ||||
| Property, plant and equipment | 13,604 | 14,580 | ||
| Intangible assets | 250 | 423 | ||
| Financial fixed assets | 3,971 | 5,023 | ||
| Investments in associates | 2,916 | 3,923 | ||
| Other non-current assets | 21,396 | 24,946 | ||
| Total non-current assets | 42,137 | 48,895 | ||
| TOTAL ASSETS | 100,873 | 122,950 | ||
| LIABILITIES AND EQUITY |
December 31, |
December 31, |
||
| CURRENT LIABILITIES | ||||
| Trade payables | 2,868 | 4,504 | ||
| Financial liabilities | 10,283 | 10,198 | ||
| Provisions for risks | 356 | 1,456 | ||
| Other current liabilities | 3,359 | 3,761 | ||
| Total current liabilities | 16,866 | 19,919 | ||
| NON-CURRENT LIABILITIES | ||||
| Financial liabilities | 51,717 | 52,803 | ||
| Employee benefits | 3,710 | 3,725 | ||
| Other non-current liabilities | 491 | - | ||
| Total non-current liabilities | 55,918 | 56,528 | ||
| Total liabilities | 72,784 | 76,447 | ||
| EQUITY | ||||
| Share capital | 62,075 | 56,432 | ||
| Share premiums and reserves | 512,228 | 504,258 | ||
| Retained Earnings | (513,194) | (487,987) | ||
| Profit (loss) for the period | (32,274) | (25,207) | ||
| Other comprehensive income | (746) | (983) | ||
| Total equity attributable to Company shareholders | 28,089 | 46,503 | ||
| TOTAL EQUITY AND LIABILITIES | 100,873 | 122,950 |
CONSOLIDATED INCOME STATEMENT, IFRS
(In € thousands, except
for per-share data)
| December 31, 2017 | December 31, 2016 | |||
| Revenue from collaborative and licensing agreements | 2,099 | 2,346 | ||
| Government financing for research expenditure | 5,358 | 6,382 | ||
| Other income | 687 | 1,583 | ||
| Operating income | 8,144 | 10,311 | ||
| Research and development expenses | (30,359) | (26,419) | ||
| General and administrative expenses | (5,674) | (6,236) | ||
| Other expenses | (154) | (320) | ||
| Net operating expenses | (36,187) | (32,975) | ||
| Operating income from continuing operations | (28,043) | (22,664) | ||
| Finance cost | (2,287) | (602) | ||
| Share of profit (loss) of associates | (1,944) | (917) | ||
| Income (loss) before tax | (32,274) | (24,183) | ||
| Income tax expense | - | - | ||
| Net income/(loss) from continuing operations | (32,274) | (24,183) | ||
| Net income/(loss) from discontinued operations | - | (1,024) | ||
| Net income | (32,274) | (25,207) | ||
| Basic loss per share (€) | (0.52) | (0.45) | ||
| Diluted earnings per share (€) | (0.52) | (0.45) |
CASH FLOW STATEMENT, IFRS
(in € thousands)
|
December 31, |
December 31, |
|||
| Cash flow from operating activities | ||||
| Net income/(loss) from continuing operations | (32,274) | (24,183) | ||
| Net income/(loss) from discontinued operations | - | (1,024) | ||
| Cancellation of financial income | 2,287 | 602 | ||
| Elimination of non-cash items | ||||
| Income of associates | 1,944 | 917 | ||
| Provisions | (1,070) | (8,247) | ||
| Depreciation | 1,691 | 2,267 | ||
| Share-based payments | 436 | 266 | ||
| Others | 60 | 5,038 | ||
|
Net cash generated from/(used in) operating activities before
change in |
(26,926) | (24,364) | ||
| Change in operating working capital requirements | ||||
| Current receivables and prepaid expenses | (2,117) | (3,182) | ||
| Inventories and work in progress | (49) | 942 | ||
| Research tax credit | (5,530) | (6,425) | ||
| Assets available for sale | - | 2,000 | ||
| Other current assets | 941 | (524) | ||
| Trade payables | (1,778) | (2,022) | ||
| Prepaid income | 766 | (479) | ||
| Employee benefits | (663) | 526 | ||
| Other current liabilities | (14) | (57) | ||
| Net cash used in operating activities | (35,370) | (33,585) | ||
| Cash flows from investing activities | ||||
| (Acquisitions)/disposals of property, plant and equipment | (432) | (27) | ||
| (Acquisitions)/disposals of intangible assets | (30) | (20) | ||
| Other (acquisitions)/disposals | 100 | (2,020) | ||
| Net cash used in investing activities | (362) | (2,067) | ||
| Cash flow from financing activities | ||||
