July – September 2023
- Net sales amounted to 0 (1.2) MSEK
- The operating result for the period was -4.5 (-8.1) MSEK
- The net result was -4.5 (-8.1) MSEK corresponding to earnings per share of SEK -0.07 (-0.24)
- Cash flow from operating activities amounted to -5.5 (-7.3) MSEK
- Cash and cash equivalents amounted to 17.1 (14.9) MSEK
January – September 2023
- Net sales amounted to 0 (2.0) MSEK
- The operating result for the period was -21.5 (-27.7) MSEK
- The net result was -21.5 (-27.7) MSEK corresponding to earnings per share of SEK -0.35 (-0.81)
- Cash flow from operating activities amounted to -22.7 (-25.4) MSEK
Significant events January – September
- The rights issue was approved at an EGM in January, 2023 and was completed in February 2023. Approximately 72.7 percent of the rights issue, were subscribed for. The bottom guarantors were allocated approx 8.6 percent of the rights issue, and the top guarantors approx 14.4 percent of the rights issue. The company received approximately SEK 46.5 million before issue costs. Three of the guarantors chose compensation in the form of shares.
- The company implements significant cost containment measures to maximize the possibility of reaching a license agreement without the need for further financing. The decision means that further investments in clinical development will be held back until licensing agreements can be secured. Staff reductions have been implemented and Anders Månsson left the CEO role in August 2023. The board appointed Matthew Lindon as acting CEO.
- Max Mitteregger resigns from the Board of Directors
- The collaboration agreement with Johnson & Johnson Enterprise Innovation Inc is closed.
Events after the reporting period
- Jenni Björnulfson is being appointed CEO.
CEO Statement
The focus for LIDDS in the third quarter was to complete on the plans put in place during the first half of 2023. Primarily, to license our portfolio of NanoZolid developed products and secondly, to reduce costs giving the strategy sufficient time to be successful where possible. Fundamental for us has been the work with Alira Health to seek a partner for Liproca Depot. My objective as acting CEO since the summer has been to provide the stability and continuity to give these ambitions the best chance of success. However, as we move towards the end of the year, we must be realistic on the probability of success and be proactive on what comes next.
Over the last 18 months LIDDS has given business development the highest priority, where Alira Health have been a key partner in our search for a meaningful transaction for Liproca Depot in particular, but also the wider portfolio. This work has been aimed at demonstrating the commercial attractiveness of our lead asset as well as providing wider validation for the portfolio. Unfortunately, these efforts have coincided with the toughest market conditions seen in the Biotech space for many years.
Working with Alira has seen LIDDS reach out to over 200 companies over the last 12 months. Companies were selected for their specific interest in oncology and urology, incorporating the full spectrum of companies from multinational pharma companies to smaller specialist companies. As things stand today, most of the companies approached have so far declined the opportunity to license assets from LIDDS. We continue to work on the remaining options and keep channels of communication open for the future, but we must be realistic with our expectations for a major partner to license Liproca and the other assets. This is, of course, very disappointing, but we must learn from the exercise, be agile with the opportunities remaining, whilst also proactively working on alternative strategies for the assets and the business as a whole. These alternatives will be a major focus for LIDDS going forward.
The circumstances we are in validate the decisions taken in early summer to save costs and make the organisation leaner. Savings made will have full effect from 1 January 2024, which means that we now have a cash runway that is expected to extend into 2025. This is critical, as it gives the management and board time to consider a broad spectrum of opportunities and make well-considered decisions. Right now, nothing is off the table, we are committed to finding and increasing shareholder value wherever it can be found. This is a work already in progress. One example is our decision to find a path forward for the Nanodotax product and the DTX-002 clinical study. This was one of the activities that was put on hold earlier in the summer, but which we now have the ambition to restart in the new year, but at significantly lower cost to LIDDS. There is value in these assets, and while conditions are tough, we must continue to seek innovative ways to move the pipeline forward at every opportunity.
Finally, as we shape the business for 2024, we will do so with a revised management structure, further contributing to the savings and extending the cash runway. I took on the role as acting CEO during the summer with the ambition to provide continuity and stability at a turbulent time, and to complete the business objectives and processes that we had begun. As we complete those now, it is also time for me to move on to pastures new. I will leave LIDDS with some sadness, but I am very confident in my successor, Jenni Björnulfsson, as CEO. She has been with LIDDS since 2021 and knows the business very well. As we now consider all options for LIDDS, her experience and skillset are vital and valuable. I will remain with the business, at least until year end, and will support Jenni and the board in my role as CSO.
Matthew Lindon
CSO & Acting-CEO
The interim report is available on the company’s website https://liddspharma.com/en/investors/financial-reports/