Artificial Intelligence
GENFIT: First Half-Year 2020 Financial Report and New Corporate Strategy
- Cash position of €226 million at June 30, 2020 (€277 million at December 31, 2019)
- New Corporate strategy focused on two priority areas:
- Development of elafibranor in Primary Biliary Cholangitis (PBC): ongoing enrolment for Phase 3 clinical trial ELATIVE™
- Commercialization of NIS4™ for NASH diagnosis: exclusive licensing agreement with Labcorp
- Plan to create two GENFIT SA subsidiaries by 2021, to facilitate decision-making and enable an independent management and growth
- Corporate restructuring plan to reprioritize capital for essential operating activities. Objective of cash burn reduction by more than 50% by 2022:
- Termination of elafibranor’s clinical development in NASH
- Termination of all activities associated with elafibranor’s launch preparations in NASH
- Reallocation of our research program to focus efforts on key programs
- Comprehensive cost-saving plan and restructuring plan, with a 40% workforce reduction in the Group
Lille, France; Cambridge, MA; September 30, 2020 – GENFIT (Nasdaq and Euronext: GNFT), a late-stage biopharmaceutical company dedicated to improving the lives of patients with metabolic and liver diseases, today announced its first half-year 2020 financial report, including the advances of its R&D portfolio and the new GENFIT corporate strategy. The Half Year Business and Financial Report, including the new corporate strategy is available to the public and was filed with the French Autorité des marchés financiers (French Financial Markets Authority) today. The condensed consolidated financial statements are included in this press release and the complete financial statements are available on the “Investors” page of the GENFIT website.
Conference Call in English on September 30, 2020 at 4:30pm EDT / 22:30 CEST, and in French on October 1, 2020 at 1:30am EDT / 7:30am CEST
Both the English and French conference calls will be accessible on the investor page of our website, under the events section at https://ir.genfit.com/ or by calling 877-407-9167 (toll-free U.S. and Canada), 201-493-6754 (international) or 0 800 912 848 (France) five minutes prior to the start time (no passcode needed). A replay will be available shortly after the call.
New corporate strategy and prospects
The company’s corporate strategy now focuses on two priority areas:
- Phase 3 clinical trial ELATIVE™ evaluating elafibranor in PBC:
- Patient enrolment now started, and results expected early 2023, given the current constraints due to the COVID-19 pandemic;
- Following the positive Phase 2 data of elafibranor in PBC, the U.S. Food and Drug Administration (FDA) granted elafibranor Breakthrough Therapy designation. The ELATIVE™ study aims to confirm elafibranor’s previously successful results of efficacy, potential improvement in pruritus and safety in PBC patients;
- Current market size for second line therapies in PBC is estimated at ~ $300MM in 2020 and is anticipated to experience double digit growth and estimates for 2025 are up to $1B. Elafibranor is a promising alternative therapy to the existing treatment in PBC, based on the significant unmet needs in this indication.
- NIS4TM technology for (NASH) diagnosis:
- NIS4TM technology data, recently published in The Lancet Gastroenterology & Hepatology, confirmed the technology’s diagnostic performance and garnered the support of leading NASH experts;
- The recently announced exclusive licensing agreement with Labcorp for NIS4 TM technology will enable a large-scale commercial launch as of next year;
- NIS4TM addresses patients’ and payers’ requirements as liver biopsy remains the only – although imperfect – approved diagnostic option in the clinical development field and cannot be replicated on a large scale due to its painful and invasive nature, and its cost for healthcare systems. It would be impossible to diagnose all patients with biopsies given the limited number of procedures that can be performed. The blood test commercialized by Lacorp will address these multiple challenges;
- The NASH therapeutic market is potentially significant, however, the opportunity is dependent on quick, reliable and easy to execute diagnostic solutions to identify patients. NIS4TM technology represents the essential first step in managing patients with NASH and is the first step for patients to take control, even in the absence of treatments, of their disease.
GENFIT’s new strategy includes a plan, which aims to create two distinct operational subsidiaries by 2021 to enable more independent management and growth:
- The first entity would be dedicated to the development of specialty indications, starting with the Phase 3 trial in PBC;
- The second entity would house NASH solutions, including all programs related to the identification, evaluation and monitoring of patients with NASH. This independent structure would facilitate future partnerships for NIS4™.
The two entities would remain a part of GENFIT as a listed company, who would ensure adequate decision making between both “business” entities, the goal being to best highlight each of the activities to benefit the Group’s valuation.
Concurrently, GENFIT is adopting a plan to reallocate and rationalize all capital with an objective to reduce the cash burn by more than 50% by 2022 compared to our cash burn prior to the RESOLVE-IT Phase 3 data. The program aims to reduce the current cash burn rate from €110M annually before our Phase 3 data, to approximately €45MM annually, beginning in 2022. Due to the residual expenses related to the termination of RESOLVE-IT, 2021 will be a transition year.
This plan incorporates the following key components:
- The overall clinical development program for elafibranor in NASH and all activities associated with the commercial launch of elafibranor in NASH have been terminated given the low probability of success compared to required expenses. The termination includes the NASH combination therapy trials, the pediatric trials, and other trials such as the evaluation of the impact of elafibranor on liver fat composition;
- A comprehensive cost-saving plan has been implemented, including the redirection of R&D activities and the termination of secondary programs (i.e. the RORgT program);
- A workforce restructuring plan aims to reduce the overall workforce by 40%, encompassing both the U.S and France in order to align the company size to the new scope of activity.
Lastly, GENFIT plans to propose to the holders of its OCEANE bond (€180 million nominal amount with a maturity of October 16, 2022) and its shareholders, an adjustment of the terms of the OCEANE convertible bond. The Company’s objective is to begin this process towards the end of the year, in order to have a balance sheet which is structured in line with its new strategy.
Pascal Prigent, CEO of GENFIT, stated: “The decisions we have taken allow us to move GENFIT forward towards 2021 with a clear and precise roadmap. We are confident in the probability of success, and the potential of our two priority programs. The evolution of the company also ensures the structure adapts to our strategy, with an approach that is both organizationally and financially sound.”
Key aspects of the half-year 2020 results
Key aspects of the half-year 2020 results are:
- Cash and cash equivalents of €225.7 million at June 30, 2020 (€276.7 million at December 31, 2019);
- Operating income of €5.9 million (€5.4 million at June 30, 2019), essentially from the Research Tax Credit, which amounted to €5.2 million for the first half 2020 (€5.3 million in the preceding half year);
- Operating expenses of €55.0 million (€51.3 million at June 30, 2019) of which 67% represented R&D expenses.
The increase in operating expenses is due to increases in marketing and pre-commercialization expenses, which amounted to €9.5 million in the first half 2020 (€2.9 million in the first half 2019). Marketing and pre-commercialization expenses will significantly decrease as of the second half 2020 due to the discontinuation of the pre-commercialization work for elafibranor in NASH following the termination of this program in July 2020.
