Closer to a commercial break-through
In 2022, Nanologica has taken several steps forward – we launched our product in preparative chromatography, took our first orders for this product and listed the company on Nasdaq Main Market. We did not reach the goal of delivering products, but have gradually come closer. We are committed to achieving a commercial breakthrough in 2023.
2022 has been characterized by an unstable situation in the world and great uncertainties in the markets for energy, raw materials, supplies and finance. This has also affected us, but we have managed to mitigate these risks and uncertainties relatively well. In addition, the need for diabetes drugs and other peptide drugs remains high and increasing, independent of these external factors. In other words, our costs have not increased significantly and the underlying need for our product remains unchanged.
Our positive view of the market for preparative silica and the need for additional suppliers of the type of high-quality silica that we produce has been strengthened during the year. A clear sign that there is a strong demand for our type of silica is that we have taken a number of orders even before we have proven our delivery capacity.
Our absolute focus is quality as quality lays the foundation for future orders and profitability for the company. We have therefore chosen to fine-tune the production and produce additional batches, despite the product being approved chromatographically. This has led to delays, which is regrettable, but the most important thing is that we are completely satisfied with our product before we deliver to customers.
During the autumn, we carried out a rights issue of approximately MSEK 80 with the view of increasing our investments in preparative chromatography. This allows us to invest away some bottlenecks in production, as well as invest in equipment to optimize production steps. The effect is that we will be able to gradually improve both the pace of production and the production economy.
To be able to deliver product as quickly as possible, most of our resources have been directed to preparative chromatography. This means that the pace of development in our other business area, Drug Development, is held back. During the year, the development of delivering drugs locally to the lung has been focused on the initial ambition to consolidate the safety of the technology. However, until we get wind in the sails within preparative chromatography, the work in Drug Development will be held back.
At the beginning of the year, we took the step to Nasdaq Main Market. This gives the company a quality stamp and shows that we have processes and routines in place to run the company in line with the requirements of a regulated market, which makes the share available to both Swedish and foreign institutional investors to a greater extent. Once we have proven our ability to produce and sell silica on a large scale, our opportunities to attract institutional capital should increase.
I would like to conclude by thanking my employees for the hard work that you do day in and day out, as well as all the owners of the company for your commitment and patience. 2022 has offered both uphill and headwinds. It has forced us to show determination and stubbornness and to endure over time. We are close now and the hard work we have put in over a long period of time may soon bear fruit. Upwards and onwards!
Södertälje in March 2023
/Andreas Bhagwani, CEO