ABIVAX: cash flow nearly tripled on 2020 annual results

  •   06/04/2021 - 08h26
  •   DEHOUI Lionel

Abivax S.A. is a company specialized in the biotechnological field. Its specificity lies in the development of new drugs that modulate the immune system for the treatment of inflammatory diseases. It is also known for its innovations in the treatment of cancer and viral diseases. At the end of 2020, Abivax experienced a significant improvement in cash flow.

ABIVAX: cash flow nearly tripled on 2020 annual results

Cash Flow

Fiscal year 2020 has been satisfactory at Abivax Group, which has recorded impressive cash flow figures. Over the past year, the group has been consuming cash at a rate of around €3.3 million per month. Over 84 million euros were mobilized by the company over the entire period for financing operations. 84 million was raised by the company over the entire period for financing operations. The mobilisation of these funds was exceptional.

In fact, in October 2020, Abivax carried out an oversubscribed capital increase of 28 million euros without a discount. In addition, Bpifrance provided 36 million euros in public funding, of which 16 million euros was a repayable advance and 20 million euros was a grant. Very quickly, an amount of 14.4 million euros was paid in June for the first milestone payment.

Abivax also took out a bond issue and received an EMP. This loan was made with Kreos Capital in October 2020 for an amount of €15 million. As for the Loan Guaranteed by the French State, it amounts to 5 million euros. It was granted through Société Générale in June 2020.


Three times the cash flow

The most surprising thing about the Abivax Group's financial statement is that it has seen its cash flow improve considerably. It goes from €9.8 million at the end of December 2019 to €29.3 million at the end of the 2020 financial year. On the other hand, general and administrative expenses have proportionally remained stable and amount to €5.1 million in fiscal 2020. They were €4.3 million at the end of 2019, or 13% of total operating expenses.

On the other hand, the treasury benefited from €1.6 million as a grant in the first part of the financing of the ABX464 Covid-19 program. The payment was made by Bpifrance in June 2020. There is also the Research Tax Credit of 2.6 million euros obtained during the financial year, which has strengthened the group's cash position. These various contributions constitute in reality, the revenues of Abivax.


Abivax expenses and operating profit

In terms of R&D expenses, they are mainly due to the need to finance the development costs of ABX464 in the various inflammatory indications. They correspond to exactly 95% of the expenses and amount to 34.5 million euros.

In addition, the company saw its R&D investments increase by €5.5 million. 5.5 million. This corresponds to an operating loss of 4.7 million, compared to the operating loss of €33.3 million at the end of the previous financial year.

In addition, in the next few days, the Abivax group will publish its Annual Financial Report for the year 2020. It will also release its Universal Registration Document prior to its Annual General Meeting scheduled for 4 June 2021 at 10.00am.