- Net sales for the third quarter amounted to TSEK 401 (2,119) and for the nine-month period to TSEK 881 (12,238)
- The operating result for the quarter amounted to TSEK -9,610 (-11,718) and for the nine-month period to TSEK -37,599 (-26,581)
- Result after tax for the quarter amounted to TSEK -10,988 (-12,546) and for the nine-month period to TSEK -40,376 (-29,607)
- Earnings per share before and after dilution were SEK -0.39 (-0.45) for the quarter and SEK -1.43 (-1.06) for the nine-month period
- Cash and cash equivalents amounted to TSEK 8,640 (28,624) as per September 30, 2022. After the end of the quarter, the company received an additional TSEK 79,704 in a then-completed rights issue.
SIGNIFICANT EVENTS DURING THE THIRD QUARTER
- Nanologica receives several orders for NLAB Saga®, among which an order from one of the world’s largest manufacturers of insulin for evaluation at full production-scale
- First large-scale batch of NLAB Saga® finalized
- The management team is expanded with Katarina Alenäs, SVP Chromatography, as part of the company’s drive within preparative chromatography
SIGNIFICANT EVENTS JANUARY-SEPTEMBER
- Nanologica’s shares are admitted to trading on Nasdaq Stockholm’s main market on 29 March 2022.
- NLAB Saga®, the company’s silica for preparative chromatography, is launched on the market.
SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD
- Nanologica finalizes a preferential rights issue raising MSEK 79.8, whereof transaction costs of approximately MSEK 3
WELL-POSITIONED FOR THE NEXT PHASE
Our focus during the third quarter has mainly been on production and financing. We are now producing on a large scale in our production line, while having secured financing to intensify our investments in preparative chromatography and deliver on the order book we are starting to build.
During the third quarter, we received several orders for the evaluation of NLAB Saga®, our silica for preparative chromatography, including one order from one of the world’s largest insulin manufacturers for production-scale evaluation. If the product meets the customer’s expectations, we expect to negotiate deliveries over a long period of time, starting within a year. This would put Nanologica in a very interesting position.
We have also received a first order within the agreement signed in 2019 with our partner in China, Yunbo Technologies, as well as an order from a customer on the US market. These orders confirm what we have experienced when we have been out launching the product; There is a great demand for our type of product quality and a need for an additional supplier of high-quality silica for the purification of peptide-based drugs such as insulin. The fact that we have received several orders even before we have proven our delivery capacity indicates a great the demand in the market now and for the foreseeable future.
Our production line has started to deliver products, which means that the technical production risk has been reduced, but as with all scale-up, it takes time to reach a stable production flow. Since quality of products and processes is our guiding star, we will produce a few more batches before we start to deliver to customers. We will also start optimizing the various process steps to streamline production, increase yield, shorten lead times, and reduce production costs. This work will run in parallel with matching production of specific product type to customer demand. At the end of the year, or at the beginning of next year, we plan to deliver products to our customers according to the orders we have taken.
Despite the harsh climate in the financial market, we were in early November able to complete a successful and cost-effective rights issue, raising MSEK 79.8. Most of our major owners continue to show strong faith in and great support for the company, including not least our main owner Flerie Invest AB, who chose to both subscribe for their pro-rata share as well as underwrite the issue, despite the subscription price being set without a discount. The proceeds from the rights issue mean that we can intensify our efforts within preparative chromatography by investing to increase capacity and production rates, as well as strengthen our resources in sales, marketing, and application support. We believe that this will significantly increase our possibilities to enter the market for preparative chromatography faster and with greater impact.
The situation in the world is currently unstable and there is great uncertainty not only in the financial market. At Nanologica, we are affected by longer delivery times for specific components as well as increased prices for, for example, energy, raw materials, and freight. However, this is not something that strikes us harder than our competitors, which means that it is not a competitive disadvantage. As the need for diabetes drugs and other peptide drugs continues to increase independently of these external factors, the underlying need for our product remains firm.
With a growing pipeline of customers and a strengthened financial position, I believe that the company is well positioned to take on the next phase. We are heading into interesting times!
Södertälje in November
/Andreas Bhagwani, CEO