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Biotalys Reports Half-Year 2022 Financial Results and Business Highlights

Biotalys

Biotalys

Ghent, Belgium, Aug. 19, 2022 (GLOBE NEWSWIRE) —

Biotalys Reports Half-Year 2022 Financial Results and Business Highlights

  • Established strategic partnerships, paving the way for market calibration in the U.S. of Biotalys’ first biocontrol product Evoca™*

  • Realized R&D breakthrough for Evoca, increasing the commercial potential of the product by 2026

  • Expanded Executive and Board leadership

  • Cash and cash equivalents amounted to €45.6 million end of June 2022

  • Management to host a conference call at 16:00 CEST / 15:00 BST / 10:00 EDT today, details below

Biotalys (Euronext – BTLS), an Agricultural Technology (AgTech) company protecting crops and food with protein-based biocontrol solutions, today announces its key business achievements and consolidated financial results for the first half of 2022, prepared in accordance with International Accounting Standard 34 ‘Interim Financial Reporting’ as adopted by the European Union. The full interim financial report is available here on the Biotalys website.

Patrice Sellès, Chief Executive Officer of Biotalys, commented: “Biotalys continues to forge the path toward a safer, more sustainable food supply by building a strong product pipeline, an exceptionally talented team and a global partner network. As we are coming closer towards the regulatory approval of our first biocontrol Evoca, the continued positive feedback the product has earned both in the field and from renowned industry experts has created great excitement throughout our international team. We achieved a series of major milestones during the first half of 2022, and remain focused on our mission to bring innovative, protein-based biocontrols to growers.”

H1 2022 operational highlights

In the first half of this year, Biotalys has been actively building its team and partnerships to further develop its platform and pipeline:

  • Biotalys continued to enter into strategic partnerships with global leaders to prepare for the market calibration of Evoca, the company’s first biofungicide.

    • In January 2022, Biotalys partnered with Olon, a world-leading bioactive manufacturing organization, to significantly scale-up the production of the active ingredient of Evoca – ensuring production efficiency to increase its market potential. Biotalys also appointed Kwizda Agro, an established crop protection manufacturer, as formulator of its protein-based biocontrols – solidifying a critical step in the set-up of the supply chain for Biotalys products, starting with Evoca.

    • In June 2022, Biotalys announced a new partnership with Novozymes, a world leader in biotech solutions, to explore additional routes for the scale-up and production of the bioactive protein of Evoca. A feasibility study is currently ongoing, the outcome of which can serve as a potential key milestone for Biotalys and Novozymes to enter into development, supply and commercialization agreements for a future generation of Evoca.

  • Evoca continues to perform consistently well in field trials in preparation for its planned U.S. market introduction – demonstrating its promise as a pivotal tool for growers looking for more sustainable ways to control devastating fungal diseases.

    • Its latest trial results (announced in May 2022) further proved its efficacy and ideal product positioning in grapes, with Evoca outperforming a leading chemical product when applied at the flowering stage of grapes in a fungicide rotation program.

    • The latest trials also demonstrated that wine grape juice quality, vinification or wine characteristics exhibited no differences for Evoca-treated vineyards compared to non-Evoca treated vineyards.

    • With more than 600 field trials now completed, Evoca offers fruit and vegetable growers a new tool for their Integrated Pest Management (IPM) programs to combat major fungal diseases to maximize yields with significantly lower residues.

  • Achieving another major milestone in May of this year, the active ingredient in Evoca earned an entirely new resistance class by the Fungicide Resistance Action Committee (FRAC). The new classification granted by this highly regarded international panel of renowned technical experts, demonstrates to growers that Evoca will be a new and differentiating product to manage resistance to fungicides, complementing existing biological and conventional crop protection solutions to fight the fungal diseases Botrytis and powdery mildew.

  • Biotalys also earned recognition for Evoca in May 2022, winning a World BioProtection Award 2022 for Best Biofungicide Product. The award was granted at the World BioProtection Summit in Birmingham (UK) based on the innovative character, scientific value and market potential of the product.

