Cyxone’s interim report for January-June 2018
Summary of interim report
First Half-year (1 January to 30 June 2018)
- Operating revenue KSEK 0 (0)
- Income after financial items KSEK -6 503 (-4 075)
- Earnings per share -0,37 (-0,27)
- Cash and cash equivalents as of 30 June KSEK 17 817 (28 114)
- Equity ratio as of 30 June 92,8 (95,2) %
Second Quarter (1 April to 30 June 2018)
- Operating revenue KSEK 0 (0)
- Income after financial items KSEK -3 755 (-2 588)
- Earnings per share -0,21 (-0,17)
Significant events during the second quarter of 2018
- The company completed the acquisition of drug candidate Rabeximod and issued approximately 1.9 million shares to complete the payment to OxyPharma AB. The shares were registered with the Swedish authority ‘Bolagsverket’ on July 3, 2018.
- The company appointed Mangold Fondkommission to provide market making services for the company’s share. The purpose of the market maker is to improve the liquidity of the share and reduce the difference between the buying and selling price. The assignment commences on July 2, 2018.
Significant events after the end of the period
- The company’s second and last phase of the pilot study in inflammatory bowel disease (IBD) with its cyclotide technology has been concluded. The results add to the growing body of evidence around the cyclotide technology, deepening the understanding of this natural plant protein.
CEO Kjell G. Stenberg comments
Our second quarter of 2018 has been active and intensive. We have continued to keep our primary focus on implementing the preclinical studies required to secure the permission to complete the first phase of the clinical study program with T20K in multiple sclerosis (MS) in humans, phase I, as well as work for the financing of phase IIb with Rabeximod in rheumatoid arthritis (RA).
The second quarter also meant a new start for us; This is the beginning of our journey as a clinical development stage company. It is a 'new' Cyxone as a significant and innovative player in autoimmune diseases, which drives research and drug development forward to improve the quality of life for those affected by these diseases.
In a short period of time, we have built a strong development portfolio in autoimmune diseases with T20K, which is soon in phase I for MS and Rabeximod in phase IIb for RA. We are already implementing and plan to continue to drive both of our candidates forward in parallel. We successfully follow the time line set for our MS studies with T20K and we plan to start the study with Rabeximod as soon as possible.
T20K and MS
Through the T20K studies conducted so far, and especially the most recent preclinical studies, the company has learned a lot about how the new substance can inhibit immunological reactions that occur during the development of MS and its potential side effects. These studies have made us even more excited about the outcome of the first study in humans and have enabled us to draw up the plans for how it can be implemented, which we look forward to starting in the latter part of 2018.
Pilot study with T20K for other autoimmune diseases
In parallel to our two main tracks, we have, during the last six months, also conducted pilot studies with T20K for other autoimmune diseases. Because T20K affects some of the basic functions of the immune system, there are promising indications that cyclotides could be effective also for other autoimmune diseases. Through a suggestion from a researcher at a big pharmaceutical company, with the belief of showing effects on colon inflammation, Cyxone conducted two pilot studies in animal models for ulcerative colitis, a type of inflammatory bowel disease (IBD). The study results presented in July failed to show the desired effect in the colon, but the results support the anti-inflammatory effect of the cyclotide and are in line with the positive effects seen in the MS studies. With these results in hand, we have come to the conclusion that the cyclotide technology program will, for now, maintain its focus on driving the development of T20K for the treatment of MS.
Continued success with unique strategy positioning
In comparison to other biotech companies, Cyxone differs significantly because of the strategy set to enable patients to access new effective treatment options for MS and RA. Through the company's wide network of universities and pharmaceutical companies, we can in-license promising substances from early development phase, develop the substances up to phase III, and then out-license the substance to a resourceful pharmaceutical company for phase III development and commercialization. This also means that the company is highly resource efficient because different specialists are only included during the periods they are required, and that sharp focus can be kept on meeting the future outlook of closing substantial license agreements with T20K and Rabeximod, given positive study results. I am convinced that this is a winning strategy, and feel confident that we are on the right track.
We are grateful for the support and trust our shareholders has for Cyxone, and we are looking forward to a strong year for the company.
Follow our news and information about our presence at investment events via Nasdaq First North and the company's website: www.cyxone.com
CEO, Cyxone AB
Upcoming financial reports and annual general meeting
November 21, 2018 Third quarter report
Submission of interim report
August 17, 2018
The Board of Directors
This is a translation of the original Swedish version of the interim report. In case of any discrepancy between this translation and the Swedish original, the latter shall prevail.
Cyxone AB (publ)
Kjell G. Stenberg, CEO
Tel: +46 (0) 723 816 168
221 22 Malmö
Cyxone AB is a clinical stage biotech company with a portfolio of immunomodulating drugs for the treatment of autoimmune diseases such as multiple sclerosis (MS) and rheumatoid arthritis (RA). The company’s drug portfolio is based on two technological pillars in the form of oral molecules and cyclotide-based drugs that inhibit key processes in the body’s cells that are typically associated with various immune-related disorders. Cyxone’s technologies have the potential to address an unmet need and provide new effective and safe medicines that can improve the quality of life for patients affected by autoimmune diseases. The company has two drug candidates, T20K for MS in a preclinical program and Rabeximod for RA in clinical phase II-program. Cyxone’s Certified Adviser on the Nasdaq First North is Erik Penser Bank, +46 (0)8 4638000. www.cyxone.com