SynAct Pharma publishes Annual Results for 2022

“During the fourth quarter, we continued the development of AP1189 at a high pace. SynAct’s pipeline was strengthened with the acquisition of TXP Pharma and our shareholder base was broadened through the private placement. The team at SynAct is grateful for all the support we receive from investors and other stakeholders,” said Jeppe Øvlesen, CEO.

October – December 2022

• The Group’s net sales amounted to SEK 0 (0) thousand, which is in line with expectations given the phase the company’s research portfolio is in. The Company is not expected to generate any revenues until after the completion of the clinical phase 2 program for the drug candidate AP1189 planned for 2024.
• Operating expenses amounted to SEK 30,523 (26,153) thousand, an increase of 17%, driven both by increased investments in R&D and higher administrative costs.
• The Group’s loss after tax amounted to SEK 30,477 (26,210) thousand.
• Profit after tax is improved by the effect that arises because of the Danish tax credit scheme, which means an early tax refund related to part of the research and development costs incurred. The effect of this tax credit was SEK 77 (-3) thousand in the quarter.
• The Group’s earnings per share before and after dilution amounted to SEK -1.06 (-1.01).
• Cash flow from operating activities amounted to SEK -22,306 (-20,257) thousand.
• Cash flow from financing activities amounted to SEK 76,025 (-77) thousand.
• Cash flow for the period amounted to SEK 53,747 (-20,332) thousand.
• Cash and cash equivalents at the end of the period amounted to SEK 108,245 (23,977) thousand.

January – December 2022

• The Group’s net sales amounted to SEK 0 (0) thousand.
• Operating expenses amounted to SEK 105,705 (76,699) thousand, an increase of 38%, driven both by increased investments in R&D and higher administrative costs for the application for listing on Nasdaq Stockholm and expenses related to acquisition of TXP Pharma AG.
• The Group’s loss after tax amounted to SEK 99,205 (69,304) thousand.
• Profit after tax is improved by the effect that arises because of the Danish tax credit scheme, which means an early tax refund related to part of the research and development costs incurred. The effect of this tax credit was SEK 7,860 (7,505) thousand in 2022.
• The Group’s earnings per share before and after dilution amounted to SEK -3.60 (-2.68).
• Cash flow from operating activities amounted to SEK -117,555 (-64,997) thousand.
• Cash flow from financing activities amounted to SEK 200,712 (73,323) thousand.
• Cash flow for the period amounted to SEK 83,184 (9,319) thousand.

Significant events during the period

• October 21 – The Nomination Committee for the AGM 2023 was appointed and consist of Niels Ankerstjerne Sloth, Jens Bager, Steen Christensen and Torbjørn Bjerke. Jens Bager was appointed chairman of the Nomination Committee. The AGM will be held on May 25, 2023
• November 1 – SynAct obtains clearance of the IND from US FDA for the Phase 2a/b clinical studies of AP1189 in RA.
• December 12 – SynAct informs about the plans to acquire all shares in the Swiss biotechnology company TXP Pharma AG. The agreement is subject to approval at an extraordinary general meeting on January 12, 2023. The company is also carrying out a directed new issue of SEK 80 million before issue expenses to Thomas von Koch and Christian Kinch.
• December 14 – The company’s COO, Thomas Boesen, sells, in accordance with the current lock-up agreement, approx. 43,000 shares to cover payments of Danish tax on holdings.
• December 16 – The first patient is dosed in the phase 2a/b study, RESOLVE, where SynActs AP1189 is tested on RA patients with inadequate response to previous treatment with so-called DMARD-IR.
• December 22 – Per Colleen, appointed by Thomas von Koch, replaces Steen Christensen in an otherwise intact nomination committee.

Significant events after the end of the period

• January 12 – SynAct holds an extraordinary general meeting at Medicon Village in Lund. The meeting votes unanimously for approval of the board’s proposal for the acquisition of TXP Pharma AG and a non-cash issue of approximately 2.1 million consideration shares to the sellers of TXP Pharma. The shareholders also approve the board’s proposal for a staff option program for two senior executives and one other employee.
• January 16 – The TXP transaction is completed by SynAct receiving 100% of the shares in TXP Pharma AG in exchange for approx. 2.1 million newly issued consideration shares.
• February 1 – SynAct informs that Patrik Renblad will leave his position for a new assignment outside the Company and that the search for a new CFO has been initiated.

The information was submitted, through the agency of the contact persons below, for publication at 07:00 a.m. CET on February 17, 2023.