BioAlliance Pharma SA (Euronext Paris – BIO), a company dedicated to specialty and orphan oncology products, today reported a consolidated turnover of €576,000 for the second quarter of 2011.
This turnover is mainly made of recurring revenues from Loramyc®/Oravig®. It also comprises an amount of €113,000 corresponding to the staggering of the upfront payment received from BioAlliance new partner Sosei, according to international financial accounting standards. This agreement, signed in May 2011, could reach up to $18.5 million: in addition to the $3 million upfront payment, it will provide milestone payments linked to development, registration and commercialization steps in Japan.
The « specialty products » portfolio of BioAlliance Pharma is mostly dedicated to direct revenues from out-licensing agreements; it has already enabled the Company to receive more than €50 million cumulated payments since 2007. A second product, Sitavir® in the treatment of herpes labialis, actually in registration phase, is the next candidate for a partnership.
The second quarter of 2011 was also marked by the achievement of key steps of the “orphan oncology products” portfolio, notably:
The phase III clinical trial application to the French drug agency (Afssaps) for Livatag®, a very promising product in the treatment of primary liver cancer;
The application for orphan medicinal product designation in Europe and the United States for clonidine Lauriad™, in phase II clinical development for the prevention of radiotherapy-induced oral mucositis in patients with head and neck cancer.
The Company has announced the validation by the agencies of both applications, which is a mandatory step in the progress of these projects.
“BioAlliance’s strategy is based on its two synergistic portfolios, with a view to accelerating growth. While the first portfolio has contributed and will substantially contribute to generate cash to the Company, the second one relies on very high potential drugs that should enable us to generate direct revenues and thus to become more independent from partners”, declares Judith Greciet, CEO of BioAlliance Pharma.
End of July, BioAlliance has also successfully achieved a capital increase of €16 million that will enable the Company to optimize the development program of Livatag® and to reinforce its “orphan oncology products” portfolio.
BioAlliance cash reserves stood at €14.2 million as of end of June. Additional incoming payments of a least €5.5 million mainly from existing licensing agreements, as well as the €16 million net proceeds of the capital increase will add to this figure in 2011.