  • At the beginning of H1, Biotalys initiated the new fungicide program funded by the Gates Foundation (BioFun-7) to develop new biological solutions for cowpeas and other legumes. This new program is an incredible opportunity for the Biotalys team to leverage the antifungal know-how built with our AGROBODY Foundry™ platform and is providing funding to Biotalys of more than EUR 5.1 million over four years.

  • At the end of March 2022, Biotalys also expanded its executive team with the appointment of Carlo Boutton as chief scientific officer. A proven leader in antibody innovation with a track record building world-class research platforms, Carlo Boutton supports the acceleration of technical innovation and development of Biotalys’ AGROBODY Foundry platform.

  • In April 2022, Biotalys further strengthened its Board of Directors with the appointment of Michiel van Lookeren Campagne, a prominent industry leader in plant science and biotechnology who has spent decades driving scientific advances for the agricultural industry.

  • During the first half of 2022, Biotalys also recruited key personnel for various departments, including Marketing, Research, and Regulatory & Sustainability. The company had a total staff of 75 on 30 June 2022.

  • Biotalys continues to strengthen its patent portfolio to protect its science and products. In H1 2022, three additional patents were granted to the company as follows: in Japan related to transgenic plants; in Canada related to an agrochemical composition; and in Brazil related to a method for protecting and treating plants from infection by plant pathogenic fungi.  

These accomplishments will also pave the way for Biotalys’ pipeline of product candidates, which includes biofungicides, biobactericides and bio-insecticides.

  • After announcing the achievement of a significant breakthrough in protein expression (more than 500% increase in production) for the bioactive ingredient of Evoca in January 2022, which dramatically lowers production costs, Biotalys adapted its biofungicide pipeline to effectively capture market share. As a result, Biotalys’ current pipeline of protein-based biocontrols is as follows:

* Evoca™: Pending Registration. This product is not currently registered for sale or use in the United States, the European Union, or elsewhere and is not being offered for sale.

Selected financial information

In € thousands

June 30, 2022

June 30, 2021

 

 

Other operating income

1,140

831

 

Research and development expenses

(7,574)

(6,275)

 

General and administration expenses

(2,596)

(2,241)

 

Marketing expenses

(718)

(677)

 

Other operating expenses

(1)

 

Operating loss

(9,748)

(8,363)

 

Loss of the period

(9,892)

(7,158)

 

Net cash used in operations

(9,559)

(7,345)

 

Net cash outflow of the period

(10,547)

(7,637)

 

Cash and cash equivalents

45,560

15,465

 

  • Other operating income amounted to €1.1 million and relates to R&D tax incentives received and grants awarded to support R&D activities. The increase mainly relates to grants to support Biotalys’ R&D activities, which accounted for €1.0 million for the six months ended 30 June 2022 (H1 2021: €0.4 million).

  • Research and development expenses amounted to €7.6 million for the first half of 2022, an increase of €1.3 million compared to the same period of 2021. These increases primarily relate to higher spending for external development (+€0.4 million) and field trial costs (+€0.4 million) in preparation for the market calibration with Evoca next year, as well as increased wage costs (+€0.3 million).

  • General and administrative expenses amounted to €2.6 million for the first half of 2022, compared to €2.2 million in the same period of 2021. The increase was mainly driven by higher wage costs related to the expansion of the team.

  • Net cash used in operating activities increased by €2.3 million for the six months ended 30 June 2022 to €9.6 million, compared to €7.3 million for the six months ended 30 June 2021. These increases primarily relate to a €0.8 million increase in operating loss (net of non-cash items) and changes in working capital driven by the higher payables balance in June 2021 related to certain IPO costs.

Outlook for the remainder of 2022 and beyond

  • Biotalys expects to obtain the first registration for Evoca in the United States. The U.S. Environmental Protection Agency (EPA) is currently reviewing the regulatory dossier Biotalys submitted for Evoca end of December 2020. Based on recent discussions with the agency, the company now expects to obtain product registration in early 2023. Biotalys believes this new registration timeline will have no impact on the business plan of the company considering Evoca (first generation) is a market calibration product.