| Net financial income proceeds | (113) | (283) | ||
| Gross proceeds from the issuance of shares | 14,390 | 46,300 | ||
| Share issue costs | (1,118) | (1,220) | ||
| Conditional subsidies | 2,528 | (180) | ||
| (Acquisition)/disposal of other financial assets | 11,651 | (22,933) | ||
| Net tax credit financing | 6,307 | 6,761 | ||
| Bank loan | - | 10,000 | ||
| Financial leases | (1,121) | (1,223) | ||
| Net cash generated from/(used in) financing activities: | 32,524 | 37,222 | ||
| Effect of changes in exchange rates on cash and cash equivalents | (4) | - | ||
| Net increase/(decrease) in cash and cash equivalents | (3,212) | 1,570 | ||
| Cash and cash equivalents at beginning of period | 4,855 | 3,285 | ||
| Cash and cash equivalents at end of period | 1,643 | 4,855 | ||
| Investments in other current financial assets | 39,762 | 51,351 | ||
| Cash, cash equivalents and other current financial assets | 41,405 | 56,206 |
Appendix B: Management Discussion of 2017 Financials
Revenue
During the periods under review, revenues from collaborative and licensing agreements amounted to €2.1 million in 2017 compared to €2.3 million in 2016. They mainly included:
- research and development services for third parties amounting to €0.9 million in 2017 (€0.5 million in 2016); and
- income related to commercial use of technologies or products provided under license by Transgene amounting to €1.2 million in 2017 (€1.8 million in 2016). In 2017, this mainly comprised the license of the TG3003 product sold to ElsaLys Biotech SAS for €1.0 million.
As of December 31, 2017, government financing for research expenditures was €5.4 million (€6.4 million in 2016) consisted of a research tax credit, as well as grants received and receivable:
- the research tax credit (CIR - crédit impôt recherche) amounted to €5.4 million in 2017 (€6.3 million in 2016). Related eligible expenses (net of grants received during the fiscal year) amounted to €18.0 million in 2017 and €21.0 million in 2016. This decrease is related in particular to the receipt in 2017 of the balance of grants and advances repayable under the ADNA program for an amount of €2.5 million; and
- research grants amounted to less than €0.1 million in 2017 (€0.1 million in 2016).
Operating expenses
Research and development (R&D) expenses
Research and development (R&D) expenses amounted to €30.4 million in 2017, compared to €26.4 million in 2016.
The following table details R&D expenses by type:
| In millions of euros | Dec. 31, 2017 | Dec. 31, 2016 | Change | |||
| Payroll costs | 11.1 | 10.8 | +3% | |||
| Share-based payments | 0.3 | 0.2 | +58% | |||
| Intellectual property expenses and licensing costs | 4.8 | 1.1 | +325% | |||
| External expenses for clinical projects* | 7.0 | 7.0 | +1% | |||
| External expenses for other projects | 1.5 | 1.8 | -14% | |||
| Operating expenses | 3.9 | 4.1 | -5% | |||
| Depreciation and provisions | 1.8 | 1.5 | +19% | |||
| RESEARCH AND DEVELOPMENT EXPENSES | 30.4 | 26.4 | +15% |
* Expenses related to the subcontracting of the production of clinical batches are presented under “External expenses for clinical projects.”
Employee costs allocated to R&D (salaries, employer contributions and related expenses) amounted to €11.1 million in 2017, compared to €10.8 million in 2016.
Intellectual property and licensing expenses amounted to €4.8 million in 2017 versus €1.1 million in 2016. This increase was mainly due to the milestone payment of €3.8 million ($4 million) to SillaJen, Inc. in the first half of 2017. This was triggered by the first patient being recruited in Europe in the Phase 3 trial of Pexa-Vec (PHOCUS).
External expenses for clinical projects were €7.0 million in 2017, stable compared to 2016.
Other external expenses, including expenses for research, preclinical, amounted to €1.5 million in 2017 versus €1.8 million in 2016.
Operating expenses, including the cost of operating research laboratories, amounted to €3.9 million in 2017 versus €4.1 million in 2016.
