Adocia plans to license its diabetes treatment products, especially its most advanced program BioChaperone Lispro. The company’s boss Gérard Soula said that cash position of €58 million will enable the company to push BioChaperone Lispro into phase 3 clinical trial.
According to the company’s report, the main source of the revenues for 2016 was licensing agreement signed in 2014 with Eli Lilly, as the two companies were involved in developing of the ultra-rapid insulin analog, BioChaperone Lispro. In January 2017, Eli Lilly decided to exit the deal for BioChaperone Lispro. Adocia stated in its report that the end of contract will be effective after a 4-month period, during which data and produced materials will be transferred back to Adocia.
Lilly in January said in an email that it would continue to develop an alternative ultra-rapid insulin program as part of its vision to “offer a more complete range of medicines for people with diabetes.”
Adocia’s revenue for 2016 went down, as it was €22.4 million compared to €36.9 million in 2015, including €10.7 million from Lilly for the up-front payment upon signing the deal. In the meantime, the company’s debts at the end of 2016 were €6.3 million, consisting mostly of the loan taken for buying the headquarters building.
As for the deal with Lilly, now terminated, the total up-front amount of €40.8 million is recognized as revenue linearly over the expected duration of the program at the time of the signature of the agreement, Adocia said. Since Lilly has left the deal, the remaining non-amortized part of the up-front payment, for a total of €18.8 million, will be fully recognized in 2017.
Adocia said it invoiced Lilly for €11.7 million for expenses of product co-development, but transferring certain activities to Lilly halved the bill by €5.3 million in 2016.
Additionally, the company said that other operating income of €8 million “were stable compared to 2015 and mainly consisted of a Research Tax Credit for EUR 7.8 million in 2016.”