Genfit S.A.: From Financial Turnaround to Pipeline Promise

Genfit S.A. (PAR: GNFT), a French biopharmaceutical company focused on liver diseases, has undergone a dramatic transformation in 2024 and early 2025. Shifting from years of operating losses to a profitable quarter, the company has positioned itself as a leader in addressing unmet needs in non-alcoholic steatohepatitis (NASH) and acute-on-chronic liver failure (ACLF). Its financial turnaround, driven by the U.S. launch of its lead drug Iqirvo® (elafibranor), coupled with strategic financing and pipeline advancements, paints a compelling picture for investors.
The Financial Pivot: From Loss to Profit
In 2023,
reported a net loss of €28.9 million and revenue of €38.2 million, as noted in the user’s prompt. By 2024, the company achieved an operating income of €3.3 million and net profit of €1.5 million, with total revenue surging to €70.9 million. This reversal was fueled by a €48.7 million milestone payment from partner Ipsen following Iqirvo’s first U.S. commercial sale in June 2024. The drug’s U.S. launch marked a critical inflection point, as it now generates royalties (€2.7 million in 2024) and paves the way for further milestone payments tied to sales targets.
The stock’s trajectory reflects this shift. While it faced volatility earlier, the approval of Iqirvo and subsequent financing deals have stabilized its position, signaling investor confidence in the company’s execution.
Strategic Financing: Securing a Long-Term Runway
Genfit’s early 2025 moves further solidified its financial health. A landmark deal with HealthCare Royalty (HCRx) provided up to €185 million in non-dilutive financing, with €130 million received upfront. This, combined with the repurchase of 99% of its OCEANE convertible bonds (eliminating a key liability), extended its cash runway beyond 2027. The company now has the flexibility to invest in its ACLF pipeline without relying on equity dilution—a critical advantage in a capital-intensive industry.

Pipeline Momentum: Beyond Iqirvo
While Iqirvo remains central to Genfit’s near-term success, its ACLF pipeline is the real growth driver. Key programs include:
- VS-01: A Phase 2 trial (UNVEIL-IT®) targeting ACLF patients, with data expected late 2025. Positive results could position VS-01 as a first-in-class therapy in this high-mortality indication.
- NTZ (Nitazoxanide): A reformulated version (G1090N) aims to address challenges in patients with renal/hepatic impairment, with preclinical data showing efficacy in ACLF models.
- SRT-015 and CLM-022: Both are in preclinical stages, targeting fibrosis and inflammation pathways.
These programs align with Genfit’s focus on life-threatening liver conditions, a market expected to grow at a CAGR of over 6% through 2030, driven by rising NASH and ACLF incidence rates.
Risks and Considerations
Despite the progress, risks remain. Genfit’s financial health hinges on Iqirvo’s sales milestones and European approvals, such as its pending €26.55 million payment for the drug’s third major EU market launch. Additionally, clinical trial outcomes for ACLF programs are pivotal; a failure in VS-01’s Phase 2 trial could delay the company’s growth trajectory.
Conclusion: A Company on the Cusp of Sustainability
Genfit has transformed from a loss-making biotech into a financially stable player with a diversified revenue stream and a robust pipeline. Its 2024 operating profit and extended cash runway—secured through the HCRx deal—demonstrate prudent capital management. With Iqirvo’s U.S. sales growing and ACLF programs advancing toward pivotal data readouts, the company is well-positioned to capitalize on its therapeutic focus.
Key metrics reinforce this optimism:
- Revenue Growth: From €38.2M (2023) to €70.9M (2024) highlights the impact of commercialization.
- Pipeline Depth: Multiple programs in ACLF, including two in Phase 2/late preclinical stages, offer scalable opportunities.
- Financial Flexibility: €81.8M in cash post-2024, plus the €185M financing, provide a cushion to navigate regulatory and clinical uncertainties.
Investors should monitor Iqirvo’s European reimbursement progress and the VS-01 Phase 2 results in late 2025. If these milestones are met, Genfit could transition from a speculative play to a sustainable leader in liver disease therapeutics—a compelling prospect for long-term growth.
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