DBV Technologies Reports Full Year 2023 Financial Results and Business Update
- DBV Technologies made significant progress in its Viaskin Peanut clinical development programs for toddlers and children with peanut allergies.
- The company reported cash and cash equivalents of $141 million.
- Enrollment in the VITESSE trial is ongoing despite delays, with good momentum expected.
- Operational highlights include positive results from EPITOPE and initiation of safety trials.
- Financially, DBV saw a net decrease in cash and cash equivalents, used $79.6 million in operations primarily in R&D, and recorded a net loss of $72.7 million.
- The company plans to seek additional capital as it continues R&D efforts and prepares for the launch of Viaskin Peanut.
- None.
Insights
The reported financials of DBV Technologies, including a net decrease in cash and cash equivalents of $67.8 million, indicate a significant burn rate that investors should monitor closely. The cash usage primarily in R&D reflects the company's investment in advancing its clinical programs, particularly the Viaskin Peanut patch. However, the sharp decrease in cash provided by financing activities, down by $187.4 million from the previous year, suggests a potential need for future capital raising to sustain operations beyond the projected timeline.
The increase in operating income, primarily from the Nestlé Collaboration Agreement, may seem positive at first glance, but the termination of this agreement signals the loss of a significant revenue source. Operating expenses have decreased, which may be indicative of cost-saving measures and operational efficiency improvements. However, the stated substantial doubt regarding the company's ability to continue as a going concern raises concerns about its financial viability and the need for strategic funding solutions.
The advancement of the Viaskin Peanut clinical development programs is a critical milestone for DBV Technologies. The focus on distinct age groups could potentially address a gap in treatment options for peanut allergies, which is a market with significant unmet medical need. The initiation of supplemental safety trials, COMFORT Toddlers and COMFORT Children, is a strategic move towards strengthening the Biologics License Applications (BLA) submissions.
Moreover, the successful publication of EPITOPE results in a prestigious journal and the presentation of interim data at a major conference enhance the credibility of the research. However, the delays due to the European Commission directive and the projected last subject screening by Q3 2024 may affect the time to market and should be factored into the company's strategic planning and stakeholder expectations.
The food allergy treatment market is growing and DBV Technologies' focus on pediatric peanut allergy with its Viaskin Peanut patch positions it within a niche yet expanding segment. The company's progress in clinical trials and preparation for BLA submission could, if successful, capture a significant market share. However, the competitive landscape includes both established pharmaceutical companies and emerging biotech firms, which could impact DBV's market positioning and pricing strategy.
Investors should consider the potential market size for Viaskin Peanut, the company's commercialization strategy and the regulatory hurdles that may influence the stock's performance. The anticipated events for 2024, including the initiation of the COMFORT trials and the publication of further efficacy and safety data, will be crucial in shaping investor sentiment and the company's market valuation.
Montrouge, France, March 7, 2024
DBV Technologies Reports Full Year 2023 Financial Results and Business Update
- Advanced Viaskin™ Peanut clinical development programs in peanut-allergic toddlers (1 through 3 years old) and children (4 through 7 years old)
- Strengthened executive leadership team in preparation for BLA submission
- Reported cash and cash equivalents of
$141 million
DBV Technologies (Euronext: DBV – ISIN: FR0010417345 – Nasdaq Stock Market: DBVT), a clinical-stage biopharmaceutical company focused on treatment options for food allergies and other immunologic conditions with significant unmet medical need, today reported financial results for the full year 2023. The audit procedures have been substantially completed by the Company’s statutory auditors and financials – prepared under both US GAAP and IFRS for the purpose of Form 10-K and Universal Registration Document respectively – were approved by the Board of Directors on March 7, 2024.
“During 2023, we made significant progress advancing our two Viaskin Peanut clinical development programs in two distinct age groups, one for toddlers ages 1 to 3 years, and one for children ages 4 to 7 years,” said Daniel Tassé, Chief Executive Officer of DBV Technologies. “In 2024, we are focused on completing enrollment in VITESSE, our Phase 3 efficacy and safety trial in children. Despite the delays experienced as a result of the new European Commission directive on Clinical Trials Regulation, all countries are open and actively recruiting. We expect good momentum regarding Vitesse recruitment in the next several months and last subject screened by Q3 2024.
