Novakand Pharma (NOVKAN) Q4 2021 earnings summary

Executive summary

• KAND567 showed favorable safety and tolerability plus pharmacologic proof of principle in the Phase IIa COVID-19 study; the secondary lung-function endpoint did not distinguish treatment groups.

• The Phase IIa FRACTAL heart-attack study began, while KAND145 advanced through preclinical preparation for cancer studies.

Financial highlights

• FY2021 revenue was SEK 0m (SEK 0.1m in 2020); other operating income was SEK 1.7m, including SEK 1.5m in EU grants.

• FY2021 operating loss was SEK 45.3m and loss after financial items was SEK 45.7m, versus SEK 39.5m and SEK 40.5m, respectively, in 2020.

• R&D expense was SEK 42.6m versus SEK 39.3m; total costs were SEK 47.0m versus SEK 44.8m.

• Operating cash outflow was SEK 44.1m; year-end cash was SEK 106.5m, up from SEK 55.0m.

Outlook and guidance

• FRACTAL targets 60 patients; final enrollment was expected during 2022, with Phase IIa results projected for H1 2023.

• KAND145’s 28-day preclinical toxicology studies began in Q1 2022 after favorable 14-day results; clinical cancer study start was targeted for 2022, subject to further preclinical work.

• Management expected available cash to fund operations through 2022 and at least 12 months from the report date; partnerships are envisaged after clinical proof of concept.