<span class="articleLocation”>Belgian biotech firm Ablynx (ABLX.BR) said on Thursday it used up more cash than it made in the first quarter, driven by higher external research and development costs.
Cash burn is a closely watched figure for rising biotech companies that generate revenue only from development milestone payments, and not drug sales.
The group, which makes treatments based on nanobodies, reported a net cash outflow of 2.5 million euros ($2.9 million) in the quarter and had remaining cash and cash equivalents of 233.7 million euros.
Last year, the group had reported a cash burn of 12.9 million euros. For the full year 2016, it reiterated that net cash burn guidance would be 65-75 million euros.
Ablynx said R&D costs increased nearly 50 percent compared with the same period last year.
Quarterly revenues nearly doubled to 27.4 million euros, driven by higher milestones and recognition of upfront payments from ongoing collaborations.
Ablynx said it was on track to communicate in the third quarter top line results for its ALX-0061 Phase IIb trial in patients with rheumatoid arthritis, for which it had partnered with U.S. peer AbbVie (ABBV.N).
(Reporting by Wout Vergauwen; Editing by Biju Dwarakanath)
Source: Reuters Health