Nanexa: Q2 report - ABG

New facility receives GMP certification Developed first formulations with mAbs Neutral share price reaction expected today

New facility GMP certification sets the starting line No material updates were provided in the report. The most significant event during the quarter was the inauguration of the new pilot plant facility in Uppsala. The facility, which since yesterday is GMP certified, will allow Nanexa to produce its own clinical material for all the different stages of clinical development, as well as to scale up production processes for both internal and external projects. During the quarter Nanexa was also granted a patent by the EPO for the PharmaShell manufacturing method and products derived from it, extending protection in Europe until 2033. Furthermore, the company has confirmed in the report that it has developed its first formulations with monoclonal antibodies. Nanexa has also reaffirmed the timelines for the Ph 1 study of NEX-20 in multiple myeloma (MM), expected to start in Q4’22e. As expected, NEX-18 remains in preclinical development, aiming to move it back to the clinic in 2023e. After the reported period, Nanexa also communicated an extension of the Applied Materials collaboration.

Financials Net sales amounted SEK 211k (SEK 298k in Q1’22). Cash from operating activities came in at SEK -15.5m (SEK -9.6m in Q1’22), increase partly explained by costs associated to moving to the new premises and the patent litigation in the US. Cash and cash equivalents amounted SEK 66.9m (SEK 87.7m in Q1’22).

Implications for the share With no material updates in the report, we expect a neutral share price reaction today. Upcoming milestones include the initiation of the NEX-20 Ph 1 in MM and the announcement of the chosen compound and indication for the NEX-21/22. Nanexa will host a webcast today at 10:00 CET viewable at https://www.youtube.com/watch?v=T76wpbdAq8k.

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