Company Announcement
Nanoform Q2 and H1 2022 report: Strong momentum continues
Capacity expansion continues according to plan, strong project intake from new and repeat customers, positive outcome from
Q2/2022 key financials:
- Revenue grew to
- The gross profit rose to
- EBITDA came in at
- The operating loss was
- The loss for the period was
- Basic EPS was
- Cash position was
H1/2022 key financials:
-Revenue doubled to
-The gross profit also doubled, from
- The number of employees grew by 35 % to 143 (106) compared with one year ago.
- Total operating costs* grew by 29 % to
- EBITDA came in at
- The operating loss was
- The loss for the period was
- Basic EPS was
-
(Numbers in brackets refer to the corresponding last year reporting period, unless otherwise mentioned.)
*Defined as materials & services expenses, employee benefit expenses, and other operating expenses
Significant events during H1/2022:
- On
- In March,
- On
* Security and safety - the interface has been developed in alignment with ISO27001:2017 standards.
* Client submissions are seen only by clients (not by Nanoform), allowing molecules to be screened without sharing structures. Outputs are presented directly to the client via the system.
* Scalability and agility: The ability to manage thousands of molecules in a single submission to support the selection of candidates from molecule libraries is possible.
* Novel insights: STARMAP® Online holds a database of over 17,000 pre-analyzed, public-domain disclosed drugs and candidates. Clients can request thematic evaluations and understand the power of CESS® in different therapeutic areas, target classes, and disease areas.
- During the second quarter
- During 1-6/2022 thirteen new non-GMP projects were signed, with twelve different customers, a slight majority of them new customers and half of the twelve customers US based.
Significant events after H1/2022:
- In July, Nanoform announced that it has partnered with Pharmanovia, a fast-growing specialty pharma business with a portfolio of over 20 branded drugs in 140 markets. The new strategic partnership aims to add value to branded prescription medicines. Pharmanovia will look to apply Nanoform's proprietary nanoparticle technologies and formulation know-how to leading established pharmaceutical brands. The partnership starts with an iconic branded medicine where both parties see value in enhancing bioavailability for patient benefit. The value of the stage-gated agreement is according to Nanoform's business model for non-GMP and cGMP work.
CEO's review
Another quarter with solid progress at Nanoform. We've continued to invest in our personnel, efficiency in client facing processes, line capacity, proprietary technologies, IT, automation, client relationships, brand, and facilities. The growth has continued in new and total number of projects and customers, revenue recognized and positively also in customer visits after almost two years of Teams meetings. It's been very rewarding to again welcome customers at out facility in Viikki, especially as the feedback has been truly enthusiastic.
Speaking of customer feedback, I'm very pleased that
Related to our substantial ongoing investments, our GMP expansion progresses according to plan - with the cleanrooms and sampling isolators for GMP 2&3 already in place, and the line equipment and main isolators arriving during 2022. Our ERP project, evident in the IT costs during this year, has progressed well and we look forward to the final Deploy & Run phases later in the year. Our Biologics pilot line for GMP is also progressing as planned.
About the global macroeconomic situation. Even though Nanoform has some experience from stock market turbulence - we got listed during the early stage of the covid pandemic in 1H20, with the stock market initially in free fall, but then rallying strongly due to enormous monetary and fiscal stimuli - it is clear that today's situation is serious with war in
Nevertheless, the problem with bioavailability is enormous in the pharma industry, the R&D budgets of large pharma companies are huge, the amount of money raised by biotech companies and life science funds during 2020-21 was record-breaking and so far, we've seen no slowdown in the interest in our technology. Naturally, the strong dollar and significant price increases in the global CDMO industry help us as our cost base is mostly in euros. It's also evident in most customer discussions that our strong balance sheet is mentioned as a positive aspect when present and potential partners evaluate us.
Related to the strong balance sheet, the operative free cashflow in 1H22 was impacted by our investments in a new ERP system, the building of the second and third GMP lines, the 40m3 CO2 tank and the continued growth in personnel. I expect the coming quarters and years to show a diminishing negative operative free cashflow, with the 2025 target to be cashflow positive.
All in all, I look with confidence and excitement forward to the coming quarters and years. We'll continue to work relentlessly towards our 2025 mid-term business targets, with our near-term business targets being at least 20 new non-GMP customer projects, at least three customer GMP projects, Biologics pilot line for GMP and 2 new GMP lines in 2022.
None of this can be done without our amazing employees and great partners. My sincere THANK YOU to you all for your continued dedication to Nanoform and for the inspiring and innovative work for which we're known.
Best Regards,
Prof. Edward Hæggström, CEO Nanoform
Nanoform's complete Q2 and H1 2022 report can also be found at: https://nanoform.com/en/financial-reports-and-presentations/
Nanoform online presentation and conference call
The presentation will be broadcast live as a webcast available at:
https://financialhearings.com/event/44324
Teleconference dial-in numbers:
FI: +358981710520
SE: +46856642703
NO: +4723963938
DK: +4578150107
FR: +33170750721
DE: +4969222239166
US: +16467224902
Company near-term business targets for 2022 (reiterated)
· 2 new GMP lines (announced Feb-21)
· Biologics pilot line for GMP (announced Nov-21)
· At least 20 new customer non-GMP projects (announced Jan-22)
· At least 3 new customer GMP projects (announced Jan-22)
Company mid-term business targets 2025 (reiterated)
· To nanoform at least 70 new Active Pharmaceutical Ingredients (API) annually
· To have in place 35 operating production lines of which 7 to 14 are expected to be GMP production lines
· Over 90 percent gross margin
· To have 200-250 employees
· To be cash flow positive
For further information, please contact:
Albert Hæggström, CFO
albert.haeggstrom@nanoform.com / +358 29 370 0150
For investor relations queries, please contact:
hvh@nanoform.com / +46 7686 650 11
About Nanoform
Nanoform is an innovative nanoparticle medicine enabling company. Nanoform works together with pharma and biotech partners globally to provide hope for patients in developing new and improved medicines utilizing Nanoform's platform technologies. The company focuses on reducing clinical attrition and on enhancing drug molecules' performance through its Nanoforming technologies and formulation services. Nanoform's capabilities include GMP manufacturing, and its services span the small to large molecule development space with a focus on solving key issues in drug solubility and bioavailability and on enabling novel drug delivery applications. Nanoform's shares are listed on the Premier-segment of Nasdaq First North Growth Market in
Forward-Looking Statements
This press release contains forward-looking statements, including, without limitation, statements regarding Nanoform's strategy, business plans and focus. The words may," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," believe," "estimate," "predict," "project," "potential," "continue," "target" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Any forward-looking statements in this press release are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and important factors that may cause actual events or results to differ materially from those expressed or implied by any forward-looking statements contained in this press release, including, without limitation, any related to Nanoform's business, operations, clinical trials, supply chain, strategy, goals and anticipated timelines, competition from other companies, and other risks described in the Report of the Board of Directors and Financial Statements for the year ended
https://news.cision.com/nanoform/r/nanoform-q2-and-h1-2022-report--strong-momentum-continues,c3619897
https://mb.cision.com/Main/18905/3619897/1618634.pdf
https://mb.cision.com/Public/18905/3619897/8f6ec41d060429ff.pdf
(c) 2022 Cision. All rights reserved., source