Xbrane Biopharma releases interim report for April – June 2019

Financial summary second quarter 2019

• Revenue amounted to SEK 0 thousand (4,532).
• Gross margin amounted to 0 percent (18).
• Other income amounted to SEK 1,794 thousand (722).
• EBITDA amounted to SEK -42,140 thousand (-30,454).
• R&D expenses amounted to SEK -37,842 thousand (-27,965) representing 85 percent (87) of total operating expenses.
• Loss for the period amounted to SEK -44,399 thousand (-31,993).
• Earnings per share amounted to SEK -5.28 SEK (-5.13).
• Cash and cash equivalents by the end of the period of SEK 171,410 thousand (19,255).

Financial summary first half year 2019

• Revenue amounted to SEK 0 thousand (13,148).
• Gross margin amounted to 0 percent (21).
• Other income amounted to SEK 2,995 thousand (14,396).
• EBITDA amounted to SEK -73,376 thousand (-37,797).
• R&D expenses amounted to SEK -64,365 thousand (-48,225) representing 84 percent (88) of total operating expenses.
• Loss for the period amounted to SEK -77,712 thousand (-40,909).
• Earnings per share amounted to SEK-9.24 (-6.56).

Significant events during the second quarter 2019

• Xbrane announce sales target for Xlucane of EUR 350 million in annual net sales three years after product launch. This renders approximately EUR 100 million in annual license income for Xbrane, after deduction of production and sales related expenses and profit sharing with STADA.
• In April, the first patient was recruited and dosed in the pivotal phase III-study, Xplore.
• Ivan Cohen-Tangui and Eva Nilsagård were appointed as new directors at the 2019 Annual General Meeting. Saeid Esmaeilzadeh and Alessandro Sidoli declined re-election.
• In the first capital raise, started in the first quarter of 2019 and completed in the second quarter of 2019, a smaller preferential rights issue was carried out and resulted in SEK 59 million before transaction costs.
• In the second capital raise that started in the second quarter of 2019, a larger directed rights issue was carried out and resulted in SEK 147 million. In the directed rights issue, a conversion into shares offsets the remaining loan from Serendipity Group AB of SEK 37 million. The credit facility is fully repaid after the conversion into shares.
• A mammalian cell-based technological platform has successfully been established and the development of Xdivane is accelerated. Xdivane is a biosimilar of the PD-1 inhibitor nivolumab (Opdivo®) as the first product of this platform.
• Xbrane and STADA have expanded their strategic biosimilar development partnership and will evaluate collaboration around Xbrane’s preclinical biosimilar portfolio, Xcimzane (certolizumab pegol (Cimzia®) biosimilar), Xdivane (nivolumab (Opdivo®) biosimilar) and additional potential biosimilars.

Significant events after the second quarter 2019

• In a second larger capital raise that was started during the second quarter a preferential rights issue was concluded which resulted in SEK 91 million before transaction costs. The preferential rights issue was subscribed to 81 percent and the remaining 19 percent of the shares was allocated to guarantors.