SIMRIS GROUP INTERIM REPORT JANUARY-SEPTEMBER 2024

QUARTER 3, JULY – SEPTEMBER 2024

• Net revenue increased by 44 percent to SEK 766k (532k).
• EBITDA improved by 34 percent to SEK -2 971k (-4 525k).
• EBIT/Operating result improved by 18 percent to SEK -6 614k (-8 042k).

INTERIM PERIOD, JANUARY – SEPTEMBER 2024

• Net revenue increased by 13 percent to SEK 1 919k (1 697k).
• EBITDA improved by 15 percent to SEK -14 413k (-16 963k).
• EBIT/Operating result improved by 9 percent to SEK -25 473k (-27 952k).

KEY EVENTS DURING 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 a collaboration with the University of Applied Science Berlin that has received a funding commitment from the Investigation Bank Berlin (IBB) Profit Program for €400k over a 3-year period beginning September 2024 to investigate the potential of cyanobacterial compounds in the field of anti-aging.

KEY EVENTS AFTER THE END OF THE QUARTER

• Simris Group major owner and chairman Steven Schapera passed away after complications after surgery. Jonathan Royce, an existing board member, has assumed the role of chairman of the board.
• Simris Group announced that payments from the previously announced and agreed loan facility, established by the recently deceased major shareholder and chairman Steven Schapera’s company, may be delayed. The Simris board is reviewing other financing options in case the payments are further delayed.

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.
The whole of the Simris Team are deeply saddened by the death of our previous Chairman and major shareholder who passed away recently. Steven Schapera was an extraordinary and a very successful entrepreneur with a passion for delivering innovation in sustainable health- and self-care. He had amazing insights and expertise in business and science and a respect for nature and the planet. We are indebted to Steven for his uncompromising drive and clarity of vision for the whole Simris Group. We are so pleased to welcome Jonathan Royce to Chair the Simris Group and to continue our journey and deliver Steven’s legacy and vision.

Due to the death of our previous major investor, the payments from the previously announced and agreed loan facility may be delayed. To ensure the continued liquidity of the Simris Group, the Simris board is actively reviewing other financing options as a contingency. This commitment to focus on antibody drug conjugate (ADC) payload development includes the action of the sale of the Hammenhög algae farm and equipment based in southern Sweden.

Simris Group continued to build its successful portfolio of globally granted patents for the next generation bioconjugate innovation and delivery, specifically of ADC payloads. This is critical to the strong and uniquely defensible position of our payload platform, and specific optimized payloads ready to be conjugated for further development and commercialisation.
A number of previously communicated investigational collaborations are moving ahead successfully. The first phase Peptide Drug Conjugate (PDC) research programme with New Zealand Universities, with the objective to protect indigenous flora and fauna using humane reproductive control methods, is now dosing female mice to establish proof of concept.

Collaboration with an independent pharma company continues successfully with the initiation of in-vitro testing of our novel conjugated payloads in ADCs. We are also in dialogue with another pharma company to further engage in next steps of in-vitro pre-clinical testing.

From my recent attendance at the 15th World Wide ADC Conference in San Diego, it is evident that Simris Group now holds a strong dominant position in next generation payloads to counter resistance and improve tolerance with a unique patented biotech pathway. We have a clear purpose and capability to commercialise our proprietary ADC payload platform. This has resulted in a number of new potential collaborations in the ADC space with biopharmaceutical companies focused on cancer and infectious diseases.

Our laser-focused 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 partnerships 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 and/or licensing of payloads/toxins.

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