Genfit(US:GNFT)2022-04-08 14:24Financial Data and Key Metrics Changes - GENFIT's revenue and other operating income for 2021 amounted to €85.6 million, a significant increase from €7.8 million in 2020, reflecting a growth of over 1000% [9] - Operating expenses decreased to €53.8 million in 2021 from €90.7 million in 2020, indicating effective cost control measures [10] - The company generated a net profit of €67.3 million in 2021, compared to a net loss of €101.2 million in 2020, marking a substantial turnaround [11] - Total financial debt decreased from €185.7 million to €74.2 million, while cash and cash equivalents increased to €258.8 million from €171 million at the end of 2020 [11] Business Line Data and Key Metrics Changes - Revenue primarily stemmed from a €120 million non-refundable upfront payment from Ipsen, with €80 million recognized as revenue in 2021 and €40 million booked as deferred revenue [12] - R&D expenses and other operating expenses were reduced by €31.7 million from €85.3 million in 2020 to €53.6 million in 2021, demonstrating effective cost management [13] Market Data and Key Metrics Changes - The strategic partnership with Ipsen is highlighted as a landmark deal, one of the largest signed by a French biotech with a pharmaceutical company in recent years, enhancing financial visibility and operational flexibility [17][24] Company Strategy and Development Direction - The company aims to pivot from NASH to PBC, focusing on improving financial position, accelerating remaining programs, and building a diversified pipeline [22] - The strategic plan includes advancing two lead programs in PBC and diagnostics for at-risk NASH patients, while also exploring opportunities in ACLF and cholestatic diseases [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial visibility achieved through the Ipsen deal and state COVID loans, which provide over €135 million of non-dilutive financing [23] - The company anticipates an increase in operational cash burn to €65 million in 2022, excluding potential future business development expenses [20] Other Important Information - The NIS4 technology was recognized for its capacity to identify at-risk NASH patients, with a study by the NIMBLE consortium validating its effectiveness [30] - The company is actively seeking both early-stage and clinical-stage assets to strengthen its pipeline, particularly in the areas of ACLF and cholestatic diseases [55] Q&A Session Summary Question: Can you elaborate on your business development activities and the types of assets you are interested in? - The company is looking to create a portfolio in ACLF, combining multiple mechanisms of action and considering both early-stage and clinical-stage assets for potential deals [40] Question: Can you provide more details on the launch of NIS4 and its performance? - The company is not satisfied with the commercial performance of NIS4 due to the lack of an approved drug for NASH, but is pleased with its technical development and recognition from independent studies [52][53] Question: How does NTZ fit into the overall mechanism for ACLF? - NTZ has confirmed antibiotic and anti-inflammatory activities, with ongoing studies demonstrating its impact on inflammatory markers and organ function in ACLF models [60][62]