FINANCIAL SUMMARY • Net sales for the fourth quarter amounted to TSEK 75 (674) and for the full year to TSEK 1,443 (1,555) • The operating loss for the quarter amounted to TSEK -35,638 (-13,251) and for the full year to TSEK -69,963 (-50,850). Operating loss was affected by write-downs of tangible and intangible assets during the quarter as well as for the full year totaling TSEK 14,523 (0) • Loss after tax for the quarter amounted to TSEK -36,839 (-14,855) and for the full year to TSEK -75,157 (-55,231) • Earnings per share before and after dilution were SEK -1.02 (-0.42) for the quarter and SEK -2.08 (-1.84) for the full year • Cash and cash equivalents per 31 December 2023 amounted to TSEK 10,054 (70,322) SIGNIFICANT EVENTS DURING THE FOURTH QUARTER • In October, the silica-based purification media NLAB Saga® was delivered to an insulin manufacturer in Asia for evaluation on a production scale • In November, an order at a value of MSEK 3.6 for the non-silica-based purification media NLAB Siv was received • In December, free of charge silica intended for sampling to customers in China was delivered • The organization was strengthened with a process engineer who will be part of the team driving production optimization. The team at the company's production line has also been strengthened with a dedicated process engineer. SIGNIFICANT EVENTS AFTER THE END OF THE YEAR • Nanologica delivered silica to a customer in China at a value of TSEK 930 • Nanologica's board of directors resolved to carry out a fully guaranteed rights issue, which after issue costs is expected to provide the company with approximately MSEK 40 in cash proceeds and set-off of loans of approximately MSEK 6. The resolution is subject to approval by an Extraordinary General Meeting • An Extraordinay General Meeting is planned to be held on 22 February to approve the resolved rights issue
CEO COMMENT
During the last quarter of the year, Nanologica took clear steps forward. The production problems we have wrestled with during the year have now been handled and several deliveries to customers have been made.
After rigorous testing of our silica-based purification media NLAB Saga®, we made a delivery in October to one of the world's largest insulin manufacturers in Asia against an order we received in 2022. We have been determined to ensure that our silica is of the highest quality before we deliver as this could be a very valuable reference customer for us.
For this customer, we have provided silica for evaluation free of charge, in return for us being provided with the results and insight into the final evaluation. The customer finances all other costs for tests in full-scale production, which is a substantial investment and a clear indication of the customer's desire to supplement, or replace, the supplier they have today. We have not yet received the results from the evaluation, but in the event of a positive outcome, we expect negotiations on deliveries of larger volumes over a long period of time and starting in 2024.
We have several customers in China who wants to evaluate our silica media NLAB Saga®. In December, we sent free sample material, which was followed by a second delivery to a value of TSEK 930 in early January. With two large and two smaller deliveries made, we are ready to take on the global market where the demand for high-quality silica for purification of peptides continues to increase, largely driven by a high level of activity in the GLP-1 analogue segment.
To overcome the problems we have had in the production of NLAB Saga®, we have with satisfactory results replaced two pieces of equipment that have caused disturbances. There is still a lot to do to create a faster and more cost-effective flow, but now we have a process that delivers. We expect to make two more deliveries of silica that we will test more rigorously, before we expect to have ongoing production with gradually increasing volumes by the end of the current quarter.
Nanologica's mission is to reduce costs for pharmaceutical producers. Therefore, we work continuously with method development and application support, and also with developing new products to complement our product portfolio, with the goal of offering products and services that can streamline workflows and reduce costs for our customers.
To this end, we have for a long time worked with a customer to develop a non-silica-based purification media, NLAB Siv. Manufacturing takes place at a partner and in November we received the first order for NLAB Siv at a value of MSEK 3.6. The customer will test the product in their production, after which we expect to gradually replace the product they use today, although further product development may be needed.
Nanologica's main focus will continue to be silica-based products for preparative chromatography, but we will continuously evaluate other potential products in chromatography in order to broaden our offering and expand our addressable market.
As a result of delays in production, sales during the year did not reach our goals, which has had a negative effect on cash flow and the company's financial position. To strengthen our financial position and secure capital to be able to really make an impression on the market for preparative chromatography, we have decided to carry out a rights issue. The rights issue enables continued optimizations in production and investments in sales and marketing, with the goal of creating a positive operating cash flow and achieving profitability.
As a producer of consumables for pharmaceutical manufacturers, Nanologica is well positioned to capitalize on the strong growth in medicines for the treatment of diabetes and obesity. In 2024, we look forward to our sales picking up and we stand firm on our goal of sales of MSEK 100 for the year.
Södertälje in February 2024
Andreas Bhagwani, CEO
The full report is available at https://nanologica.com/financial-reports/ and is attached to this press release.
For further information, please contact
Johanna Johansson
Director IR, Communications and Marketing
johanna.johansson@nanologica.com
+46 72 211 21 90
About Nanologica AB (publ)
Nanologica is a Swedish life science tools company that provides consumables to pharmaceutical manufacturers. Nanologica's products are specially developed for the purification of peptide drugs, such as insulin and GLP-1 analogues. Due to effective purification and a long lifetime for the products, they can increase productivity and reduce costs for pharmaceutical manufacturers. Nanologica operates in a global niche market that is growing as a result of increased demand for drugs for the treatment of diabetes and obesity. The company's mission is to increase access to cost-effective drugs through its purification products and thereby contribute to more patients around the world having access to life-saving treatments. The company is headquartered in Södertälje and Nanologica's share (NICA) is listed for trading on Nasdaq Stockholm Main Market. For further information, please visit www.nanologica.com.
This information is information that Nanologica AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2024-02-02 08:02 CET.
