IntegraGen Sees 2024 Revenue Drop but Strong Growth Ahead

IntegraGen Reports 2024 Results with Insights Into Future Growth

IntegraGen, a company renowned for its focus on cancer and rare genetic disease genomics, has shared its financial performance for the year 2024. Despite concerns over a revenue decline, insights reveal areas of strength and potential for future development.

Revenue Overview for 2024

The company's unaudited revenue for 2024 reached €8.5 million, representing a 27% decrease compared to 2023. This downturn primarily stems from the cessation of SeqOIA platform services earlier in the year, which was a strategic move under a contract awarded to IntegraGen back in 2018. Revenue from this platform fell dramatically from €4.3 million in 2023 to merely €858,000 in 2024.

Interestingly, when excluding the SeqOIA impact, revenue showed a positive trend, increasing by 5%. This indicates that the underlying business remains robust, particularly in its genomic services, which recorded an 8% growth in Évry.

Non-Recurring Revenues and Cash Position

In addition to its core revenues, IntegraGen recognized non-recurring revenues, including hardware and software sales related to SeqOIA, amounting to €399,000. Overall, the total income, inclusive of these items, reached €8.9 million.

The company ended the year with a cash position of €1.9 million. This represents a significant dip, dropping by €1 million from the close of 2023. The cash variation is chiefly attributable to reduced revenue, changes in customer payment habits, and loan repayments. Notably, €642,000 of this cash position consists of an outstanding balance of a State Guaranteed Loan obtained amid the pandemic.

Future Growth Prospects

Despite the challenges faced in 2024, the outlook for the future appears promising. IntegraGen's order book has strengthened, fueled by ongoing sales momentum and multi-year contracts that provide stability and growth opportunities. The January award of CLIA certification broadens the company's horizons, allowing it to conduct studies for pharmaceutical firms developing innovative drugs.

A highlight of this pursuit is a newly signed contract valued at €2.4 million, which pertains to a prospective Phase II clinical trial. This contract not only validates IntegraGen's expertise but also underscores its potential in providing valuable services to the pharmaceutical sector.

Leadership Commentary

Bernard Courtieu, the Chief Executive Officer of IntegraGen, expressed optimism regarding the company's future. He remarked, "Excluding SeqOIA-related activities, our sales in 2024 still grew, affirming the resilience of our business model. We are committed to attracting a broader client base, including industrial pharmaceutical companies, to enhance our growth trajectory and profitability. While we manage through 2024's restructuring phase, our sights are set on achieving profitable growth moving forward."

About IntegraGen

Founded as part of the OncoDNA group, IntegraGen specializes in genomic analysis focused on both cancer and rare genetic diseases. The company prides itself on its cutting-edge DNA sequencing services and expertise in genomic data interpretation software. With a robust team and capabilities, IntegraGen operates one of France's largest NGS laboratories, catering to prestigious research institutes.

IntegraGen employs approximately 42 people and, despite the recent revenue challenges, generated €8.5 million in turnover for 2024. As a publicly listed entity on Euronext Growth in Paris, the company is positioned for ongoing collaborations and innovations within the realm of precision medicine.

Frequently Asked Questions

What were IntegraGen's revenues in 2024?

IntegraGen reported unaudited revenues of €8.5 million for the year 2024, reflecting a 27% decrease compared to the previous year.

What caused the decline in revenues?

The decline was significantly influenced by the cessation of the SeqOIA platform services, which accounted for a substantial portion of previous years' earnings.

How did IntegraGen's non-recurring revenues impact its financials?

The non-recurring revenues from hardware and software sales added €399,000, bringing total income to €8.9 million for 2024.

What is IntegraGen's cash position at the end of 2024?

The company ended 2024 with a cash position of €1.9 million, a decrease from 2023, due to lost revenues and loan repayments.

What is the future outlook for IntegraGen?

IntegraGen has a promising future, bolstered by a strengthened order book, CLIA certification, and a significant contract signed for a Phase II clinical trial set to enhance growth prospects.

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