Flerie (FLERIE) Q2 2024 earnings summary

Executive summary

• Achieved Nasdaq Stockholm listing via reverse takeover and uplisting, marking the first major Swedish life science listing in three years and the first quarterly report as a listed company.

• Net asset value (NAV) reached SEK 4.4 billion at quarter end, with NAV per share at SEK 56.10 and adjusted NAV per share at SEK 57.41 after transaction costs.

• Oversubscribed capital raise secured SEK 1 billion in available funds, with SEK 793 million raised after costs via a directed share issue and SEK 190 million catalyzed from other investors.

• Portfolio consists of 29 investments across product development, commercial growth, and limited partnerships, with a 14% annualized value increase since 2011.

• Introduced an annual share redemption scheme, with main shareholders agreeing not to use it for five years.

Financial highlights

• Net asset value at end of June: SEK 4,380 million, up from SEK 3,511 million year-over-year and SEK 3,420 million at the start of the quarter.

• Net profit for Q2 2024 was SEK 103 million, compared to a loss of SEK 38 million in Q2 2023, mainly driven by portfolio value changes.

• Portfolio fair value at end of June: SEK 3,058 million, up SEK 288 million from the previous quarter.

• Cash and cash equivalents at June 30, 2024 were SEK 882 million, with over SEK 1 billion available including loan facilities.

• Non-recurring listing and transaction costs totaled SEK 68 million in the quarter.

Outlook and guidance

• Plan to deploy approximately 10% of NAV per year into the current portfolio, focusing on advancing companies through clinical and commercial milestones.

• Evergreen approach with long-term investments and no annual dividend planned as cash flow will be reinvested for growth.

• Portfolio approach and active ownership model to continue driving value and risk mitigation.

• No significant change expected in the split between commercial growth and product development segments.