Novakand Pharma (NOVKAN) Q3 2025 earnings summary

Executive summary

• Letter of intent with Recardio Inc. was terminated due to inability to secure financing for a joint specialty pharma company.

• Company name changed from Kancera AB to Novakand Pharma AB following AGM decision.

• Board initiated a reverse takeover process after strategic review found capital raising for continued operations unfeasible.

• CEO Peter Selin resigned; will assist through March 2026 if needed.

• SEK 18 million write-down of intangible assets related to the fractalkine program.

Financial highlights

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

• Q3 R&D expenses: SEK 4.0 million (down from SEK 10.2 million year-over-year); nine-month R&D: SEK 19.8 million (down from SEK 31.5 million).

• Q3 operating loss before impairment: SEK -5.1 million (improved from SEK -11.5 million); after impairment: SEK -23.1 million.

• Loss after financial items for Q3: SEK -23.1 million (vs. SEK -11.1 million); nine-month loss: SEK -42.3 million (vs. SEK -34.9 million).

• Cash flow from operating activities Q3: SEK -5.3 million (vs. SEK -17.8 million); cash and cash equivalents at period end: SEK 22.3 million (vs. SEK 57.9 million).

Outlook and guidance

• Board aims to complete a reverse takeover by Q1 2026; if unsuccessful, may recommend de-listing and liquidation.

• Cash is expected to finance operations for approximately 24 months, with further cost reductions planned.

• Ongoing search for partners to divest the fractalkine program, though likelihood is assessed as low.