Consolidated interim report 1 January – 31 March 2023
May 10, 2023
Announcement no. 31
Consolidated interim report 1 January – 31 March 2023
Key points (Q1 2023)
The transaction with Reponex Pharmaceuticals A/S
On 10 May 2023, the Board of Directors and Executive Management of Pharma Equity Group A/S ("PEG" or "the Group") have considered and approved the reviewed consolidated interim report for the period 1 January – 31 March 2023, which has been subject to review performed by the Company’s independent auditor. The comparative figures for 1 January – 31 March 2022 have neither been audited nor reviewed.
The transaction between Pharma Equity Group A/S and Reponex Pharmaceuticals A/S ("Reponex") became final on 28 March 2023. This is PEG’s first investment in Biotech companies and PEG is the first Danish biotech company in several years to be listed on Nasdaq Copenhagen main market stock exchange.
As a result of the transaction in Q1 2023, a legal group has been established with PEG as the legal parent, and Reponex as a 100% owned subsidiary, and hence PEG is required to publish consolidated financial statements for the first time from 2023. As further described in the Q1 interim report, the consolidated financial statements have been prepared applying the rules for reverse take-over where Reponex has been identified as the acquirer for accounting purposes.
About Reponex Pharmaceuticals
Reponex is a Danish biopharmaceutical company with a pipeline based on the innovative thinking of Danish clinicians, and the clinical development takes place in close collaboration with public research institutions and university hospitals in Denmark.
Reponex has six promising drug candidates under clinical development and testing in four areas, each of which is characterized by a great need for treatment, where Reponex is currently expected to offer better and/or cheaper treatments:
• Prevention of colon and rectal cancer and prevention of metastases
• Prevention and treatment of bacterial peritonitis
• Alleviation of the symptoms of the inflammatory disorders Crohn's disease and pouchitis
• Treatment of chronic wounds and infected chronic wounds
Reponex's repositioning strategy and model make it possible to meet the treatment needs of patients faster than with conventional drug development, and at the same time the total development costs and risks associated with drug development are significantly lower. With its listing, PEG can attract the investors needed to realize the great potential of the business model and to get the individual drug candidates all the way to the patients, where they can make a difference.
Reponex takes drug candidates up to and including clinical phase 2, where a data basis has been obtained that confirms the drug's clinical relevance. After this, the strategy is to enter into license agreements with larger pharmaceutical companies, which can take the drugs further in the process towards the final regulatory approval for marketing and distribution.
In 2023, Reponex is expected to continue investing in the development of the existing portfolio of drug candidates and it is expected that the organization in both Reponex and in PEG will be strengthened in several areas. In addition, it is expected that the efforts to enter into partnerships will be strengthened. There will also be a particular focus on increasing the awareness of PEG and Reponex among potential investors throughout 2023.
Financial Summary
PEG achieved in Q1-2023 a loss after tax of DKK 2.9 million, which is in line with expectations for the quarter. As of 31 March 2023, Equity equals DKK 61.4 million.
Outlook
PEG maintains the previously announced expectations for 2023, a loss before tax in the range of DKK 18 to DKK 22 million. The outlook does not reflect any potential gains/losses relating to the upcoming settlement of the Portinho S.A receivable.
Receivable from Portinho S.A.
The Group’s receivable from Portinho S.A has a principal outstanding amount of EUR 9.55 million. An agreement was reached at the beginning of 2021 with settlement date being deferred until 1 July 2023 at the latest.
The receivable is included in the statement of financial position on 31 March 2023 with a carrying value of DKK 62.4 million based on a fair value assessment required by IFRS regulation as a result of applying the accounting rules for reverse take-over.
Capital resources
PEG has entered into agreements with its financial lenders that the financial loans fall due when payment is received from Portinho S.A.
If for any reason, PEG has to or will accept an agreement about postponing the settlement date, PEG has agreed with most of its financial lenders that the payment of the financial debt similarly will be postponed through individual instalment plans where debt of DKK 15.6 million will not be required to be paid until after 31 March 2024.
Contact person – Investor Relations
Please see the Company’s website www.pharmaequitygroup.com further information and all published announcements can be found.
Inquiries regarding relations with investors and the stock market can be directed to:
Thomas Kaas Selsø, CEO, Phone: +45 4022 2114 E-mail: [email protected]
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