General and administrative expenses (€8,2 million in the first half 2020 compared to €9.5 million in the first half 2019) and research and development expenses (€36.9 million in the first half 2020 compared to €38.9 million in the first half 2019) have decreased slightly between 2019 and 2020. These expenses will progressively decrease as of the second half 2020 following the Company’s decision to begin the process of terminating the clinical trials for elafibranor in NASH, terminating secondary programs and to execute a comprehensive cost saving plan over 3 years. Significant expenses related to the termination of the RESOLVE-IT trial will be due in the second half 2020 and in 2021.
As a result of changes in revenues and expenses, the net loss amounted to €53.0 million at June 30, 2020 (€51.1 million at June 30, 2019). The net loss for 2019 was €65.1 million.
The table below presents the condensed Consolidated Statement of Operations under IFRS for the first half 2020, with comparative figures for the first half 2019.
For the six-month period ended | |||
(in € thousands, except earnings per share data) | June 30, 2019 | June 30, 2020 | |
Revenues and other income | |||
Revenue | 1 | 122 | |
Other income | 5 356 | 5 745 | |
Revenues and other income | 5 357 | 5 867 | |
Operating expenses and other operating income (expenses) | |||
Research and development expenses | (38 908) | (36 867) | |
General and administrative expenses | (9 517) | (8 251) | |
Marketing and market access expenses | (2 876) | (9 491) | |
Other operating income (expenses) | 7 | (423) | |
Operating income (loss) | (45 936) | (49 163) | |
Financial income | 1 755 | 2 095 | |
Financial expenses | (7 240) | (6 102) | |
Financial profit (loss) | (5 485) | (4 007) | |
Net profit (loss) before tax | (51 422) | (53 170) | |
Income tax benefit (expense) | 289 | 159 | |
Net profit (loss) | (51 132) | (53 011) | |
Attributable to owners of the Company | (51 132) | (53 011) | |
Attributable to non-controlling interests | — | — | |
Basic and diluted earnings (loss) per share | |||
Basic and diluted earnings (loss) per share (€/share) | (1,64) | (1,36) |
Further information is described in the above New Corporate Strategy and Prospects section of this press release and in the condensed consolidated financial statements at June 30, 2020 under IFRS as well as the management discussion of the results are provided in the appendix at the end of this document. The condensed consolidated financial statements as well as the statutory auditors’ report on those financial statements are appended to the 2020 Half Year Business and Financial Report and available on the “Investors” page of the GENFIT website.
We encourage investors to take into consideration all the information presented in our 2019 Annual Report on Form 20-F (“Form 20-F”) and in this Half-Year Business and Financial Report before deciding to invest in Company shares; these two documents are available on GENFIT’s website www.genfit.com and on the website of the AMF (www.amf-france.org). This includes, in particular, the risk factors described in Item 4 of the Form 20-F (and the contents of this section), of which the realization may have (or has had in some cases) material adverse effect on the Group and its activity, financial situation, results, development or perspectives, and which are of importance in the investment decision-making process.
Key events of the first half of 2020 and main events after the reporting period
R&D Programs of the Company during H1 and After the Reporting Period
Elafibranor Development Program in NASH
RESOLVE-IT Phase 3 Study in NASH
In February, the Company announced that the final visit of the last patient for the interim cohort to support accelerated marketing approval had been completed on time, and the clinical trial database would be locked before the end of February. It also announced in late March 2020 that, despite the COVID-19 pandemic, it had decided to continue the extension phase of the RESOLVE-IT trial thanks to the implementation of measures allowing to ensure the safety of patients who were already enrolled in the study.
In May, the Company announced the topline results of the interim analysis of the RESOLVE-IT Phase 3 trial evaluating the efficacy of the daily administration of elafibranor 120 mg in adults with NASH.
The RESOLVE-IT Phase 3 trial evaluated the effect of elafibranor compared to placebo in 1,070 patients (ITT population) with biopsy proven NASH as defined by NAFLD activity score (NAS) greater than or equal to 4, fibrosis stage 2 or 3. Patients were randomized 2:1 to receive elafibranor 120mg or placebo once daily, with a follow-up liver biopsy at week 72 to evaluate histologic endpoints (resolution of NASH without worsening of fibrosis or fibrosis improvement of at least one stage).
Resolution of NASH is defined by a ballooning score of 0 and an inflammation score of 0 or 1, and the non-worsening of fibrosis corresponds to a fibrosis score that does not increase.
The trial did not meet the predefined primary endpoint of NASH resolution without worsening of fibrosis in the ITT population. In the ITT population, 19.2% of patients who received elafibranor (N=138) achieved NASH resolution without worsening of fibrosis compared to 14.7% of patients in the placebo arm (N=52) (p=0.07).
On the key secondary endpoint of fibrosis improvement of at least one stage, 24.5% of patients who received elafibranor (N=176) achieved fibrosis improvement of at least one stage compared to 22.4% (N=79) in the placebo arm (p=0.445).
Statistical significance was not achieved in the other key secondary endpoint related to metabolic parameters, which were: triglycerides, non-HDL cholesterol, HDL cholesterol, LDL cholesterol, HOMA-IR in non-diabetic patients, and HbA1c in diabetic patients.
The favorable safety and tolerability profile of elafibranor observed in our previously conducted trials was similar to what has been observed in the interim results of RESOLVE-IT, which is encouraging for the ongoing Phase 3 trial evaluating elafibranor in PBC (see below).
While the topline results do not support an application for accelerated approval of elafibranor by the FDA under Subpart H or conditional approval by the European Medicines Agency (“EMA”), the Company announced, also in May, its intention to review in detail the full dataset and conduct additional analyses in order to understand why the placebo response rate was higher than what was expected before making a decision regarding the future of the RESOLVE-IT trial.
On July 22, 2020, following the detailed review of the full RESOLVE-IT interim efficacy dataset, the Company determined that the investment needed to continue the trial was not justified, as it was unlikely to provide results that would be sufficient to support elafibranor for registration in NASH in the United States and Europe. The Company announced that it would engage with the RESOLVE-IT investigators to expedite the trial termination process –which is ongoing at the time of this report and due to last for several months– and that it would also meet with regulatory agencies to share key learnings, including results from the second reading of liver biopsies that will help better understand inter-reader variability and its impact. The Company also indicted that it is now focusing its efforts on developing its two major programs: elafibranor development in PBC, and the commercial growth of NIS4™ technology, for NASH diagnostics.
Pediatric NASH, Phase 2 Trial Addressing Liver Fat and Therapeutic Combination Program with elafibranor in NASH
Due to the COVID-19 pandemic, the Company had announced in late March that:
- enrollment of patients in the PK/PD trial in pediatric patients with NASH as well as the Phase 2 study addressing liver fat had been paused;
- the initiation of the Phase 2 combination study in NASH with elafibranor had been put on hold.
