Xintela (XINT) Q2 2024 earnings summary

Executive summary

• Income for Q2 2024 was TSEK 4, with a loss before tax of TSEK 10,400, and loss per share of SEK 0.02; for H1 2024, income was TSEK 303, loss before tax TSEK 21,773, and loss per share SEK 0.04.

• Clinical studies with XSTEM for knee osteoarthritis and leg ulcers are progressing, with the highest dose level in the osteoarthritis study extended for further evaluation.

• Agreement signed with Region Östergötland for GMP manufacturing of cell therapy for burn patients, valued at SEK 3.6 million.

• Collaboration with EQGen Biomedical for EQSTEM stem cell treatment for horses is advancing toward a license agreement.

• Targinta, the oncology subsidiary, is expanding its patent portfolio and seeking partners for its antibody-based cancer therapies.

Financial highlights

• Q2 2024 operating loss was TSEK 10,393, down from TSEK 17,550 in Q2 2023; H1 2024 operating loss was TSEK 21,196, down from TSEK 32,757 year-over-year.

• Research and development costs for Q2 2024 were TSEK 7,891, a decrease from TSEK 14,074 in Q2 2023.

• Cash and cash equivalents at June 30, 2024, were TSEK 445, compared to TSEK 7,809 at year-end 2023.

• Total assets at June 30, 2024, were TSEK 10,933, with total equity at TSEK -18,129 and current liabilities at TSEK 29,062.

• Cash flow for Q2 2024 was negative TSEK 9,940, compared to negative TSEK 2,056 in Q2 2023.

Outlook and guidance

• Interim analysis of the knee osteoarthritis study is planned for Q1 2025, with the highest dose level follow-up extended to 24 months.

• Recruitment for the leg ulcer study continues, with three patients completed and no safety concerns; expansion to a broader patient group is under consideration.

• Financing for future development is expected to come from milestone revenues, partnerships, and licensing, with additional capital raising, grants, or loans as alternatives.