In addition, we are initiating two supplemental six-month safety trials, COMFORT Toddlers and COMFORT Children, as the final clinical pieces to support two separate and robust packages for our Biologics License Applications to the FDA.”
Mr. Tassé continued, “We are committed to working as swiftly and diligently as possible to bring this novel treatment option to market for toddlers and children and their families who are living with the daily and significant burden of a peanut allergy.”
2023 Operational Highlights
- Confirmed EPITOPE, DBV’s Phase 3 efficacy and safety study of Viaskin Peanut in peanut-allergic toddlers aged 1 through 3 years, is sufficient for the clinical portion of a BLA, and no additional efficacy studies were requested by the FDA.
- Prepared for initiation of COMFORT Toddlers and COMFORT Children, including protocol development for both supplemental six-month safety studies.
- Number of participants on active treatment will total approximately 600 children in each of the two BLAs, 1 to 3-year-olds and 4 to 7-year-olds.
- Implemented simplified protocol language for both COMFORT Toddlers and COMFORT Children indicating that Viaskin Peanut is “intended to be worn for a full day” with any reference to minimum wear time removed.
- Initiated VITESSE, a Phase 3 clinical trial to evaluate the efficacy and safety of the circular Viaskin Peanut patch in peanut-allergic children aged 4 through 7 years and activated more than 85 trial sites across North America, Australia and Europe.
- Published EPITOPE results in the New England Journal of Medicine with an accompanying editorial, entitled, Good News for Toddlers with Peanut Allergy.
- Presented interim safety and efficacy data from the open-label extension of EPITOPE, which demonstrate a robust continued treatment effect with Viaskin Peanut after two years of treatment, at The American College of Allergy, Asthma, and Immunology annual meeting.
- Strengthened the executive leadership team with the appointment of Virginie Boucinha as Chief Financial Officer and Dr. Kevin Malobisky, PhD., as Chief Operations Officer.
Anticipated 2024 Events
- Initiate COMFORT Toddlers, the six-month supplemental safety trial in support of BLA.
- Screen last patient in VITESSE, now expected by Q3 2024.
- Initiate COMFORT Children, the six-month supplemental safety trial in support of BLA.
- Announce top-line efficacy and safety data from year three of EPITOPE, corresponding to end-of-study results for participants completing three years of active treatment.
- Publish manuscripts including invited reviews in peer-reviewed scientific journals and submit abstracts on new data at upcoming scientific conferences.
Financial Highlights for the Full Year 2023
2023 Financial Highlights are presented under both U.S GAAP and IFRS. Financial statements comments refer to U.S. GAAP financial statements.
Differences between US GAAP and IFRS consolidated financial statements result mainly from the discrepancies arising from the application of lease accounting standards.
Cash and cash equivalents totaled
- Overall, the Company used
$79.6 million of cash in operations, primarily in Research and Development, with the initiation of the VITESSE trial, with the first patient screened in March 2023, preparation activities related to COMFORT studies, as well as an increase in regulatory and pre-commercialization activities. Cash used in operations increased by$23.9 million as of December 2023 compared to December 2022. - Cash provided by financing activities decreased by
$187.4 million in 2023, compared to 2022. In June of 2022, the Company had completed a private placement financing (“PIPE”) which raised total net proceeds of$194.4 million . The net proceeds from the issuance and sale of new ordinary shares in the form of American Depositary Shares (“ADSs”) on June 16, 2023, totaled$6.9 million . - The Company also benefitted from a favorable exchange rate in the amount of
$5.9 million .
Operating income amounts to
- A
$7.8 million increase in other operating income from revenues recognized as part of the Development, Collaboration, and Licensing Agreement with Nestlé Health Science (the “Nestlé Collaboration Agreement”), which terminated on October 30th, 2023. - Research Tax Credit increase by
$3.0 million . As of December 31, 2023, the Company filed an additional research tax credit claim for the years 2020, 2021 and 2022.