In September and following its decision to terminate all development of elafibranor in NASH, the Company decided to initiate the termination process of the PK/PD trial in pediatric NASH as well as the Phase 2 study on hepatic lipid composition.
Considering that clinical trials in the NASH space involve a large number of patients, are long and very expensive, as well as the fact that the regulatory and competitive landscape in this therapeutic area is in constant evolution, the Company has considered that the cost in relation to the probability of success was too high to continue development of elafibranor in NASH.
Other Phase 1 trials
The Company also announced in March, in the context of the COVID-19 pandemic, that all ongoing or upcoming phase 1 trials – which included pharmacokinetic, food effect and bioequivalence studies – had been put on hold. These studies were necessary to support a potential elafibranor NDA submission.
Since then, in line with the decision to end development of elafibranor in NASH, the following decisions have been made regarding these trials, given that some of them will be required for a new drug application for elafibranor in PBC:
- Pharmacokinetic and drug interaction studies have resumed;
- The bioequivalence study has restarted;
- The food interaction study will start in 2021.
Phase 3 of elafibranor Development in PBC Program
Due to the COVID-19 pandemic, the Company announced in late March that the start of the Phase 3 study in patients with PBC had been delayed.
In September, the Company has announced the completion of the first patient first visit in the ELATIVE™ Phase 3 trial. Appropriate measures will be implemented, including virtual appointments, biological evaluations performed by local laboratories, delivery of the drug candidate to the patients’ home, to ensure the safety of participants in the study.
NIS4™ Diagnostic Program in NASH
During the first half of the year, the NIS4™ technology to support a diagnostic solution continued to be deployed in the clinical research field through Covance. While interest in NIS4™ technology is high, the Company announced in late March that there may be some limits in NIS4™ powered test utilization due to delays potentially experienced by some sponsors as the result of the COVID-19 pandemic.
In August, the Company announced that pivotal data describing the derivation and validation of NIS4™ technology has been accepted for publication by The Lancet Gastroenterology & Hepatology. This published study details NIS4™ algorithm development and clinical validation against the liver biopsy reference standard in two independent populations comprised of data from over 700 patients. In addition to the high overall performance in indentifying patients with at-risk NASH, NIS4™ technology also provided consistent results in critical sub-populations (i.e. diabetic vs. non-diabetic, men vs. women) as compared to other non-invasive tests evaluated in the same individuals.
In September, the Company announced the signature of a new licensing agreement with Labcorp for the development and commercial deployment of an LDT integrating NIS4™ technology on the routine clinical care diagnostic test market in the United States and Canada. GENFIT also continues to explore the possibility to obtain regulatory approval to release an IVD test integrating NIS4™ technology on the US and European markets.
NTZ Development Program in Liver Fibrosis
Despite the COVID-19 pandemic and thanks to the implementation of appropriate measures by the clinical investigator leading the study, the recruitment of patients in the Phase 2 trial evaluating NTZ in NASH-induced liver fibrosis continued throughout the first half of the year.
See also the supplemental Note 6.2 “Major events after the reporting period” to the consolidated H1 2020 financial statements thereafter regarding other events occurring after the reporting period.
Governance
The Company announced, following its annual Shareholders Meeting on June 30, 2020, the appointment of Ms. Katherine Kalin and Mr. Eric Baclet to the company’s Board of Directors. Together, they bring more than 50 years of combined pharmaceutical experience and deep subject matter expertise that will aid in the next phase of GENFIT’s growth.
Ms. Kalin’s healthcare industry expertise spans diagnostics, medical devices, and pharmaceuticals. Ms. Kalin is currently a director on the boards of Clinical Genomics, a molecular diagnostic firm, Brown Advisory, a strategic advisory and investment firm, and Primari Analytics, a startup in artificial intelligence. From 2012-17, Ms. Kalin led corporate strategy at Celgene, a global biopharmaceutical company, for 5 1/2 years. Prior to that, Ms. Kalin held executive leadership roles in marketing, sales, strategy and new business development at Johnson & Johnson (J&J) from 2002 to 2011. Prior to J&J, Ms. Kalin served as a Partner at McKinsey and Company, a global management consulting firm, where she negotiated and led consulting assignments, as a strategic advisor to pharmaceutical, medical device and other healthcare companies.
Mr. Eric Baclet has over 30 years of experience with Eli Lilly in international drug development, management, and commercialization, all expertise he gained as President and General Manager of Lilly Italia, General Manager of Lilly China, VP of Global Marketing, and Executive Directorship of International Marketing, to name a few. Throughout his tenure at Eli Lilly, Mr. Baclet spearheaded international drug launches across multiple geographies, and led multi-disciplinary teams involved in biopharmaceutical value-chain management in more than seven countries.
At the time of this report, the Board of Directors has appointed Ms. Katherine Kalin as a member of the Strategy and Alliances Committee, and Mr. Eric Baclet, as a member of the Nomination and Compensation Committee.
APPENDICES
Half-year Consolidated Financial Results
At June 30, 2020
The Condensed Consolidated Statements of Financial Position, Statements of Operations and Statements of Cash Flow of the Group were prepared in accordance International Financial Reporting Standards (IFRS).
The limited review procedures on the condensed consolidated financial statements have been performed. The half year consolidated financial statements for the period ended June 30, 2020 were approved by Board of Directors on September 29, 2020.
The condensed consolidated financial statements as well as the notes to the consolidated financial statements for the period ended June 30, 2020 and the statutory auditor’s report on the consolidated financial statements are included in appendices of the Half Year Business and Financial Report at June 30, 2020 and available on the “Investors” page of the GENFIT website.
