Inventiva SA ((FR:IVA)) has held its Q4 earnings call. Read on for the main highlights of the call.
Inventiva SA’s recent earnings call painted a largely positive picture, highlighting significant progress in clinical trials, financial performance, and strategic global partnerships. Despite challenges such as workforce reductions and an increased net loss, the company’s strategic advancements and robust cash position were emphasized as outweighing the negatives.
Progress in Clinical Development of lanifibranor
The company announced the completion of screening for its Phase 3 NATiV3 trial, receiving positive recommendations from data monitoring committees. This milestone indicates that no modifications are necessary, keeping the trial on track for recruitment completion in the first half of 2025 and topline results expected in the second half of 2026.
Positive Financial Performance
Inventiva reported raising $184 million in 2024 through both dilutive and non-dilutive financing operations, boosting its cash position significantly to €96.6 million from €36 million in 2023. This financial strengthening is a key highlight of the company’s recent performance.
Strategic Partnerships and Global Expansion
The company launched the clinical development of lanifibranor in Japan with partner Hepalys and secured licensing agreements in South Korea and China. These moves position lanifibranor as a leading oral drug in MASH for these regions, marking a significant step in Inventiva’s global expansion strategy.
Strong Governance and Leadership Team
Inventiva reinforced its Board of Directors with experienced members from the biotech industry, including Andre Turenne and Mark Pruzanski. This strategic enhancement aims to drive commercialization and strategic growth, strengthening the company’s leadership.
Strengthened Clinical Data Set
The company published positive results from the LEGEND trial, showing a significant reduction in HBA1C and improvement in insulin sensitivity with lanifibranor, especially when combined with empagliflozin. This data strengthens the clinical profile of lanifibranor.
Workforce Reduction
A strategic decision to focus resources on lanifibranor led to the cessation of all pre-clinical activities not related to it, resulting in a reduction of approximately 50% of the workforce. This move reflects the company’s prioritization of its most promising asset.
Revenue Decline
Revenues decreased to €9.2 million in 2024 from €17.5 million in 2023, primarily due to lower milestone payments. This decline highlights a challenge the company faces amidst its strategic shifts.
Increased Net Loss
Inventiva reported an increased net loss of €184.2 million in 2024, up from €110.4 million in 2023. This increase is attributed to various factors, including non-cash financial adjustments, reflecting the financial challenges accompanying the company’s growth initiatives.
Forward-Looking Guidance
Looking ahead, Inventiva provided guidance on several key metrics and strategic initiatives for 2024. The company anticipates completing the randomization of its Phase 3 NATiV3 trial for lanifibranor by the first half of 2025, with topline results expected in the second half of 2026. Despite a net loss, Inventiva remains focused on advancing lanifibranor, benefiting from positive trial data and strategic partnerships in Asia. The company has a cash runway extending to September 2025, or potentially to September 2026 with additional financing.
In summary, Inventiva SA’s earnings call highlighted a positive outlook with significant progress in clinical development, financial performance, and strategic partnerships. While challenges such as workforce reductions and increased net loss were noted, the company’s strategic advancements and robust cash position were emphasized as key strengths. Inventiva remains focused on advancing its lead asset, lanifibranor, with promising trial data and strategic partnerships paving the way for future growth.