Cost controls narrow operating loss
Néovacs reported no revenue for the first half of 2026. Its operating loss narrowed by €0.5 million to €2.1 million, an improvement the company attributed to cost controls maintained since its takeover by HBR Investment Group.
The net loss improved by €0.8 million, helped by a swing in the financial result from a €0.3 million loss to a €0.2 million gain. That improvement more than offset a reduction in the tax credit, which fell from €0.5 million to €0.3 million.
CEO Hugo Brugière described the strategy as "controlling costs in order to limit recourse to dilutive financing tools and seizing opportunities to value assets".
The company announced a cost-reduction and reorganization plan in December 2025 and confirmed in a March 24, 2026 update that it was being implemented. Néovacs said the plan brought its annual financing requirement down from an estimated €9.5 million at the end of June 2025 to a normalized level of about €2.5 million. It described the monthly funding pace as falling from nearly €700,000 to about €200,000, excluding an estimated €1.5 million in restructuring costs for 2026.
Cash needs and the 12-month funding outlook
Operations and investments required €2.1 million during the six-month period, equivalent to roughly €350,000 a month, compared with €3.6 million a year earlier. Néovacs met those needs mainly through €1.4 million in simple and convertible bond financing and €0.6 million in available cash.
In its first-half results release, the company identified approximately €8 million in resources available or accessible over the next 12 months. About €6.1 million consists of available cash and repayment of all or part of its financial investments. A further €1.1 million is expected from scheduled use of its bond financing line through December 2026, while an anticipated research tax credit, or CIR, refund accounts for €0.6 million. The bond facility had €7.8 million in remaining draw capacity as of June 30, 2026.
Néovacs also said it could raise additional funds, if necessary, by refinancing a real estate asset valued at more than €10 million. Its board authorized the purchase of HBR Investment Group's 51% stake in SCI HBR Pasteur Real Estate. The company said that, if completed, the purchase would be based on the shares' nominal value and would have no impact on its accounts.
Bond financing carries dilution risks
Néovacs uses OCEANE-BSA financing subscribed by Hanover Square Investments 1, which does not intend to remain a shareholder. It also has ORA financing transferred to a trust that converts the instruments into shares. According to Néovacs, shares issued through these arrangements are generally sold on the market very quickly, potentially putting downward pressure on the stock price and significantly diluting shareholders.
The financing schedule established in March 2026 called for monthly draws of €250,000, or €245,000 net, from April through December 2026. The planned total was €2.25 million through the OCEANE-BSA arrangement with Hanover Square Investments 1. At that time, the contract's theoretical remaining draw capacity was €8.75 million.
In an October 5, 2026 release, Néovacs confirmed that it had canceled a €250,000 draw originally scheduled for August 17. The company also noted that the financing transaction was not its first such arrangement.
PXT3003 rights agreement could exceed €25 million
Néovacs accepted a binding letter of intent on August 7, 2026, covering the acquisition of some of its rights to PXT3003, a drug candidate for Charcot-Marie-Tooth disease type 1A. The condition is a rare, hereditary peripheral neuropathy. According to the company's October 16 progress update, the offer came from an American biopharmaceutical company specializing in therapies for neurological diseases. The rights have been transferred to the partner, which has begun its analysis procedures.
The intellectual property and scientific know-how were originally developed by Pharnext. They had been pledged and transferred to a fiduciary estate for Néovacs' benefit under a trust management agreement dated October 31, 2022.
Payments to Néovacs could exceed €25 million, but they are variable and staggered rather than an immediate lump sum. The agreement bases remuneration on the assets' commercial valuation over the next seven years. It allows the buyer to recover expenses through the treatment's market launch, a period Néovacs estimates at a minimum of one to two years. During that phase, amounts due to Néovacs are capitalized but not paid.
Néovacs and its partner are still defining how the partner will support the company in realizing the assets' value, particularly in scientific and regulatory matters.
PXT3003 has a mixed clinical record. A Phase III trial involving Chinese patients with CMT1A, registered as NCT05092841, met its primary endpoint. Results published in iScience on August 27, 2026, showed an ONLS between-group difference of −0.249, with a 95% confidence interval of −0.467 to −0.030 and a p-value of 0.0257. The same publication reported that one recent confirmatory trial had failed to meet its primary efficacy endpoints.
Separately, Néovacs continued its research on lipid nanoparticles, or LNP, and messenger RNA, including participation in three international conferences in Heidelberg, Lyon and Kyoto.
