Release Date: October 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Poxel SA (STU:7PO, Financial) reported strong growth in the commercialization of TWYMEEG in Japan, with sales expected to surpass significant thresholds, potentially increasing royalty rates.
- The company successfully concluded a monetization agreement with OrbiMed, securing a one-time cash payment of USD 50 million, which will help reduce debt and support strategic initiatives.
- Poxel SA has regained rights to territories outside Japan for TWYMEEG, opening opportunities for new partnerships and leveraging existing clinical data.
- The company has a clear roadmap for developing its metabolic disease pipeline, focusing on rare diseases with significant unmet needs.
- Poxel SA's financial restructuring efforts, including debt reduction and favorable restructuring terms, are expected to extend its cash runway until the end of 2025.
Negative Points
- Poxel SA reported a net loss of EUR 35.1 million for 2023, an increase from the previous year's loss of EUR 31.4 million.
- The company's cash and cash equivalents significantly decreased from EUR 13.1 million at the end of 2022 to EUR 2.3 million at the end of 2023.
- The financial liabilities increased to EUR 47.5 million in 2023, reflecting substantial debt obligations.
- There is uncertainty regarding the timeline for finalizing partnerships in China and other regions, which could impact future revenue streams.
- The company faces challenges in entering the US and European markets due to different regulatory requirements and existing market dynamics.
Q & A Highlights
Q: When do you expect a real partnership in China for TWYMEEG?
A: It's difficult to set a specific timeline. We have ongoing discussions with several companies in China. The overlap of type 2 diabetes and CKD patients in China is advantageous, and we believe this will increase momentum in our discussions.
Q: What about Europe and the US now that TWYMEEG is suitable for patients with insufficient kidney function?
A: The market dynamics in Europe and the US are different, with existing products and regulatory requirements making it more challenging. We are focusing on regions where we can leverage the Japanese PMDA approval to get the product to market sooner without significant additional development.
Q: Can you share when you hope to finalize partnership discussions for PXL770 and PXL065?
A: We have ongoing discussions for both products, but it's hard to provide an exact timeline. We are evaluating whether to proceed alone or through partnerships, especially given the interest in the renal space.
Q: Why did you keep the IRIS financing alive as it is perceived negatively for Poxel's stock price?
A: We have an agreement with IRIS until early next year. We believe maintaining this agreement is the right approach based on the company's needs.
Q: What is the impact of the OrbiMed transaction on Poxel's financial strategy?
A: The transaction allows us to significantly reduce debt and extend our cash runway until the end of 2025. It supports our strategic focus on developing our metabolic disease pipeline and pursuing partnerships.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