  • The company continues to focus on the market calibration of Evoca in selected states in the U.S., as well as on the advancement of its ongoing discovery and development initiatives via the AGROBODY Foundry platform. The company will consider the future net development costs of the first and second generation of Evoca as R&D costs.

  • Building on its most recent field trials to perfect application timing best practices, Biotalys is now conducting trials at-flowering sprays within IPM programs in a broader range of commercial important crops, including berries, cucurbits and tomatoes as it deepens field trial data from around the globe.

  • Biotalys also aims to continue selectively leveraging its AGROBODY Foundry platform and pipeline to expand into new markets and crops, and to secure additional strategic collaborations and create additional value.

  • The company has reduced the expected cash burn for the full year 2022 to a range between €24 and €26 million. Savings are anticipated for certain manufacturing, field trial and personnel and other operating costs, and likely extended delivery times for some equipment purchases will delay the cash impact.

  • The outcome of the ongoing feasibility study with Novozymes is expected in early 2023, and may serve as a potential key milestone for Biotalys and Novozymes to enter into development, supply and commercialization agreements for a future generation of Evoca.

Auditor Statement

The condensed consolidated financial statements for the six-months’ period ended 30 June 2022 have been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as adopted by the European Union. They do not include all the information required for the full annual financial statements and should therefore be read in conjunction with the financial statements for the year ended 31 December 2021. The condensed consolidated financial statements are presented in thousands of Euros (unless stated otherwise). The condensed consolidated financial statements have been approved for issue by the Board of Directors. The statutory auditor, Deloitte Bedrijfsrevisoren/Reviseurs d’Entreprises, represented by Pieter-Jan Van Durme, has performed a limited review of the interim financial report. The interim financial report 2022 and the review opinion of the auditor are available on www.biotalys.com.

Upcoming IR events

  • 13 September 2022: Biotalys’ CFO and Head of IR will meet with investors at the Berenberg’s Food & Chemical Conference in London (UK)

  • 15 September 2022: Biotalys’ CEO, CFO and Head of IR will meet with investors at the Kepler Cheuvreux / Belfius Autumn Conference in Paris (France)

  • 29 September 2022: Biotalys’ CEO, CFO and Head of IR will meet investors at the Sustainability Conference organized by KBC Securities (virtual)

-End-

Live webcast and conference call

Company management will host a live webcast to discuss its half-year 2022 results and recent business performance today, 19 August 2022 at 16:00 CEST / 15:00 BST / 10:00 EDT.

Webcast link: https://edge.media-server.com/mmc/p/4pfcgtba

Dial-in details: To ask questions live to the management, please also register for the conference call via https://register.vevent.com/register/BIf4c5b351b875442796b58a40eb9c0faf.

About Biotalys

Biotalys is an Agricultural Technology (AgTech) company protecting crops and food with proprietary protein-based biocontrol solutions and aiming to provide alternatives to conventional chemical pesticides for a more sustainable and safer food supply. Based on its novel AGROBODY™ technology platform, Biotalys is developing a strong and diverse pipeline of effective product candidates with a favorable safety profile that aim to address key crop pests and diseases across the whole value chain, from soil to plate. Biotalys was founded in 2013 as a spin-off from the VIB (Flanders Institute for Biotechnology) and has been listed on Euronext Brussels since July 2021. The company is based in the biotech cluster in Ghent, Belgium. More information can be found on www.biotalys.

For further information, please contact

Toon Musschoot, Head of IR & Communication
T: +32 (0)9 274 54 00
E: Toon.Musschoot@biotalys.com

Important Notice

Biotalys, its business, prospects and financial position remain exposed and subject to risks and uncertainties.  A description of these risks and uncertainties can be found in the annual report on the consolidated annual accounts 2021 (see item 11.12 on p. 151 and chapter 2 on p. 159-171).

