Herantis Pharma - H2’20 Report

Eventful H2’20 Financials Implications for the share Eventful H2’20 The most significant event for the second half of the year was the update to Herantis’ R&D strategy, which consisted of a move away from the direct intracerebral delivery of the drug and towards more patient-friendly modes of delivery such as intranasal application and subcutaneous injection. This was followed by a new collaboration with nanoformulation experts Nanoform on enhancing the blood brain barrier penetration of CDNF and xCDNF. While a loss of momentum in the short term as the company will need to complete new pre-clinical work before CDNF can be taken back into clinic, the new strategy is expected to expand the target population, allow faster clinical development, and make CDNF more attractive to potential partners. Financials As expected, Herantis did not generate any revenues in H2’20, and we focus instead on the cash position and burn rate.

Cash flow from operating activities amounted to € -3.8m (€ -4.8m in H1’20) and cash and cash equivalents came in at € 13.3m (€ 9.3m in H1’20). Herantis carried out a directed shares issue in December 2020 raising €8m, which gives the company a cash runway into 2022. Implications for the share The report itself was largely undramatic, but the announcement yesterday (see note from 2.3.2021) of inconclusive results from the Ph II AdeLE study for Lymfactin in breast cancer-associated lymphedema will still be in people’s minds.

The company will host a results webinar in early Q2’21 where we look forward to getting more details on the results and the future plans for the Lymfactin programme..