SIMRIS GROUP INTERIM REPORT JANUARY-JUNE 2024

QUARTER 2, APRIL – JUNE 2024

• Net revenue decreased by 6% to SEK 634k (677k).
• EBITDA improved by 5% to SEK -6 117k (-6 439k).
• EBIT/Operating result improved by 5% to SEK –9 822k (–10 315k).

INTERIM PERIOD, JANUARY – JUNE 2024

• Net revenue decreased by 1% to SEK 1 153k (1 165k).
• EBITDA improved by 8% to SEK -11 442k (-12 438k).
• EBIT/Operating result improved by 5% to SEK –18 859k (–19 910k).

KEY EVENTS DURING THE QUARTER

• Simris Group held an Extraordinary General Meeting on 5 April 2024 and resolved to issue Convertible Debentures to a maximum €1.15m.
• Simris Group confirmed the extended maturity to 31 March 2025 of its flexible funding facility.
• Simris Group published its Annual Report for 2023.
• Simris Group held the Annual General Meeting on 28 June 2024.

KEY EVENTS AFTER THE END OF THE QUARTER

• Simris Biologics entered into a collaboration agreement with University of Otago, New Zealand and The Ferrier Institute at Victoria University of Wellington to supply specific Simris IP protected novel payload toxins for use as part of a peptide drug conjugate (PDC) research programme aiming to control or regulate reproduction of non-native mammalian pests and thereby protect the indigenous flora and fauna.
• Simris Biologics entered into an early-stage collaboration agreement with an independent biopharmaceutical company focused on cancer and infectious diseases.

CEO UPDATE
Our mission is to treat cancer with greater precision than chemotherapy or radiotherapy.  We will do this using our ground-breaking ADC payload technology, through strategic alliances with experienced drug developers. Every day we move closer towards this important goal.

Simris Group’s vision continues to focus on highly novel IP-protected next generation bioconjugate innovation and delivery, specifically of ADC payloads. The core objective is to meet the growing need to fight a number of specific target cancers, especially blood-borne cancers, to improve treatment outcomes for patients globally.

We continue to make significant progress toward this “laser focused” objective and progress in Investigational New Drug Application (IND) pre-clinical data generation.   We have progressed lead optimization of specific payloads, resulting in significant high performance in therapeutic window and an improved safety profile on OATP*-expressing cells. We have established linker-payload synthesis in-house which significantly speeds up our research and development programme.

On the patent front, we have strengthened our technological monopoly with granted patents in our base patent families in key legislatures such as USA, China, Japan, India, and Australia. Additional patent grants in the important geographies Korea, Canada and New Zealand are imminent. This is critical to the strong unique defensible position of our payload platform, and specific optimized payloads ready to be conjugated for further development and commercialisation.

Simris Biologics now holds a dominant patented biotech pathway, with a clear purpose and capability to commercialise its proprietary ADC payload platform. This has led to a new collaboration in the ADC space; we now have an early-stage collaboration agreement in place with an independent biopharmaceutical company focused on cancer and infectious diseases.

Our feasibility programme with another undisclosed pre-clinical biotech company, utilising their proprietary Linker technology platform, continues to progress well. The chemistries of each of the two companies’ technology platforms suggest there are significant synergies that will enable safer delivery of highly effective cytotoxic molecules to targeted cancer cells. We will produce ADCs (using their Linker platform and conjugating with our microcystin payloads) to confirm the compatibility of the technologies. The ultimate objective of this strategic collaboration is to produce Linker-Payloads that demonstrate exceptional safety and efficacy.

The patented Simris bioconjugate platform enables a flexible and agile “hub and spoke” business model. This model will grow our deep technical expertise while building new license opportunities with successive biopharma partners including the potential to expand into other non-cancer therapeutic areas. As an immediate example, this has enabled Simris Group to initiate value-creating opportunities through new collaborations, the first of which is the recently announced 9th July 2024, first phase Peptide Drug Conjugate (PDC) research programme with New Zealand Universities.  The objective here is to protect indigenous flora and fauna using humane reproductive control methods. Through this research programme, Simris will be well placed to support the future commercialisation of the developed technology through the sale of our cytotoxic payload.

Over the next 3-6 months our plan is to continue to grow the expertise of the Simris Biologics Team in the development and commercialization of bioconjugates for the biotech space, and to drive additional partnership with other key external teams to create products from our novel platform as well as to secure appropriate license opportunities and wider collaborations. These license agreements with Biopharm companies are expected to bring significant revenue, initially from milestone payments, and in the longer term through the sale of payloads/toxins and generated royalties of any ADC drugs approved and delivered into the market.

We continue our discussions with interested external parties around our algae growing facility in Hammenhög. There are many ways to capture value from this asset, and it is reassuring to know that there is so much interest in developing this facility. As production has been paused until these discussions are finalised, the group will have significantly lower operating costs in upcoming quarters.

*OATP: Organic anion transporting polypeptides.

The report is published on Simris Groups website:
https://simrisgroup.com/financial-information/financial-reports/