Novakand Pharma (NOVKAN) Q4 2025 earnings summary

Executive summary

• Entered a non-binding letter of intent for a reverse acquisition of SVF Vaccines AB, to be paid with newly issued shares.

• Nasdaq placed the company on its observation list due to non-compliance with operational requirements, requiring action within four months to avoid delisting.

• After the period, a definitive acquisition agreement with SVF Vaccines was signed, pending EGM and regulatory approvals.

• The company’s main activities focused on preparing for the reverse acquisition and evaluating potential partners for its fraktalkin program.

Financial highlights

• Q4 operating loss was -5.0 MSEK (vs. -9.9 MSEK YoY); full-year operating loss before impairments was -29.6 MSEK (vs. -46.2 MSEK YoY).

• Net result after financial items for Q4 was -5.0 MSEK (vs. -9.6 MSEK YoY); full-year net result after impairment was -47.2 MSEK (vs. -44.6 MSEK YoY).

• R&D expenses for Q4 were 3.5 MSEK (vs. 8.5 MSEK YoY); full-year R&D was 23.6 MSEK (vs. 40.0 MSEK YoY).

• Cash flow from operations for Q4 was -6.2 MSEK (vs. -11.6 MSEK YoY); full-year was -30.3 MSEK (vs. -58.5 MSEK YoY).

• Equity at year-end was 15.1 MSEK (vs. 62.3 MSEK YoY); cash at year-end was 16.1 MSEK (vs. 46.4 MSEK YoY).

Outlook and guidance

• The board sees the reverse acquisition as the best option for shareholder value, given the challenges in raising capital for further clinical development.

• The transaction is expected to close by the end of Q1 2026, subject to EGM and regulatory approvals.

• If the transaction fails, there is a risk of delisting and potential liquidation, which would significantly erode shareholder value.