Dublin, Ireland – 30 July 2021 – Cosmo Pharmaceuticals N.V. (SIX: COPN) reports half-year results for the period ended 30 June 2021.
Cosmo obtained the first ever FDA approval for a device that uses artificial intelligence to help detect signs of colon cancer and announced important out-licencing agreements. As a consequence of the Cassiopea licencing deal announced on 26 July, Cosmo will be back to profit before tax in FY21.
Key Events Half-Year 2021 – Products and Business
- GI Genius™, the first device that uses artificial intelligence to assist clinicians in the detection lesions in the colon in real time during colonoscopy, approved by the FDA.
- Successful outcome of our phase II Proof of Concept (POC) clinical trial of Rifamycin-MMX 600mg in Irritable Bowel Syndrome with Diarrhea (IBS-D) announced.
- EU rights (plus Switzerland, UK, EEA countries, Russia and Mexico) for Lumeblue™ licenced to Alfasigma S.p.A.
- Cosmo’s associate, Cassiopea S.p.A., announced the signing of licence and supply agreements with Sun Pharmaceutical Industries for Winlevi® in US and Canada in July.
- Agreement entered into with RedHill Biopharma Ltd. (Nasdaq: RDHL) to manufacture Movantik®, RHB-204 and Opaganib.
Financial Highlights Half-Year 2021
- Revenues increased by 9.7% to €28.4m vs €25.9m last year.
- Expenses (net) of €28.4m vs €23.2m last year the increase mainly due to the fact that in the first half of 2020, in “other income”, a gain was recorded on the out-licencing of Byfavo™ to Acacia of €4.2 million and a break-fee of €1.1 million paid by Acacia in relation in a debt equity conversion, both of which had the impact of reducing net expenses.
- Operating profit €8k vs €2.7m last year.
- Net financial expense €1.9m mainly includes interest on convertible bonds of €4.3m, of which cash impact €2.2m, offset by interest received of €1.5m and FX gains of €0.9m.
- Loss for the period €5.7m including share of Cassiopea loss €2.8m.
- Cash inflow from operating activities €12.7m.
- Cash and investments in funds €203.1m at 30 June 2021 (excluding 705,773 treasury shares at cost of €57.4m) vs €212.9m at 31 December 2020.
- Market value of Cosmo’s stake in Cassiopea at 30 June 2021 €207.4m versus carrying value of €133.4m.
- Equity €371.0m vs €400.1m at 31 December 2020, the reduction mainly due to a reduction in the value of the equity stakes held in other companies during the period.
Key figures
| EUR 1,000 | H1 2021 | H1 2020 |
| Income statement | ||
| Revenues | 28,420 | 25,883 |
| Cost of sales | (13,796) | (12,845) |
| Gross profit | 14,624 | 13,038 |
| Other income | 163 | 5,530 |
| R&D costs | (7,436) | (7,289) |
| SG&A costs | (7,343) | (8,617) |
| Net operating expenses | (14,616) | (10,376) |
| Operating profit/(loss) | 8 | 2,662 |
| Net finance expenses | (1,916) | (5,773) |
| Share of result of associate | (2,759) | (2,220) |
| Loss before taxes | (4,667) | (5,331) |
| Income tax | (1,074) | 2,316 |
| Loss for the period | (5,741) | (3,015) |
| Shares | ||
| Weighted average number of shares | 14,392,984 | 14,488,454 |
| Earnings per share (in EUR) | (0.399) | (0.208) |
| EUR 1,000 | 30 Jun 21 | 31 Dec 20 |
| Statement of financial position | ||
| Non-current assets | 323,552 | 343,293 |
| Cash and cash equivalents | 203,134 | 212,852 |
| Other current assets | 36,073 | 40,016 |
| Liabilities | 191,758 | 196,036 |
| Equity attributable to owners of the Company | 371,001 | 400,125 |
| Equity ratio (%) | 65.9% | 67.1% |
Management change
Sean MacDonald has resigned from the position of Head of Business Development to pursue other opportunities and in the interim the role will be assumed by the CEO.
CEO comment
Alessandro Della Chà, Chief Executive Officer, said: “In the first half of 2021 we reached a number of very important milestones including obtaining FDA approval of GI Genius™. The business is very well positioned, sales of GI Genius™ are about to commence in the US, we are moving to replenish our pipeline and we hold €582m in equity stakes in other companies, investments, loans treasury shares and cash. We expect Cassiopea to close FY21 with a profit as a result of the agreement with Sun for Winlevi® and Cosmo’s financial results will benefit in line with our stake in Cassiopea. As a result, we estimate that Cosmo will deliver a profit before tax in the range of €4m to €6m in FY21.”
The Half-Year Report 2021 with further information was published on 30 July 2021, 07:00 am CET, and is available for download at:
http://www.cosmopharmaceuticals.com/investor-relations/financial-reports
Half-Year 2021 Results Conference Call on Friday, 30 July 2021, 2:00pm CET
Alessandro Della Chà, CEO and Niall Donnelly, CFO will present the half-year results 2021 and will provide an update of Cosmo’s activities. The webcast is scheduled to last 30-45 minutes and will be held in English.
Webcast Participants’ Link:
https://78449.choruscall.com/dataconf/productusers/cosmo/mediaframe/45417/indexl.html
Dial-in numbers:
| Switzerland / Europe: | +41 (0) 58 310 50 00 |
| United Kingdom: | +44 (0) 207 107 06 13 |
| United States: | +1 (1) 631 570 56 13 |
The presentation is available for download here.
About Cosmo Pharmaceuticals
Cosmo is a specialty pharmaceutical company focused on developing and commercialising products to treat selected gastrointestinal disorders and improve endoscopy quality measures through aiding the detection of colonic lesions. Cosmo has also developed medical devices for endoscopy and has recently entered into a partnership with Medtronic for the global distribution of GI Genius™ its artificial intelligence device for use in coloscopies and GI procedures. Cosmo has licensed Aemcolo™ to Red Hill Biopharma and is the licensee of BYFAVO™ (Remimazolam) for the US for procedural sedation, which it has sub-licensed to Acacia. For additional information on Cosmo and its products please visit the Company’s website: www.cosmopharma.com
Financial calendar
| Commerzbank ODDO BHF Conference, Virtual | 31 August 2021 |
| H.C. Wainwright 23rd Annual Global Investment Conference | 7-9 September 2021 |
| Investora, Zurich | 16 September 2021 |
| Credit Suisse Equity Forum Switzerland, Zurich | 16-19 November 2021 |
Contact
Niall Donnelly, CFO & Head of Investor Relations
Cosmo Pharmaceuticals N.V.
Tel: +353 1 817 03 70
ndonnelly@cosmopharma.com
Disclaimer
Some of the information contained in this press release contains forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward-looking statements as a result of various factors. Cosmo undertakes no obligation to publicly update or revise any forward-looking statements.
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