Operating income, excluding revenues from the Nestlé, Collaboration, Agreement amounts to
Operating expenses amount to
(1) A
- A
$30.7 million favorable impact due to the termination of Nestlé Collaboration Agreement (primarily the reversal of the loss on completion accrual by$17.6 million in 2023 compared to a$10.4 million loss on completion accrual as of December 31st, 2022). - An increase of
$15.4 million in Research and Development expenses reflecting intensified Research and Development activities following the initiation of the VITESSE trial, with the first patient screened in March 2023, as well as preparations for COMFORT.
(2) A
(3) A
Operating expenses totaled
DBV recorded a net loss of
On a per share basis, net loss (based on the weighted average number of shares outstanding over the period) is
Excluding the Nestlé Collaboration Agreement termination, net loss as of December 31, 2023, would amount to
The Company has incurred operating losses and negative cash flows from operations since inception. As of the date of the filing, the Company’s available cash and cash equivalents are not projected to be sufficient to support its operating plan for at least the next 12 months. As such, there is substantial doubt regarding the Company’s ability to continue as a going concern.
Based on current operations, as well as plans and assumptions, the Company expects that its balance of cash and cash equivalents of
The Company intends to seek additional capital through debt and equity offerings as it continues research and development efforts and prepares for the launch of Viaskin Peanut, if approved.
Conference Call Information
DBV will host a live conference call and webcast today at 5:00 p.m. ET to discuss full year 2023 financial results and provide a business update. The conference call may be accessed by dialing:
• United States: 1-844-481-2866
• International: 1-412-317-1859
A webcast of the call will also be available under "Events" in the Investors section of the DBV Technologies website: https://dbv-technologies.com/investor-overview/events. A replay of the presentation will also be available on DBV’s website after the event.
Cash and Cash Equivalents
| In millions of USD | US GAAP | IFRS | ||||
| Year ended December 31, | Year ended December 31, | |||||
| 2023 | 2022 | 2023 | 2022 | |||
| Net cash & cash equivalents at the beginning of the period | 209,2 | 77,3 | 209,2 | 77,3 | ||
| Net increase/(decrease) in cash & cash equivalents, of which: | (67,8) | 131,9 | (67,8) | 131,9 | ||
| Net cash flow used in operating activities | (79,6) | (55,7) | (77,6) | (51,4) | ||
| Net cash flow used in investing activities | (0,8) | (0,1) | (0,8) | (0,1) | ||
| Net cash flow provided by / ((used in) financing activities | 6,7 | 194,1 | 4,8 | 189,9 | ||
| Effect of exchange rate changes on cash & cash equivalents | 5,9 | (6,5) | 5,8 | (6,5) | ||
| Net cash & cash equivalents at the end of the period | 141,4 | 209,2 | 141.2 | 209,2 | ||
Operating income
| In millions of USD | US GAAP | IFRS | |||||||||
| Year ended December 31, | Year ended December 31, | ||||||||||
| 2023 | 2022 | Variation | 2023 | 2022 | Variation | ||||||
| Research tax credit | 8,8 | 5,7 | +3,0 | + | 8,8 | 5,7 | +3,0 | + | |||
| Other operating income | 6,9 | (0,9) | +7,8 | - | 6,9 | (0,9) | +7,8 | - | |||
| Operating income | 15,7 | 4,8 | +10,9 | + | 15,7 | 4,8 | +10,9 | + | |||
Operating expenses
| In millions of USD | US GAAP | IFRS | ||||||||
| Year ended December 31, | Year ended December 31, | |||||||||
| 2023 | 2022 | Variation | 2023 | 2022 | Variation | |||||
| Research & Development | 60,2 | 75,5 | -15,3 | - | 60,1 | 75,2 | -15,1 | - | ||
| Sales & Marketing | 2,4 | 1,6 | +0,8 | + | 2,4 | 1,6 | +0,8 | + | ||
| General & Administrative | 29,5 | 24,3 | +5,2 | + | 29,5 | 24,2 | +5,2 | + | ||
| Total operating expenses | 92,2 | 101,5 | -9,3 | - | 92,0 | 101,0 | -9,0 | - | ||
| including internal compensation | 29,2 | 24,0 | +5,2 | + | 29,3 | 24,0 | +5,3 | + | ||
Net Loss and Net Loss per Share
| | US GAAP | IFRS | ||||||||
| Year ended December 31, | Year ended December 31, | |||||||||
