Novakand Pharma (NOVKAN) Q3 2024 earnings summary

Executive summary

• Strategic focus shifted to cardiovascular diseases, particularly STEMI, leveraging positive FRACTAL study results.

• Patient recruitment in the KANDOVA ovarian cancer study stopped; study to be finalized with enrolled patients.

• KAND145 phase I study completed with positive safety and pharmacokinetic results.

• Cash position sufficient for ongoing activities through Q4 2025; additional funding required for new clinical development.

Financial highlights

• Net sales were SEK 0 million for both Q3 and the nine-month period (unchanged year-over-year).

• Q3 operating loss was SEK -11.5 million (SEK -10.5 million year-over-year); nine-month operating loss SEK -36.3 million (SEK -46.1 million year-over-year).

• R&D expenses in Q3 were SEK 10.2 million (SEK 9.2 million year-over-year); nine-month R&D expenses SEK 31.5 million (SEK 40.9 million year-over-year).

• Cash flow from operations in Q3 was SEK -17.8 million (SEK -8.8 million year-over-year); cash and cash equivalents at period end SEK 57.9 million (SEK 58.2 million year-over-year).

• Basic and diluted EPS for Q3 was SEK -0.09 (SEK -0.13 year-over-year); for nine months SEK -0.31 (SEK -0.57 year-over-year).

Outlook and guidance

• Current cash expected to fund base business plan through Q4 2025; new capital needed for phase IIb/III studies and commercialization.

• Preparations underway for phase IIb study with KAND567 in STEMI; phase III study planned contingent on funding.

• Top-line results from KANDOVA ovarian cancer study expected in Q4 2025.