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EQS-News: ABIVAX / Key word(s): Annual Results
Abivax reports 2023 financial results and operational update
2024-04-02 / 08:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
Abivax reports 2023 financial results and operational update
. Raised EUR 500M in 2023, including a EUR 130M capital increase, two structured debt financing
transactions aggregating EUR 150M and EUR 223.3M initial public offering on the Nasdaq Global Market
. Sufficient funds to finance operations into Q4 2025, including through the announcement of top-line data
from the Phase 3 ABTECT induction trials of obefazimod in ulcerative colitis (UC)
. Implementation of U.S. and European operational infrastructure to progress the Company's ongoing clinical
and preclinical programs
PARIS, France, April 2, 2024, 8:30 a.m. CEST - Abivax SA (Euronext Paris & Nasdaq: ABVX) ("Abivax" or the "Company"), a
clinical-stage biotechnology company focused on developing therapeutics that harness the body's natural regulatory
mechanisms to stabilize the immune response in patients with chronic inflammatory diseases, today announced its 2023
annual financial results, as of December 31, 2023, and provided an update on the progress of its development programs.
The financial statements for 2023 have been audited and approved by the Company's Board of Directors on March 28, 2024,
and the financial reports are planned to be filed with the French and U.S. securities regulatory authorities,
respectively, on April 5, 2024. The audit procedures on the consolidated financial statements have been performed and
the certification report is being prepared by the Company's external auditors.
The Company will organize a webcast on the 2023 financial results on Monday, April 8, 2024, at 2:30 p.m. CEST (8:30
a.m. EST).
Marc de Garidel, Chief Executive Officer of Abivax, said: "In 2023, Abivax accomplished several major milestones and
made significant progress on its ongoing clinical and preclinical projects. Beyond executing one of the top worldwide
financing raises in the biotech sector last year, the company implemented a strategy designed to take advantage of
obefazimod's unique and differentiated profile for the treatment of IBD. We believe we built the necessary U.S and
European operational infrastructure to conduct the Phase 3 ABTECT program in UC and the planned Phase 2b Crohn's
Disease trial, potentially expanding the long-term use of obefazimod for a large patient population in a field with
high unmet medical needs. In 2024, the execution of this strategy is underway by advancing our UC and CD clinical
programs and, in parallel, strengthening our pipeline by evaluating a potential combination therapy with obefazimod in
UC as well as advancing research on a follow-on candidate. Abivax's scientific excellence has further been highlighted
by several abstracts presented by leading U.S. and European KOLs at major scientific congresses. In addition, we
continue to reinforce our Board of Directors after notable changes in 2023 and I am glad to welcome Camilla Soenderby
as a new member of the Abivax Board. We are very much looking forward to working with Camilla and to benefiting from
her expertise."
Didier Blondel, Chief Financial Officer of Abivax, added: "The past year was also very successful looking at the trust
that our existing and new U.S. and European investors placed in us, reflected in the significant capital raises in
2023. With the successful Nasdaq IPO last year, the largest Nasdaq IPO of a French-listed biotech company, we continue
to implement our multi-pronged financial strategy to fund our projects in 2024 and beyond. Abivax has secured more than
EUR 500M financing in 2023 and we expect to have sufficient funds to finance our operations into Q4 2025, including
through the anticipated release of top-line Phase 3 induction data from the ABTECT program."
2023 financial highlights (IFRS figures)
Income Statement FY 2023 FY 2022 Change
in millions of euros
Total operating income 4.6 4.6 0.0
Total operating expenses

of which Research and Development costs   (103.2) (48.3)    (54.9) 
of which Sales and Marketing costs        (6.4)    0.0     (6.4) 
of which General and Administrative costs   (22.4)   (7.5)    (14.9) 
of which Goodwill impairment loss           (0.0)  (13.6)     13.6 
Operating loss                                (127.4) (64.8)    (62.6) 
Financial (loss) gain                         (20.4)    4.1     (22.3) 
Net loss for the period                       (147.4) (60.7)    (84.9) 
Balance Sheet                                                                                FY2023   FY2022     Change 

in millions of euros

Net financial position                                                                       203.2    (14.5)     217.7 
of which other financial assets and other receivables and assets*                             28.3     8.3        20.0 
of which fixed-term deposits (maturing in > 1 year)                                           0.0      0.0        0.0 
of which fixed-term deposits (maturing in < 1 year)                                           9.0      0.0        9.0 
of which available cash and cash equivalents                                                 251.9     26.9      225.0 
(of which financial liabilities)**                                                           (77.0)   (49.8)     (27.2) 
Total Assets                                                                                 327.1     75.5      251.5 