This announcement contains statements which are “forward-looking statements” or could be considered as such. These forward-looking statements can be identified by the use of forward-looking terminology, including the words ‘aim’, ‘believe’, ‘estimate’, ‘anticipate’, ‘expect’, ‘intend’, ‘may’, ‘will’, ‘plan’, ‘continue’, ‘ongoing’, ‘possible’, ‘predict’, ‘plans’, ‘target’, ‘seek’, ‘would’ or ‘should’, and contain statements made by the company regarding the intended results of its strategy. By their nature, forward-looking statements involve risks and uncertainties and readers are warned that none of these forward-looking statements offers any guarantee of future performance. Biotalys’ actual results may differ materially from those predicted by the forward-looking statements. Biotalys makes no undertaking whatsoever to publish updates or adjustments to these forward-looking statements, unless required to do so by law.

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS
(in thousands of euros)

Note

30 June
2022

31 December 2021

 

 

Non-current assets

 

11,089

11,336

 

Intangible assets

 

631

665

 

Property, plant and equipment

5

5,382

5,407

 

Right-of-use assets

 

3,610

3,885

 

Other non-current assets

 

1,466

1,380

 

 

 

 

 

 

Current assets

 

48,956

58,938

 

Receivables

 

503

451

 

Other financial assets

 

2,100

2,100

 

Other current assets

6

793

279

 

Cash and cash equivalents

7

45,560

56,107

 

 

 

 

 

 

TOTAL ASSETS

 

60,045

70,274

 

 

EQUITY AND LIABILITIES
(in thousands of euros)

Note

30 June
2022

31 December 2021

 

 

 

 

 

 

 

Equity attributable to owners of the parent

 

50,004

 

58,915

 

 

Share capital

 

82,094

 

81,969

 

 

Share premium

 

31,394

 

31,303

 

 

Accumulated losses

 

(65,747

)

(55,855

)

 

Other reserves

 

2,263

 

1,498

 

 

 

 

 

 

 

Total equity

 

50,004

 

58,915

 

 

 

 

 

 

 

Non-current liabilities

 

5,710

 

6,150

 

 

Borrowings

8

5,591

 

6,037

 

 

Employee benefits obligations

 

30

 

26

 

 

Provisions

 

88

 

87

 

 

 

 

 

 

 

Current liabilities

 

4,331

 

5,209

 

 

Borrowings

8

1,119

 

1,186

 

 

Trade and other liabilities

 

2,254

 

3,119

 

 

Other current liabilities

 

958

 

904

 

 

Total liabilities

 

10,041

 

11,359

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

60,045

 

70,274

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements. Please see the full interim report available on www.biotalys.com.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE 6 MONTHS ENDED 30 JUNE

in € thousands

Note

2022

 

2021

 

Other operating income

9

1,140

 

831

 

Research and development expenses

10

(7,574

)

(6,275

)

General and administrative expenses

10

(2,596

)

(2,241

)

Sales and marketing expenses

10

(718

)

(677

)

Other operating expenses

10

 

(1

)

Operating loss (EBIT)

 

(9,748

)

(8,363

)

Financial income

11

141

 

1,322

 

Financial expenses

 

(269

)

(110

)

Loss before taxes

 

(9,877

)

(7,151

)

Income taxes

 

(15

)

(7

)

LOSS FOR THE PERIOD

 

(9,892

)

(7,158

)

 

 

 

 

Other comprehensive income (OCI)

 

 

 

Items of OCI that will be reclassified subsequently to profit or loss

 

 

 

Exchange differences on translating foreign operations

 

9

 

1

 

 

 

 

 

TOTAL COMPREHENSIVE LOSS OF THE PERIOD

 

(9,883

)

(7,157

)

 

 

 

 

Basic and diluted loss per share (in €)

12

(0.32

)

(9.54

)

 

 

 

 

Loss for the period attributable to the owners of the Company

 

