ENSURING A STRONG CASH POSITION TO MAXIMISE

QUARTERLY NEWSLETTER
Q3 2014
Issue No 14
ENSURING A STRONG CASH POSITION TO
MAXIMISE VALUE FROM THE PIPELINE
Dear Reader,
On 30th June, Ablynx announced that it successfully raised
€41.7 million through an oversubscribed private placement
of shares (accelerated book building procedure). The
transaction was closed on 3rd July and the net proceeds will
contribute to the Company’s cash position for the full year
2014. The private placement has allowed Ablynx to place
4,908,332 new shares with domestic and international
institutional investors at a price of €8.50 per share, a 5.56%
discount to the previous day’s closing price.
We are pleased to send you Ablynx’s quarterly
newsletter designed to provide an update for
the investment community.
This newsletter highlights the key progress
Ablynx has made during the third 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.
The funds will be used to allow flexibility in the choices
regarding further development of the Company’s currently
fully-owned clinical assets caplacizumab (anti-vWF) and ALX0171 (anti-RSV); to continue building momentum with
Nanobodies® targeted to immune check-point inhibitors and
accelerate the development Nanobodies of such assets both in wholly-owned programmes and with partners; to initiate,
continue to advance, and/or accelerate the pre-clinical and clinical development of wholly- and co-owned programmes to
further expand the Company’s diverse portfolio of programme assets; and for general corporate purposes.
OFFERING ADDITIONAL INVESTMENT AND TRADING OPPORTUNITIES
On 15th July, Euronext launched Spotlight Options on the shares of Ablynx (option trading symbol: ABY). Spotlight Options are
a special segment on the Amsterdam and Brussels derivatives markets of Euronext, dedicated to the development of new
option classes with a short maturity. The Spotlight Options offer additional investment and trading opportunities, in
particular for the individual investors.
On 5th August, Ablynx announced that it had established a Sponsored Level I ADR programme in the United States and as
such joins a plethora of other highly successful companies which enjoy an ADR programme. An ADR is a negotiable US
security representing ownership of publicly traded shares in a non-US corporation. The programme will, therefore, allow US
investors who are not usually allowed to trade in non-US-listed securities, to trade in Ablynx shares. The Ablynx ADRs are
traded on the US OTC market with trading symbol ABYLY US and one ADR represents one Ablynx ordinary share.
EXPANDING IN CHINA
On 1st September, Ablynx announced that it had expanded its relationship with the leading Chinese biopharma company
Eddingpharm by granting the Company an exclusive, royalty-bearing license to develop and commercialise Ablynx’s anti-TNFα
Nanobody, ozoralizumab (ATN-103), in the mainland of the People’s Republic of China, the Hong Kong and Macao Special
Administrative Regions, and Taiwan, for all indications, including rheumatoid arthritis (RA). Ablynx will receive an upfront
payment of €2 million (to be paid in 2 tranches) and is eligible to receive development and commercial milestones plus
tiered, double-digit royalties of up to 20%.
NANOBODIES ADDRESSING DIFFICULT TARGETS – ION CHANNEL CASE STUDY
The physiological importance of ion channels is underlined by their involvement in a wide range of conditions including
neurological disorders, hypertension, diabetes, cancer and arrhythmia. Ion channels represent highly valuable and complex
therapeutic targets for which no approved antibody-based drugs are currently available. Ablynx has on-going activities that
focus on this interesting target class. The Company has already demonstrated modulation of ion channel activity in
electrophysiology assays and has identified functional Nanobodies against both voltage-gated and ligand-gated ion channels.
Nanobodies can be generated to have either an agonistic (enhancing) or antagonistic (blocking) effect. A case study on Kv1.3
Nanobodies was presented at two scientific conferences; posters and presentations are available on the Ablynx website.
For further information please email us: [email protected] or phone +32 9 262 00 00
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FOCUS ON ABLYNX
FINANCIAL NEWS
Ablynx has been nominated for four awards at the
Scrip Awards 2014 in December in the following
categories: Best Partnership Alliance - Licensing
Deal of the Year - Biotech Company of the Year Executive of the Year
Half year results 2014
On 28th August, Ablynx announced its half year results for
the six-month period ending June 30th 2014 demonstrating
that the Company made significant progress both
financially and operationally.
Edwin Moses was invited to speak
at the The Economist Pharma
Summit 2015 during the session
Biologics versus Biosimilars
Two pager focus on Ablynx
published
in
the
European
Biotechnology book
SHAREHOLDERS’ CLUBS AT ABLYNX
Ablynx organises frequent shareholders’ clubs at its
headquarters in Ghent during which individual investors
have the opportunity to meet with the CFO and IR, and to
visit the laboratories. The next event (Dutch only) is
scheduled to take place on 10th December 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.
During the first half of 2014, Ablynx delivered its third
clinical proof-of-concept, further advanced its product
pipeline (both its wholly-owned programmes and its
partnered programmes with the latter the initiation by
Merck Serono of a Phase Ib study with the bi-specific
Nanobody, ALX-0761, in patients with psoriasis) and signed
a major alliance with Merck & Co in the emerging field of
immune-oncology.
During the first six months of 2014, revenues increased by
72% to €22.2 million (2013: €12.9 million), driven by FTE
funding and recognised income from the upfront payments
received from AbbVie, Merck Serono, Merck & Co and
Eddingpharm. Research and development expenses
increased by 27% to €24.5 million (2013: €19.3 million).
General and administrative expenses were €5.3 million
(2013: €4.5 million). The net loss decreased to €6.3 million
during the first six months ending 30 June 2014 (2013:
€10.5 million).
The Company ended the first half of 2014 with a strong
financial position with €196.0 million in cash, cash
equivalents, restricted cash and short-term investments.
UPCOMING IR EVENTS
INSTITUTIONAL INVESTORS
RECENT IR EVENTS
During the third quarter, Ablynx met with approx. 40
institutional investors during 1-1 meetings including at the
Goldman Sachs Biotech Symposium and the Annual Bank of
America Merrill Lynch Global Healthcare conference in London
as well as on road shows across Europe.
The Company also met with approx. 30 individual investors
during its quarterly Shareholders’ Club organised in September
at the Ablynx headquarters.
13th November 2014
Annual KBC Healthcare Conference – NYC
19th November 2014
Jefferies Global Healthcare Conference – London
27th November 2014
Petercam Healthcare Conference – Brussels
9th – 10th December 2014
CF&B Mid cap event – Geneva
FINANCIAL CALENDAR
PRIVATE INVESTORS
13 November 2014 – results Q3 2014
26 February 2015 – results full year 2014
30 April 2015 – annual general meeting
13 May 2015 – results Q1 2015
27 August 2015 – results half year 2015
18 November 2015 – results Q3 2015
4th October 2014
VFB Dag van de Tips – Ghent
MARIEKE VERMEERSCH
Associate Director Investor
Relations
Ablynx nv
Technologiepark 21
9052 Zwijnaarde
Belguim
15th November 2014
Finance Avenue – Brussels
October – November 2014
4 company visits from retail investors’ clubs
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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