Onxeo SA said it will record an impairment charge of about €38 million to its 2017 financial statements in accordance with IFRS accounting standards.
The Paris-based biotechnology company said the charge notably stems from its research and development assets related to Beleodaq, its lymphoma drug. The company acquired the drug, valued at €63 million, in 2014 through its merger with Topotarget A/S.
The impairment charge is related to an increasingly competitive environment for Beleodaq in treating peripheral T-cell lymphoma, the company said.
The charge will not affect the company's current or future cash balance or its ability to advance its value creation strategy, Onxeo added.
"[T]he primary value driver for Onxeo for the foreseeable future is the continued development of AsiDNA, a first-in-class DNA damage response inhibitor with blockbuster potential and our lead product candidate. We expect to initiate a phase I study of AsiDNA as an anti-cancer monotherapy in the coming weeks, with results anticipated to be available by year-end," Onxeo CFO Nicolas Fellmann said in a statement.