| 2023 | 2022 | Variation | 2023 | 2022 | Variation | |||||
| Net (loss) in millions of USD | (72,7) | (96,3) | +23,5 | - | (72,7) | (96,0) | +23,1 | - | ||
| Basic / diluted net (loss) per share in USD | (0,76) | (1,24) | +0,5 | - | (0,76) | (1,24) | +0,5 | - | ||
About DBV Technologies
DBV Technologies is a clinical-stage biopharmaceutical company developing treatment options for food allergies and other immunologic conditions with significant unmet medical need. DBV is currently focused on investigating the use of its proprietary technology platform, Viaskin™, to address food allergies, which are caused by a hypersensitive immune reaction and characterized by a range of symptoms varying in severity from mild to life-threatening anaphylaxis. Millions of people live with food allergies, including young children. Through epicutaneous immunotherapy (EPIT™), the Viaskin platform is designed to introduce microgram amounts of a biologically active compound to the immune system through intact skin. EPIT is a new class of non-invasive treatment that seeks to modify an individual’s underlying allergy by re-educating the immune system to become desensitized to allergen by leveraging the skin’s immune tolerizing properties. DBV is committed to transforming the care of food allergic people. The Company’s food allergy programs include ongoing clinical trials of Viaskin Peanut in peanut allergic toddlers (1 through 3 years of age) and children (4 through 7 years of age).
DBV Technologies is headquartered in Montrouge, France, with North American operations in Basking Ridge, NJ. The Company’s ordinary shares are traded on segment B of Euronext Paris (Ticker: DBV, ISIN code: FR0010417345) and the Company’s ADSs (each representing one-half of one ordinary share) are traded on the Nasdaq Global Select Market (Ticker: DBVT).
For more information, please visit www.dbvtechnologies.com and engage with us on X (formerly Twitter) and LinkedIn.
Forward Looking Statements
This press release may contain forward-looking statements and estimates, including statements regarding DBV’s forecast of its cash runway, the therapeutic potential of Viaskin™ Peanut and EPIT™, designs of DBV’s anticipated clinical trials, DBV’s planned regulatory and clinical efforts including timing and results of communications with regulatory agencies, the ability of any of DBV’s product candidates, if approved, to improve the lives of patients with food allergies, and the outcome of any litigation. These forward-looking statements and estimates are not promises or guarantees and involve substantial risks and uncertainties. At this stage, DBV’s product candidates have not been authorized for sale in any country. Among the factors that could cause actual results to differ materially from those described or projected herein include uncertainties associated generally with research and development, clinical trials and related regulatory reviews and approvals, and DBV’s ability to successfully execute on its budget discipline measures. A further list and description of risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements in this press release can be found in DBV’s regulatory filings with the French Autorité des Marchés Financiers (“AMF”), DBV’s filings and reports with the U.S. Securities and Exchange Commission (“SEC”), including in DBV’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 7, 2024, and future filings and reports made with the AMF and SEC by DBV. Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements and estimates, which speak only as of the date hereof. Other than as required by applicable law, DBV Technologies undertakes no obligation to update or revise the information contained in this Press Release.
Viaskin and EPIT are trademarks of DBV Technologies.
Investor Contact
Katie Matthews
DBV Technologies
katie.matthews@dbv-technologies.com
Media Contact
Aurora Krause
DBV Technologies
aurora.krause-ext@dbv-technologies.com
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FAQ
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