Poxel SA (STU:7PO) Full Year 2023 Earnings Call Highlights: Strategic Moves and Financial Challenges

In This Article:

  • Revenue: JPY300 million (EUR2 million) royalty revenue from Sumitomo Pharma for TWYMEEG sales in Japan.

  • R&D Expenses: EUR4.4 million, decreased from 2022, plus EUR16.6 million impairment for PXL065.

  • Tax Credit: EUR0.6 million in 2023, down from EUR1.5 million in 2022.

  • General Administrative Expenses: EUR8.4 million in 2023, down from EUR9.4 million in 2022.

  • Financial Loss: EUR6.3 million in 2023, compared to EUR9.5 million in 2022.

  • Net Loss: EUR35.1 million in 2023, compared to EUR31.4 million in 2022.

  • Cash and Cash Equivalents: EUR2.3 million at the end of 2023, down from EUR13.1 million at the end of 2022.

  • Shareholders' Equity: Minus EUR49.1 million at the end of 2023, compared to minus EUR18.2 million at the end of 2022.

  • Total Liabilities: EUR47.5 million in 2023, up from EUR44.2 million in 2022.

  • Cash Burn from Operating Activities: EUR14 million for 2023, down from EUR21.8 million in 2022.

  • Cash Flow from Financing Activities: EUR3.2 million at the end of 2023.

Release Date: October 03, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Poxel SA (STU:7PO) reported strong growth in the commercialization of TWYMEEG in Japan, with sales expected to surpass significant thresholds, potentially increasing royalty rates.

  • The company successfully concluded a monetization agreement with OrbiMed, securing a one-time cash payment of USD 50 million, which will help reduce debt and support strategic initiatives.

  • Poxel SA has regained rights to territories outside Japan for TWYMEEG, opening opportunities for new partnerships and leveraging existing clinical data.

  • The company has a clear roadmap for developing its metabolic disease pipeline, focusing on rare diseases with significant unmet needs.

  • Poxel SA's financial restructuring efforts, including debt reduction and favorable restructuring terms, are expected to extend its cash runway until the end of 2025.

Negative Points

  • Poxel SA reported a net loss of EUR 35.1 million for 2023, an increase from the previous year's loss of EUR 31.4 million.

  • The company's cash and cash equivalents significantly decreased from EUR 13.1 million at the end of 2022 to EUR 2.3 million at the end of 2023.

  • The financial liabilities increased to EUR 47.5 million in 2023, reflecting substantial debt obligations.

  • There is uncertainty regarding the timeline for finalizing partnerships in China and other regions, which could impact future revenue streams.

  • The company faces challenges in entering the US and European markets due to different regulatory requirements and existing market dynamics.