Introduction
I am pleased to present my statement as the Chairperson of Genflow Biosciences Plc (GENF) (the "Company").
The Company is a preclinical biotechnology company focused on the development of innovative biological interventions (namely gene therapies) which are aimed at tackling the effects of aging, potentially slowing or halting the aging process and so reducing the incidence of age-related diseases thereby increasing life span.
During 2024, the Company made significant progress with its two core research programmes, MASH (Metabolic Dysfunction-Associated Steatohepatitis) and Werner Syndrome, and was pleased to report that it has entered into further collaborations with world-class researchers and laboratories on two new research programmes.
Most notably, our MASH study is advancing into the pre-IND phase of preclinical development (a critical stage where companies discuss their product development with the FDA), and we have partnered with Exothera SA for GMP (good Manufacturing Practise) manufacturing of the clinical lot, utilising its state-of-the-art facilities in Belgium.
In June 2024, we received positive feedback from the FDA encouraging Genflow to proceed with its plans to identify appropriate animal models through pilot, proof-of-concept studies. This has emboldened us on our journey and provides encouragement that we may receive further positive feedback from the FDA once the Company has submitted a comprehensive briefing package conducted on our lead drug candidate, GF-1002, for the treatment of MASH.
An update on the status of each of our research projects has been detailed in the Strategic Report on page 5.
On 18 January 2024, we commenced two collaborations with world-class researchers and laboratories which allowed us to receive the support of two non-diluting and non-reimbursable research grants from the Government of Wallonia in Belgium, as follows;
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Sarcopeniaresearch program with Revatis SA - focusing on the development of muscle progenitor cells loaded with Genflow's proprietary SIRT6, for the prevention and treatment of sarcopenia, the age-related loss of muscle mass and function.
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Exosome-mRNA project with EXO Biologics - which aims to deliver a therapeutic product composed of exosomes encapsulating an AAV or mRNA encoding SIRT6, designed to target MASH and Werner Syndrome.
During 2024, the Company has received grant funding totalling €777,281 in respect of 50% these projects, with the further 50% financial support committed in the first half of 2026, subject to spending over the working capital requirements. In 2024, other operating income totalling £320,471 has been recognised in the Consolidated Statement of Comprehensive Income in relation to these grants.
Funding
In October 2024, we received official confirmation from the Wallonia region of this continued support for our MASH project in the form of €4,026,525 in non-dilutive financial support, subject to the Company meeting certain conditions, which will continue to fund the ongoing development of Genflow's lead gene therapy for the treatment of MASH. The Wallonia region's financial support highlights the growing recognition of Genflow's innovative work in gene therapy.
The financial support comprises non-reimbursable research grants and a recoverable advance, repayable to the Wallonia region upon commercialisation. This funding, is expected to cover three years of Genflow's development program for GF-1002, with the first instalment being received as working capital and is receivable subject to Genflow meeting certain capital requirements.
Further strengthening the Company's financial position and increasing its institutional investor base, the Company completed a placing and subscription of £715,000 (before expenses) in April 2024. We were privileged to have Premier Miton, a well-known UK institution, participate in this fundraise.
The Company completed a further fund raise in March 2025 with a major institution for an equity investment totalling £434,083 (before expenses), in order to accelerate the Company's planned 2025 programs including launching a clinical trial in aged dogs.
2025
During 2025, the Company plans to continue advancing its existing research programs, along with embarking on an exciting clinical trial focused on aged dogs. In early 2025, we commenced a proof-of-concept clinical trial to evaluate the safety and efficacy of our proprietary SIRT6-centenarian gene therapy targeting age-related decline in dogs.
In addition to this, we will shortly launch a new development program in ophthalmology, focused on advancing a novel gene therapy which utilizes a specially designed non-viral vector engineered for precise delivery of Genflow's SIRT6 to the eye. The therapy is designed to combat ocular problems including several pathologies of the cornea and glaucoma.
Financial Overview
As at 31 December 2024, the Group had cash reserves of £278,682 (2023: £683,974) and was debt free.
Group administration expenses for the 2024 year totalled £1,907,706 (2023 restated: £2,030,199) which consisted of professional, legal and consulting fees of £188,522 (2023: £215,971) and PR and marketing costs of £97,049 (2023: £106,819). Expenditure on research and development was £1,151,462 for the year (2023: £1,191,954), all of which has been recognised as an expense due to the Group being in the research phase.
During the year ended 31 December 2024, the Company recognised grant income of £320,471 (2023: £169,854) relating to the two non-dilutive and non-reimbursable research grants from the Government of Wallonia in Belgium's Advanced Therapy Medicinal Products (ATMPs), the remaining proportion of the €777,281 cash received in relation to the research grants will be recognised as grant income when the corresponding expenditure has been incurred.
Other Comprehensive Income was charged with a translation gain of £20,934 (2023 restated: £6,435) upon converting the Subsidiary's results for the year since acquisition to GBP.
Prior year adjustment
In the current year, a prior year misstatement was identified is respect of a material value of expense totalling US$288,080 (£231,640) which had been recognised in 2024, but related to 2023. The expense was identified as missing after the finalisation of the 2023 financial statements.
Consequently, this has resulted in the Group's comparative figures being restated with the impact being an increase to administrative expenses for the year by £231,640, an increase to trade and other payables by £226,222 and an increase to other reserves by £5,418.
Further disclosure has been made in note 2.1.
Forward look
On behalf of the Board, I want to express our gratitude for your continued support. The progress we have made in advancing therapeutic solutions for longevity has been greatly bolstered by the continued support of our collaboration partners, the Belgian Government and our stakeholders. This support strengthens our resolve to address age-related diseases through innovative treatments. We remain dedicated to enhancing healthspan, and we are especially excited to bring you updates in relation to our dog study which we hope will unlock groundbreaking insights that could revolutionise both veterinary and human medicine.
Tamara Joseph
Non-Executive Chairperson
30 April 2025
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SOURCE: Genflow Biosciences PLC
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