Nanoform Finland (NANOFH) Q2 2024 earnings summary

Executive summary

• Proprietary nanoforming technologies address drug bioavailability challenges, enabling new or improved medicines and supporting pharma industry needs.

• Four platform technologies: small molecules, large molecules, nanoformulation, and AI-driven StarMAP for molecule selection.

• Significant 2024 progress: 13 new customer projects, multi-API deals, expanded biologics traction, and manufacturing scale-up with a 10x increase in GMP production.

• First commercial deals for nanoenzalutamide and other product kernels expected in 2024, with EU/US launches targeted for 2027/2028.

• New agreements with Takeda, PlusVitech, and a major pharma customer, plus industry visibility through events and collaborations.

Financial highlights

• Q2 2024 revenue was €0.9m; 1-6/2024 revenue was €1.3m, down 18% year-over-year; rolling 12-month revenue at €3.5m.

• Gross margin improved to 79% (1-6/2024), consistently above 90% excluding one-time QC costs; insourcing QC expected to further improve margins from Q4 2024.

• Operating free cash flow improved to -€6.1m (rolling 12 months) by 2Q24, and to EUR -11.7 million for 1-6/2024.

• Cash and short-term government bonds exceeded €50m at end of 2Q24; no debt.

• Basic EPS was EUR -0.15 (vs. -0.14); EBITDA for 1-6/2024 was EUR -11.2 million.

Outlook and guidance

• On track to meet 2024 targets: more project signings, improved operating free cash flow, and at least one license/commercial supply agreement.

• Revenue expected to rise in H2 2024 as deal signings and project traction increase; gross margin anticipated to improve in Q4 2024.

• Mid-term (2025) targets: >70 new APIs per year, >90% gross margin, 35 lines (7–14 GMP), 200–250 employees, and cash flow positivity.