Marinomed Biotech (MARI) H1 2024 earnings summary

Executive summary

• Filed for insolvency in August 2024 after a failed funding round; restructuring plan approved by creditors in November 2024 and court-terminated in January 2025.

• Sale of Carragelose business to Unither Pharmaceuticals for up to EUR 20 million, with closing expected in Q1 2025; upfront payment of up to EUR 5 million and up to EUR 15 million in milestones.

• Focus shifting to Marinosolv platform and R&D, aiming for profitability from 2025 onward.

• Two capital increases and a convertible bond issued post-reporting date, raising EUR 1.4 million.

Financial highlights

• H1 2024 revenues fell 53% year-over-year to EUR 2.46 million (H1 2023: EUR 5.23 million), mainly due to high partner inventories and lower Carragelose demand.

• Gross margin at 35%; material expenses dropped to EUR 1.17 million (H1 2023: EUR 3.28 million).

• Operating loss (EBIT) widened to EUR -3.23 million (H1 2023: EUR -2.91 million); net loss for the period EUR -10.83 million (H1 2023: EUR -3.51 million).

• Financial result heavily impacted by EUR -6.32 million EIB loan covenant breach adjustment.

• Cash and cash equivalents declined to EUR 0.91 million (Dec 2023: EUR 2.59 million); negative equity of EUR -20.55 million as of June 30, 2024.

Outlook and guidance

• Proceeds from Carragelose sale to fund restructuring and Marinosolv R&D; focus on new license agreements and Solv4U partnerships.

• Key projects: closing Carragelose sale, Budesolv market authorization, Tacrosolv partnership, and expanding Solv4U business.

• Expenses, including R&D, expected to be lower in 2024; targeting profitability from 2025.