The Company also informs its shareholders and the entire financial community of the availability of the preparatory documents for the Ordinary General Meeting of the Company to be held on June 6, 2024 at 5 p.m. (CEST) at Anderlecht, Belgium.
All documents relating to this General Meeting are available on request from the Company, or can be consulted on the Company’s website under Shareholders / General Meetings.
In 2023, TheraVet followed its marketing strategy started in 2022 with educational programs (webinars), clinical cases communication,mainly through social network and mailing,and participation in key local and international orthopaedic and oncology events.
TheraVet’s commercial strategy based on a mixed model of direct and indirect sales was pursued with the signing of new distribution agreements in Italy (post-cloture event), Norway, Czech republic & Slovakia, and the intensification of joint promotional actions.In the United States, sales are currently only made directly, but following the official termination on April 22, 2024 of the agreement established with a defaulting distributor, advanced discussions with other distributors are underway to facilitate the penetration of the BIOCERA-VET® range in the United States.
TheraVet’s portfolio has been significantly strengthened in 2023. It currently contains 15 products (including 4 added since January 2023) to meet the preferences (synthetic vs. biological) and indications (volume of products, strengthening action or bone filling) that orthopedic veterinarians are faced with.
The Company generated €0.12 million of revenue, of which approximately 75% in Europe.
A total of 741 units from the BIOCERA-VET® range were sold. While the BIOCERA-VET® BONE SURGERY line still accounts for 80% of total sales, a 50% increase compared to 2022, BIOCERA-VET® OSTEOSARCOMA displayed strong growth in 2023, with an increase of almost 70% compared with 2022, underlining the interest aroused by this unique solution for the management of osteosarcoma in dogs. In the United States, sales, which only came from direct sales, gained momentum in 2023, with 173 units sold, representing a 5.7 -fold increase.
The Company also generated €0.96 million of "produced fixed asset" as a result of the activation of R&D expenses related to the BIOCERA-VET® and VISCO-VET® programs.
The development of preclinical and clinical programs as well as the marketing plan of BIOCERA-VET® products are in accordance with the Company development plan and are reflected by the "Purchases and expenses" globally aligned with last year expenses :
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COGS decreased by €0.14 million as compared to 2022 due to anticipated inventory stocking of products in 2022 to cover a large share of product sales in 2023;
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R&D expenses decreased by €0.22 million as compared to 2022, reaching €0.37 million. The decrease is driven by the shift in focus in 2023 to the commercialization of its recently developed product portfolio;
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Corporate and listed company related expenses decreased by €0.07 million as compared to 2022, driven by a focus of the company on cost efficiency measures throughout 2023;
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Marketing & Sales expenses decreased by €0.05 million as compared to 2022, with a limited impact of cost efficiency measures in this cost category, driven by the active focus of the Company on marketing and sales of its product portfolio;
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G&A expenses decreased by €0.47 milllion as compared to 2022, a significant reduction of 35%, reflecting the Company’s focus on cost and organizational efficiency throughout 2023;
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Staff expenses decreased by €0.35 million as compared to 2022, an equally significant reduction of 32%, as a result of the Company’s ongoing organizational efficiency initiatives.
Finally, the amortization of development expenses related to the BIOCERA-VET® and VISCO-VET® programs results in an operating loss of €2.2 million and a net loss of €1.6 million.
The Company’s cash and cash equivalents at December 31, 2023 amounted at €1.15 million, enabling it to fund operations to November 2024.
Post-closing Operational Highlights
On January 09, 2024, the Company began distributing its BIOCERA-VET® product range in Italy, Europe's fourth largest pet market. This distribution agreement comes after market evaluation and the start of several clinical trials in Italy with key opinion leaders.
On January 17, 2024, the Company announced the official launch of its BIOCERA-VET® product range in Germany. With a total population of 27 million pets (including 10.3 million dogs and 16.7 million cats), corresponding to 47% of owner households, Germany is the largest pet market in Europe.
On February 20, 2024, the Company announced the recruitment of Brakke Consulting to help it develop its growth strategy for the US market. Brakke is one of the leading consultancies specialising in the veterinary sector and has extensive experience in developing companies in this sector in the US market. Brakke's objective will be to help develop TheraVet's presence and recognition as a major player in the US orthopaedic market. He will also assist the Company in identifying potential M&A opportunities.
