ExpreS2ion Biotech (EXPRS2) Q3 2024 earnings summary

Executive summary

• Raised SEK 30 million in a rights issue in July 2024, with additional warrant programs TO10 and TO11 in place and potential for SEK 60.1 million more if exercised.

• Submitted a Clinical Trial Application (CTA) for the ES2B-C001 HER2+ breast cancer vaccine in August 2024, targeting a phase 1 trial start in Q1 2025.

• Entered a term sheet with Serum Institute of India for malaria vaccine commercialization, with a definitive agreement expected in the coming months.

• Secured a U.S. patent for the GlycoX-S2 cell line and glyco-engineered immunization antigens, extending platform IP protection to 2040.

• Presented new preclinical data for the CMV vaccine program in collaboration with Evaxion.

Financial highlights

• Q3 2024 operating income was SEK 1.7 million, down 9% year-over-year; YTD 2024 operating income was SEK 5.6 million, down 13%.

• Net loss for Q3 2024 was SEK 10.5 million, improved from SEK 22 million in Q3 2023; YTD net loss narrowed to SEK 20.8 million from SEK 78.2 million.

• Net loss per share for Q3 2024 was SEK 5.32 (SEK 2.82 fully diluted), improved from SEK 17.71 year-over-year.

• Cash and equivalents at end of September 2024 were SEK 76.4 million, stable year-over-year.

• Operating costs and external R&D costs in Q3 were down 38% and 59% year-over-year, respectively.

Outlook and guidance

• Phase 1 clinical trial for ES2B-C001 breast cancer vaccine expected to start in Q1 2025, pending regulatory approval.

• Definitive agreement with Serum Institute of India for malaria vaccine assets anticipated in the coming months.

• Selection of a CMV lead candidate expected in 2025, with interim data from ES2B-C001 trial anticipated during the study.

• Additional capital inflow possible from warrant exercises to support clinical milestones.

• Focus on clinical development of proprietary pipeline and leveraging technology platform for collaborations.