Celyad Oncology Announces Non-Cash Impairment
March 15 2023 - 2:00AM
Business Wire
Regulatory News:
Celyad Oncology (Euronext & Nasdaq: CYAD) (Brussels:CYAD)
(Paris:CYAD) (NASDAQ:CYAD) (the “Company”), a biotechnology company
focused on the discovery and development of innovative technologies
for chimeric antigen receptor (CAR) T-cell therapies, today
announced a non-cash impairment of its goodwill and intangible
oncology assets.
This impairment comes as a result of the Company’s strategic
shift in focus away from clinical development and the early stage
nature of the implementation of the Celyad 2.0 strategy: shifting
from an organization focused on clinical development to one
prioritizing R&D discovery and the monetization of its
intellectual property (IP) portfolio through partnerships,
collaborations and license agreements. As, to date, no effective
sublicence contract nor collaboration contract was concluded, some
uncertainty exists on the timing and amount of the deal flow and
associated short, medium and long term revenues.
Given this uncertainty, and per accounting standards, the
Company will recognize a full impairment loss on the remaining
value of goodwill, In Process Research and Development, and Horizon
Discovery’s shRNA platform, resulting in a non-cash impairment of
€20.5 million on a statutory basis and €35.1 million on a
consolidated basis for the financial year ended December 31,
2022.
This accounting conclusion, which reflects the Company’s
financial situation as of December 31, 2022, does not affect the
Management’s commitment to continue the potential monetization of
the Company’s IP. The conclusion of the impairment analysis and
additional details will be provided with the publication of the
Company’s fiscal year 2022 results on or around March 23, 2023.
The net assets of the Company as of December 31, 2022, on a
BE-GAAP non-consolidated basis, have fallen below half of the
Company’s capital. As a result, in accordance with Article 7:228 of
the Belgian Code for Companies and Associations, the Board of
Directors plans to submit for a vote, at its May 5, 2023
shareholders’ meeting, its business plan including a proposal to
continue the Company’s activities. The Board of Directors will
publish a detailed report regarding this proposal on or around
April 3, 2023, together with the convocation with proposed
resolutions for the shareholders’ meeting.
The audit for fiscal year 2022 has not yet been fully
completed.
About Celyad Oncology
Celyad Oncology is a biotechnology company focused on the
discovery and development of innovative technologies chimeric
antigen receptor (CAR) T-cell therapies. The Company is focusing on
opportunities to fully harness the true potential of its
proprietary technology platforms and intellectual property and
support the development of next-generation CAR T candidates in
solid tumors and hematological malignancies. Celyad Oncology is
based in Mont-Saint-Guibert, Belgium and New York, NY. For more
information, please visit www.celyad.com.
Celyad Oncology Forward-Looking Statement
This release may contain forward-looking statements, within the
meaning of applicable securities laws, including the Private
Securities Litigation Reform Act of 1995, as amended, including,
without limitation, statements regarding beliefs about and
expectations for the Company’s updated strategic business model,
including associated potential benefits, transactions and
partnerships, statements regarding the potential value of the
Company’s IP, statements regarding the Company’s financial
statements, and statements regarding the continuation of the
Company’s existence. The words “will,” “believe,” “potential,”
“continue,” “target,” “project,” “should” and similar expressions
are intended to identify forward-looking statements, although not
all forward-looking statements contain these identifying words. Any
forward-looking statements in this release are based on
management’s current expectations and beliefs and are subject to a
number of known and unknown risks, uncertainties and important
factors which might cause actual events, results, financial
condition, performance or achievements of Celyad Oncology to differ
materially from those expressed or implied by such forward-looking
statements. Such risks and uncertainties include, without
limitation, risks related to the material uncertainty about the
Company’s ability to continue as a going concern; the Company’s
ability to realize the expected benefits of its updated strategic
business model; the Company’s ability to develop its IP assets and
enter into partnerships with outside parties; the Company’s ability
to enforce its patents and other IP rights; the possibility that
the Company may infringe on the patents or IP rights of others and
be required to defend against patent or other IP rights suits; the
possibility that the Company may not successfully defend itself
against claims of patent infringement or other IP rights suits,
which could result in substantial claims for damages against the
Company; the possibility that the Company may become involved in
lawsuits to protect or enforce its patents, which could be
expensive, time-consuming, and unsuccessful; the Company’s ability
to protect its IP rights throughout the world; the potential for
patents held by the Company to be found invalid or unenforceable;
and other risks identified in Celyad Oncology’s U.S. Securities and
Exchange Commission (SEC) filings and reports, including in the
latest Annual Report on Form 20-F filed with the SEC and subsequent
filings and reports by Celyad Oncology. These forward-looking
statements speak only as of the date of publication of this
document and Celyad Oncology’s actual results may differ materially
from those expressed or implied by these forward-looking
statements. Celyad Oncology expressly disclaims any obligation to
update any such forward-looking statements in this document to
reflect any change in its expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based, unless required by law or regulation.
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Celyad Oncology:
Investor Contact: David Georges VP Finance and
Administration investors@celyad.com
Media Contact: Caroline Lonez R&D Communications and
Business Development communications@celyad.com
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