Voluntis (Euronext Growth Paris, Ticker: ALVTX – ISIN: FR0004183960), a leader in the field of digital therapeutics, today announced its full year 2020 results as approved by the Board of Directors at its March 29, 2021 meeting. The audit procedures on the accounts have been performed. The certification report will be issued after completion of the procedures required for the publication of the Annual Financial Report.
- New milestone partnerships signed with 2 pharmaceutical companies in 2020
- Near fourfold increase in annual sales invoicing to € 10.2 million, and IFRS based sales up 20%
- Strong improvement of free cash flow, at € -2.1 million compared to € -14.3 million a year earlier, and € 11.0 million of cash available at the end of 2020
Implementation of the new strategic plan
As part of the new strategic roadmap presented in March 2020, Voluntis is committed to establishing major partnerships with leading pharmaceutical companies to commercialize its digital therapeutics, with a priority on oncologyhis ambition led to the collaboration with Bristol-Myers Squibb, announced in March 2020, to develop digital therapeutic solutions for the management of cancer patients’ symptoms and their remote monitoring by healthcare professionals. This collaboration complements the portfolio of programs in development in oncology based on Theraxium Oncology, Voluntis’ platform for digital therapies in oncology.
In parallel, the company announced in July 2020 a global licensing agreement with Biocon Biologics in diabetes, the second priority therapeutic area. This global agreement is based on Insulia®, the FDA-cleared and CE-marked digital therapeutic developed by Voluntis for patients with type 2 diabetes treated with basal insulin.
These collaborations add to the company’s portfolio with a total of 10 digital therapeutics co-developed and/or commercialized with pharmaceutical partners, demonstrating the power and replicability of the Theraxium platform.
On this occasion, Pierre Leurent, CEO of Voluntis, said:
“One year after the presentation of our new strategic roadmap, I am very proud of the progress we have made. We are on track on all key indicators, whether it is the conclusion of agreements, with new milestone partnerships with two leading pharmaceutical companies, the improvement of our results, thanks to the optimization of our cost structure, or our financial visibility with a growing cash flow. I would like to take this opportunity to congratulate all our employees who actively participated in this success.
This is just a step and we are more focused than ever on our medium-term goals, with the desire to bring new digital therapeutics to market and to expand our portfolio of innovative solutions, both with our current partners and with new ones. We operate in a market for digital therapeutics that will be worth nearly $ 9 billion by 2025 and in the two largest therapeutic areas in the global pharmaceutical industry, oncology and diabetes.”
As part of the new strategic roadmap presented in March 2020, Voluntis is committed to establishing major partnerships with leading pharmaceutical companies to commercialize its digital therapeutics, with a priority on oncologyhis ambition led to the collaboration with Bristol-Myers Squibb, announced in March 2020, to develop digital therapeutic solutions for the management of cancer patients’ symptoms and their remote monitoring by healthcare professionals. This collaboration complements the portfolio of programs in development in oncology based on Theraxium Oncology, Voluntis’ platform for digital therapies in oncology.
In parallel, the company announced in July 2020 a global licensing agreement with Biocon Biologics in diabetes, the second priority therapeutic area. This global agreement is based on Insulia®, the FDA-cleared and CE-marked digital therapeutic developed by Voluntis for patients with type 2 diabetes treated with basal insulin.
These collaborations add to the company’s portfolio with a total of 10 digital therapeutics co-developed and/or commercialized with pharmaceutical partners, demonstrating the power and replicability of the Theraxium platform.
| 2019 | 2020 | |
| Sales invoicing | 2.7 | 10.2 |
| Adjusted EBITDA | (13.4) | (3.4) |
| Operating income | (13.4) | (3.4) |
| Cash and cash equivalents net of financial debts | (2.5) | 2.9 |
Confirmation of financial objectives
Thanks to the good commercial dynamics and the respect of the roadmap, Voluntis confirms its short- and medium-term financial objectives:
- On the commercial side, Voluntis is aiming to sign new cooperation agreements in 2021.
- On the financial side, based on its current available information, the company confirms its annual commercial invoicing objective of between € 8 and 12 million, and still targets a positive free cash flow in the second half of the year.
Beyond that, Voluntis confirms the commercial potential of the agreements signed since December 2019.
Thus, all the agreements signed since December 2019 could generate, subject to compliance with certain contractual conditions, up to € 25 million in cumulative commercial billings between 2020 and 2024 (including a significant portion of the € 10.2 million billed in 2020), mainly consisting of upfront and milestone payments.
The commercial launch of the co-developed solutions, anticipated to occur gradually between 2021 and 2024, would also enable Voluntis to receive licensing revenues for the use of its Theraxium platform and proprietary digital therapeutics. These could cumulatively represent tens of millions of euros per year, based on negotiated revenues per patient and the projected number of end-users.
