Cellectis: 2011 half-year earnings
· Resources strengthened to support growth across all the Group's business lines, with limited cash burn
· Important strategic moves implemented
Paris, October 6, 2011 (5.45 pm CET) – Cellectis (Alternext: ALCLS), the Genome engineering specialist, is releasing its condensed consolidated accounts for the first half of 2011, and an update on its activities.
Marc Le Bozec, Cellectis' Chief Financial Officer, confirms: “The first half has shown good momentum for all of Cellectis’ businesses. We have significantly strengthened our capabilities, programs and resources during the period. More specifically, this positive trend is illustrated by the redefinition of the Group’s product portfolio, and supported by Cellectis bioresearch’s launch of its TALENs™ offer, which should have a positive impact on our sales from the second half of this financial year. Additionally, we have considerably stepped up the development of our stem cells business; its expansion is being supported by the upcoming acquisition of Cellartis, the European stem cells market leader, at the same time as funds are being raised with the French strategic investment fund (FSI) and Pierre Bastid. Cellectis’ business model, based on Genome engineering applications, is progressively being rolled out with a view to achieving the Group’s strategic goal to be the European number one for life sciences in five years”.
Key events during the first six months of FY2011
· Cellectis bioresearch is now selling TALEN® Access, the first tailor-made TALE Nuclease offer, enabling the modification of a specific gene in any cellular type and which, considering its price, is now becoming accessible to all biology research labs.
· Cellectis therapeutics, the CNRS and the Institut de la Vision (Paris) unveiled the first proof of concept of the potential of Meganucleases in the prevention of viral infections. Their findings have been published in Molecular Therapy.
· Ectycell announced:
o The operational start of a program for the production of substitute red blood cells from stem cells, implemented in partnership with the French Blood Institute (EFS),
o The signing of an agreement with CDC Entreprises for a project to build the world’s largest stem cells bank for industrial applications, as well as a projected two-step capital increase for a total of €12 million, reserved equally for Cellectis and the CDC.
o The signing of project financing agreements, both as refundable and non-refundable grants, with OSEO, the Interministerial Unique Fund (FUI) and regional authorities, for a total of €23 million (for the Group).
· Several new research, development and licensing contracts have been signed with
o VitamFero, for the use of Meganucleases in the development of new vaccines against parasitic infections.
o A pharmaceutical group for certain applications of patents related to the Homologous recombination technology in oncology. This agreement triggered an immediate payment of €3 million to Cellectis.
· Cellectis has further strengthened its teams to ensure that the implementation of its strategy is successful. The Group had 155 employees at June 30, 2011, versus 120 at June 30, 2010.
Financial results for the first half of 2011
The results for the first half of 2011 reflect the intensified development of activities, the acceleration of investments and the structuring of the teams – all to prepare for the growth of coming sales.
· Total operating revenues came in slightly lower than the previous year, at €7.5 million vs. €8.8 million for H1 2010. Half of the difference is due to a lower level of Research Tax Credit, with refundable grants booked during the period, as well as the change introduced in 2011 concerning the Research Tax Credit calculation method.
· The planned development of the Group’s different businesses led to an increase in operating expenses to €16.3 million, up 26% from 2010. These investments are linked to ongoing developments, which will fully deliver their results over the coming quarters.
· The net loss reached €10.2 million, a marked decrease from the first half of FY 2010 (€4 million loss), which included €1.5 million in tax income related to the activation of losses carried forward. Considering the expected fiscal evolutions, activation of the deferred tax assets was discontinued.
· The cash position came to €20.5 million at June 30, 2011.
· Cash burn has been limited, representing €3.6 million over the first half of 2011, versus €7.5 million for the same period in 2010. This change primarily reflects the reduction in working capital requirements (significant increase in the research tax credit in 2010, collected in May 2011).
Events occurred after June 30, 2011
· Cellectis bioresearch and Lonza achieved a milestone, deactivating the cell-based glutamine synthetase (GS) activity in the CHO-K1SV cell line.
· Cellectis bioresearch signed an exclusive license agreement with Recombinetics for the application of modified nucleases on large livestock.
· Cellectis announced the upcoming acquisition of Cellartis, the European stem cells market leader, as well as the raising of €50 million from the FSI and Pierre Bastid. Both transactions are to be finalized at the end of October 2011.
· The ETICS project led by CYTOO and involving Cellectis bioresearch and the CEA, aiming to develop innovative research kits, has received a €7.6 million grant (including €2.9 million for Cellectis bioresearch).
