(News Bulletin 247) – The biotechnology company Celyad announced on Wednesday that it was going to have to pass heavy charges due to the depreciation of its ‘goodwill’ and its intangible assets in oncology.

This impairment comes from the change in the company’s strategy, which has moved away from the clinical development of drugs to focus on preclinical research and the monetization of its intellectual property (IP) portfolio through partnerships, collaborations and license agreements.

As the Company has not yet entered into any sub-licensing or collaboration agreements, Celyad acknowledges that there is some uncertainty as to the timing and amount of deal flow and associated revenue in the short, medium and long term.

Given these unknowns, the company has planned to recognize in its financial statements a non-monetary reduction in value of 20.5 million euros on a statutory basis.

This amount will reach €35.1 million on a consolidated basis for the financial year ended December 31, 2022.

In its press release, Celyad specifies that the conclusion of its impairment test and additional details will be provided when the annual results are published, around March 23.

Since its net assets are now less than half of the subscribed capital, the board of directors will submit, to the general meeting of May 5, 2023, a business plan including the proposal to continue the activity of the company.

Following these announcements, the Celyad title dropped 23.6% to return below the symbolic euro cap, for a market capitalization of around 17.4 million euros.

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