Condensed Consolidated Statement of Financial Position
ASSETS | As of | ||
(in € thousands) | December 31, 2019 | June 30, 2020 | |
Current assets | |||
Cash and cash equivalents | 276 748 | 225 721 | |
Current trade and others receivables | 12 033 | 8 938 | |
Other current assets | 1 968 | 3 540 | |
Inventories | 5 | 5 | |
Total – Current assets | 290 753 | 238 204 | |
Non-current assets | |||
Intangible assets | 920 | 894 | |
Property, plant and equipment | 16 453 | 15 507 | |
Other non-current financial assets | 1 727 | 1 595 | |
Total – Non-current assets | 19 100 | 17 997 | |
Total – Assets | 309 853 | 256 200 | |
SHAREHOLDERS’ EQUITY AND LIABILITIES | As of | ||
(in € thousands) | December 31, 2019 | June 30, 2020 | |
Current liabilities | |||
Current convertible loans | 1 313 | 1 313 | |
Other current loans and borrowings | 3 226 | 3 222 | |
Current trade and other payables | 36 917 | 34 961 | |
Current deferred income and revenue | 140 | 141 | |
Current provisions | 2 061 | 2 070 | |
Total – Current liabilities | 43 657 | 41 706 | |
Non-current liabilities | |||
Non-current convertible loans | 164 142 | 166 760 | |
Other non-current loans and borrowings | 14 939 | 13 342 | |
Non-current trade and other payables | 451 | 451 | |
Non-current employee benefits | 1 408 | 1 503 | |
Deferred tax liabilities | 1 193 | 1 057 | |
Total – Non-current liabilities | 182 132 | 183 112 | |
Shareholders’ equity | |||
Share capital | 9 715 | 9 715 | |
Share premium | 377 821 | 378 334 | |
Retained earnings (accumulated deficit) | (238 340) | (303 662) | |
Currency translation adjustment | 14 | 7 | |
Net profit (loss) | (65 145) | (53 011) | |
Total shareholders’ equity – Group share | 84 065 | 31 382 | |
Non-controlling interests | — | — | |
Total – Shareholders’ equity | 84 065 | 31 382 | |
Total – Shareholders’ equity & liabilities | 309 853 | 256 200 |
Condensed Consolidated Statement of Operations
For the six-month period ended | |||
(in € thousands, except earnings per share data) | June 30, 2019 | June 30, 2020 | |
Revenues and other income | |||
Revenue | 1 | 122 | |
Other income | 5 356 | 5 745 | |
Revenues and other income | 5 357 | 5 867 | |
Operating expenses and other operating income (expenses) | |||
Research and development expenses | (38 908) | (36 867) | |
General and administrative expenses | (9 517) | (8 251) | |
Marketing and market access expenses | (2 876) | (9 491) | |
Other operating income (expenses) | 7 | (423) | |
Operating income (loss) | (45 936) | (49 163) | |
Financial income | 1 755 | 2 095 | |
Financial expenses | (7 240) | (6 102) | |
Financial profit (loss) | (5 485) | (4 007) | |
Net profit (loss) before tax | (51 422) | (53 170) | |
Income tax benefit (expense) | 289 | 159 | |
Net profit (loss) | (51 132) | (53 011) | |
Attributable to owners of the Company | (51 132) | (53 011) | |
Attributable to non-controlling interests | — | — | |
Basic and diluted earnings (loss) per share | |||
Basic and diluted earnings (loss) per share (€/share) | (1,64) | (1,36) |
Condensed Statement of Cash Flows
For the six-month period ended | For the year ended | For the six-month period ended | |
(in € thousands) | June 30, 2019 | December 31, 2019 | June 30, 2020 |
Cash flows from operating activities | |||
+ Net profit (loss) | (51 132) | (65 145) | (53 011) |
+ Non-controlling interests | — | — | — |
Reconciliation of net loss to net cash used in operating activities | |||
Adjustments for: | |||
+ Depreciation and amortization on tangible and intangible assets | 1 542 | 3 263 | 1 737 |
+ Impairment and provision for litigation | 1 804 | 357 | 124 |
+ Expenses related to share-based compensation | 356 | 1 657 | 513 |
– Gain on disposal of property, plant and equipment | (1) | (19) | (2) |
+ Net finance expenses (revenue) | 5 669 | 11 437 | 5 848 |
+ Income tax expense (benefit) | (289) | (576) | (159) |
+ Other non-cash items including Research Tax Credit litigation | (11) | 1 702 | 92 |
Operating cash flows before change in working capital | (42 063) | (47 324) | (44 859) |
Change in: | |||
Decrease (increase) in trade receivables and other assets | (10 103) | (1 640) | 1 523 |
(Decrease) increase in trade payables and other liabilities | 5 307 | 1 284 | (2 026) |
Change in working capital | (4 797) | (356) | (504) |
Income tax paid | — | — | — |
Net cash flows used in operating activities | (46 859) | (47 680) | (45 362) |
Cash flows from investment activities | |||
– Acquisition of property, plant and equipment | (65) | (2 030) | (785) |
+ Proceeds from disposal of / reimbursement of property, plant and equipment | (0) | 2 517 | — |
– Acquisition of financial instruments | (128) | (160) | (49) |
Net cash flows provided by (used in ) investment activities | (193) | 327 | (834) |
Cash flows from financing activities | |||
+ Proceeds from issue of share capital (net) | 126 479 | 126 486 | — |
+ Proceeds from subscription / exercise of share warrants | — | 43 | — |
+ Proceeds from new loans and borrowings net of issue costs | — | — | — |
– Repayments of loans and borrowings | (1 513) | (1 884) | (1 601) |
– Financial interests paid (including finance lease) | (3 234) | (7 785) | (3 230) |
Net cash flows provided by (used in ) financing activities | 121 732 | 116 860 | (4 831) |
Increase (decrease) in cash and cash equivalents | 74 680 | 69 508 | (51 027) |
Cash and cash equivalents at the beginning of the period | 207 240 | 207 240 | 276 748 |
Cash and cash equivalents at the end of the period | 281 920 | 276 748 | 225 721 |
Discussion of the 2020 half year results
Comments on the condensed statement of net income for the periods ended June 30, 2019 and June 30, 2020
(i) Revenue and other income
The Company’s revenue and other income results primarily from the research tax credit.
Revenue and other income | For the six-month period ended | |||
(in € thousands) | June 30, 2019 | June 30, 2020 | ||
Revenues | 1 | 122 | ||
Government grants and subsidies | 2 | 3 | ||
CIR tax credit | 5 350 | 5 224 | ||
Other operating income | 4 | 519 | ||
TOTAL | 5 357 | 5 867 |
Revenue and other income was € 5,867 thousand at June 30, 2020 compared to €5,357 thousand for the same period in the previous year.
(ii) Operating expenses and other operating income by destination
The tables below break down operating expenses by destination mainly into research and development expenses on the one hand, marketing and pre-marketing and general and administrative expenses on the other, for the half years ended June 30, 2020 and 2019.
Contracted | Gain / | ||||||||
research and | Other | Depreciation, | (loss) on | ||||||
For the | development | expenses | amortization | disposal of | |||||
six-month period | activities | (maintenance, | and | property, | |||||
Operating expenses and other operating income (expenses) | ended | conducted by | Employee | fees, travel, | impairment | plant and | |||
(in € thousands) | June 30, 2019 | third parties | expenses | taxes…) | charges | equipment | |||
Research and development expenses | (38 908) | (25 909) | (6 206) | (2 564) | — | — | |||
General and administrative expenses | (9 517) | (1) | (4 082) | (5 244) | — | — | |||
Marketing and market access expenses | (2 876) | — | (883) | (1 963) | — | — | |||
Other operating income and (expenses) | 7 | — | — | 6 | 1 | 1 | |||
TOTAL | (51 293) | (25 910) | (11 170) | (9 764) | 1 | 1 | |||
Contracted | Gain / | ||||||||
research and | Other | Depreciation, | (loss) on | ||||||
For the | development | expenses | amortization | disposal of | |||||
six-month period | activities | (maintenance, | and | property, | |||||
Operating expenses and other operating income (expenses) | ended | conducted by | Employee | fees, travel, | impairment | plant and | |||
(in € thousands) | June 30, 2020 | third parties | expenses | taxes…) | charges | equipment | |||
Research and development expenses | (36 867) | (24 337) | (6 591) | (3 287) | (1 455) | — | |||
General and administrative expenses | (8 251) | (42) | (3 845) | (3 963) | (269) | — | |||
Marketing and market access expenses | (9 491) | (1) | (744) | (8 697) | (44) | — | |||
Other operating income (expenses) | (423) | — | — | (425) | — | 2 | |||
TOTAL | (55 031) | (24 379) | (11 180) | (16 372) | (1 769) | 2 |
Operating expenses in the first half 2020 amounted to €55,031 thousand compared to €51,293 thousand in first half 2019.
