Transcript Ablynx IR Newsletter Q1 – 2014

QUARTERLY NEWSLETTER
Q1 2014
Issue No 13
MAJOR PARTNERING NEWS
Dear Reader,
On 3rd February, Ablynx announced that it had
expanded its relationship with Merck & Co., known
outside the US and Canada as MSD, through the signing
of a second research collaboration and licensing
agreement that could be worth up to €1.7 billion in
total.
We are pleased to send you Ablynx’s quarterly
newsletter designed to provide an update for the
investment community.
This new exclusive collaboration and licensing
agreement is focused on the discovery and
development of several predefined Nanobody
candidates (including bi- and tri-specifics) directed
toward so called “immune checkpoint modulators,”
proteins believed to provide potential targets for the
development of cancer immunotherapies, a rapidly
emerging approach to the treatment of a wide range of
cancer types.
This newsletter highlights the key progress Ablynx
has made during the first quarter of 2014 and also
gives an overview of the investor events Ablynx has
participated in, as well as the upcoming events
where you have an opportunity to meet with
management.
In addition, we are pleased to inform you that the
annual report 2013 is now available on the
Company’s
website
under
the
section
investors>investor relations.
Under the terms of the agreement, Ablynx will receive
an upfront payment of €20 million and up to €10.7
million in research funding during the initial three year
research term of the collaboration. In addition, Ablynx is
eligible to receive development, regulatory and
commercial milestone payments on achieved sales thresholds for a number of products with ultimate potential to accrue as
much as €1.7 billion plus tiered royalties. Merck will be responsible for the development, manufacturing and
commercialisation of any products resulting from the collaboration.
PIPELINE UPDATE
Ablynx presented an update on its anti-vWF Nanobody, caplacizumab, at the annual JP Morgan healthcare conference held
from 13th to 16th January in San Francisco. Caplacizumab is a potential first-in-class therapeutic for the treatment of acquired
TTP, a rare blood disorder. The worldwide Phase II study was initiated end of 2010 with the goal to recruit 110 patients. Given
the slower than anticipated recruitment rate, Ablynx decided to stop recruitment in January 2014 to allow earlier analysis of
the data for potential proof-of-concept. Phase II results are now expected in June 2014.
On 27th February, Ablynx announced an update on two programmes in pre-clinical development. The anti-RSV Nanobody,
ALX-0171, demonstrated pre-clinical proof-of-concept in a neonatal lamb model showing that treatment with ALX-0171 led
to a strong reduction in viral titres and inflammation in the lungs. In addition, ALX-0171 was effective on various clinical signs
and symptoms, such as behavioural activity and general well-being. Pre-clinical results with the anti-IgE Nanobody, ALX-0962,
for use in the treatment of severe allergic asthma, had demonstrated that ALX-0962 has a dual mode of action, but upon
review of the final pre-clinical data package, it was clear that results were not sufficiently compelling to ensure a significant
competitive advantage compared with the benchmark and so the programme was stopped.
ANALYST COVERAGE
Ablynx is covered by six analysts; five analysts have a BUY rating and one analyst has an ADD rating on the Company. The
average target price is €12 per share (compared to €11 per share at the end of 2013).
For further information please email us: [email protected] or phone +32 9 262 00 00
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SHAREHOLDER STRUCTURE
FINANCIAL NEWS
2013 full year results
On 27th February, Ablynx announced its results for
the full year 2013 demonstrating that the Company
had a very strong year, both financially and
operationally.
The free float of the Company increased to 85% from 53% at
the end of 2012. The total number of outstanding shares is
49 million and there are 2.8 million warrants outstanding.
Revenues were up 34% to €35.9 million comprising
FTE funding, milestone payments, recognised income
from the upfront payment received from AbbVie, and
grant income. Cash income of €157.6 million from
collaborations showed a fourfold increase. Total
research and development costs decreased to €43.7
million, in line with lower external development costs
which are largely related to the timing of clinical trial
spending. General and administrative expenses
remained well under control at €10.0 million. The net
loss for the year reduced by 32% to €19.5 million.
SHAREHOLDERS’ CLUBS AT ABLYNX
Ablynx ended the year with a strong financial position
of €200.4 million in cash, cash equivalents, restricted
cash and short-term investments.
Ablynx organises frequent shareholders’ clubs at its
headquarters in Ghent where individual retail investors have
the opportunity to meet with the CFO and visit the
laboratories. The next event (Dutch only) is scheduled to
take place on 21st May 2014 at 17.45h CET. If you would like
to attend, please register via [email protected]. The
calendar for all upcoming shareholders clubs is available on
the Ablynx website.
IR EVENTS Q2 2014 INSTITUTIONAL INVESTORS
RECENT IR EVENTS
1st April 2014
Annual Kempen Healthcare Conference – Amsterdam
19th – 21st May 2014
UBS Global Healthcare Conference – NYC
26th May 2014
SFAF meeting – Paris – presentation at 2.30pm CET
2nd – 5th June 2014
Annual Jefferies Healthcare Conference – NYC
IR EVENTS Q2 2014 INDIVIDUAL INVESTORS
26th April 2014
VFB Happening - Antwerp
10th May 2014
KBC Bolero Investors’ forum – Limburg (venue TBC)
MARIEKE VERMEERSCH
Associate Director Investor
Relations
Ablynx nv
Technologiepark 21
9052 Zwijnaarde
Belguim
The Company is well-positioned for further growth in
2014 with considerable progress expected in the
clinical product pipeline with up to 5 clinical trial
readouts and up to 6 clinical trial initiations. In
addition, the Company expects to receive milestone
payments from on-going partnerships and to enter
into potential new collaborations. The net cash burn
guidance for the full year 2014 is in the range of €3035 million.
During the first quarter, Ablynx met with approx. 90 institutional
investors during 1-1 meetings at the annual KBC Healthcare
Conference in Brussels, the annual CS Healthcare conference in
London, and the annual JP Morgan Healthcare conference in San
Francisco, as well as on road shows across Europe and the US.
The Company also met with individual investors during three
separate retail investors’ events organised at Ablynx and 2 retail
investors’ events organised in Ghent by KBC Private Banking and
in Brussels by the Flemish Federation of Investors Brussels (VFB
Trefpunt Brussels).
FINANCIAL CALENDAR 2014
24 April
14 May
28 August
13 November
–
–
–
–
Annual General Meeting
Q1 2014 results
Half year results 2014
Q3 2014 results
Tel +32 (0)9 262 00 82
Fax +32 (0)9 262 00 01
Mobile +32 (0) 479 490 603
[email protected]
www.ablynx.com
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