Total Shareholders' Equity 196.0 7.2 191.0
* Excluding items of the liquidity contract (liquidity and own shares) and prepaid expenses
** Financial liabilities include borrowings, convertible loan notes, derivative instruments, royalty certificates and
other financial liabilities . Operating loss increased by EUR 62.6M to EUR -127.4M compared to EUR -64.8M as of December 31, 2022.Operating income, consisting predominantly of Research Tax Credit, was comparable between both financial periods.The increase in operating loss was driven by operating expenses as described further below. . Research and development (R&D) expenses increased by EUR 54.9M to EUR -103.2M in 2023 compared toEUR -48.3M in 2022. This increase was predominantly driven by a EUR 45.2M, or 117%, increase in expenses relatedto:? Our UC clinical program, driven by the progression of Phase 3 clinical trials for obefazimod in UC(where Phase 3 clinical trial costs were significantly higher than in Phase 2); ? A EUR 2.7M increase in expenses related to our Crohn's disease (CD) clinical program, driven byplanning costs incurred for the Phase 2b CD trial; and ? A EUR 4.5M, or 71%, increase related to the overall expansion of the research and developmentheadcount to support our organizational growth and the issuance of new equity awards to officers and employeesin research and development. . Sales and marketing (S&M) expenses were EUR -6.4M for 2023. We did not incur any sales and marketingexpenses in 2022. These expenses consist primarily of consulting costs associated with market research, re-brandingof our company in preparation of our U.S. initial public offering and listing on Nasdaq, as well as an early teambuild out in preparation for our future sales and commercialization efforts in the U.S. . General and administrative (G&A) expenses increased to EUR -22.4M compared to EUR -7.5M for 2022(excluding the one-time goodwill impairment charge taken in 2022 of EUR -13.6M to ABX196 for the treatment ofhepatocellular cancer). This increase was primarily due to:? An increase in personnel costs of EUR 11.7M, resulting from the issuance of new equity awards to ourofficers and employees; ? Management changes that occurred during the period and an increased G&A headcount to support theexpansion of the company; and ? Increased legal and professional fees and other costs associated with operating as a dual-listedpublic company. . Total number of employees at the end of December 2023 was 61 and significantly increased compared to2022, due to the implementation of the U.S. and European operational infrastructure. . For the year ended December 31, 2023, our EUR -20.4M net financial loss was driven primarily by thefollowing items:? Interest expenses of EUR -4.7M relation to borrowings and loans; ? Non-cash expense of EUR -8.9M in relation to the fair value of our royalty certificates; ? Non-cash expense of EUR -3.4M related to the derecognition of certain financial liabilities; ? Non-cash expense of EUR -3.0M in relation to an increase in the fair value of warrant derivativesissued in relation to the Kreos/Claret financing; and ? Foreign exchange losses of EUR -5.6M (including the EUR -3.2M non-cash impact of the year-endrevaluation of USD-denominated cash and cash equivalents); ? Partially offset by interest income of EUR 2.4M in relation to the invested proceeds from our U.S.initial public offering and listing on Nasdaq and decrease in the fair value of the Heights convertible notesby EUR 3.2M. . Cash position (including other financial assets of EUR 9.0M) at the end of 2023 was EUR 261.0M, comparedto EUR 27.0M at the end of 2022. The increase was due to a EUR 130M gross equity financing (EUR 123M net proceeds)concluded in February 2023, and two additional structured debt agreements (EUR 27M net proceeds from the firsttranches) signed in August 2023. In addition, in October 2023 the Company completed its Nasdaq IPO with grossproceeds of EUR 223.3M. . As part of the structured debt financing transaction for a total amount of up to EUR 75M with KreosCapital and Claret European Growth Capital entered into on August 21, 2023 (the "Kreos/Claret financing"), Abivaxproceeded with the drawdown of the second tranche of the Kreos/Claret financing for EUR 25M.? This second tranche consists of
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