General and administrative (G&A) expenses
General and administrative (G&A) expenses amounted to €5.7 million in 2017 versus €6.2 million in 2016.
The following table details G&A expenses by type:
| In millions of euros | Dec. 31, 2017 | Dec. 31, 2016 | Change | |||
| Payroll costs | 3.0 | 3.8 | -21% | |||
| Share-based payments | 0.2 | 0.1 | +86% | |||
| Fees and administrative expenses | 1.6 | 1.5 | +5% | |||
| Other fixed costs | 0.8 | 0.7 | +21% | |||
| Depreciation and provisions | 0.1 | 0.1 | -6% | |||
| GENERAL AND ADMINISTRATIVE EXPENSES | 5.7 | 6.2 | -8% |
Employee costs allocated to G&A amounted to €3.0 million in 2017 versus €3.8 million in 2016. In 2016, the Company had registered unfunded expenses due to the transfer of the Chairman and Chief Executive Officer’s home entity.
Fees and administrative expenses amounted to €1.6 million in 2017 versus €1.5 million in 2016.
Other income
Other income amounted to €0.7 million in 2017 versus €1.6 million in 2016. In 2017, Transgene registered a €0.4 million corresponding to a lower restructuring expense, compared to provisions.
In December 2016, the Company participated to a capital increase of Transgene Tasly (Tianjin) BioPharmaceutical Co. Ltd. This operation generated an income of €1.2 million.
Other expenses
Other expenses amounted to €0.2 million in 2017 versus €0.3 million in 2016.
Interest income (expense)
Net interest expense amounted to €2.3 million in 2017 versus €0.6 million in 2016.
Financial income (investment income) amounted to €0.3 million in 2017 versus €0.9 million in 2016.
Interest expense amounted to €2.6 million in 2017 versus €1.5 million in 2016. This mainly consisted of:
- bank accrued interests on the EIB loan (€0.8 million in 2017 vs €0.4 million in 2016),
- discount on earn-out related to the sales of Jennerex Inc. shares to Sillajen Inc. in 2014 (€0.8 million in 2017),
- discount of the advances received by Bpifrance under the ADNA (Advanced Diagnostics for New Therapeutic Approaches) program (€0.5 million vs €0.6 million in 2016),
- and interest on financing leases (€0.2 million in 2017 and in 2016).
Net loss
Net loss was €32.3 million in 2017, compared to €24.2 million in 2016.
Net loss from discontinued operations
In 2017, the Company no longer records any income from discontinued operations. Total net loss from discontinued operations for 2016 was €1.0 million.
Total net loss
Total net loss for 2017 was €32.3 million, compared to €25.2 million in 2016.
Net loss per share was €0.52 in 2017 (€0.45 in 2016).
Investments
Investments in tangible and intangible assets (net of disposals) amounted to €0.6 million in 2017 (€0.1 million in 2016).
Repayable advances and loans
In 2017, the Company received €1.7 million in reimbursable advances from Bpifrance, corresponding to the balance of grants and advances from the ADNA program.
In 2017, the Company refinanced its 2016 research tax credit of €6.3 million. To this effect, it took out a bank loan with Bpifrance that matures in mid-2020, at which time the receivable is expected to be paid by the French government.
The tax credit for competitiveness and employment was also financed in 2017 in the amount of €0.1 million through a loan from Bpifrance (which matures in mid-2021).
In 2017, Transgene did not draw dawn the second tranche of €10 million of the credit facility granted by the European Investment Bank (EIB) in January 2016. In June 2016, Transgene had drawn down the first €10 million tranche. This first tranche, out of a total of €20 million available, is payable in 2021. The interest accrued is payable starting in 2019.
Liquidity and capital resources
The Company’s cash is invested in short-term money-market mutual funds or placed, at market conditions, in a cash pool managed by the majority shareholder of Transgene, Institut Mérieux.
The Company completed a capital increase by means of a private placement and accelerated book building in November 2017 and raised €14.4 million.
As of December 31, 2017, the Company’s available cash amounted to
€41.4 million versus €56.2 million on December 31, 2016.
At
the date of this document, the Company had no bank debt subject to
covenants.
Cash flow
Excluding capital increases and EIB loan, the Company’s net cash burn amounted to €28.1 million in 2017 versus €30.6 million in 2016.
Post-closing events
None.