They include, in particular:
·research and development expenses, which include employee-related expenses for employees in research and development functions (€6,591 thousand at June 30, 2020 compared to €6,206 thousand at June 30, 2019), the cost of consumables and contracted research and development activities (particularly clinical and pharmaceutical expenses) (representing €25,534 thousand at June 30, 2020 compared to €26,977 thousand at June 30, 2019) and expenses related to intellectual property. These research and development expenses amounted to €36,867 thousand at June 30, 2020 compared to €38,908 thousand at June 30, 2019, or 67% and 76% of operating expenses, respectively.
The decrease in contracted research and development expenses is mainly due to the suspension or termination of some clinical studies in the context of the COVID-19 pandemic.
Changes in employee-related expenses for employees in research and development functions is mainly due to increased headcount (128 vs. 116), compensated by the absence of incentive bonuses in 2020.
The decrease in amortization and provisions related to research and development is mainly due to the provisions recorded in the dispute with the tax authorities concerning the CIR in 2019 and the application as from January 1, 2019 of IFRS 16 to leases.
·general and administrative expenses, which include the costs of personnel not assigned to research (€3,845 thousand at June 30, 2020 compared to €4,082 thousand at June 30, 2019), and administrative costs. These general and administrative expenses amounted to €8,251 thousand in the first half 2020 compared with €9,517 thousand in the first half 2019, or 15% and 19% of operating expenses, respectively.
Changes in general and administrative expenses are mainly related to the cost of insurance premiums in relation to Company listing on the Nasdaq.
Changes in employee-related expenses paid to employees in general and administrative functions was primarily the result of an increase in headcount (68 vs. 51 employees), compensated by the absence of incentive bonuses in 2020.
·marketing and pre-marketing expenses, which include the costs of personnel assigned to marketing and business development (€744 thousand in the first half 2020 compared to €883 thousand in the first half 2019), and costs related to the preparation of the commercialization of elafibranor and NIS4™ in NASH (market research, marketing strategy, medical communication, market access…) (€9,491 thousand in the first half 2020 compared to €2,876 thousand in the first half 2019).
Marketing and pre-commercialization expenses will significantly decrease as of the second half 2020 due to the discontinuation of the pre-commercialization work for elafibranor in NASH following the termination of this program in July 2020.
(iii) Operating expenses by type
Broken down by type instead of by destination, operating expenses mainly included the following:
Contracted research and development activities
Contracted research and development expenses amounted to €24,379 thousand in the first half 2020 compared to €25,910 thousand in the first half 2019, corresponding to a 6% decrease, which is mainly due to the suspension or discontinuation of some studies in the context of the COVID-19 pandemic.
Employee expenses
Employee expenses | For the six-month period ended | ||
(in € thousands) | June 30, 2019 | June 30, 2020 | |
Wages and salaries | (7 998) | (7 811) | |
Social security costs | (2 748) | (2 770) | |
Changes in pension provision | (69) | (87) | |
Individual training entitlement | — | — | |
Share-based compensation | (356) | (513) | |
TOTAL | (11 170) | (11 180) |
Employee expenses excluding share-based compensation amounted to €10,667 thousand in the first half 2020 compared to €10,814 thousand in the first half 2019, or a 1% decrease, mainly due to the absence of incentive bonuses in 2020 despite an increase in headcount (203 vs. 174 employees)
The amount recognized as share-based compensation (BSA, BSAAR, SO and AGA) free of any impact on cash flow amounted to €513k in the first half 2020 compared to €356 thousand in the first half 2019. The expenses recorded in the first half of 2020 relate to the SO and AGA plans put in place in December 2016, the BSA, SO and AGA plans put in place in 2017, the SO and AGA plans put in place in 2018 and the BSA, SO and AGA plans put in place in 2019.
Other expenses
Other expenses amount to €16,372 thousand in the first half 2020 compared to €9,764 thousand in the first half 2019. They include, in particular:
- “fees,” which include legal, audit, and accounting, the fees of various advisors (press relations, investor relations, communication, IT), as well as the fees of certain scientific advisers. This amount also includes intellectual property expenditures corresponding to fees incurred by the Company in connection with the registration and protection of its patents;
- insurance premiums specific to the listing of the Company’s shares on Nasdaq: a recurring Directors & Officers civil liability insurance policy;
- expenses related to the pre-marketing of elafibranor and NIS4™ in NASH (market research, marketing strategy, medical communication, market access…);
- expenses related to the use and maintenance of Group offices;
- expenses related to external service providers (guard, security, reception, clinical trial management and IT); and
- expenses related to business travel and conferences mainly for employees as well as the costs of participation in scientific, medical, financial, and business development conferences.
These changes are mainly related to increases in expenses for pre-marketing projects.
(iv) Financial income (expense)
Financial income (expense) as of June 30, 2020 amounted to a loss of €4,007 thousand compared to financial loss of €5,485 thousand in the previous half year.
This change is mainly due to realized and unrealized foreign currency exchange rate loss of €246k in the first half 2020 compared to €1,563k in the first half 2019, partially compensated a notable increase in financial income (€1,154k in the first half 2020 compared to €103k in the first half 20191) due to the increase of cash held in US dollars and to investments in US dollars where the return has been significantly higher than investments in euros.
(v) Net income (loss)
The first half 2020 resulted in a net loss of €53,011 thousand compared to a net loss of €51,132 thousand in the first half 2019. The net loss for the 2019 fiscal year amounted to €65,144 thousand.
Comments on the Group’s Statement of Financial Position at June 30, 2020
At June 30, 2020 the total amount of the Group’s Statement of Financial Position amounted to €256,200 thousand compared to €309,853 thousand as of December 31, 2019.
At June 30, 2020, the Group’s cash, cash equivalents and other financial assets amounted to €227,316 thousand, compared to €278,474 thousand as of December 31, 2019.
(i) Non current assets
Non-current assets, which include trade and other receivables, goodwill and intangible, tangible, and financial assets, decrease from €19,100 thousand as of December 31, 2019 to €17,997 thousand at June 30, 2020.
(ii) Current assets
Current assets amounted to €238,204 thousand at June 30, 2020 compared to €290,753 thousand as of December 31, 2019.
Cash and cash equivalents went from €276,748 thousand at December 31, 2019 to €225,721 thousand at June 30, 2020, or a decrease of 18%. Cash is mainly placed in low risk, highly-liquid short term investments.
