Story
Genfit Shares Rise on Tripled Iqirvo Royalties, Cash Runway Extended Beyond 2028
Summary
The French drug developer reported a sharp increase in first-half royalty revenue from its liver disease drug Iqirvo, bolstering its cash position despite a wider net loss.
Shares of French pharmaceutical company Genfit rose as much as 4% on Tuesday after it announced a significant increase in royalty revenue driven by its liver disease drug Iqirvo and an extended cash runway beyond 2028.
First-Half Financials
Genfit reported that its royalty revenue for the first half of the year more than tripled, climbing to €21 million from €6.9 million in the same period a year earlier. The company attributed this growth almost entirely to worldwide sales of Iqirvo (elafibranor) by its partner, Ipsen.
Despite the strong royalty growth, total revenue fell to €21.1 million from €33.5 million year-over-year. The decline was due to the absence of a large milestone payment in the first half, in contrast to a €26.5 million milestone received from Ipsen in the prior-year period. Consequently, the company's net loss widened to €26.1 million from €10 million, which Genfit said was largely due to higher financial expenses.
Balance Sheet and Outlook
AdThe company strengthened its financial position, ending the period with €113.8 million in cash and cash equivalents, up from €101.1 million at the end of 2025. This was supported by a €30 million tranche from a royalty financing agreement and a €17 million commercial milestone payment from Ipsen.
Based on these results and expected future payments, Genfit stated its cash runway now extends beyond 2028. The company also noted a decrease in operating expenses to €33.8 million from €35.6 million, primarily after discontinuing a research program in 2025.
Iqirvo's Strategic Importance
Iqirvo remains the key commercial driver for Genfit's financial performance. Highlighting the drug's potential, partner Ipsen has doubled its peak annual global sales forecast for Iqirvo in primary biliary cholangitis (PBC) to €1 billion, up from a previous estimate of €500 million. Iqirvo generated €173 million in net sales for Ipsen in the first half of the year.
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