LIDDS AB (publ) Interim report January – March 2022

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  • Net sales amounted to 0.6 (0.6) MSEK
  • Operating profit for the period was -9.8 (-10.8) MSEK
  • Net income was -9.8 (-10.8) MSEK corresponding to earnings per share of EUR -0.29 (-0.36)
  • Cash flow from operating activities was -6.1 (-11.7) MSEK
  • Cash and cash equivalents amounted to 27.5 (23.3) MSEK

Important events January – March

  • The R&D project with J&J has moved to the next phase.
  • A financing agreement of up to 40.8 MSEK signed with Nice&Green

Significant events after the reporting period

  • Max Mitteregger and John Lund are proposed as a new member of the LIDDS Board of Directors. Max Mitteregger will acquire, as part of his appointment to the LIDDS Board of Directors, shares with a total value of 4.5 MSEK. It is proposed that this be done by means of a directed issue of 750,000 shares at a subscription price of SEK 6, which is the LIDDS share price on the Nasdaq First North Growth Market at the time for a firm commitment to subscribe for the shares. The directed issue of shares is subject to the approval of the annual general meeting of shareholders.

CEO Commentary
At the beginning of 2022, we had several important announcements. At the beginning of January, we announced that the research collaboration with Johnson & Johnson Enterprise Innovation Inc (J&J) continued to the next step. It is of utmost importance that the cooperation continues to develop well. The collaboration with J&J is an important part of our development goals to be able to offer medicines that make a significant difference in the lives of patients. We want to participate in the development of products that improve the situation of patients, caregivers and society as a whole through better treatment outcomes, improved quality of life and efficient use of resources.

We also presented the next step in the development of our nanodotax project which is docetaxel formulated with nanozolids. We will conduct a shorter clinical study to assess the immunological effects observed in the Phase I clinical study NZ-DTX-001. The study showed the activation of systemic inflammatory biomarkers that are believed to improve treatment conditions with so-called checkpoint inhibitors. Preliminary results indicate that local treatment with nanodotax could stimulate the immune system of patients in such a way that it could attack even distant metastases. Based on the positive results of the Phase I study, we elected to support sponsorship of the previously approved investigator-sponsored trial in patients with prostate cancer. We expect to be able to start recruiting patients very soon and I look forward to the results as the study will provide important insight into the mechanism of action and how the project will progress through clinical development for the group of patients and the indication.

I note that there is great interest in treatment targeted at TLR9 because Regeneron Pharmaceuticals announced its intention to acquire Pharmaceutical checkmate. Checkmate’s product in development is a TLR9 agonist which is basically the same as our nanoimod product but without the lasting effect. We are convinced that the key to good treatment results lies in long-lasting and continuous activation of TLR9. The agreement is a good indication of the interest of pharmaceutical companies in intratumoral administration in general and more specifically in TLR9 targeted therapy as a new tool in the treatment of various cancers.

In order to be able to continue the positive development of the project portfolio, secure financing is of great importance. Therefore, we announced in February that COVERS entered into a convertible loan agreement with Nice & Green, a Swiss specialist investor with valuable experience in the life sciences sector. The agreement stipulates that Nice & Green has undertaken to subscribe convertible bonds with a nominal value of up to 40.8 million Swedish crowns. The deal gives COVERS the possibility, but not the obligation, to use the agreed funding for the next 18 months. This is very important for the company because it gives us flexibility.

I am happy to have been able to meet both shareholders and other stakeholders during the first months of the year. We did this both at Redeye’s Fight Cancer Day in January and at the much-loved Capital Markets Day (CMD) we hosted in March. At CMD, the focus was on our research and development – ​​the heart of the business. I appreciate your commitment and interest and look forward to seeing you again. In June, we will be right to spread the word about COVERS further as we witness the US BIO International Convention in San Diego. The conference is one of the most important congresses in the industry with internationally renowned speakers and brings together a large number of leading market players from all over the world. As a further step in building knowledge about COVERSthe website has also been updated with a new design, new content and better functions to make it easier for our visitors.

My goal going forward is to maintain the good foundations we have carefully established for the business in 2021 and early 2022. We will accelerate the work of developing effective solutions for local drug delivery and develop projects that generate the greatest opportunities for future collaborations. and agreements.

Thank you for your support.

Uppsala May 2022

Nina HerneCEO

The interim report is available on the company’s website https://liddspharma.com/en/investors/financial-reports/

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