24 Aug, 2022

Spago Nanomedical interim report January-June 2022

Strengthened finances support the development program
· Net sales for the quarter amounted to KSEK 304 (KSEK 267).
· The loss for the quarter amounted to KSEK -9,565 (KSEK -11,607).
· Operating expenses for the quarter amounted to KSEK -11,084 (KSEK -13,450).
· Earnings per share, before and after dilution, for the quarter amounted to SEK -0.23 (SEK -0.28).
· Cash and cash equivalents at the end of the quarter amounted to KSEK 29,414 (KSEK 76,873). The net proceeds of MSEK 51.7 from the rights issue ("Rights Issue"), in which the subscription period expired on June 28, 2022, were received after the end of the quarter.
· Net sales for the half-year period amounted to KSEK 515 (KSEK 367).
· The loss for the half-year period amounted to KSEK -19,445 (KSEK -17,675).
· Operating expenses for the half-year period amounted to KSEK -22,184 (KSEK -20,889).
· Earnings per share, before and after dilution, for the half-year period amounted to SEK -0.47 (SEK -0.47).
· Extended patent protection for SpagoPix in Japan and in USA until at least 2038.
· Spago Nanomedical raised approximately SEK 58.4 million before transaction costs in the Rights Issue, which was subscribed to a total of 94.6 percent. The Rights Issue aims to accelerate development and initiate clinical studies in cancer patients with the radionuclide therapy Tumorad® (177Lu-SN201).
· The board resolved to issue 1,079,161 new shares in a directed issue to the guarantors in the Rights Issue who chose to receive renumeration in the form of newly issued shares in the company.

The favorable and intense start to the year continued in the second quarter with sustained good development for both of our projects, SpagoPix (SN132D) and Tumorad (177Lu-SN201). During the period, we were also able to secure funding for the continuous development of our radionuclide therapy project, Tumorad.
In the light of previous successful preclinical results showing that 177Lu-SN201 significantly delays tumor growth and prolongs survival in both an aggressive breast cancer and a colorectal cancer model, our primary focus is now to initiate clinical studies of 177Lu-SN201 in cancer patients. Parallel to the clinical preparations, preclinical activities are ongoing to broaden the scope of Tumorad to further potential indications with major medical needs, both as monotherapy and in combination with other drugs. This is important work to position the project and lay the foundation for the clinical and regulatory strategy.
Another prioritized area for us is to complete the ongoing phase I clinical trial SPAGOPIX-01 with the MRI contrast agent SN132D. The study has already shown that SN132D clearly accumulates in cancer tumors and provide images that with both high precision and positive contrast show breast cancer tumors without background noise. In addition to the positive results in breast cancer, the study also shows that SN132D provides good contrast in the liver and pancreas. The medical need for better diagnostic imaging for patients with pancreatic cancer is very high. We have therefore opened the ongoing study also to this patient group in order to cost-effectively demonstrate a broader potential for SN132D. We are also evaluating the potential for SN132D in other indications with a high clinical need for improved imaging diagnostics. With these positive results and prospects, we continue the dialogue with potential development partners.
At the end of June, we were able to report the outcome of our rights issue, which brought the company roughly SEK 58 million before deduction of issue costs. I am very happy for the trust that existing and new owners show us. Both of our projects have delivered promising results, and it is important to keep up the pace of the continued development. The capital raise gives us the conditions to focus fully on continuing to build future value, for both patients and shareholders. Not least, we see great potential shareholder value in advancing and accelerating the development of our drug candidate in the Tumorad project, given its unique treatment principle, a significant market potential and a great interest in radionuclide therapy among both pharmaceutical companies and investors.
During the period, we were also able to extend the patent protection for SpagoPix in both the US and Japan until at least 2038. The approved patent, entitled "Chemical Compounds for Coating of Nanostructures", covers the surface material ("coating") of our unique nanoparticles. The patent has already been approved in Europe, and further approvals are expected in more countries. The strengthened patent protection is central to us being able to maximize the value of our project portfolio in the best possible way.
Strengthened by both the funding and the positive development in the projects, I look forward to updating you on upcoming milestones.

Mats Hansen, CEO
Spago Nanomedical AB (publ)

The interim report is available at the Company’s website; https://spagonanomedical.se/investor-relations/#financial-reports