Lärkberget (LARK) Q3 2024 earnings summary

Executive summary

• Strategic focus sharpened on gene therapy, with all R&D investments directed to the COZY program, especially COZY02.

• Termination of the epilepsy program CG01 and the lipodystrophy project CGT2; rights to CGT2 reverted to Lipigon.

• Cost reduction program initiated, reducing staff and consultants by 45% to extend liquidity horizon.

• Extraordinary General Meeting scheduled for December 2024 to discuss strategic direction.

Financial highlights

• Net sales for Jan–Sep 2024 were TSEK 326, down from TSEK 4,948 year-over-year, due to the end of the Spark agreement.

• Operating loss for Jan–Sep 2024 was TSEK -30,722, compared to TSEK -29,302 for the same period last year.

• Cash and cash equivalents at period end were TSEK 76,685, down from TSEK 107,187 year-over-year.

• Equity ratio at 94.0% (95.8% last year); cash flow for Jan–Sep was TSEK -23,799 (-23,673 last year).

• Earnings per share for Jan–Sep 2024 were SEK -1.55, compared to SEK -1.48 year-over-year.

Outlook and guidance

• Cost reduction measures are expected to yield net savings of approximately SEK 57 million, ensuring liquidity until at least Q2 2026.

• Future R&D investments will focus solely on the COZY program, with business development targeting new gene therapy collaborations.