- Thanks to current customer base and new contracts signed with pharma partners, commercial invoicing to reach 10.2 million euros in 2020, i.e. 3.8 times higher than previous year
- Funding secured beyond 2021, thanks to several financing operations: 11.1 million euros in available cash at end of 2020
- New partnerships under discussion, commercial launch of new solutions planned and financial targets confirmed for 2021
Voluntis (Euronext Paris, Ticker: VTX – ISIN: FR0004183960), a leader in the field of digital therapeutics, reviews a solid year of commercial growth in 2020 and outlines its outlook for the fiscal year 2021[1].
“With our March 2020 strategic roadmap, we placed Voluntis on a trajectory for 2020 and the following years that will enable us to reach our full potential. The achievements of 2020 have proven that we are on the right track. We are proud of this year’s progress and intend to continue to create value for our shareholders.“
Pierre Leurent, Chief Executive Officer
Implementation of the Strategic Plan and signing of new major partnerships
The goal of Voluntis’ 2020 new strategic roadmap was to ink major partnerships with leading pharmaceutical companies, in order to commercialize the digital therapeutics solutions developed by the company, primarily in the field of oncology.
The global market for digital therapeutics is expected to grow at an average annual rate of +21% between 2019 and 2025, representing 8.7 billion dollars by then[2]. The Covid-19 pandemic has further accelerated this trend, given the increased need to implement remote patient monitoring solutions. At the same time, the global Oncology market represents the largest therapeutic area of the Global pharmaceutical industry with an estimated 237 billion dollars of revenues in 2024[3].
It is within this framework that Voluntis has entered a collaboration with Bristol-Myers Squibb, announced in March 2020, to develop digital therapeutic solutions for symptom management of cancer patients and their remote monitoring by healthcare professionals. This collaboration complements the portfolio of oncology programs in development, which are based on Voluntis’ Theraxium Oncology platform.
The field of diabetes – the world’s second largest therapeutic area (58 billion dollars in estimated 2024 pharma revenues) – is also targeted by Voluntis. The company announced a worldwide licensing agreement with Biocon Biologics in July 2020. This global agreement covers the proprietary Digital Therapeutics solution Insulia®, developed by Voluntis, approved by the FDA and CE marked, for patients with type 2 diabetes treated with basal insulin.
Up to 25 million euros in pre-launch revenues already contracted between 2020 and 2024, with significant commercial invoicing in 2020
As part of the commercial agreements signed since December 2019 and subject to the fulfillment of certain contractual conditions, Voluntis stands to receive up to 25 million euros in pre-launch commercial invoicing between 2020 and 2024, primarily in cumulated upfront and milestone payments.
In addition to these payments, the commercial launch(es) of co-developed solutions makes Voluntis eligible to receive additional payments for the license of its Theraxium platform and proprietary digital therapeutics, based on patient usage. These payments may cumulatively amount to tens of millions of euros per year, based on negotiated per-patient fees and projected number of end-users.
In 2020 alone, Voluntis generated 10.2 million euros in commercial invoicing, a 3.8-fold increase compared to 2019 (2.7 million euros).
In a significant step towards commercial launches, the company obtained the CE mark for its Oleena® oncology solution, paving the way for the future commercialization of digital therapeutics based on the Theraxium Oncology platform in the European Union.
In addition to the solutions already marketed by Voluntis, the commercial launches of the various solutions co-developed under the new agreements concluded since the end of 2019 are expected to take place gradually between 2021 and 2024.
11.1 million euros in available cash at year end, optimized cost base and enhanced financial visibility
Voluntis has embarked on an ambitious program to adapt its organization to its new strategy, both in France and in the United States. These organizational adjustments, combined with the increase in commercial invoicing, have delivered a favorable impact on net cash consumption, excluding new financing, which has evolved from 17.7 million euros in 2019 to 5.9 million euros in 2020, and on the Group’s results which will be published on March 29th.
In addition, Voluntis has also put in place new financing to consolidate its financial structure. Voluntis has raised a total of 11.9 million euros in 2020, including 6 million euros in non-dilutive financing (PGE and Bpifrance Financement’s Innovation R&D loan) and 5.9 million euros in the context of a fund raising carried out notably with Debiopharm Innovation Fund, the corporate fund of the Swiss company Debiopharm, and Indigo, the personal holding company of Eric Carreel, President and co-founder of Withings.
With these additional resources, Voluntis has 11.1 million euros in available cash at the end of 2020, compared to 5.1 million at the end of 2019. The Company considers it is able to cover its financial needs beyond the next 12 months.
Consequently, the Company does not intend to use the flexible bond financing facility (“OCEANE-BSA”) that it entered into on March 23, 2020, which has not been used to date and whose drawdown option, at the sole initiative of Voluntis, will expire on September 23, 2021.
Favorable commercial and financial outlook for 2021
Building on the momentum of this solid first year of execution of the new strategic roadmap, Voluntis expects to continue its positive trajectory in 2021.
On the commercial front, Voluntis is targeting the signature of new partnership agreements that will confirm the power of the Theraxium platform and the company’s ability to deploy even more widely in the field of oncology.
On the financial front, the company confirms its 2021 ambition of annual commercial invoicing between 8 to 12 million euros, thanks to revenues from commercial agreements and new milestones planned for the year, and of positive free cash flow[4] on the second half of the year.
Next meeting: publication of the 2020 annual results on March 29, 2021, after the close of trading.
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.
Alternative Performance Indicators :
Commercial invoicing: upfront payments, exclusivity royalties & perpetual licenses + development services & integration + SaaS fees, royalties, maintenance & support
Free cash flow: cash flow fromoperating activities + cash flow from investing activities
[1] All figures published today are unaudited
[2] Source: Grand View Research 2017
[3] EvaluatePharma World Preview 2019, Outlook to 2024
[4] Voluntis has chosen to modify its alternative performance indicators on which it communicates its objectives by now using Free Cash Flow instead of the adjusted EBITDA on which the company had previously issued an objective (positive adjusted EBITDA in 2021). The latter indicator is highly complex due to IFRS restatements, making it difficult to establish reliable forecasts. Free Cash Flow is also a relevant indicator for monitoring changes in the company’s cash position.