On March 13, 2024, the Company announced the launch of its equine business with the marketing of 2 new BIOCERA-VET® products for orthopaedic and dental surgery in horses. This launch marks the Company's entry into the high added-value equine market.
On March 20, 2024, the Company's Board of Directors decided to co-opt as a director the limited liability company FATAKI BV, whose permanent representative is Johan Dreesen, to replace Ms Julie Winand, who left her position within the Company and her directorship during the 2023 financial year. Confirmation of the appointment of FATAKI BV will be proposed at the next Ordinary General Meeting of the Company, scheduled for June 06, 2024.
On April 22 2024, after 18 months of unfruitful attempts due to factors beyond its control to start the distribution operations with its partner in the United States, the Company has decided to terminate the agreement and to focus on other distributors for which advanced discussions are underway.
Full-Year Report 2023
The 2023 Full-Year report for the year ended December 31, 2023 will be published today, 2024 and is available on the Company’s website, www.theravet-finances.com.
The statutory auditor has issued an unmodified report dated April 22, 2024 on the Company’s Full-Year accounts as of and for the year ended December 31, 2023, and has confirmed that the accounting data reported in the accompanying press release is consistent, in all material respects, with the accounts from which it has been derived.
Going concern
The financial statements were prepared on a going concern basis in accordance with the significant accounting policies set out below.
During 2023, the Company's equity remained above the share capital.
In addition, as the value of intangible assets and property, plant and equipment calculated on the basis of our discounted cash flow analysis was higher than their accounting value at December 31, 2023, these assets were not subject to any additional exceptional depreciation.
As the Company's balance sheet shows a loss carried forward of €-5,843,003 and a loss for more than two consecutive years, we are required to justify the application of the going concern accounting rules (article 3:6§6 of the Companies and Associations Code).
The current accounting loss is due to the fixed costs of running the Company, and to the development costs of the VISCO-VET® and BIOCERA-VET® projects, which are not covered by a grant. Cash flow has been sufficient to cover these costs.
Based on the current scope of its activities and best estimates of annual cash consumption, revenue and grants, as well as the absence of any significant impact of the political situation on its activities, the Company estimates that its cash and cash equivalents at December 31, 2023 should be sufficient to finance its operations until November 2024. On the other hand, cash and cash equivalents may not be sufficient to meet the Company's working capital requirements for the twelve months following the date of release of the financial statements for fiscal year 2023. These circumstances indicate the existence of a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern.
The Board of Directors nevertheless considers it appropriate to prepare the Company's financial statements on a going concern basis, while implementing a plan to secure a new financial contribution to the Company.
The Company is currently considering several options for raising additional funds, whether through equity financing, collaboration, or a strategic tie-up with another player in the animal healthcare market. Based on its operating budgets, the management believes that the Company will be able to meet its financial obligations for the 7 months following the date of these financial statements. The management therefore believes that the going concern assumption is justified.
Financial calendar 2024
Ordinary General Assembly: June 06, 2024
Half-year business update: July 11, 2024
Half-year financial results: September 12, 2024
About TheraVet SA
TheraVet is a veterinary biotechnology company specialising in osteoarticular treatments for companion animals. The Company develops targeted, safe and effective treatments to improve the quality of life of pets suffering from joint and bone diseases. For pet owners, the health of their pets is a major concern and TheraVet’s mission is to address the need for innovative and curative treatments. TheraVet works closely with international opinion leaders in order to provide a more effective response to ever-growing needs in the field of veterinary medicine. TheraVet is listed on Euronext Growth® Paris and Brussels, has its head office in Belgium (Gosselies) with a US subsidiary.
For more information, visit the TheraVet website or follow us on LinkedIn / Facebook / Twitter
Forward-looking statements
This release may contain forward-looking statements. Forward-looking statements may include statements regarding the Company's plans, objectives, goals, strategies, future events, the safety and clinical activity of TheraVet’s pipelines and financial condition, results of operation and business outlook. By their nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that predictions, forecasts, projections and other forward-looking statements will not be achieved. These risks, uncertainties and other factors include, among others, those listed and fully described in the "Risk Factors" section in the Annual Report. TheraVet expressly disclaims any obligation to update any such forward-looking statements in this document to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, unless required by law or regulation.
