FINANCIAL SUMMARY
- Net sales for the quarter amounted to TSEK 210 (4,497) and for the half-year to TSEK 479 (10,119)
- The operating result for the quarter amounted to TSEK -12,397 (-8,094) and for the half-year to TSEK -27,989 (-14,862)
- Result after tax for the quarter amounted to TSEK -13,473 (-9,216) and for the half-year to TSEK -29,388 (-17,061)
- Earnings per share before and after dilution were SEK -0.48 (-0.33) for the quarter and SEK -1.04 (-0.61) for the half-year period
- Cash and cash equivalents amounted to TSEK 29,357 (44,795) as per June 30, 2022
SIGNIFICANT EVENTS DURING THE SECOND QUARTER
- NLAB Saga®, the company's silica for preparative chromatography, is launched on the market
- Loans of MSEK 40 were taken in April and in June within the credit facility that was signed with Flerie Invest AB in January.
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
- Nanologica takes order for NLAB Saga® from one of the world's largest manufacturers of insulin for evaluation on a production scale
- The first large-scale batch of NLAB Saga® is finalized
- The management team is expanded with Katarina Alenäs, SVP Chromatography, as part of the company’s venture within preparative chromatography
ORDER FROM INSULIN MANUFACTURERS LAYS FOUNDATION FOR CHARGING FORWARD
During the quarter, we launched our product line NLAB Saga® for preparative chromatography, after finalizing large volumes of the first products at the large-scale production facility. NLAB Saga® has initially been very well received by customers, which was shown by an order from one of the world’s largest insulin manufacturers in August, for evaluation of the product at production scale. If the products meet the customer's expectations, we expect deliveries of commercial volumes within a year.
Large-scale production of silica was initiated in the summer of 2019. After several delays, our goal has been that the production line would be able to deliver finished products in the second quarter of this year. Although it has taken longer than we wanted, these delays are now offset by the milestone we have achieved – we have finished products and we have taken an order for evaluation at production scale from one of the largest insulin manufacturers in the world. Manufacturing on a large scale is no small thing and I am impressed by the work put in by the production team. Now that we have proven to our customers and to ourselves that we can manufacture our high-quality silica on a large scale, we are entering a very interesting phase.
During the quarter, we presented NLAB Saga® at several trade fairs in the US and in Europe. The reception of and interest in our products has been very positive. Customers who manufacture insulin and peptides only have a few suppliers of silica for preparative chromatography to choose from, in addition to us. This, combined with the fact that our products show excellent performance and enable customers to reduce production costs, means that we receive many requests.
A direct consequence of at last having finalized product, is that we can move forward in the evaluation steps with customers where we will now be able to send products for evaluation to more customers. We intend to increase sales, marketing, and application support efforts, and we will work to secure more orders from, above all, India and the US, to be able to sign supply agreements for larger volumes to include in customers' production in the next step.
In parallel with continued production, we have begun the work of increasing efficiency in the different production steps by, among others, shortening lead times and eliminating bottlenecks. We are also reviewing several possibilities for reducing our manufacturing costs.
In light of the great interest in and demand for our products, combined with, for us, favorable market conditions in the insulin and peptide market, we assess our commercial potential within preparative chromatography to be large. We believe that our business in preparative chromatography will be able to generate considerable profit for the company within the next few years and we are now evaluating how we can best strengthen our competitiveness and take advantage of the favorable market conditions by increasing our capacity.
I am convinced that the future of Nanologica is bright, and I am proud to be the company's CEO and third largest owner.
Södertälje in August 2022
/Andreas Bhagwani, CEO