Consolidated interim report 1 January – 30 September 2023
Consolidated interim report 1 January –
30 September 2023
16 November 2023
Company Announcement no. 44
Key points (nine-month report ended 30
September 2023)
On 16 November 2023, the Board of Directors and
Executive Management of Pharma Equity Group A/S ("PEG" or "the
Group") have considered and approved the consolidated interim
report for the period 1 January – 30 September 2023 (“Q1-Q3 2023
report”). The figures have neither been audited nor reviewed.
The transaction with Reponex
Pharmaceuticals A/S
As further described in both the Q1 and the H1
2023 interim reports, the consolidated financial statements have
been prepared applying the rules for reverse take-over where
Reponex has been identified as the acquirer for accounting
purposes.
New Board of Directors
At the extraordinary general meeting on 2
November 2023, the company's Board of Directors was supplemented by
two highly qualified members with extensive experience in, among
other things, finance, international relations, and investor
communication. The two new members are Omar S. Qandeel and Martin
Engell-Rossen.
Omar S. Qandeel is an international businessman
who focuses primarily on social impact investments and project
development together with Asian, European and Middle Eastern
companies and governments.
Martin Engell-Rossen is best known as Denmark's
leading political strategist. He has a strong background as former
chief of staff in the Prime Minister's Office and special adviser
to Prime Minister Mette Frederiksen. Martin Engell-Rossen was most
recently Senior Vice President for Group Communication &
Sustainability at Danfoss.
The Board of Directors now consists of Christian
Vinding Thomsen (Chairman), Martin Engell-Rossen (Vice Chairman),
Omar S. Qandeel, Lars Gundorph and Peter Vilmann.
Products and patents
Development and testing of the six drug
candidates of the subsidiary Reponex Pharmaceuticals A/S (Reponex)
has continued in Q3 2023 and with reference to Company Announcement
No. 37 of 15 August 2023 and Company Announcement No. 41 of 31
October 2023 the Company have received grant of patent from United
States Patent and Trademark (USPTO) for a method of threating a
topical wound-healing composition. This application describes a
method of treating a chronic wound by the topical application of a
hydrogel containing granulocyte-macrophage colony-stimulating
factor (GM-CSF), sucralfate and hyaluronan to accelerate wound
healing. The patent is valid until 2039.
Furthermore, with reference to Company
Announcement No 42 of 31 October 2023, The European Patent Office
(EPO) has issued an "Intention To Grant" for EU patent applications
numbers 15724673.7 and 19701467.3.
The former application, which pertains to the
wound-healing candidate RNX-022, describes a method for treating
chronic wounds by applying a hydrogel containing
granulocyte-macrophage colony-stimulating factor (GM-CSF),
sucralfate, and hyaluronan to accelerate wound healing.
The latter application concerns the colorectal
cancer candidate RNX-051 and describes a method for suppressing
bacterial layers (biofilms) protecting the cancerous tumor or
adenomas (potential tumors) from the body's immune system in the
colon or rectum.
A Notice of “Intention to Grant" indicates that
the EPO intends to issue the patents after certain standard
procedural steps are completed, with the patents expected to be
granted within 2 months, valid until 2035 and 2039,
respectively.
Marketing and communication
PEG and Reponex intensified marketing and
communication in several areas in Q3 2023. A completely new
communication and marketing strategy has been rolled out, which
has, among other things, resulted in several video presentations
about Pharma Equity Group and about the Reponex Corporate Identity
and about the repositioning strategy for the various drug
candidates. Reference is made to our webpage Video presentations -
Pharma Equity Group.
The new strategy has, in November 2023, also
resulted in release of a new logo of PEG and a new homepage. In
relation to the drug candidates, 4 patient stories have been
recorded on film, developed to increase the knowledge of PEG and
Reponex.
Financial Summary
For the nine-months period ended 30 September
2023 Pharma Equity Group A/S realized a loss after tax of DKK 11.6
million, which is in line with expectations for the period. As of
30 September 2023, equity equals DKK 51.3 million.
Outlook
We maintain the previously announced
expectations for 2023, a loss before tax in the range of DKK 18
million to DKK 22 million for the Group. The outlook does not
reflect any potential gains/losses relating to the upcoming
settlement of the Portinho S.A receivable.
Receivable from Portinho
S.A.
The Group’s receivable from Portinho S.A has a
principal outstanding amount of EUR 9.55 million with a carrying
value per 30 September 2023 of DKK 64 million.
Since 1 July 2023, the Company's Board of
Directors and Executive Management have intensified their already
close dialogue with the management of Portinho S.A. Based on this
dialogue and the information received from Portinho S.A., it is
expected that the receivable will be repaid shortly and probably no
later than December 2023. New financial agreement terms have been
agreed, which means that from 1 July 2023 the receivable will bear
interest at 2% per quarter instead of 0.5%. See also Company
Announcement No. 39 from 25 September 2023.
Capital resources
The Company has provided security to a number of
financial creditors, including Sparekassen Sjælland-Fyn A/S,
Nykredit A/S and private lenders, in the receivables from Portinho
S.A. The due dates for the debts secured by the Portinho
receivables will follow the concluded resolution plan.
As a result of the postponement of the payment
from Portinho S.A., the Company has been working on possible bridge
financing together with existing shareholders. Bridge financing as
of 16 November 2023 has been created for DKK 6.5 million to support
the company's operations for the foreseeable future. The intention
is to obtain loan commitments in the level of DKK 20 million.
Contact person – Investor
Relations
On the Company’s website
www.pharmaequitygroup.com further information and all published
announcements can be found.
Inquiries regarding relations with investors and
the stock market can be directed to:
Thomas Kaas Selsø, CEO, Phone: +45 4022 2114
E-mail: investor@pharmaequitygroup.com
- 2023 11 16 - Q3 Report - Pharma Equity Group
- 2023 11 16 - Announcement no. 44 - UK
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