ExpreS2ion Biotech (EXPRS2) Q2 2024 earnings summary

Executive summary

• Received SEK 22.5 million dividend from AdaptVac after Bavarian Nordic's milestone payment, supporting cash position and clinical development.

• Completed a SEK 30 million rights issue post-Q2, with potential for further proceeds from warrants (TO10, TO11).

• Advanced ES2B-C001 breast cancer vaccine to Phase I clinical trial application, with manufacturing completed and trial start expected Q1 2025.

• U.S. patent granted for GlycoX-S2™/Null-Glyco modified cell line, strengthening IP portfolio.

• ExpreS2 platform used in collaborations for malaria, CMV, and Nipah virus vaccines.

Financial highlights

• Q2 2024 operating income was SEK 2.4 million, up 16% year-over-year; YTD operating income down 15% to SEK 4.0 million.

• Q2 net profit of SEK 2.5 million, compared to a net loss of SEK 30 million in Q2 2023, driven by AdaptVac dividend.

• YTD net loss narrowed to SEK 10.3 million from SEK 56.3 million year-over-year.

• Cash balance at end of June 2024 was SEK 68.6 million, down 22% year-over-year.

• Equity/asset ratio at 59% at period end, down from 87% a year ago.

Outlook and guidance

• Phase I trial for ES2B-C001 expected to start in Q1 2025, with first patient dosed then and safety readouts during 2025.

• Additional proceeds possible from warrant exercises (TO10 in Nov-Dec 2024, TO11 in Sep-Oct 2025), supporting future development.

• Financing for full phase I depends on warrant exercise and market conditions.

• No further milestone payments expected from Bavarian Nordic/AdaptVac COVID-19 project.