IntegraGen Reports Results for 1st Half of 2021

Regulatory News:

IntegraGen (FR0010908723 – ALINT –Eligible PEA PME), a company specializing in the decryption of the human genome, which performs interpretable genomic analyses for academic and private laboratories, today announced its financial results for the first half of 2020. The accounts were approved by the Board of Directors at a meeting held on 7 October 2021.

Bernard Courtieu, CEO of IntegraGen, said: “IntegraGen’s results for the first half of 2021 confirm the success of our growth strategy despite the continued major constraints associated with the Covid-19 pandemic. This performance confirms the soundness of our model of focusing on genomics and has been enabled by the trust and loyalty of our customers, as well as by the efforts and dedication of all IntegraGen employees.

The company’s EBITDA continues to evolve because of investment in personnel, particularly in the field of Quality Assurance and Quality Control. This investment will enable u to expand our offer to pharmaceutical and biotechnological customers leading to additional growth opportunities.

Lastly, the industrial and commercial merger with the Belgian company OncoDNA is in progress and the first synergies between the two have proven the value of the combination of the two companies which was finalized in 2020.”

FINANCIAL RESULTS

• Income statement

Sales revenue for the first half 2021 was 5,014 K€, up 7% compared to 4,706 K€ during the same period in 2020. Excluding recharge of personnel costs to the parent company (172 K€), sales revenue amounted to 4,843 K€, an increase of 3%. These figures exclude diagnostic business associated revenue, the assets of which were sold at the start of 2020.

After taking into account transfers of charges and other items, operating income amounted to 5,139 K€ compared to 4,745 K€ in the first half of 2020.

Operating expenses amounted to 5,586 K€, up 21% compared to the first half of 2020. This increase can be explained by various factors including the increase of consumables cost, the recharge of personnel costs from the parent company (170 K€), and the increase in payroll costs as a result of hires made over the last twelve months. At the end of June 2021, the company had 56 employees compared to 47 a year earlier. This increase also illustrates the investments in Quality as part of effort to obtain certifications for our laboratory in the Évry.

EBITDA represented a loss of 331 K€ compared to a profit of 248 K€ in the first half 2020, mainly due to an increase in operating expenses.

After taking into account exceptional items, the net result was a loss of 411 K€ compared to a profit of 17 K€ during the first half last year.

• Balance sheet

The available cash IntegraGen had at the end of June 2021 was 4,272 K€ compared to 5,124 K€ at the end of December 2020. This change was due to the flow of current transactions, change in working capital requirements and investments in quality systems. This cash position includes a State Guaranteed Loan (PGE) of 1,800 K€ obtained last year in the context of the Covid-19 pandemic.

Business

• Genomic Services
  
  The sales growth the company experienced resulted from an increase of sequencing business, in particular the activity related to outsourced platforms (+37%) and the SeqOIA platform (+25%). Services dedicated to research laboratories and teams in charge of clinical research were temporarily down (-16%) despite a record in orders booked.

• Software
  
  As a reminder, the company markets interpretation software and consulting services to its customers. These sales are stable given the limited commercial development and the delay in projects in recent quarters due to Covid-19 pandemic.

Outlook

IntegraGen has succeeded in months to successfully maintain a high level of activity for the services dedicated to research as well as for the company’s sequencing platforms for clinical use. Orders booked as of June 30, 2021 are increased compared to the same period of 2020, enabling sustained growth in activities for the second half of the year. The integration into OncoDNA Group has also opened up commercial prospects for IntegraGen through the Group's subsidiaries and distributors, which will have an impact for the second half of 2021.

About IntegraGen

IntegraGen is an OncoDNA group company specializing in the genomics of cancer and rare genetic diseases. Backed by highly competent and qualified teams, IntegraGen is a leading player in DNA sequencing services and genomic data interpretation software. The company runs one of the largest NGS labs in France and operates for research institutes of excellence. As part of OncoDNA group, IntegraGen leverages the power of next generation sequencing with the mission of delivering the promise of precision medicine to patients. IntegraGen has approximately 50 employees and generated €9 million in revenue in 2020. Based in France, IntegraGen is also present in the United States and is part of the OncoDNA group which works with an international network of 35 distributors. The Group also provides biomarker testing and clinical interpretation tools to guide treatment and monitoring of late-stage solid tumors and accelerate the development of new cancer drugs.

IntegraGen is listed on Euronext Growth in Paris (ISIN: FR0010908723 – Mnemo: ALINT – Eligible PEA- PME).

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