About Voluntis
Voluntis creates digital therapeutics that empower people with chronic conditions to self-manage their treatment every day, thus improving real-world outcomes. Voluntis’ solutions, combining mobile and web apps, use clinical algorithms to deliver personalized recommendations to patients and their care teams. For example, these recommendations are used to adjust treatment dosage, manage side effects or monitor symptoms.
Leveraging its Theraxium technology platform, Voluntis has designed and operates multiple digital therapeutics, especially in oncology and diabetes. Voluntis has long-standing partnerships with leading life science companies. Based in Cambridge, MA, and Paris, France, Voluntis is a founding member of the Digital Therapeutics Alliance. For more information, please visit: www.www.voluntis.com
Alternative Performance Indicators :
Commercial invoicing: reflects commercial activity and the achievement of technical or regulatory milestones during the period, which are often deferred or spread out in accordance with IFRS 15 (Upfront payments, exclusivity fees and perpetual licenses + Development and integration services + Saas fees, royalties, maintenance & support)
EBITDA: recurring operating income before depreciation, amortization and provisions.
Adjusted EBITDA: corresponds to the EBITDA amended with the variation in prepaid income and deferred charges pursuant to the application of IFRS 15 (income invoiced for items over which control has not been transferred, expenses for the execution of items produced under customer contracts and not yet transferred).
Free cash flow: cash flow from operations + cash flow from investing activities
Consolidated income statement
| € 000′ | 31/12/2020 | 31/12/2019 |
| Revenue | 4 398 | 3 660 |
| Other Operating Income | 791 | 1 012 |
| Total Income | 5 189 | 4 672 |
| Labor Costs | (9 133) | (11 430) |
| Other Operating Expenses | (5 108) | (5 758) |
| Operational Depreciations | (2 052) | (2 312) |
| Operating profit | (11 103) | (14 827) |
| Financial income | (718) | (986) |
| Taxes | (303) | (0) |
| Net income (group share) | (12 124) | (15 813) |
Cash flow statement
| € 000′ | 31/12/2020 | 31/12/2019 |
| Operating activities | ||
| Net income | (12 124) | (15 814) |
| Depreciation, amortisation and provisions | 2 155 | 1 363 |
| Depreciation, amortisation and provisions – IFRS 16 | 381 | 754 |
| Other elements without cash impact | 952 | 648 |
| Net change in operating working capital requirements | 7 265 | 881 |
| Net cash flows from/(used in) operating activities | (1 372) | (12 168) |
| Investment activities | ||
| Proceeds/(purchase) from/(of) tangible and intangible assets | (679) | (2 019) |
| Proceeds/(purchase) from/(of) non-current financial assets | (70) | (128) |
| – | – | |
| Net cash flows from/(used in) investing activities | (749) | (2 147) |
| Financing activities | ||
| Proceeds from capital increase | 5 723 | – |
| Proceeds/(repayment) from/(of) borrowings and interests paid | 2 727 | 362 |
| Proceeds/(repayment) from/(of) borrowings and interests paid – ifrs 16 | (429) | (709) |
| Net cash flow from/(used in) financing activities | 8 021 | (347) |
| CASH FLOW VARIATION | 5 900 | (14 662) |
| Net foreign exchange difference | (11) | 2 |
| OPENING CASH BALANCE | 5 121 | 19 783 |
| CLOSING CASH BALANCE | 11 010 | 5 122 |
Consolidated balance sheet
| € 000′ | 31/12/2020 | 31/12/2019 |
| Assets | ||
| Intangible assets | 2 071 | 2 694 |
| Tangible assets | 405 | 3 313 |
| Non-current financial assets | 251 | 258 |
| Other non-current assets | 1 091 | 364 |
| Non current assets | 3 817 | 6 629 |
| Receivables | 844 | 541 |
| Other current financial assets | – | – |
| Other current assets | 2 180 | 4 984 |
| Cash on hand | 11 010 | 5 121 |
| Current assets | 14 035 | 10 647 |
| Total | 17 852 | 17 277 |
| 31/12/2020 | 31/12/2019 | |
| Liabilities | ||
| Shareholder equity | (4 629) | 1 742 |
| Financial debt (non current) | 6 062 | 4 452 |
| LT provisions and other non current liabilities | 7 219 | 852 |
| Non current liabilities | 13 281 | 5 304 |
| Financial debt (current) | 2 088 | 3 201 |
| Payables and other current liabilities | 7 112 | 7 029 |
| Current liabilities | 9 200 | 10 230 |
| Total | 17 852 | 17 277 |
[1] Excluding subcontractors