ONCODESIGN: Solid Operating Performance in 2014

Regulatory News:

ONCODESIGN (Paris:ALONC), a biotechnology company serving the pharmaceutical industry in the discovery of new therapeutic molecules to fight cancer and other serious illnesses with no known efficacious treatment, today announces its 2014 annual results and its outlook for 2015.

"Since our IPO one year ago, we have been able to intensify our international development and our R&D investments while strictly controlling our spending and our cash burn. Furthermore, 2015 already has a much fuller order book in Experimentation than last year, and we intend to reach a number of major milestones in Discovery: the entry into the clinic of our first molecule in oncology, and the meeting of key milestones within the framework of our partnerships”, comments Philippe Genne, CEO and founder of Oncodesign.

2014 annual results: solid operating performance

During the year to December 31 2014, Oncodesign has intensified its developments thanks to its IPO, both on a commercial level and on an R&D level.

2014 annual revenue was up by +1.8% from the previous year for the Company’s Experimentation activity, and new orders increased by +11% to €7.4 million, a record high. Oncodesign is thus beginning 2015 with an order book of preclinical studies worth approximately €3.5 million. This performance should be reflected in the revenue recorded over the 1st half of 2015.

R&D spending increased by 34% to €3.1 million in order to accelerate the discovery of new kinase inhibitors. Investments devoted to the Nanocyclix technology thus more than doubled in one year, accounting for almost two thirds of the Company’s total R&D spending. These efforts began to pay off in 2014 with major breakthroughs achieved on the RIP2 target; Oncodesign RIP2 inhibitors are now ready to be licensed out to a pharmaceutical partner.

Given, in particular, the intensification of the Company’s R&D efforts (+€0.9 million), business structuring efforts (+€0.4 million in recruitment), and the gradual increase of its commercial activities in North America (+€0.15 million), the operating loss was -€3.7 million at the end of 2014, compared with -€2.0 million at the end of 2013. Once the Research Tax Credit was taken into account, the net loss was -€2.3 million in 2014 compared with -€1.0 million in 2013.

Altogether, over 2014 cash burn remained limited, at just €2.0 million. The net cash position was thus €10.2 million at December 31, 2014.

2015 outlook: major milestones expected to be met

A year after its IPO, Oncodesign intends to meet major milestones on each of its activities by continuing its international development (notably in North America) and its research programs aimed at developing new kinase inhibitors in oncology, inflammatory diseases and neurodegenerative diseases. All in all, kinase inhibitors represent a market estimated at over 40 billion dollars in 2016.

The main milestones that Oncodesign intends to achieve in 2015 are the following:

Discovery (Oncology)

• Entry into the clinic of the first Oncodesign molecule (radiotracer)

Discovery (non-Oncology)

• One or more milestones given the progress made on the various projects, both in-house and within the framework of partnerships

Experimentation

• Production of the first preclinical studies in North America

Next publication: Revenue for the 1^st half of 2015, on Tuesday July 21, 2015 (after market)

About ONCODESIGN: www.oncodesign.com

Founded 20 years ago by Dr. Philippe Genne, the Company’s CEO and majority shareholder, ONCODESIGN is a biotechnology company that maximizes the pharmaceutical industry’s chances of success in discovering new therapeutic molecules to fight cancer and other serious illnesses with no known efficient treatment. Backed by unique experience acquired through more than 500 clients, including the world’s largest pharmaceutical companies, and relying on a comprehensive technological platform combining state-of-the-art medicinal chemistry, advanced animal modeling and medical imaging, ONCODESIGN is able to predict and identify for every molecule, very upstream, its therapeutic use and its potential to become an efficient drug. Applied to kinase inhibitors, molecules that represent a market estimated at over 40 billion dollars in 2016 and accounting for almost 25% of the pharmaceutical industry’s R&D investments, ONCODESIGN’s technology has already enabled the targeting of 7 promising molecules with substantial therapeutic potential, in oncology and elsewhere, and the signing of partnerships, potentially worth €350 million in upfront payments should predefined milestones be reached, with pharmaceutical groups Sanofi, Ipsen and UCB. Based in Dijon, France, in the heart of the town’s university and hospital hub, ONCODESIGN has 75 staff.