Novakand Pharma (NOVKAN) Q2 2024 earnings summary

Executive summary

• Advanced clinical development with positive top-line results from KAND145 phase I and completion of KANDOVA phase Ib, moving to phase IIa in ovarian cancer.

• WHO granted International Non-proprietary Names to KAND567 and KAND145, recognizing them as a new drug class.

• Strengthened executive team with new appointments to support clinical development.

Financial highlights

• Net sales were SEK 0 million for both Q2 and the first half, unchanged year-over-year.

• Q2 operating loss was SEK -11.4 million, improved from SEK -18.3 million year-over-year; H1 operating loss was SEK -24.7 million, improved from SEK -35.5 million.

• R&D expenses in Q2 were SEK 9.7 million, down from SEK 16.5 million; H1 R&D expenses were SEK 21.3 million, down from SEK 31.7 million.

• Cash flow from operations in Q2 was SEK -14.4 million, similar to SEK -14.8 million last year; H1 cash flow from operations was SEK -29.1 million, improved from SEK -33.8 million.

• Cash and cash equivalents at June 30, 2024, were SEK 75.7 million, up from SEK 67.0 million, supported by a SEK 60 million rights issue in Q1.

Outlook and guidance

• Current cash position expected to finance operations through Q3 2025.

• Continued focus on advancing clinical programs and seeking partnerships in cardiovascular and oncology fields.