Statements of operations and comprehensive loss
| | 31.12.2023 | 31.12.2022 |
| Operating | 1,266,585 | 1,998,916 |
| Revenue | 117,839 | 94,037 |
| Stocks of finished goods and work and contracts in progress: increase (decrease) | -8,817 | 144,524 |
| Produced fixed assets | 960,216 | 1,507,741 |
| Other operating income | 197,348 | 252,615 |
| Non-recurring operating charges | | |
| Operating charges | 3,441,694 | 4,775,618 |
| Goods for resale, raw materials and consumables | 74,588 | 211,396 |
| Purchases | 115,734 | 146,696 |
| Stock: increase/decrease | -41,146 | 64,700 |
| Services and other goods | 1,525,446 | 2,341,568 |
| Remuneration, social security costs and pensions (+)/(-) | 770,425 | 1,124,566 |
| Amortisations of and other amounts written down on formation expenses, intangible and tangible fixed assets | 1,064,009 | 908,651 |
| Increase, decrease in amounts written off stocks contracts in progress and trade debtors : appropriations (write-backs) … (+)/(-) | 0 | 186,141 |
| Provisions for risks and charges - appropriations (uses and write-backs) … (+)/(-) | | |
| Other operating charges | 7,226 | 3,297 |
| Operation charges carried to assets as restructuring costs | | |
| Non-recurring operating charges | | |
| Operating profit (loss) (+)/(-) | -2,175,109 | - 2,776,702 |
| | | |
| | 31.12.2023 | 31.12.2022 |
| Financial income | 593,758 | 473,836 |
| Recurring financial income | 593,758 | 473,836 |
| Non-recurring financial income | | |
| Financial charges | 35,124 | 46,792 |
| Recurring financial charges | 35,124 | 46,792 |
| Non-recurring financial charges | | |
| Profit (loss) for the period before taxes (+)/(-) | -1,616,474 | -2,349,658 |
| Transfer fom postponed taxes | | |
| Transfer to postponed taxes | | |
| Income taxes (+)/(-) | 45,767 | 34,030 |
| Taxes | 1,602 | 13,591 |
| Adjustment of income taxes and write-back of provisions | 47,369 | 47,621 |
| Profit (loss) for the period (+)/(-) | -1,570,707 | -2,315,628 |
| Transfer from untaxed reserves | | |
| Transfer to untaxed reserves | | |
| Profit (loss) for the period available for appropriation (+)/(-) | -1,570,707 | -2,315,628 |
| Profit (loss) for the period (+)/(-) | -1,570,707 |
| Profit (loss) per share for the period (+)/(-) – Direct | -0.487 |
| Profit (loss) per share for the period (+)/(-) – Diluted | -0.4661 |
1 This diluted EPS calculation excludes potential new shares to be issued in the future based on the convertible obligations issued by the Company on November 20th, 2023, as well as based on potential new tranches of convertible obligations that could be issued in the future in the context of the Equity Line put in place by the company during the 2023 fiscal year
Statement of Financial Position
| ASSETS | 31.12.2023 | 31.12.2022 |
| FORMATION EXPENSES | 451,855 | 635,415 |
| FIXED ASSETS | 5,435,044 | 5,306,204 |
| Intangible fixed assets | 5,212,569 | 5,084,070 |
| Tangible fixed assets | 21,686 | 28,578 |
| Land and buildings | | |
| Plant, machinery and equipment | 19,816 | 23,064 |
| Furniture and vehicles | 1,870 | 5,514 |
| Leasing and other rights | | |
| Other tangible fixed assets | | |
| Tangible assets under construction and advance payments made | | |
| Financial fixed assets | 200,790 | 193,556 |
| Affiliated companies | 192,233 | 181,631 |
| Participating interests | 8,749 | 8,749 |
| Amounts receivable | 183,484 | 172,882 |
| Other financial fixed assets | 8,557 | 11,925 |
