Cellectis: 2012 financial results

Paris, April 29,2013 - Cellectis (Alternext: ALCLS), the global genome engineering specialist, presented its consolidated financial statements for the 2012 fiscal year, approved for publication by the Board of Directors at their meeting today.

Paris, April 29,2013 - Cellectis (Alternext: ALCLS), the global genome engineering specialist, presented its consolidated financial statements for the 2012 fiscal year, approved for publication by the Board of Directors at their meeting today.

Operating performance in line with forecasts
Focus on executing growth strategy
New prospects for strong value creation in the therapeutic sector

Cellectis’ operating performance showed:  

• increase in revenue generated by new products and services, 
• strict control of operating costs,
• strengthening of the Group’s equity position.

Operating revenue was €21 million, up 32% from €16 million in 2011.

Despite a challenging economic climate worldwide, revenue rose to €11.3 million from €9.9 million the previous year. This increase was driven by promising developments for the Group’s “Tools and Services” and “Plants” offerings: sales of the TALEN^TM range and of the cell lines marketed by the “Tools and Services” and “Plants” businesses made gains. Only non-recurring revenue items, corresponding to sales of Cellectis SA licenses, were down compared to 2011.

Operating expenses were successfully kept in check, rising 15% to €40.8 million. This limited increase demonstrates the effectiveness of the cost-control strategy pursued by Cellectis, alongside the reinforcement of its sales and marketing resources.

The Group posted an operating loss of €19.8 million, in line with forecasts.

A €1.5 million (6.3%) improvement in net performance versus 2011.

The year saw a net use of cash of €20.6 million, also in line with forecasts.

As of December 31, 2012, the Group’s net cash position was €21.8 million, a level deemed sufficient to allow Cellectis to reach the break-even point and to begin generating positive cash flow by 2014 as anticipated.

The Group’s equity position was strengthened significantly, surging from €28.6 million to €61.8 million, following the conversion into shares of the ORA bonds issued in 2011.

Key highlights of 2012: reorganization of core businesses to support sustainable growth

A true pioneer in the industrial applications of genome engineering at its founding in 1999, in 2006 Cellectis successfully responded to a new demand for products incorporating scientific advances at the leading edge of DNA programming innovation.

 Cellectis’ business is focusing in on therapeutic solutions. So as to provide greater efficiency in its operations, the Group reinforced its sales resources and successfully completed a major simplification of its operating structure.

Lastly, as part of its growth strategy in 2012, the Group decided to make a significant shift in its R&D activity towards the challenges posed by synthetic biology and an emerging demand for regenerative medicine products and services.

A new organization closer to markets and demand

Controlled by Cellectis SA, a holding company with executive management responsibilities, the Group is now organized around three business lines:

• Cellectis therapeutics, whose objective is to bring innovative products to the market. In the first half of 2012, Dr Mathieu Simon was named President of Cellectis therapeutics and will be responsible for realizing this ambition;
• Cellectis bioresearch, whose mission is to develop and market the Group’s “Tools and Services” offering;
• Cellectis plant sciences, which, apart from its agro-industrial specialization, now coordinates the investments that the Group may pursue in other areas of industrial biotechnology.

Concentrating resources on projects with strong potential

Over the 2012 fiscal year, Cellectis concentrated its activities on a limited number of high‑potential programs.

Therapeutics: a driving force for growth

In 2012, Cellectis achieved significant results in two growth areas:

• Regenerative medecine: generated cells from engineered partnership with Novo Nordisk, the global leader in diabetes treatments
• Cancer immunitherapy (T-cells): partnership with University College London (UCL), proof-of-concept of engineered T-cells' ability to eliminate cancer cells.

André Choulika, Chairman and Chief Executive Officer of Cellectis Group, said, “This therapeutic focus strengthens the growth prospects of the Group, which is simultaneously pursuing other promising partnerships.”