Novakand Pharma (NOVKAN) Q2 2025 earnings summary

Executive summary

• Positive top-line results reported from the KANDOVA phase Ib/IIa study in ovarian cancer, meeting both primary and secondary objectives.

• Successful pre-IND meeting with the FDA for KAND567 in ST-elevation myocardial infarction, with positive regulatory feedback.

• WHO granted International Non-proprietary Names (INN) for KAND567 (rugocrixan) and KAND145 (fosrugocrixan), marking a first for small molecule CX3CR1 antagonists.

• Termination of the letter of intent with Recardio Inc. post-period due to challenging capital markets and inability to secure external financing.

• Company name change to Novakand Pharma planned for September.

Financial highlights

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

• R&D expenses decreased to SEK 4.8 million in Q2 (from SEK 9.7 million) and SEK 15.8 million for H1 (from SEK 21.2 million).

• Operating loss for Q2 was SEK -6.3 million (improved from SEK -11.4 million); H1 operating loss was SEK -19.5 million (from SEK -24.7 million).

• Net loss for Q2 was SEK -6.3 million (from SEK -10.9 million); H1 net loss was SEK -19.2 million (from SEK -23.9 million).

• Cash flow from operations improved to SEK -9.8 million in Q2 (from SEK -14.4 million); H1 cash flow was SEK -18.8 million (from SEK -29.7 million).

• Cash and cash equivalents at June 30, 2025, were SEK 27.6 million (down from SEK 75.7 million a year earlier).

• Equity at June 30, 2025, was SEK 43.1 million (from SEK 83.0 million); equity/assets ratio was 92% (up from 87%).

Outlook and guidance

• Current cash is expected to fund operations until Q1 2026; new activities require additional capital from licensing or investors.

• Company is revisiting its business plan and exploring new out-licensing and business development opportunities.

• FRACTIVE phase IIb study in acute myocardial infarction planned to start in 2026, pending capital injection.