Interim report April-June 2018
Important events during the second quarter
- In April, Vicore Pharma received approval to start a Phase IIa study in IPF
- In May, Vicore Pharma Holding’s financial asset, I-Tech AB (publ), issued new shares in conjunction with the company’s share listing on Nasdaq First North
Important events after the period
- In July, Vicore Pharma Holding announced it had entered into an agreement to acquire INIM Pharma AB, a Swedish biopharmaceutical company developing a new local treatment for severe rare lung diseases, such as IPF. Before the acquisition, HealthCap owned 85% of INIM Pharma and, following the transaction, HealthCap will be the largest shareholder in Vicore Pharma Holding with 30.4% of the shares.
- In August, Vicore Pharma Holding held an Extra General Meeting with the following decisions:
- Acquisition of INIM Pharma through an issue in kind
- Dividend of shares in I-Tech AB to the shareholders in Vicore Pharma Holding
- Decision for a pre-emptive rights issue in Vicore Pharma Holding
- Decision for incentive programmes for management and certain members of the Board
- Election of two new board members in Vicore Pharma Holding: Hans Schikan and Jacob Gunterberg
Financial summary (group)
| KSEK | Apr-Jun 2018 | Jan-Jun 2018 | Apr-Jun 2017 | Jan-Jun 2017 | Year 2017 |
| Operating profit/loss | -5 605 | -9 840 | -2 300 | -4 827 | -12 793 |
| Profit/loss after financial items | 5 115 | 9 372 | -2 301 | -4 886 | -12 855 |
| Earnings per share, SEK | 0,32 | 0,59 | -0,15 | -0,31 | -0,81 |
| Equity | 122 340 | 122 340 | 121 244 | 121 244 | 112 969 |
| Cash flow from operating activities | 9 934 | 7 675 | -4 217 | -6 691 | -7 703 |
| Cash flow from investing activities | -5 576 | -13 592 | -4 280 | -7 893 | -22 780 |
| Cash and cash equivalents as of end of period | 18 102 | 18 102 | 40 224 | 40 224 | 24 019 |
CEO comments
Dear shareholder,
Broadened product portfolio through acquisition of INIM Pharma
In July, we announced that Vicore Pharma Holding had entered into an agreement to acquire INIM Pharma who are developing local treatments for severe interstitial lung diseases, such as idiopathic pulmonary fibrosis (IPF). We are very enthusiastic about welcoming the new technology and its inventors to Vicore Pharma Holding. Through this merger, the company gains a larger and critical operating mass providing us with real opportunities to make a difference in interstitial lung diseases. Our broadened pipeline also enables us to spread risks across our business and gain more opportunities to reach important development goals for both our technologies. We are very happy to welcome two new board members, Hans Schikan and Jacob Gunterberg. Their respective competences will be valuable complements to the board in Vicore Pharma Holding.
The AT2-receptor technology offers extensive development opportunities within fibrotic and inflammatory diseases. The fact that the substance can be administered in tablet form offers a large number of possible development paths in parallel with our primary indication, idiopathic pulmonary fibrosis (IPF). The IMiD (immunomodulatory imide drugs) technology is a proven clinical concept for the treatment of certain types of leukemia by modulating the immune system. The limitation for the technology is primarily the side effects that arise when the substance is given in high doses that reach all organs. The technology we have acquired is a smart way to target treatment of the lungs and, at the same time, minimise exposure to other organs. It is especially exciting for us that clinical efficiency for IPF-related coughing is already documented and supported by strong data. Chronic and irritating coughing is one of the most handicapping symptoms for IPF patients.
Interstitial lung disease is an area where there is a large unmet medical need. Our AT2-receptor technology through C21 and the incoming IMiD technology have generated strong supporting data for continued investment along the drug development value chain. The area generally offers good opportunities for orphan drugs, an area in which Vicore Pharma, together with our new colleagues and co-owners, have significant experience and important knowledge.
Future development plans
Planning for the clinical phase IIa study for C21 in IPF is progressing according to the plans we have previously communicated. We are actively working with preparing activities for upcoming clinical studies with the IMiD technology. HealthCap, a venture capital investor in life sciences will own 30.4% of the shares in Vicore Pharma after the issue in kind has been finalised after the issue in kind which was decided upon on August 13, has been registered. HealthCap has a long track record of successful investments and of contributing to guiding biotech companies to clinical and commercial success.
In summary, the new Vicore Pharma can look confidently towards the future with a strong pipeline, a strengthened leadership and a strong new largest owner.
Financial activities during the second quarter
In May, Vicore Pharma Holding took out a loan of SEK 15 million with Erik Penser Bank. The plan is to pay off the loan in conjunction with the share issue during the autumn. We preferred to take out the loan with Erik Penser Bank to implement the share issue since the company was in a negotiation situation subject to
confidentiality clauses. As such, a complete picture of the company’s undertakings could not be communicated to shareholders at the time. In conjunction with the acquisition of INIM Pharma, Vicore Pharma Holding will gain SEK 20 million through the net cash position held by INIM Pharma.
Distribution of shares in I-Tech AB
In conjunction with the integration of INIM Pharma, the majority of our shares in I-Tech AB will be distributed to Vicore Pharma Holding shareholders. The acquisition of INIM Pharma is implemented by a new share issue in Vicore Pharma Holding. The distribution of the I-Tech shares will take place before the sellers of INIM Pharma (primarily HealthCap) receive their shares. As such, they will not be part of the I-Tech distribution. It should be noted that the shares are subject to a lock-up and can not be sold before 28 May 2019. The distribution enables us to streamline our operations with a focus on drug development. I-Tech has developed well as a listed company on Nasdaq First North and we are convinced that the distribution will enable Vicore Pharma Holding’s shareholders to participate in the potential of I-Tech.
Work on the prospectus for the upcoming rights issue is ongoing and we hope our shareholders will continue to be engaged in the development of Vicore Pharma.
Per Jansson, CEO
For further information, please contact:
Per Jansson, CEO
Tel: +46 709 17 47 46 or e-mail: per.jansson@vicorepharma.com
Hans Jeppsson, CFO
Tel: +46 705 53 14 65 or e-mail: hans.jeppsson@vicorepharma.com
This information is information that Vicore Pharma Holding AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication through the agency of the contact person set out above, at 09.00 CET on August 24, 2018