Nicox Q3 2024 Update and H1 2024 Financial Results

Nicox SA, a prominent international ophthalmology company based in Sophia Antipolis, France, has shared its financial results for the first half of 2024 and provided an update for the third quarter of the same year. As of September 30, 2024, the company had a cash position of €19.7 million, which includes the proceeds from the recent VYZULTA royalty sale and an equity investment finalized on October 14, 2024. This financial position ensures that Nicox is funded through the third quarter of 2025.

The company, listed on Euronext Growth Paris (Ticker symbol: ALCOX), has seen significant strategic progress in 2024. The year has witnessed a stabilization of Nicox’s financial condition through strategic maneuvers such as the sale of royalties, optimized cost structures, and an enhanced institutional shareholder base. During this period, the company also restructured its Board of Directors. A notable development is the advancement of the NCX 470 Denali clinical trial, with the recruitment phase in the United States completing in July 2024 and topline results anticipated in the third quarter of 2025.

Gavin Spencer, the Chief Executive Officer of Nicox, emphasized the strategic progress and financial stability achieved this year. He highlighted the ongoing efforts of the development team in driving forward the NCX 470 Denali clinical trial, as well as the expansion of the company’s partnership activities. These include Ocumension Therapeutics obtaining approval for ZERVIATE in China, with commercial launch imminent. Additionally, a new research agreement was signed with Glaukos for NCX 1728, potentially opening further partnership opportunities.

Key upcoming milestones for Nicox include the commercial launch of ZERVIATE in China by their partner Ocumension Therapeutics, anticipated soon following its approval in September 2024. The Whistler Phase 3b clinical trial, initiated in December 2023, is investigating NCX 470's dual mechanism of action for intraocular pressure reduction, with results expected in the first quarter of 2025. The Denali Phase 3 clinical trial for NCX 470, targeting patients with open-angle glaucoma or ocular hypertension, has nearly completed recruitment in the U.S. and continues in China, with topline results expected by the third quarter of 2025.

There has been a management change with Emmet Purtill, Vice President of Business Development, joining the Executive Committee. Emmet has been with Nicox since 2006, playing a pivotal role in establishing strategic partnerships, including those with Ocumension and Kowa.

Financially, the company did not generate significant revenue in the third quarter of 2024 due to the VYZULTA royalty sale. Compared to €1.8 million in net revenue from the third quarter of 2023, this quarter's figures reflect a different financial landscape. Nicox announced a $16.5 million royalty and equity financing deal with Soleus on October 14, 2024. By September 30, 2024, Nicox had financial debt totaling €20.4 million, mainly comprising €19.4 million from a bond financing agreement with Kreos Capital and a €1.0 million credit agreement guaranteed by the French State.

For the first half of 2024, Nicox reported net revenue of €4.9 million, a significant increase from €1.7 million in the first half of 2023, due to net royalty payments and a €3.0 million license payment. Operating expenses were reduced to €10.1 million from €14.8 million the previous year, reflecting cost optimizations and the completion of the Mont-Blanc study. The net loss for the first six months of 2024 was €4.4 million, substantially lower than the €12.5 million loss in the same period in 2023, attributed to increased revenues and reduced operating expenses.

As of June 30, 2024, Nicox had cash and equivalents of €7.7 million, compared to €11.3 million at the end of 2023. Including the recent financial developments such as the VYZULTA royalty sale, the company estimates it is funded into the third quarter of 2025. The total financial debt was €20.5 million, primarily from a bond financing agreement with Kreos Capital and a credit agreement guaranteed by the French State.

Overall, Nicox showed significant progress in its strategic initiatives, financial stability, and clinical development programs in 2024, with promising milestones on the horizon for its key projects.