The variation of trade and other receivables is mainly due to the recognition of the estimated amount of the Research Tax Credit receivable for the first half 2020 and the repayment of the Research Tax Credit for 2019 during the first half 2020. Additional details regarding these receivables are provided in note 6.9 to the 2020 half year consolidated financial statements.
The variation of trade and other receivables corresponds to the increase in expenses recognized in advance related to current operating expenses. This increase follows the increase in operating expenses in the first half 2020.
(iii) Shareholders’ equity
As of June 30, 2020, the Group’s shareholders’ equity totaled €31,382 thousand compared to €84,065 thousand as of December 31, 2019.
The change in the Company’s shareholders’ equity is mainly due to the recognition of the half year loss reflecting the Company’s efforts in research and development, carrying out pre-clinical studies, and clinical studies related to elafibranor.
The Notes to the 2020 half year consolidated financial statements included herein, as well as the Table of Changes in Shareholders’ Equity established under IFRS provide details on the change in the Company’s share capital and the Group’s shareholders’ equity, respectively.
(iv) Non current liabilities
This mainly concerns:
·The convertible bond (OCEANE) issued in October 2017 and due October 2022;
As well as the part of contractual obligations of the following liabilities reaching maturity in more than one year:
- A conditional advance granted to GENFIT SA by Bpifrance for the purpose of financing the research programs detailed in Note 6.12.2.1 “Refundable and Conditional Advances” of the notes to the 2020 half year consolidated financial statements included herein; and
- bank loans; and
- and the debt related to operating leases pursuant to IFRS 16, as of January 1, 2019.
- Current liabilities
Liabilities – Current | ||
(in € thousands) | December 31, 2019 | June 30, 2020 |
Current convertible loans | 1 313 | 1 313 |
Current other loans and borrowings | 3 226 | 3 222 |
Current trade and other payables | 36 917 | 34 961 |
Current deferred income and revenue | 140 | 141 |
Current provisions | 2 061 | 2 070 |
TOTAL | 43 657 | 41 706 |
This balance sheet item mainly includes interest payments on the OCEANE due October 2022, bank loans and trade and social security payables and debts under operating leases. Changes in current liabilities are mainly due to changes in contracted research and development activities expenses.
See also notes 6.12 and 6.13 to the consolidated financial statements for the first half of 2020 below.
ABOUT GENFIT
GENFIT is a late-stage biopharmaceutical company dedicated to improving the lives of patients with metabolic and liver diseases. GENFIT is a pioneer in the field of nuclear receptor-based drug discovery, with a rich history and strong scientific heritage spanning more than two decades. GENFIT initiated a Phase 3 clinical trial of elafibranor in patients with primary biliary cholangitis (PBC). As part of GENFIT’s comprehensive approach to clinical management of patients with liver disease, the Company is also developing NIS4™, a new, non-invasive blood-based diagnostic technology which, if approved, could enable easier identification of patients with at-risk NASH. GENFIT has facilities in Lille and Paris, France, and Cambridge, MA, USA. GENFIT is a publicly traded company listed on the Nasdaq Global Select Market and on compartment B of Euronext’s regulated market in Paris (Nasdaq and Euronext: GNFT). www.genfit.com
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including those within the meaning of the Private Securities Litigation Reform Act of 1995, with respect to GENFIT, including statements about GENFIT’s new corporate strategy and objectives, the potential size of the market for PBC, commercial certainty within this market and the outcome of the ELATIVE phase 3 trial of elafibranor in PBC, timelines for completion of the ELATIVE trial, timelines for and success of a commercial launch of a diagnostic test powered by NIS4 by GENFIT’s partner LabCorp, the success and benefits of corporate restructuring projects, including a workforce reduction program, our ability to significantly reduce operating expenses, our projected cash burn over the next several years and our ability to adjust the terms of our convertible bond. The use of certain words, including “believe,” “potential,” “expect” and “will” and similar expressions, is intended to identify forward-looking statements. Although the Company believes its expectations are based on the current expectations and reasonable assumptions of the Company’s management, these forward-looking statements are subject to numerous known and unknown risks and uncertainties, which could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking statements. These risks and uncertainties include, among other things, the uncertainties inherent in research and development, including related to safety, biomarkers, progression of, and results from, its ongoing and planned clinical trials, review and approvals by regulatory authorities of its drug and diagnostic candidates and the Company’s continued ability to raise capital to fund its development, as well as those risks and uncertainties discussed or identified in the Company’s public filings with the French Autorité des marchés financiers (“AMF”), including those listed in Section 2.1 “Main Risks and Uncertainties” of the Company’s 2019 Universal Registration Document filed with the AMF on May 27, 2020 under n° D.20-0503, which is available on GENFIT’s website (www.genfit.com) and on the website of the AMF (www.amf-france.org) and revised as indicated in Section 8 of the Half-Year Business and Financial Report as of June 30, 2020. and public filings and reports filed with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s 20-F dated May 27, 2020. In addition, even if the Company’s results, performance, financial condition and liquidity, and the development of the industry in which it operates are consistent with such forward-looking statements, they may not be predictive of results or developments in future periods. These forward-looking statements speak only as of the date of publication of this document. Other than as required by applicable law, the Company does not undertake any obligation to update or revise any forward-looking information or statements, whether as a result of new information, future events or otherwise.
GENFIT CONTACT
GENFIT | Investors
Naomi EICHENBAUM – Investor Relations | Tel: +1 (617) 714 5252 | [email protected]
PRESS RELATIONS | Media
Hélène LAVIN – Press Relations | Tel: +3 33 2016 4000 | [email protected]
GENFIT | 885 Avenue Eugène Avinée, 59120 Loos – FRANCE | +333 2016 4000 | www.genfit.com
1 Note: the impact of the reclassification of foreign exchange income from trade receivables recognized as “other income” for the first half of 2020 while these gains were recognized as “financial income” in the first half of 2019 (see note 17 to the 2020 half year condensed consolidated financial statements)
Attachment
Artificial Intelligence
Actuators Market worth $94.8 billion by 2029 – Exclusive Report by MarketsandMarkets™
CHICAGO, March 29, 2024 /PRNewswire/ — The Actuators market is estimated at USD 67.7 billion in 2024 and is projected to reach USD 94.8 billion by 2029, at a CAGR of 7.0 % from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth can be attributed to growing industrial automation and use of robots in various sectors like manufacturing and transportation, Developments in areas like sensor technology, connectivity, and control systems, The increasing demand for actuators is fueled by the expansion of sectors like healthcare (medical devices), oil & gas, and aerospace & defense, and the need for improved process control, energy efficiency, and safety regulations in various industries.
