AB SCIENCE (AB) H1 2024 earnings summary

Executive summary

• EMA and Health Canada are re-examining masitinib for ALS after initial negative opinions; safety profile deemed acceptable and objections addressed with new analyses and subgroup data.

• Strengthened masitinib IP in mastocytosis with a new European patent valid until 2036.

• Alpha Blue Ocean subscribed to 1M shares under PACT™; 80% of proceeds in escrow, 377,393 shares placed.

• New share coverage initiated by DNA Finance and In Extenso Finance, aiming to broaden investor base and visibility among institutional investors.

• Paris Court of Appeal exonerated CEO Alain Moussy and reduced AB Science's penalty by €200,000.

Financial highlights

• Net turnover rose to €560k (H1 2024) from €448k (H1 2023), driven by resumed Masivet sales after supply disruption.

• Net loss narrowed to €4.47M from €10.41M year-over-year, mainly due to a 65.5% drop in R&D costs.

• Operating loss reduced by 59.5% to €3.58M.

• Cash and cash equivalents increased to €9.13M as of June 30, 2024, from €6.07M at year-end 2023, plus €5M from a September 2024 capital increase.

• Financial loss improved to €887k from €1.57M year-over-year.

Outlook and guidance

• Focus remains on masitinib licensing applications and advancing AB8939 to phase 2, supported by recent €5M fundraising.

• No timeline can be predicted for masitinib licensing; outcome not guaranteed.

• Ongoing regulatory reviews in Europe and Canada for masitinib in ALS; further clinical development planned for AB8939 and masitinib in multiple sclerosis.

• Continued investment in drug discovery to expand the molecule portfolio.