Recruitment of first subjects for Phase III trial in difficult-to-treat and resistant arterial hypertension patients
Finalization of recruitment for Phase IIb trial in heart failure with upcoming results expected in 2021
Strong cash position of €27.1 million at December 2020
Licensing agreement activities acceleration in second semester 2020
Quantum Genomics (Euronext Growth - FR0011648971 - ALQGC), a biopharmaceutical company specializing in developing a new drug class that directly targets the brain to treat difficult-to-treat and resistant hypertension and heart failure today has published its 2020 annual financial statements.
The Company's 2020 annual financial statements have been approved by the Board of Directors at its last meeting on March 24, 2021. Financial reports, including the 2020 financial statement and the statutory audit report, are available on the Company's website: www.quantum-genomics.com
Jean-Philippe Milon, Quantum Genomics' Chief Executive Officer, commented:
«Fiscal Year 2020 has been a special year, marked by an unprecedented global pandemic. Quantum Genomics successfully adhered to its strategic plan with continued focus on the three pillars of our development: research, financing, and pre-commercialization stage of firibastat. Thanks to a cash position which has been strengthened by several financings and strategic commercialization deals in 2020, we have started year 2021 with full poise and determination, as we approach the upcoming announcements of the results from two studies: FRESH, a phase III study in difficult-to-treat and resistant hypertension, and QUORUM, phase IIb in heart failure. »
Pursuit of clinical research activities in spite of the COVID-19 crisis
In order to face this unprecedented situation, Quantum Genomics has followed all procedures recommended by the European and American Health Authorities to continue the clinical research activities with patients, employees and medical teams' safety as top priority.
In the Company's heart failure studies, recruits in Phase IIb QUORUM (Quantum Genomics QGC001 Or Ramipril after acUte Myocardial infarction to prevent left ventricular dysfunction) have sped up during the second semester of year 2020. First results are expected by the end of the second quarter of 2021.
In difficult-to-treat and resistant hypertension, Quantum Genomics has launched its pivotal phase III and the first patients have been recruited in the FRESH study (Firibastat in treatment-RESistant Hypertension). The study is being conducted in Europe (France, Germany, Poland, Spain and Czech Republic), in Canada, the US and Latin America (LATAM) with initial results expected by the end of 2021.
In January 2021, Quantum Genomics has announced the launch of the REFRESH study which aims to assess long-term safety as well as three-month efficacy after a single daily dose of firibastat 1000 mg in treatment resistant hypertensive patients. First patient recruitment is planned in Q2 2021.
Five new partnerships signed in 2020
After signing its first partnership with Biolab Sanus Pharmaceutical in 2019, Quantum Genomics announced five new licensing agreements in 2020, despite a challenging global situation.
A total of six licensing agreements were executed to develop and commercialize firibastat in high potential areas such as LATAM, South-East Asia, Australia, New-Zealand, Canada, China, South-Korea and Greece, representing a potential market of 60 million patients.
In addition to the above successes, Quantum Genomics continues pursuing discussions with other potential partners to strengthen its global coverage.
A strong cash position of € 27.1M as of December 2020
Quantum Genomics has begun to receive first payments from its licensing agreements in 2020.
The Company has billed and cashed-in €1.2 million corresponding to Biolab's contribution for the FRESH study in and to the upfront payment. Quantum Genomics has also billed the upfront payment of €0.8 million to its partner Orient EuroPharma which was cashed-in last January 2021.
Previous operations led to a total revenue of €2.3 million for 2020. The Company's financial statements show -€13.9 million for 2020 operating income, compared to -€10.8 million a year earlier due to higher spending in clinical trials, whereas personal costs remain controlled. After including the research tax credit, worth €2.1 million, net income stood at -€11.5 million as of December 2020.
Free cash flow (net cash from operating activities) was -€12.0 million during this period.
In 2020, Quantum Genomics strengthened its financial resources after previously ending an equity line structured with Kepler Cheuvreux in 2018. In March 2020, at the beginning of the COVID-19 crisis, Quantum Genomics has secured a new financing with Negma Group Ltd of €8.0 million. In December 2020, Quantum Genomics successfully executed a capital raise of €20 million, subscribed to by Otium Capital, French entrepreneur Pierre-Edouard Sterin's family office and other institutional investors. This last operation helped Quantum Genomics to restructure its shared capital, to institutionalize its shareholding and secure additional resources required for the industrial production of firibastat and the development of fixed combinations.
At the end of 2020, the Company had €27.1 million in equity, plus €0.7 million in other equity (subsidized loans from Bpifrance). Available cash flow reached €27.1 million, compared to
€11.2 million at December 31, 2019. The Company has no financial liabilities.
In early 2021, Orient EuroPharma Co. Ltd (OEP) acquired equity stake in Quantum Genomics following a reserved capital increase of €0.9 million which further demonstrates OEP's confidence in the Company.
Quantum Genomics has begun 2021 with a strong cash position, which should be strengthened during the first semester 2021 thanks to upcoming upfront payments arising from licensing agreements concluded in 2020. In addition, Quantum Genomics should receive in 2021 significant milestones payments in relation with the first Asian patients included in the REFRESH study.
Financial summary at December 31, 2020 :
|Figures in thousands of € (french standards)||12/31/2020||12/31/2019|
|Personnel costs||(2 328.6)||(2 775.6)|
|Other operating expenses||(13 790.5)||(8 345.5)|
|Operating income||(13 857.7)||(10 760.0)|
|Earnings before tax||(13 862.7)||(10 749.1)|
|Research tax credit||2 147.5||1 547.2|
|Net income||(11 536,7)||(9 078.4)|
2020 financial results and perspectives will be discussed during a meeting with institutional investors, next March 30, 2021. This meeting will be organized by Gilbert Dupont.
The meeting support will be uploaded on the Company's website:
About Quantum Genomics
Quantum Genomics is a biopharmaceutical company specializing 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 20 years of academic research from the Paris-Descartes University and the laboratory directed by Dr. Catherine Llorens-Cortes at the Collège de France (French National Institute of Health and Medical Research (INSERM)/ the Scientific Centre for National Research (CNRS)). 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 severe heart failure dies within five years).
Based in Paris and New York, Quantum Genomics is listed on the Euronext Growth exchange in Paris (FR0011648971- ALQGC) and trades on the OTCQX Best Market in the United States (symbol: QNNTF).
For more information, please visit www.quantum-genomics.com, or follow us on Twitter and LinkedIn
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