Biotalys FIRST LOOK - Results overshadowed by EPA's change in review process

Biotalys' 1H23 results will be overshadowed by the news that the US Environmental Protection Agency (EPA) has recently changed its review process and no longer sets dates for expected decisions to applicants (until now Biotalys indicated they expect the review by EPA for 3Q23). Biotalys continues to work with the EPA as it reviews the submitted regulatory dossier. Pending regulatory approval, Biotalys is preparing for the start of the market calibration with Evoca in 2024 and for the launch of the commercial version of the product in 2026.

The end 1H23 net cash position was € 31.9m. Biotalys expects that the cash burn for FY23 will be slightly lower than in FY22 (€22m). and we think that to lower the cash burn Biotalys has decided to pause its sole bactericide program (BioBac-1) and focus its activities on the fungicide and insecticide programs where the commercial opportunity is higher. As the impact on our NPV is €-20.1m and combined with the new net cash position (and higher number of shares after the private placement) we lower our Target price from €8.7 to €7.8m.