(9,892

)

(7,158

)

 

 

 

 

Total comprehensive loss for the period attributable to the owners of the Company

 

(9,883

)

(7,157

)

The accompanying notes are an integral part of these condensed consolidated financial statements. Please see the full interim report available on www.biotalys.com.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE 6 MONTHS ENDED 30 JUNE

(in thousands of euros)

Attributable to equity holders of the Company

Total Equity

Share capital

Share premium

Other reserves

Accumulated losses

Share-based payment reserve

Anti-dilution reserve

Currency translation reserve

Balance at 31 December 2020

62,822

675

1,062

(4,813

)

20

(34,117

)

25,648

 

Share-based payments

300

 

 

300

 

Exercise of ESOP Warrants

15

 

 

15

 

Total comprehensive loss

 

1

(7,158

)

(7,157

)

Balance at 30 June 2021

62,822

690

1,362

(4,813

)

21

(41,276

)

18,807

 

 

(in thousands of euros)

Attributable to equity holders of the Company

Total Equity

Share capital

Share premium

Other reserves

Accumulated losses

Share-based payment reserve

Anti-dilution reserve

Currency translation reserve

Balance at 31 December 2021

81,969

31,303

1,473

 

25

(55,855

)

58,915

 

Share-based payments

847

 

 

847

 

Exercise of ESOP Warrants

125

91

(91

)

 

125

 

Total comprehensive loss

 

9

(9,892

)

(9,883

)

Balance at 30 June 2022

82,094

31,394

2,229

 

34

(65,747

)

50,004

 

The accompanying notes are an integral part of these condensed consolidated financial statements. Please see the full interim report available on www.biotalys.com.

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE 6 MONTHS ENDED 30 JUNE

in € thousands

Note

2022

 

2021

 

 

 

 

 

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

Operating result

 

(9,748

)

(8,363

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation, amortization and impairments

 

771

 

747

 

Share-based payment expense

 

855

 

301

 

Changes in provisions

 

4

 

13

 

R&D tax credit

 

(203

)

(186

)

Loss on disposal of fixed assets

 

 

6

 

Other

 

 

1

 

 

 

 

 

Changes in working capital:

 

 

 

Receivables

 

(52

)

(83

)

Other current assets

 

(397

)

(292

)

Trade and other payables

 

(831

)

899

 

Other current liabilities

 

62

 

(371

)

Cash used in operations

 

(9,539

)

(7,328

)

 

 

 

 

Taxes paid

 

(20

)

(17

)

 

 

 

 

Net cash used in operating activities

 

(9,559

)

(7,345

)

 

 

 

 

CASH FLOW FROM INVESTING ACTIVITIES

 

 

 

Purchases of property, plant and equipment

5

(328

)

(975

)

Purchases of intangible assets

 

 

(53

)

Proceeds from disposal of PPE

 

 

3

 

Investments in other financial assets

 

 

(1,500

)

 

 

 

 

Net cash used in investing activities

 

(328

)

(2,526

)

 

 

 

 

CASH FLOW FROM FINANCING ACTIVITIES

 

 

 

Proceeds from borrowings and other financial liabilities

8

 

2,780

 

Repayment of borrowings

8

(207

)

(68

)

Repayment of lease liabilities

 

(416

)

(422

)

Interests paid

 

(164

)

(71

)

Proceeds from issue of equity instruments of the Company (net of issue costs)

 

126

 

15

 

 

 

 

 

Net cash provided by financing activities

 

(661

)

2,234

 

 

 

 

 

NET DECREASE IN CASH AND CASH EQUIVALENTS

 

(10,547

)

(7,637

)

 

 

 

 

CASH AND CASH EQUIVALENTS at beginning of period

 

56,107

 

23,103

 

CASH AND CASH EQUIVALENTS at end of period, calculated

 

45,560

 

15,465

 

The accompanying notes are an integral part of these condensed consolidated financial statements. Please see the full interim report available on www.biotalys.com.

 

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