Nordic Nanovector ASA: Results for the First Quarter 2020

On May 26, 2020 Nordic Nanovector ASA (OSE: NANO) reported its results for the first quarter 2020. A presentation by Nordic Nanovector’s senior management team will take place today via a webcast at 08:30 am CET (Press release, Nordic Nanovector, MAY 26, 2020, View Source [SID1234558513]). A link to the webcast and a presentation is available from the company’s homepage (www.nordicnanovector.com).

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Lars Nieba, interim CEO of Nordic Nanovector, said: "Despite a number of significant challenges, the new senior management team together with the Board and all our employees have moved decisively to conduct a thorough strategic review and to implement an action plan based on its conclusions. With a clear focus on PARADIGME and a cash runway into 2021, I believe we are well placed to demonstrate and deliver the value of Betalutin to patients and to our shareholders."

Q1’20 Highlights

Dr Lars Nieba appointed as interim Chief Executive Officer
Dr Dominic Smethurst appointed as interim Chief Medical Officer
Pivotal Phase 2b PARADIGME trial of Betalutin in 3rd-line follicular lymphoma (3L FL) progressing
COVID-19 has had a negative impact on PARADIGME during H1’2020
51 patients enrolled as of May 25th, 2020
Initiated strategic review with focus on advancing PARADIGME and extending cash runway into 2021
Events after Q1’20

Strategic review completed: clinical development strategy revised, and cost-saving initiatives implemented
FDA meeting sought to discuss PARADIGME protocol amendments designed to enlarge eligible patient population and increase rate of enrolment
Enrolment timelines for PARADIGME to be updated once FDA feedback is received and when there is more clarity on the impact created by COVID-19
Planned restructuring completed
Malene Brondberg appointed as Chief Financial Officer
Corporate and personnel reorganisation implemented
Headcount reduced by approx. 20%
Cost savings of approx. NOK 35 million in connection with the restructuring on an annual basis
Betalutin recommended for Orphan Drug Designation in the European Union for Marginal Zone Lymphoma (MZL)
Financial Highlights

(Figures in brackets = same period 2019 unless otherwise stated)

Revenues for the first quarter amounted to NOK 0.0 million (NOK 0.0 million)
Total operating expenses for the first quarter were NOK 125.9 million (NOK 90.0 million)
Comprehensive loss for the first quarter amounted to NOK 91.7 million (loss of NOK 91.6 million)
Cash and cash equivalents amounted to NOK 384.3 million at the end of March 2020, compared to NOK 470.8 million at the end of December 2019
Outlook

The company continues to target the readout of top line data from PARADIGME in 2021. However, due to uncertainties created by the current COVID-19 situation, there is a need to review the timeline for the enrolment of PARADIGME, which previously was guided for H2’2020. Updated timelines for PARADIGME are expected to be provided once there is more clarity on the impact of COVID-19 and when all the relevant regulatory feedback has been received.

Nordic Nanovector is fully committed to ensuring that PARADIGME has the best chance of success and the proposed protocol amendments are an important part of this. Following FDA feedback, the company intends to seek approval for these amendments at an individual country level and begin their implementation as they are approved.

The company believes that the improvements it has made to the conduct of PARADIGME puts it in a strong position to improve the rate of patient enrolment once COVID-19 restrictions are eased.

The steps the company has taken to conserve cash, including reducing headcount and pausing certain clinical trials, will extend the cash runway into 2021. The company expects to see the impact of these cost-saving initiatives emerge over the remainder of this year.

Following the comprehensive strategic review carried out by the new management team, the company believes it is now in a much-improved position to deliver the pivotal results from PARADIGME in a timely manner. This is a key milestone for Nordic Nanovector as the company seeks to bring this exciting new targeted NHL treatment to patients and maximise the value of Betalutin.