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LIDDS AB (publ) Interim Report January – June 2022

April – June

  • Net sales amounted to 0.3 (0.1) MSEK
  • The operating result for the period was -9.9 (-9.8) MSEK
  • The net result was -9.9 (-9.8) MSEK corresponding to earnings per share of SEK -0.29 (-0.32)
  • Cash flow from operating activities amounted to -12.0 (-11.8) MSEK
  • Cash and cash equivalents amounted to 19.7 (54.1) MSEK

January – June

  • Net sales amounted to 0.8 (0.8) MSEK
  • The operating result for the period was -19.7 (-20.1) MSEK
  • The net result was -19.7 (-20.1) MSEK corresponding to earnings per share of SEK -0.58 (-0.68)
  • Cash flow from operating activities amounted to -18.1 (-23.5) MSEK

Significant events January – June

  • The R&D project with J&J has moved into the next phase.
  • A financing agreement of up to 40.8 MSEK signed with Nice&Green
  • Max Mitteregger and Johan Lund were elected as new members of LIDDS Board of Directors. Max Mitteregger acquired in connection with the appointment to LIDDS’ Board of Directors shares at a total value of 4.5 MSEK through a directed share issue of 750,000 shares at a subscription price of 6 SEK, which corresponded to LIDDS’ share price at Nasdaq First North Growth Market at the time for a binding commitment to subscribe for the shares.

Significant events after the reporting period

  • Anders Månsson succeeds Nina Herne as CEO of LIDDS on 1 September 2022.

The second quarter of 2022 has been characterized by intensive work to move both our clinical and preclinical projects forward. We are in the midst of preparations for the next clinical study with nanodotax where we will conduct a shorter clinical study with the aim to understand whether the primary mechanism of action is immunological or cytotoxic. The study that was completed last year indicated that local treatment with nanodotax stimulates key systemic inflammatory biomarkers that have the potential to turn a tumor from cold to hot. This is important as a hot tumor can generate a specific immune response with the potential to recognize both the primary tumor and metastases and thereby make the body’s immune system contributing to a more effective treatment. The study outcome will be an important base for deciding how to continue the further development in terms of indication and patients.

We are also working intensively on taking our first immuno-oncology project nanoimod into clinical development. To do this in an optimal way, we need to determine the dose and prepare a study protocol. In the protocol, the choice of indication and which patient population to treat are important steps, and we also need to have access to nanoimod. In addition to this, our collaboration with Johnson & Johnson is progressing according to plan and the hope is to be able to finish the project during the autumn. We of course hope that Johnson & Johnson will exercise the exclusive option they have to sign a global license agreement, but the decision is entirely in their hands.

We have strengthened the protection around our most recent patent family through patent approvals in Japan, South Korea and Israel for our NanoZolid manufacturing process until 2037. In addition to the protection of the manufacturing process, the patents also provide protection for all drugs manufactured using this process. Establishing patent protection in these markets is an important step in the strategic work to strengthen our commercial position in connection with discussions with potential partners.

Alongside the development on the clinical side, all the necessary preparations for a move from First North to Nasdaq’s main market have been completed, but the current assessment is to wait with the relisting until the market conditions are more favorable. I also want to take the opportunity to welcome the new CEO Anders to LIDDS, a fantastic company that has a technology that in the long run really can change patients’ lives. Anders has a strong background from business development and marketing in both small and larger companies in the biotechnology sector as well as larger multinational pharmaceutical companies and I am convinced that LIDDS’ future is in good hands.

In addition to the company getting a new CEO in September, we have strengthened the company in terms of competence through a couple of more important recruitments, which were also announced in July. We have recruited Annette Møldrup as Chief Business Development Officer (CBDO). Annette has a PhD and extensive experience working with business development and licensing deals, partly at Novo Nordisk for 21 years and most recently at Ferring Pharmaceuticals. Her experience of leading in-licensing projects at large pharmaceutical companies is especially valuable in our dialogues with potential licensees. With the recruitment of Annette, the new management team is now fully staffed. Kia Bengtsson will take over as the new Head of Clinical Development in the autumn. Kia comes most recently from the corresponding role at Vivesto and before that she was Director of Drug Development at Nanologica with responsibility for preclinical and clinical development. During the past 20 years, Kia has worked at several leading pharmaceutical and biotech companies with the development of innovative treatments and held leading positions in drug development and clinical operations at Ipsen, AstraZeneca and Eurocine Vaccines.

The board was also strengthened with important competence in connection with the annual general meeting when Johan Lund and Max Mitteregger were elected as new board members. Johan has extensive experience from global pharmaceutical companies such as AstraZeneca, Pfizer and Biogen. In his role, he will contribute with a wide network of contacts in the industry and a scientific know-how that is valuable in our work to find new collaborations and drive our research and development forward. Max has solid experience from the financial market, most recently as manager of the hedge fund Gladiator, and will contribute with great expertise in this area as well as an important network of investors. Max has acquired 750,000 shares in LIDDS, which makes him one of the largest owners in the company. The fact that Johan and Max have chosen to be part of LIDDS’ board is proof of the strength of our concept. We got another proof of that when attending US BIO in June. US BIO is the world’s largest meeting place for companies in the sector and we had many constructive meetings with both potential partners and investors. To continue to accelerate business dialogues, we intend to attend both NLS Days in September and BIO Europe later in October. During these talks, our new CBDO Annette will have an important role to play.

Overall, we strengthened our position further during the quarter. Looking ahead, we have an exciting autumn ahead of us with several important milestones to reach. We are working hard to secure these milestones and to realize the vision we set out a year ago, which is to offer the preferred solution for elegant and optimal drug delivery – to enable better health.

Thank you for your continued support!

Uppsala, August 2022

Nina Herne, CEO

The interim report is available on the company’s website https://liddspharma.com/en/investors/financial-reports/