On February 28, 2023 Nordic Nanovector ASA (OSE: NANOV) ("Nordic Nanovector" or the "Company") reported its results for the second half and full year 2022 (Press release, Nordic Nanovector, FEB 28, 2023, View Source [SID1234627911]). A presentation by Nordic Nanovector’s interim CEO & CFO, Ludvik Sandnes will be held in-person today in Oslo and webcast live beginning at 8:30am CET – details below.
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Jon Magne Asmyr, Chair of the Board, commented: The Company’s future is still unclear, and since the turn of the year the new Board has prioritised four important tasks: to get a new CEO/CFO in place; to reduce burn rate; to map the potential of the CD37-targeted immunotherapy platform and the early-stage solid tumour project; and to find strategic solutions that safeguard the interests of shareholders. We are happy to have solved the CEO and CFO situation with the interim appointment of Ludvik Sandnes and to see that the cost base has been significantly reduced. We continue to further evaluate Nordic Nanovector’s pipeline, and, at the same time, we are pursuing all potential strategic options. We hope that this this process will materialise into a proposed transaction that would be acceptable to shareholders."
Ludvik Sandnes, Interim CEO & CFO, commented: "2022 was an extremely difficult year for Nordic Nanovector. The former board and management made strong efforts to safeguard shareholder and company values culminating in the agreed merger proposal with APIM Therapeutics that was not supported by the required majority of shareholders. The clear goal in 2023 is to ensure Nordic Nanovector’s continued operation and to position it for a possible transaction that would benefit the current organisation, employees and shareholders. We continue to work hard, with our financial advisors Carnegie, to assess strategic options that may be open to the Company and will put forward any recommended proposals for resolution by the Company’s shareholders in due course."
H2’2022 Events
The former Board of Directors decided to discontinue the PARADIGME global Phase 2b trial of Betalutin (177Lu lilotomab satetraxetan) in 3rd-line follicular lymphoma (3L R/R FL) patients, refractory to RTX/anti-CD20 based treatments
Betalutin profile did not fully meet objectives set out for the PARADIGME study with only one out of every three patients (ORR 31.1%) responding to treatment and median duration of response of 6.4 months]
Only one in seven patients had a complete response at three months (CRR 14.8%) with a median DoCR of 8.5 months
Both of the above results failed to meet the threshold for study success, which were minimum ORR of 40% and minimum CRR of 25%
Profile determined to be no longer sufficiently competitive to bring Betalutin to the market in the 3L R/R FL indication within a timeframe that made financial and commercial sense for the Company
The former Board implemented a restructuring of the Company to reduce costs
Staff numbers reduced to six as of 28 February 2023 from 40 as of 30 June 2022
Formal close down of PARADIGME initiated and expected to be concluded by the end of Q1’2023. The study results will be published in the required public access databases thereafter
All larger contracts have been terminated.
Further commitments related to the closure of PARADIGME during 2023 and transaction costs related to the proposed APIM merger bring the current uncommitted net cash level to approximately NOK 60m at the beginning of 2023.
Carnegie Investment Bank appointed to explore strategic options for the Company to optimise shareholder value
Proposal to combine with APIM Therapeutics agreed by the former Board of Directors and the APIM Board (announced 9 November 2022)
Proposal rejected by Shareholders at Extraordinary General Meeting (EGM) on 1 December 2022
Post-period events
Board and Management changes
The former Board of Directors resigned at the EGM (3 January 2023) and a new Board consisting of Jon Magne Asmyr (Chairperson), Eddie Berglund and Tina Bjørnlund Bønsdorff was elected, as well as a new Nomination Committee consisting of Hans Peter Bøhn (Chairperson), Jan-Tore Pedersen and Vegard Aavik
Eddie Berglund resigned from the Board on 19 January 2023
Ludvik Sandnes, former Chairperson of Nordic Nanovector (2013-2019), was appointed interim CEO & CFO as from 1 February 2023 replacing Malene Brondberg who transitioned out of the Company
Financial Highlights
(Figures in brackets = same period 2021 unless otherwise stated)
Revenues for the second half 2022 amounted to NOK 0.0 million (NOK 0.0 million). Revenues for the full year 2022 were NOK 0.0 million (NOK 0.0 million).
Total operating expenses for the second half 2022 were NOK 114.2 million (NOK 237.4 million). Total operating expenses for the full year 2022 amounted to NOK 317.4 million (NOK 442.4 million).
Comprehensive loss for the second half 2022 amounted to NOK 111 million (loss of NOK 237.6 million). Comprehensive loss for the full year 2022 was NOK 307.1 million (NOK 441.7 million).
Cash and cash equivalents amounted to NOK 98.7 million 31 December 2022 compared to NOK 287.4 million on 30 June 2022, and NOK 277.7 million on 31 December 2021.
Outlook
Following the decisions made in 2022 to discontinue the PARADIGME study and implement a restructuring of the Company, Nordic Nanovector believes that the best interests of shareholders will be served by thoroughly exploring all strategic options that may be available with the help of Carnegie as expert financial advisor.
As a publicly quoted company with a listing in Norway, remaining cash resources and a pipeline of CD37-targeted assets, the Company believes that there is an opportunity to crystalise value for shareholders through a potential strategic transaction.
No assurances can be given as to the outcome or timing of the ongoing review process. The Company will put forward any recommended proposals for resolution by shareholders in due course.
Several measures have been implemented to reduce the burn rate, and the Company’s current net cash is expected to finance its ongoing operations into Q2 of 2024.
Presentation and Webcast
A presentation by Nordic Nanovector’s interim CEO & CFO, Ludvik Sandnes will be held in-person and webcast live today beginning at 8:30am CEST.
Venue: ADVOKATFIRMAET CLP DA, Sommerrogata 13, 0255 Oslo
The webcast can be accessed from www.nordicnanovector.com in the section: Investors & Media and a recording will also be available on this page after the event.
The results report and the presentation will be available at www.nordicnanovector.com in the section: Investors & Media/Reports and Presentation/Interim Reports/2022 from 7:00am CEST the same day.
IR enquiries
Ludvik Sandnes, Interim CEO & CFO
[email protected]