Nanobiotix S.A. annual report, Q4 FY2020

Nanobiotix S.A. — FY2020 Form 20-F Summary

Reporting period: Fiscal year ended December 31, 2020. This is an annual report, not a standalone Q4 report; separate Q4 financial results are not provided. Financial statements are audited and prepared under IFRS in euros.

Business context

Nanobiotix is a clinical-stage biotechnology company developing NBTXR3, an injectable hafnium-oxide nanoparticle intended to enhance radiotherapy’s effect on tumors. The company’s principal focus is advancing NBTXR3 for locally advanced head and neck cancer and exploring other solid tumors and immuno-oncology combinations. NBTXR3 has a CE mark for locally advanced soft-tissue sarcoma in the EU, but the company had not begun commercialization.

Key financial metrics

MetricFY2020FY2019
Revenue€0.05 million€0.068 million
Other income, mainly research tax credits and grants€2.462 million€2.473 million
Research and development expenses€24.330 million€30.411 million
SG&A expenses€14.611 million€18.909 million
Operating loss€36.428 million€46.779 million
Net loss€33.590 million€50.915 million
Basic and diluted loss per share€1.38€2.35
Operating cash flow€(27.538) million€(41.169) million
Cash and cash equivalents at year-end€119.151 million€35.094 million
Total assets / shareholders’ equity€134.030 million / €70.468 million€56.205 million / €(1.908) million
Financial liabilities, including leases€48.979 million€44.526 million

Revenue remained immaterial and came primarily from reimbursement of clinical research costs under the PharmaEngine arrangement; there was no product-sale revenue. Cash less reported financial liabilities was approximately €70.2 million at year-end. The filing does not present a meaningful revenue-based margin given the negligible sales base.

Changes versus FY2019

  • Net loss narrowed by €17.3 million and operating loss by €10.4 million. Both R&D and SG&A costs declined, reflecting cost restraint during COVID-19 and lower staff levels; the lower loss should not be read as evidence of commercial profitability.
  • Operating cash outflow improved by €13.6 million. Financing cash flow of €111.8 million, including equity raises and €10 million of state-guaranteed loans, drove the €84.1 million increase in cash.
  • Shareholders’ equity turned positive following capital raises. Ordinary shares outstanding increased from 22.4 million to 34.4 million; the December 2020 global offering issued 8.395 million shares.
  • Net financial income was €2.847 million versus a €4.133 million loss in 2019. A €4.8 million reduction in estimated EIB royalty-related liability contributed materially; €1.7 million of foreign-exchange losses partly offset the benefit.

Outlook, risks and unusual items

  • Management estimated year-end cash would fund current operations through Q2 2023, subject to assumptions that could change. The company expects continuing losses and will need additional capital to pursue development and commercialization.
  • Management prioritized head and neck cancer development. Preliminary Study 102 Expansion data showed an 83.9% overall response rate among 31 evaluable patients, with median follow-up of five months; results were early and may change. A global Phase III trial, NANORAY-312, was planned to start in 2021 and target approximately 500 patients. FDA Fast Track designation is not an approval and does not assure faster review.
  • COVID-19 slowed enrollment, monitoring and data collection and could delay planned trials. The company reported no material disruption to its overall development plan at year-end, but timing and costs remained uncertain.
  • In March 2021, after disagreements, Nanobiotix and PharmaEngine terminated their Asia-Pacific collaboration. Nanobiotix retained regional rights but agreed to up to $5 million in near-term payments, a $7.5 million payment tied to a second regulatory approval (subject to specified partner conditions), and low-single-digit royalties on regional sales.
  • The EIB loan carries operating restrictions and potential sales-based royalties; early repayment or specified events can trigger additional payments, including a stated minimum €35 million in certain circumstances. The company also had €10 million in state-guaranteed loans and €6.2 million in lease liabilities.
  • Key risks include dependence on NBTXR3, clinical and regulatory failure or delay, manufacturing and supplier reliance, reimbursement and commercialization uncertainty, evolving EU medical-device rules, and the need for further funding. The company had no material legal proceedings reported.

Most important facts for investors to verify

  • Cash runway assumptions and the planned timing and cost of NANORAY-312 and other trials.
  • Follow-up, durability and safety data for Study 102, including whether preliminary response findings are confirmed in larger studies.
  • The accounting and cash implications of the EIB royalty remeasurement, loan covenants and repayment schedules.
  • The final financial and commercial terms of the PharmaEngine termination, including the conditions for contingent payments and royalties.
  • The reported cash proceeds from the December offering: the filing cites $113.3 million gross and approximately $100.4 million net in its offering disclosure, while other sections express net proceeds in euros; confirm amounts against the audited cash-flow and equity disclosures.
  • Potential dilution from outstanding equity awards and future financing, and whether the company can commercialize Hensify or secure partners on viable terms.