Launch of NEW-HOPE, major phase II clinical trial in the United States
Continuation of high blood pressure and heart failure research programmes
Bolstering of cash position and financial flexibility
Quantum Genomics (Euronext Growth – FR0011648971 – ALQGC), a biopharmaceutical company specialising in the development of a new class of patented drugs directly acting on the brain to treat unmet medical needs in the field of cardiovascular diseases, has released its annual financial results, approved by the Board of Directors at its meeting held on 28 March 2018.
The annual financial report, including the accounts as of 31 December 2017, the management report and the statutory auditor's report, is available on the company's website: www.quantum-genomics.com.
Lionel Ségard, Quantum Genomics Chairman and Chief Executive Officer, states:
“In 2017, we launched NEW-HOPE, our phase II clinical trial evaluating our lead compound, QGC001, for the treatment of hypertension, following last year's publication of promising results in our European phase IIa study. This large-scale trial enables us to evaluate our lead molecule on 250 patients with high blood pressure who are at higher cardiovascular risk. Conducting a major study in the United States enables us to specifically target patients who suffer from complicated or even resistant high blood pressure, a priority target demographic for us.
The financial results for the fiscal year reflect the transition into this advanced stage of development and the continuation of our research programmes. Our successful capital increase in July 2017 and the setting-up of a flexible line of credit at the start of March have secured our long-term growth plan. Quantum Genomics now enjoys greater operational flexibility, which has laid solid foundations for our position as a committed and innovative player in a market that has been revitalised in the last few months.”
A cash level consistent with Quantum Genomics' route plan
The accounts for the 2017 fiscal year reflect the intensification of research and development activities, and particularly the preparation and the launch of NEW-HOPE study.
On 31 December 2017, operating income was -€10.3 million, compared with -€6.2 million one year earlier. After accounting for the research tax credit of €1.1 million, Quantum Genomics reports a net income of -€9.4 million versus -€5.2 million for the first half of 2016.
Free cash flow (net cash flow relating to business operations) was -€7.9 million for the period.
- Strengthening of the financial structure through a capital increase of €8.2 million
In July, Quantum Genomics raised €8.2 million from private investment in France and the United States to support its development programmes, not least NEW-HOPE.
At the end of December 2017, there was €8.9 million in equity capital and €11.1 million in available cash flow, compared with €11.2 million on 31 December 2016. The company has no financial debts.
- Shoring-up of operational room for manoeuvre through the setting-up of a flexible line of credit
In March 2018, the company set up an equity-capital line of credit structured and guaranteed by Kepler Cheuvreux, which could rise to €24 million1 over three years in 4 tranches. The last three tranches, totalling €18 million, will be submitted to the vote of the next general meeting of shareholders. This operation should enable Quantum Genomics to consolidate its growth plan and increase its operational flexibility.
High blood pressure: a new stage of development
The detailed results of phase IIa presented last year demonstrated that QGC001, apart from its good tolerance, is an innovative antihypertensive therapeutic that is more effective when patients exhibit a higher baseline blood pressure. Following from those good results, the US Food and Drug Administration (FDA) approved Quantum Genomics' Investigational New Drug (IND) application for the launch of a targeted Phase II clinical trial, named NEW-HOPE, into high blood pressure in the United States, still with the drug candidate QGC001. NEW-HOPE also won a Galien MedStartUp award in the “Best innovative clinical study design” category and was launched in mid-November 2017. Patient recruitment is going at a particularly sustained pace, ahead of the initial schedule.
Quantum Genomics has also grown its portfolio of patents on the QGC001 combined drug treatment programme by obtaining a key patent which protects – until December 2032 – the therapeutic use in Europe of the drug candidate QGC001 in association with the main antihypertensive drugs already prescribed on the market.
Heart failure: expanded profile of targeted patients
Throughout the fiscal year, Quantum Genomics continued its multicentre phase IIa study into heart failure. The trial is being conducted in eight European countries and was amended at the start of 2018, expanding the profile of targeted patients to simplify and accelerate the recruitment process.
Consolidation of the management team and the Scientific Advisory Board
Dr. Bruno Besse has joined the company as Chief Medical Officer. As a cardiologist at the Georges-Pompidou Hospital in Paris, he brings over 20 years of experience working in Medical Affairs departments in leading pharmaceutical companies, thus strengthening Quantum Genomics' cardiology expertise. Professors Toshiro Fujita and then Frans Leenen have joined the company's Scientific Advisory Board, bringing internationally renowned expertise in resistant high blood pressure and heart failure.
Key figures as of 31 December 2017
|In €k (French GAAP)||12/31/2017||12/31/2016|
|Other operating costs||(7,861.3)||(4,410.0)|
|Pre-tax operating earnings||(10,355.2)||(6,188.6)|
|Research tax credit||1,150.0||957.9|
- 16-17 April 2018: SmallCap Event (Paris)
- 19 April 2018: Announcement of three-year strategic plan
About Quantum Genomics
Quantum Genomics is a biopharmaceutical company that specialises in the development of a new class of cardiovascular medications based on brain aminopeptidase A inhibition (BAPAI). Quantum Genomics is the only company in the world exploring this innovative approach that directly targets the brain. The company relies on its 20-plus years of basic and clinical research at some of the largest French laboratories: the French National Institute of Health and Medical Research (INSERM), the French National Centre for Scientific Research (CNRS), the Collège de France, and Paris-Descartes University. The goal of Quantum Genomics is to develop innovative treatments for complicated, or even resistant, cases of hypertension (around 30% of patients have poor control of their condition or receive ineffective treatment) and for heart failure (one in two patients diagnosed with heart failure dies within five years).
Based in Paris and New York, the company is listed on the Euronext Growth exchange in Paris (FR0011648971—ALQGC) and trades on the OTCQX market in the United States (symbol: QNNTF). Click here for more information about Quantum Genomics.
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1 This transaction was entered into as a result of Resolution 8 of the 8 June 2017 shareholders' general meeting, with an initial tranche of €6 million. The taking-up of the balance of the transaction is subject to the decision of the company's next general meeting.