Onxeo Provides Financial Update
Paris (France), March 14th, 2018 – 8:30 pm CET - Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO FR0010095596), a biotechnology company specializing in the development of innovative drugs in oncology, and notably rare and resistant forms of cancer, today announced that it will record an impairment charge of about €38 million in its 2017 consolidated accounts pursuant to value tests performed in accordance with IFRS accounting standards. This accounting adjustment does not impact in any way the Company’s current or future cash balance or its ability to advance its strategic value creation strategy as planned.
During the process of the preparation of the consolidated accounts, the Group executed routine impairment tests of assets, notably intangible R&D assets pertaining to Beleodaq®, acquired in 2014 through the merger with Topotarget and valued €63 million. These tests were based on the comparison of the value of Beleodaq® recorded in the balance sheet and its fair value, based on discounted cumulative future cash flows during the 2018 – 2040 period. Following a review by the Company’s audit committee, the board of directors approved the recording of an impairment charge of about €38 million to the Company’s 2017 financial statements.
“This adjustment relates solely to the implementation of financial standards and has no impact on Onxeo’s cash position or operational performance,” said Nicolas Fellmann, Chief Financial Officer. “This impairment charge is related to an increased competitive environment for Beleodaq® in the peripheral T-cell lymphoma market. Importantly, the primary value driver for Onxeo for the foreseeable future is the continued development of AsiDNA™, a first-in-class DNA Damage Response inhibitor with blockbuster potential and our lead product candidate. We expect to initiate a phase I study of AsiDNA as an anti-cancer monotherapy in the coming weeks, with results anticipated to be available by year-end.”
Overall impairment test of the company showed a notable added value, when comparing the calculated fair value and the book value. This added value is mostly attributable to AsiDNA and reflects the progress made since acquisition in the development of this key asset, on which the company strongly relies to execute its growth strategy in the near future.
Onxeo will publish its 2017 full-year results on Thursday March 29, 2018.