Genfit SA (NASDAQ:GNFT) Q2 2020 Earnings Conference Call - Final Transcript

Sep 30, 2020 • 04:30 pm ET

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Genfit SA (NASDAQ:GNFT) Q2 2020 Earnings Conference Call - Final Transcript

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Executive
Pascal Prigent

reduction.

So what is the net effect of those initiatives. So in terms of cash burn, we were providing. It's an annual cash burn of approximately EUR110 million annually. Before we resolve it announcement. This included the cost of risk of the trial and all associated activities related to launch readiness. We expect of these efforts they just described to allow us to reduce the cash burn to approximately 45 million annually for 2 and beyond. However, the reduction will not be fully realized in 2021 why because resolve it is a large and complex trial with a long Financial window mainly due to the some regulatory and administrative processes involved.

Our current cost estimate for the closing and full termination of resolve it approximately 25 million US dollars and therefore the cash consumption related to resolve it will extend well into 2021 so these projections remain estimates based on reasonable assumptions, but they are subject to change. No that we've reset our corporate strategy. I have clear priorities and aligning our structure and cash burn. Accordingly, we need to also address of debt.

So to that end Genfit plans to propose to its convertible bondholders and its shareholders. So an adjustment of the terms of the convertible bond. The Companys 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 new strategy we now conclude by saying that Genfit as readjusted its strategy in light of our analysis of the data generated in our NASH Phase 3 trial, we built on our strength and we are confident in this plan that focuses on the development of elafibranor in PBC and the commercial launch of this fall, both programs have promising potential for PBC.

We see a clear regulatory and commercial pathway to significant market and we see needs for as a key enabler of the NASH market that yes is changing, which we have a medical need is real huge and in dire need of solution. We are streamlining organizational structure to focus on operational excellence and specialization in both PBC and diagnostic and by reducing our for workforce by roughly 40% and our cash burn by over 50% we are creating a lean and agile organization that is aligned with our revised corporate ambitions.

We now look forward to providing additional updates in the coming months. On the development of our program and the implementation of this new corporate strategy. Thank you for joining us today. We appreciate your ongoing support of Genfit.

And with that, I'd like to thank you for your attention. And let me turn the call over to the operator for Q&A. Operator?