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Browse in-depth TOC on “Actuators Market” 300 – Tables175 – Figures350 – Pages
Actuators Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 67.7 billion
Estimated Value by 2029
$ 94.8 billion
Growth Rate
Poised to grow at a CAGR of 7.0%
Market Size Available for
2019–2028
Forecast Period
2023–2028
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Actuation, Application, Type, Vertical, and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Issues of leakage in pneumatic and hydraulic actuators
Key Market Opportunities
Increased spending on renewable sources of energy for power generation
Key Market Drivers
Rapid industrialization and utilization of robotics
The Electric segment held the largest growth rate in the Actuators market by actuation.
By actuation, the Actuators market has been segmented into electric, hydraulic, pneumatic, and others. electric Segment to hold the highest growth rate during the forecast period. Electrical actuators use electricity to produce motion. These actuators can be further classified into solenoid actuators and motor-driven actuators. A solenoid used in an electric actuator works on the principle of electromagnetism. Electrical actuators provide control and acceleration at higher speeds. The force for applying thrust can be managed without the requirement for compressed air and the related infrastructure, and hence the total energy consumption in these actuators is lower. Electrical actuators can be used for various applications where linear as well as rotary actuation is required. They can be used for low torque as well as high torque requirements.
The vehicle equipment segment is expected to account for the largest share of Actuators by application in 2024.
By application, the Actuators industry is segmented into industrial automation, robotics, and vehicle equipment. The vehicles and equipment segment includes actuators used in automotive, aircraft, ships, and defense vehicles. These can be either hydraulic, pneumatic, electrical, or mechanical actuators. Actuators are widely used in various systems and sub-systems of an automobile, aircraft, ships as well as defense vehicles.
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Asia Pacific accounts for the largest market share in 2024.
The Actuators market has been studied in North America, Europe, Asia Pacific, Middle East, and Rest of the World. The Asia Pacific region accounts for the largest market share in 2024 as well as throughout the forecast period due to the increasing demand for actuators in the region to enhance the growth of the market. India is expected to show the highest growth rate in Asia Pacific Region for Actuators market.
Major players operating in the Actuators companies are SMC Corporation (Japan), Rockwell Automation (US), Curtiss-wright Corporation (US), ABB Ltd (Switzerland), and Parker Hennifin Corporation (US).
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About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
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The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
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Artificial Intelligence
Roborock Unveils Global No.1 Robotic Vacuum Cleaner Sales Ranking at International Launch Event
Certified by Euromonitor, Roborock attributes its rise to the top to embracing a long-term mindset while upholding customer-centric innovation above all else
BEIJING, March 29, 2024 /PRNewswire/ — Roborock, a global leader in ultra-intelligent home robotics engineered to simplify daily life, today announced it has taken the number one spot for robotic vacuum sales worldwide, according to new data by Euromonitor. Celebrating its achievements at a global launch event on the eve of its 10-year anniversary, the brand also revealed a glimpse of what is to come in the form of new product lines while sharing its vision for the future.
Founded in 2014, Roborock owes its success to its long-standing commitment to customer-centric innovation. By delivering meaningful solutions which improve everyday lives, Roborock has built a truly global fanbase, with Euromonitor data confirming that the brand has achieved the number 1 sales position worldwide for robotic vacuum cleaners[1].
“We are so honored to be celebrating this achievement with you all, which was made possible thanks to the ongoing trust and support received over the last 10 years.” Mr. Quan, Roborock President, announced, “Our path to success has been a marathon, not a sprint, as we have always kept in view our brand spirit of “taking the long view in order to do the right thing”. Our unwavering commitment to focusing on delivering true value to our customers is how we have built the brand affinity that has gotten us where we are today – firmly on our way to becoming a global leader in the smart home space.”
Steppingstones on the Path to Success: Roborock Achieves Steady Market Growth on Journey to Become a Global Leading Home Appliance Brand
Further cementing its global success story, the brand also revealed impressive results in many of its key markets. Roborock is now present in over 170 countries, serving over 15 million homes worldwide. According to data from IDC, Roborock ranks number one in Turkey and number two in the US in terms of sales, while also taking the top spot in Germany, Korea, and the Nordics in terms of shipments in 2023[2]. As revealed by Roborock’s latest Financial Earnings Report, the brand recorded a total revenue of 8.65 billion Yuan last year (US$1.22 billion), with total robot vacuum shipments surpassing 2.6 million units. Roborock’s overseas operation recorded revenue growth of 21.42% compared to the prior year and Roborock’s net profit was listed at 2.05 billion Yuan (US$288 million), achieving an overall annual growth rate of 73.32%. This consistent growth across all key markets demonstrates Roborock’s strategic choice to directly address consumer demands and striving for excellence across user experience is resonating with millions worldwide.
Despite these successes, Mr. Quan acknowledged these results were not in themselves the ultimate end goal. Globalization is a vital pillar of Roborock’s mission to become a leader in its field. As such, Roborock plans to expand its global footprint by introducing more innovative products that cater to the unique needs of global users, taking into account the different requirements of various markets, and extending more partnerships worldwide, ensuring that Roborock makes strides overseas on a larger scale and at a faster pace.
Meaningful Innovation: Roborock’s User-Centric R&D Principles and Latest Revolutionary Developments
Roborock’s passion to create value for its consumers propels them to continuously seek out new technological advancements that can serve real consumer pain points. From 2019 to 2023 Roborock invested 1.9 billion Yuan (260 million USD) in Research and Development. Roborock’s approach to take the long term view, ensures R&D teams are encouraged not to seek quick fixes, but to focus on innovation that will truly serve the needs of the end consumer, such as addressing key areas like cleaning capabilities, mapping and navigation, convenience and smart home interconnectivity.
Enhancing the cleaning capabilities of its latest range, Roborock has introduced the FlexiArm Design™ Side Brush, a stretching side brush delivering 100% corner cleaning coverage – elevating the user experience. When it comes to user satisfaction, delivering a low-maintenance, hands-free experience is also paramount. Roborock recently introduced an auto water refill and drainage system, which automatically emptying and replacing dirty water with clean water through pipes during mop washing and tank refilling.
Aside from advanced hardware solutions, Roborock has always invested heavily in the discovery and implementation of emerging technologies that can enhance the functionality and accessibility of its devices. Roborock’s Reactive AI 2.0 Obstacle Recognition technology can recognize and differentiate between floor and room types, accurately identifying 73 different obstacles to navigate, including floor mirrors and pet supplies. Roborock SmartPlanTM function uses an advanced AI algorithm to intelligently plan and optimize cleaning paths and settings based on user habits and specific home layout, making the cleaning process even more intelligent and efficient. The S8 MaxV Ultra is now certified by CSA for Matter, and other Roborock products will follow in the near future suit to enhance connectivity.
Enriching Roborock’s Product Portfolio to Enhance the Quality of Life for Consumers
Concluding the exciting launch, Roborock unveiled three exciting new product lines to its portfolio of intelligent automated devices. Roborock’s product managers took to the stage to introduce three new robotic vacuums – the G20S (S8 MaxV Ultra), V20 and P10S Pro.
