Lärkberget (LARK) Q2 2024 earnings summary

Executive summary

• Regained global rights to epilepsy project CG01 after Spark Therapeutics terminated the previous agreement; new license agreement allows use of Spark's data with no upfront or milestone payments.

• Discontinued preclinical development of lipodystrophy project CGT2, reallocating resources to other activities.

• Advanced pain program COZY, with key milestones achieved in both peptide (COZY01) and gene therapy (COZY02) projects.

• Collaboration with Västra Hamnen Corporate Finance expanded; they will become Certified Adviser from August 25, 2024.

• Annika Ericsson appointed as new Chief Scientific Officer, succeeding Karin Agerman.

Financial highlights

• Net sales for Jan–Jun 2024 were TSEK 326, down from TSEK 3,955 year-over-year, due to the end of the Spark agreement.

• Operating loss for Jan–Jun 2024 was TSEK -21,761, compared to TSEK -20,903 for the same period last year.

• Cash and cash equivalents at period end were TSEK 83,553, down from TSEK 115,442 a year earlier.

• Equity ratio at period end was 94.1%, compared to 95.3% last year.

• Earnings per share for Jan–Jun 2024 were SEK -1.10, compared to SEK -1.06 year-over-year.

Outlook and guidance

• Focus for autumn 2024 is on finding a new partner for CG01 and sourcing new projects or academic collaborations for in-licensing.

• Ongoing evaluation of new projects in CNS and genetic muscle diseases to expand the portfolio.

• Board and management are actively evaluating financing alternatives for the short and medium term.