Adocia a clinical stage biopharmaceutical company announced today third quarter revenue and net cash position ending September 30,2016.
“During this quarter, we strengthened our strategic positioning in the field of diabetes treatment, notably with the stop of the BioChaperone PDGF project and the development of two new BioChaperone products combining a basal insulin with GLP-1s for type 2 diabetes treatment. GLP-1s are emerging as a therapeutic class complementary to insulins and glucagon,” said Gérard Soula, President and CEO of the Company. “We expect to start clinical studies of our two most recent projects, BC Human Glucagon and BC Basal GLP-1, as soon as 2017.
Revenues for the third quarter of 2016 were primarily derived from the ongoing Eli Lilly licensing agreement for the development of the ultra-rapid insulin analog, BioChaperone Lispro.
Specifically, revenues included EUR 2.7 million in licensing revenue from Eli Lilly, reflecting the up-front payment received upon signing the deal. Under IFRS rules, the total up-front amount of EUR 40.8 million (USD 50 million) is recognized as revenue linearly over the expected duration of the program at the time of the signature of the agreement.
Additionally, as per the agreement, the company invoiced Eli Lilly EUR 3.8 million for internal and external expenses related to the co-development of the project. These expenses are accounted for as research and collaborative agreements revenue. This 8% increase compared to the third quarter 2015 reflects a particularly high activity carried out under this partnership over the period.
Consequently, over the first nine months, revenue amounted to EUR 18.5 million in 2016, compared to 18.9 million in 2015.