Celyad to recognize non-cash impairment of EUR 35.1M for FY22

Celyad 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, or IP, portfolio through partnerships, collaborations and license agreements. As, to date, no effective sublicense 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 EUR 20.5M on a statutory basis and EUR 35.1M on a consolidated basis for the financial year ended December 31, 2022. 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 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, together with the convocation with proposed resolutions for the shareholders’ meeting. The audit for fiscal year 2022 has not yet been fully completed.