Cash, cash equivalents and financial instruments* amounted to €230.7m (million euros) as of December 31, 2016
Revenue and other income amounted to €65.7m (€25.1m in 2015), including $15m (€13.8m) milestone payment from Bristol-Myers Squibb related to progress with lirilumab
Operating expenses amounted to €58.2m (€35.9m in 2015); increase driven by continued investment in its portfolio of drug candidates
First report of potential clinical benefit for lirilumab in combination with nivolumab and for IPH4102, validating Innate Pharma’s positioning and strategy
Broadening of proprietary preclinical pipeline and new bispecific antibodies technology
Key leadership changes to support next phase of growth, with appointment of Mondher Mahjoubi as CEO of the Company
Innate Pharma SA (the “Company” - Euronext Paris: FR0010331421 – IPH) today reports its consolidated financial results for the year ended December 31, 2016. The consolidated financial statements are attached to this press release.
Over the course of 2016, Innate Pharma made significant progress across its portfolio of partnered and proprietary programs. The Company reported encouraging clinical activity for lirilumab in combination with nivolumab in a Phase I/II trial and for IPH4102 in monotherapy in a Phase I trial. Clinical investigators also reported a favorable safety profile for monalizumab as a monotherapy. The Company continued to broaden and advance its portfolio of early stage programs with two new programs targeting the tumor microenvironment (respectively targeting CD39 and CD73) and a new bispecific antibodies technology engaging NK cells. During the year, the program IPH4301 has started IND-enabling studies and is expected to enter clinic in 2018.
At the beginning of 2017, the Company announced top-line results from the EffiKIR study which evaluated the efficacy of lirilumab as a single agent for maintenance of remission in patients with acute myeloid leukemia; further development of lirilumab in this setting will not be pursued.
In terms of organization, Mondher Mahjoubi was appointed Chief Executive Officer and Chairman of the Executive Board of Innate Pharma on December 30, 2016, succeeding Hervé Brailly, who became Chairman of the Supervisory Board. Dr. Mahjoubi’s appointment was designed to support the Company’s evolution as it advances its key programs towards late-stage development.
Mondher Mahjoubi, Chief Executive Officer of Innate Pharma, said: “2016 was marked by the first report of potential clinical benefit for lirilumab in combination with nivolumab in patients with squamous cell carcinoma of the head and neck and for IPH4102 in cutaneous T cell lymphomas. These data further validate the Company’s rationale for the development of these drug candidates, and more broadly support the fundamental rationale underpinning Innate Pharma’s broad pipeline of drug candidates and technologies”. He added: “The Company maintained a strong financial position whilst continuing to invest and advance its portfolio of drug candidates and enters a period where it becomes eligible to further milestone payments. Looking ahead to 2017, we are confident in building on the progress seen in 2016 with the release of more clinical data in the months ahead.”
Financial highlights for 2016:
The key elements are as follows:
- Cash, cash equivalents and financial instruments amounting to €230.7m (million euros) as of December 31, 2016 (€273.7m as of December 31, 2015), including non-current financial instruments (€33.0m);
- At the same date, the financial liabilities amounted to €5.3m (€3.8m as of December 31, 2015).
- Revenue and other income amounting to €65.7m (€25.1m in 2015). This amount mainly results from licensing revenue (€56.2m) and from research tax credit (€9.1m).
- Revenue from collaboration and licensing agreements mainly results from the spreading of the initial payment received by Innate Pharma in the context of the agreement signed in April 2015 with AstraZeneca/MedImmune (€41.6m in 2016 and €12.1m in 2015).
- The 2016 revenue also includes a $15m (€13.8m) milestone payment received from Bristol-Myers Squibb for the continued exploration of lirilumab in combination with nivolumab. The milestone payment followed the presentation at the SITC annual meeting (November 2016) of encouraging preliminary activity results from the cohort of patients with squamous cell carcinoma of the head and neck (SCCHN) of a Phase I/II trial. The payment was received in January 2017.
- Operating expenses amounting to €58.2m (€35.9m in 2015) of which 84% related to research and development. The majority of the increase results from the increase in subcontracting costs in relation with the clinical development of the Company’s drug candidates (+€15.6m).
- A net financial income amounting to €5.4m.
- As a consequence of the items mentioned previously, the net profit for 2016 amounts to €12.6m to be compared to a loss of €6.7m for 2015.
* current and non-current
The management team held a conference call to the attention of institutional investors and sell-side analysts.