Xintela (XINT) Q3 2024 earnings summary

Executive summary

• Xintela is advancing clinical studies for its stem cell product XSTEM in osteoarthritis and difficult-to-heal leg ulcers, with the last patient in the osteoarthritis study reaching 18-month follow-up and interim data expected in Q1 2025.

• The company signed an agreement with Region Östergötland for GMP process development of cell therapy for burn patients, generating new revenue streams.

• Targinta, Xintela's subsidiary, is progressing with product patents and developing antibody-based therapies for aggressive cancers, seeking partners for further development.

• Main owner Flerie committed to exercising all warrants in the upcoming period, providing SEK 28 million and a SEK 9 million bridge loan.

Financial highlights

• Group income for Q3 2024 was TSEK 2,822, up from 0 in Q3 2023; nine-month income was TSEK 3,125.

• Group loss before tax for Q3 2024 was TSEK 8,049 (improved from TSEK 11,953 loss in Q3 2023); nine-month loss before tax was TSEK 29,821 (improved from TSEK 46,192 loss in 2023).

• Loss per share for Q3 2024 was SEK 0.01 (Q3 2023: SEK 0.02); for nine months, SEK 0.05 (2023: SEK 0.11).

• Cash and cash equivalents at September 30, 2024, were TSEK 1,338 (down from TSEK 11,703 in 2023); total assets TSEK 7,890.

• Equity/assets ratio at September 30, 2024, was 31% (down from 82% in 2023).

Outlook and guidance

• Interim analysis of the osteoarthritis study is planned for Q1 2025, with results guiding next clinical steps and partnership discussions.

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