| Amounts receivable and cash guarantees | 8,557 | 11,925 |
| CURRENT ASSETS | 1,647,291 | 3,560,167 |
| Amounts receivable after more than one year | | |
| Trade debtors | | |
| Other amounts receivable | | |
| Stocks and contracts in progress | 123,342 | 91,013 |
| Stocks | 123,342 | 91,013 |
| Raw materials and consumables | | |
| Work in progress | 4,409 | 13,226 |
| Finished goods | | |
| Goods purchased for resale | 118,933 | 77,787 |
| Contract in progress | | |
| Amounts receivable within one year | 334,308 | 235,098 |
| Trade debtors | 18,228 | 34,019 |
| Other amounts receivable | 316,079 | 201,079 |
| Current investments | | |
| Cash at bank and in hand | 1,147,082 | 3,185,671 |
| Deferred charges and accrued income | 42,559 | 48,385 |
| TOTAL ASSETS | 7,534,190 | 9,501,785 |
| LIABILITIES | 31.12.2023 | 31.12.2022 |
| | | |
| EQUITY | 6,049,198 | 7,521,135 |
| Contributions | 10,172,459 | 10,172,459 |
| Available | 322,394 | 322,394 |
| Issued capital | 322,394 | 322,394 |
| Beyond capital | 9,850,065 | 9,850,065 |
| Share premium account | 9,850,065 | 9,850,065 |
| Revaluation surplues | | |
| Reserves | | |
| Legal reserve | | |
| Reserve not available | | |
| In respect of own shares held | | |
| Others | | |
| Untaxed reserves | | |
| Available reserves | | |
| Accumulated profits (+)/ losses (-) | -5,843,002 | -4,272,294 |
| Investment grants | 1,719,741 | 1,620,971 |
| PROVISIONS AND DEFERRED TAXES | | |
| Provisions for liabilities and charges | | |
| Deferred taxes | | |
| AMOUNT PAYABLE | 1,484,993 | 1,980,651 |
| Amounts payable after more than one year | 1,000,600 | 897,058 |
| Financial debts | 1,000,600 | 897,058 |
| Subordinated loans | 12,500 | 37,500 |
| Other loans | 988,100 | 859,558 |
| Trade debts | | |
| Advances received on contracts in progress | | |
| Other amounts payable | | |
| Amounts payable within one year | 477,493 | 1,075,548 |
| Current potion of amounts payable after more than one year | 159,267 | 151,033 |
| Financial debts | | |
| Credit institutions | | |
| Other loans | | |
| Trade debts | 131,615 | 136,156 |
| Suppliers | 131,615 | 136,156 |
| Bills of exchange payable | | |
| Advances received on contracts in progress | | |
| Taxes, remuneration and social security | 100,527 | 239,943 |
| Taxes | 0 | 28,527 |
| Remuneration and social security | 100,527 | 211,415 |
| Other amounts payable | 86,084 | 548,415 |
| Accruals and deferred income | 6,900 | 8,045 |
| TOTAL LIABALITIES | 7,534,190 | 9,501,785 |
Cash Flow Statement
| Cash flow Statement | 31.12.2023 | 31.12.2022 |
| | | |
| Free cashflow | -538,996 | -1,404,282 |
| Net cash used in operations | -679,148 | 373,092 |
| Net cash (used in)/from investing activities | -1,009,290 | -1,554,457 |
| Net cash (used in)/from financing activities | 188,845 | 139,900 |
| | | |
| Net cash (decrease)/increase | -2,038,589 | -2,445,747 |
| Cash & cash equivalents at opening | 3,185,671 | 5,631,418 |
| Cash & cash equivalents at closing | 1,147,082 | 3,185,671 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240422016529/en/
Contacts
TheraVet
Chief Operating Officer
Sabrina Ena
investors@thera.vet
Tel: +32 (0) 71 96 00 43
NewCap
Investor Relations and Financial Communications
Théo Martin / Nicolas Fossiez
theravet@newcap.eu
Tel: +33 (0)1 44 71 94 94
Press Relations
Arthur Rouillé
theravet@newcap.eu
Tel: +33 (0)1 44 71 00 15
NewCap Belgique
Press Relations
Laure-Eve Monfort
lemonfort@newcap.fr
Tél. : + 32 (0) 489 57 76 52
