Advicenne: Primex unable to meet its commitments

(CercleFinance.com) - Advicenne fell sharply on the Paris Bourse on Friday, following a trading update in which the pharmaceutical company reported that Primex International AG did not appear to be in a position to meet its royalty payment commitments.


The nephrology specialist explains that, following its latest discussions with Primex, it has become apparent that the latter is unable to honor all the commitments made under the terms of their contract signed in 2016.

This agreement provided for the payment of royalties from the 2025 financial year.

In order to best protect its interests, Advicenne is continuing discussions with Primex and hopes to reach a final agreement by the end of the financial year.

As a reminder, the current negotiations with Promex concern part or all of the residual amount of the minimum €40 million to which Advicenne is eligible under the license transfer on a sedative sold in 2016", point out Invest Securities' analysts.

In the first half, Advicenne saw gross sales rise by 8.8% to 2.4 million euros, including 12.9% growth to 1.1 million euros for its lead drug Sibnayal, a treatment for distal renal tubular acidosis (DRTA).

The pharmaceutical company also indicates that its cash flow horizon is the first quarter of 2025.

Following this half-yearly update, the share price fell by 36% late Friday morning, marking the biggest drop on the Paris market.

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