Novakand Pharma (NOVKAN) Q4 2022 earnings summary

Executive summary

• 2022 marked a shift toward a clinical-stage portfolio focused mainly on fractalkin blockers KAND567 and KAND145, targeting hyperinflammation and treatment-resistant cancer.

• KAND567 was being studied in the FRACTAL heart-attack trial; a second study, KANDOVA in recurrent ovarian cancer, was planned for 2023.

Financial highlights

• FY 2022 revenue was SEK 0m; operating loss was SEK 51.9m and net loss SEK 52.5m, versus SEK 45.3m and SEK 45.7m, respectively, in 2021.

• Operating costs were SEK 52.7m, including R&D costs of SEK 45.6m versus SEK 42.6m in 2021; other operating income was SEK 0.8m versus SEK 1.7m.

• Operating cash outflow was SEK 47.6m versus SEK 44.1m; year-end cash was SEK 95.1m versus SEK 106.5m, after SEK 36.8m net financing inflow.

Outlook and guidance

• FRACTAL completed recruitment of 71 patients after year-end; results were expected in Q3 2023. KANDOVA planned to recruit 30 patients, begin in Q2 2023 and report results in H2 2024.

• Plans for 2023–24 included a KAND145 first-in-human Phase Ia study, with results targeted before end-2023; available funding was stated to cover the clinical plan through 2024.

• The rights issue left some preclinical studies and production campaigns deferred; further expansion of preclinical or clinical work would require new funding.