Inventiva Releases Early 2024 H1 Financial Data

Inventiva, a clinical-stage biopharmaceutical company listed on Euronext Paris and Nasdaq, has announced its preliminary financial results for the first half of 2024. Notably, the company is involved in developing oral small molecule therapies targeting metabolic dysfunction-associated steatohepatitis (MASH), also known as non-alcoholic steatohepatitis (NASH), alongside other diseases with significant unmet medical needs.

As of June 30, 2024, Inventiva reported cash and cash equivalents totaling €10.1 million. This represents a substantial decrease from €26.9 million in cash and cash equivalents, €0.012 million in short-term deposits, and €9.03 million in long-term deposits recorded as of December 31, 2023. 

Operating activities in the first half of 2024 saw a net cash usage of €48.3 million, a slight increase from €45.2 million spent during the same period in 2023. Research and development (R&D) expenses for the first half of 2024 amounted to €48.7 million, showing a 10% decline compared to the first half of the previous year. This decrease is primarily attributed to the temporary halt in patient recruitment for the NATiV3 Phase III clinical trial of lanifibranor in MASH/NASH, following a Suspected Unexpected Serious Adverse Reaction (SUSAR) reported earlier in 2024. Additionally, the completion of the LEGEND Phase IIa combination trial with lanifibranor and empagliflozin in patients with MASH/NASH and type 2 diabetes (T2D) also contributed to the reduced R&D costs. However, R&D expenses are expected to rise in the second half of 2024 as patient recruitment in NATiV3 resumes and other planned clinical development activities progress.

In contrast to operating activities, the first half of 2024 saw a net cash generation of €8.9 million from investing activities, compared to a usage of €7.7 million in the first half of the previous year. This change is mainly due to variations in deposits between the two periods.

Financing activities also brought in a net cash generation of €22.6 million in the first half of 2024, a significant turnaround from the €2.2 million used in the first half of 2023. This positive shift is primarily due to the second tranche of a €25 million unsecured loan granted by the European Investment Bank (EIB) in January 2024. As a condition of this loan, Inventiva issued 3,144,654 warrants to the EIB.

Additionally, the company experienced a positive exchange rate effect of €0.1 million on its cash and cash equivalents in the first half of 2024, reversing a negative impact of €0.4 million from the same period in 2023. This shift is attributed to the fluctuations in the EUR/USD exchange rate.

Following the end of the first half of 2024, on July 18, Inventiva announced the issuance of royalty certificates subscribed by Samsara BioCapital and existing shareholders BVF Partners, NEA, Sofinnova, and Yiheng, amounting to approximately €20.1 million. These certificates entitle holders to an annual royalty payment of 3% of potential future net sales of lanifibranor.

Given its current cost structure, forecasted expenditures, and the additional €20.1 million from the royalty certificates, Inventiva estimates that its cash, cash equivalents, and deposits will fund its operations through September 2024. However, this projection underlines the pressing need for the company to secure additional funding to sustain its activities beyond this period. As a result, Inventiva is actively exploring various financing options, including debt, equity, and other instruments, along with strategic alternatives.

No revenues were recorded by Inventiva in the first half of 2024, in contrast to the €1.9 million recorded in the same period in 2023. The previous year's revenue stemmed from a milestone payment following the Investigational New Drug (IND) approval from the Chinese National Medical Products Administration (NMPA) received by CTTQ, a subsidiary of Sino Biopharm, in May 2023. This approval enabled the initiation of clinical development of lanifibranor in MASH/NASH in mainland China.

How to obtain the latest research advancements in the field of biopharmaceuticals?

In the Synapse database, you can keep abreast of the latest research and development advances in drugs, targets, indications, organizations, etc., anywhere and anytime, on a daily or weekly basis. Click on the image below to embark on a brand new journey of drug discovery!