Pila Pharma (PILA) Q2 2024 earnings summary

Executive summary

• Focused on developing an oral drug for type 2 diabetes and obesity, with additional cardiometabolic potential.

• Major management changes in April 2024: founder became Chairman and CSO, new CEO appointed.

• Preparations for a Phase 2a clinical trial are underway, with a contract signed with Lindus Health.

• Operating income for H1 2024 was TSEK 683, down from TSEK 1,097 year-over-year.

• Net result for H1 2024 improved to TSEK -4,086 from TSEK -7,099 in H1 2023.

Financial highlights

• Equity at the end of H1 2024 was SEK 2.575 million, with a stable and low cash burn rate.

• SEK 10 million was raised in July 2024 via a directed share issue, primarily to fund the upcoming clinical trial.

• Cash at June 30, 2024 was TSEK 2,543, up from TSEK 442 a year earlier.

• Operating results remained stable compared to H1 2023.

• Earnings per share, basic and diluted, were SEK -0.17 (H1 2023: SEK -0.39).

Outlook and guidance

• The SEK 10 million raised is expected to fully fund the Phase 2a trial, with results anticipated within one year of trial commencement.

• Clinical trial application submission expected in September 2024; results anticipated within a year from study start.

• Additional capital will be required for subsequent larger trials, with financing strategies under ongoing discussion.

• Strong pharma partnership interest anticipated if Phase 2a/2b results are positive.

• Key milestones for H2 2024 and H1 2025 include clinical trial application submission, approval, and trial initiation.