The G20S (S8 MaxV Ultra) launched to great acclaim at CES 2024 and is Roborock’s most technologically advanced one-stop cleaning solution to date. A highly intuitive device, the G20S is equipped with FlexiArm Design™ Side Brush, a unique robotic arm that enables complete corner cleaning capabilities, and an extra side mop for edge cleaning, alongside Reactive AI 2.0 obstacle recognition, built-in intelligent voice assistant, and RockDock® Ultra which automatically maintains the robot cleaner using hot water and heated air with intelligent mop re-washing and re-mopping capabilities. The G20S (S8 MaxV Ultra) will be available to purchase globally from April, retailing for USD 1799.99 / EURO 1499.
Initially debuting in China, the V20 will be the world’s first robotic vacuum cleaner equipped with dual-vision 3DToF solid-state LiDAR navigation and obstacle avoidance system, which observes the reflection of modulated light to offer better depth accuracy for even more intuitive floor mapping. With an ultra-thin 8.2cm body and equipped with FlexiArm DesignTM corner and edge cleaning, DuoRoller Riser Brush, and maintenance-free cleaning dock, the V20 is set to redefine automated, low maintenance cleaning.
Finally, the P10S Pro is positioned as the perfect partner for those hard-to-reach spots. Combining FlexiArm DesignTM with an extendable side brush and mop, the device provides 100% corner coverage and the ultimate in edge-cleaning, taking even the trickiest surfaces in its stride.
These solutions further solidify Roborock’s commitment to satisfying the needs of its customers in its fearless pursuit of innovation. Stay tuned for further market specific launch announcements of these innovations and more.
About Roborock
Roborock is committed to innovation in researching, developing, and producing home cleaning devices, particularly robotic, cordless, and wet/ dry vacuum cleaners. Every Roborock product has been designed with an eye on solving genuine problems, so Roborock customers can live better lives. Currently, Roborock is available in more than 40 countries, including the U.S., Germany, France, and Spain. The company operates out of four locations, with offices in Beijing, Shanghai, Shenzhen, and Hong Kong. For more information visit https://global.roborock.com/.
[1] The data comes from Euromonitor International (Shanghai) Co., Ltd. The sales figures of robotic vacuum cleaners worldwide in the first three quarters of 2023 (in RMB hundred million) were used for calculation. Roborock ranks first in the industry. Robotic vacuum cleaner refers to vacuum cleaners that automatically move around rooms using sensors to clean floors. The research was completed in February 2024.
[2] Data based on IDC Quarterly Smart Home Device Tracker, 2023 Q4. Rankings for the US and Turkey are based on sales value, while rankings for Germany, the Nordic countries (Denmark, Finland, Norway, Sweden), and Korea are based on shipment volume
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Artificial Intelligence
Cato Shatters SASE Speed Record
Cato doubles throughput without any hardware upgrades, underscoring the value of a fully cloud-native platform.
TOKYO, March 29, 2024 /PRNewswire/ — Cato Networks, the SASE leader, announced a new SASE throughput record here at the Porsche Studio Ginza ahead of the 2024 Tokyo E-Prix, achieving 10 Gbps without hardware upgrades. At 10 Gbps, Cato became the first SASE platform to compete not only in the ABB FIA Formula E World Championship but also to deliver SASE performance so powerful that the TAG Heuer Porsche Formula E Team could transfer all the data of an entire Formula E season in under 2.5 hours instead of 3.5 days.
“We’re very excited to be partnering with the TAG Heuer Porsche Formula E Team at the 2024 Tokyo E-Prix,” says Shlomo Kramer, CEO and co-founder of Cato Networks. “The incredible speeds of the Gen3 racecars are only matched by the unprecedented throughput of Cato SASE Cloud. With 10 Gbps, we enable enterprises to replace their data center firewalls and enjoy all the benefits of a true, cloud-native SASE platform.”
Cato SASE Speed Record Up to 3x Other SASE Solutions on the Grid
As SASE continues its upmarket movement, higher capacity connections become essential for meeting various business needs such as bandwidth-intensive applications (cloud storage and backup, disaster recovery), hybrid clouds connecting two parts of the data center for inter-application processing, and large campuses.
To meet those challenges, Cato is introducing 10 Gbps throughput on a single, encrypted tunnel. The doubling of Cato Cloud Interconnect and Cato Socket performance comes without costly hardware upgrades, typical of appliance-based architectures. Compute-intensive operations that usually degrade edge appliance performance — packet encryption/decryption, security inspection, and the like — are handled by multiple Cato Single Pass Processing Engine (SPACE) cores, concurrently processing real-time traffic within Cato PoPs (Points of Presence). Parallel network flow processing is also enabled within the Cato Socket to maximize throughput end-to-end.
By contrast, SASE solutions implemented as virtual machines (VMs) in the cloud or modified web proxies remain limited to under 2 Gbps of throughput for a single tunnel. Appliance-based SASE
solutions top out at just under 3 Gbps. The lower throughputs force enterprises to artificially split traffic within locations across multiple tunnels from the edge appliance to the SASE PoP, a layer of complexity and risk that does not exist in Cato SASE Cloud.
Tokyo: A Place for Fast Cars and Fast Networks
The 2024 Tokyo E-Prix is the perfect venue to highlight Cato’s breakthrough performance. In the fast-paced world of Formula E, every second counts. The sport is intensively data-driven, where teams rely on their IT networks to analyze data and make critical, split-second strategy decisions to achieve a winning edge. Multiple computers in the car produce 100 to 500 billion data points per event, with more than 400 gigabytes of data generated and sent back to the cloud for analysis.
With 16 E-Prix this season, many in regions lacking Tokyo’s developed infrastructure, the ABB FIA Formula E Word Championship presents an incredible networking and security stress test. Cato SASE Cloud provides fast, secure, and reliable access to the TAG Heuer Porsche Formula E Team, regardless of location.
Tokyo, Osaka, and soon Sapporo form the three PoP locations within Japan. Within Tokyo, three Cato PoPs service the region; another two PoPs service Osaka. A sixth PoP is opening in Sapporo. Should users or locations lose access to any one PoP, they would immediately fail over to one of the other PoPs in Japan, providing the TAG Heuer Porsche Formula E Team and all Cato customers with incredibly reliable access in Tokyo – and across the globe.
To learn more about Cato SASE Cloud, visit us at https://www.catonetworks.com/platform/
To learn more about Cato’s partnership with the TAG Heuer Porsche Formula E Team, visit us at https://www.catonetworks.com/porsche-formula-e-team/.
About Cato Networks
Cato Networks is the leader in SASE, delivering enterprise security and networking in a single cloud platform. With Cato, organizations replace costly and rigid legacy infrastructure with an open and modular SASE architecture based on SD-WAN, a purpose-built global cloud network, and an embedded cloud-native security stack.
Want to learn why thousands of organizations secure their future with Cato? Visit us at www.catonetworks.com.
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