Prostatype Genomics AB has today published its quarterly report for the second quarter comprising the period from 1 April 2022 to 30 June 2022. The report is available on the company website (https://www.prostatypegenomics.com/press-news/).
Quarter 2 (1 April – 30 June 2022) summarized
- Net sales amounted to 8 TSEK.
- Net revenue amounted to 8 TSEK.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to -6 886 TSEK.
- Cash flow from current operations in the quarter amounted -5 515 TSEK.
- Total cash flow for the period amounted to -5 615 TSEK.
- Earnings per share amounted to -0,49 SEK.
Significant events during the Second Quarter
- In May, the Board of Directors announced in connection with the call to the Annual General Meeting that it sought authorization for a rights issue (the “Rights Issue”) of units for an initial amount of approximately SEK 22.5 million before issue costs, followed by an additional approximately SEK 22.5 million before issue costs attributable to attached warrants. The Annual General Meeting gave the authorization and in June the Board decided to carry out the Rights Issue
- In April, the Company announced that it has entered into a cooperation with Capio Solna Urologi and that the first patient has been treated based on the prognostic test result from the use of Prostatype®
Events after the balance day
- On July 20, the subscription period for the Rights Issue ended. The rights issue was subscribed for a total of approximately SEK 17.9 million, including subscription obligations of approximately SEK 8.5 million, corresponding to a subscription rate of approximately 79.5 percent. In addition, guarantee commitments corresponding to approximately SEK 4.6 million have been activated, meaning that Prostatype Genomics is provided with 100 percent of the issue volume. Prostatype Genomics will thus receive approximately SEK 22.5 million before issue costs of a total of approximately SEK 3.1 million (including guarantee compensation of approximately SEK 1.4 million). Through the rights issue, a total of 7,755,895 shares and 7,755,895 warrants of series TO 2 are newly issued. A total of 306,315 units (corresponding to approximately SEK 16.9 million) were subscribed with the support of unit rights, including subscription obligations of approximately SEK 8.5 million. Allocation of units has taken place in accordance with the allocation principles described in the prospectus published by the Company in connection with the Rights Issue.
For Prostatype Genomics, the second quarter of 2022 can be summarized as:
High activity levels, endurance and occasionally some frustration!
In the prioritized European markets, we have mainly focused on intensifying the work of presenting studies and establishing new commercial collaborations. Among other things, we started a very exciting project together with the Urology clinic Capio Specialistcenter in Solna, which gave patients and doctors immediate access to the gene test Prostatype®. Also in Germany, Spain, and Italy we see an increased interest from leading clinics and urologists, and several exciting collaborations are underway. These successes come after intensive and persistent work to process the many different levels of healthcare decision-makers that exist at European and national level. The built-in inertia created by these systems of hierarchical approvals and recommendations slows down the speed at which innovative technologies can benefit European patients. Many times, we experience a frustration because the processes often take longer than what might seem justified but which at the same time is required purely regulatory and logistically. Therefore, a continued high level of energy and endurance is required from our employees, board, and shareholders before the sales start in earnest. Although urologists in several parts of Europe clearly communicate a desire to get started with Prostatype®, there are several practical parts that must fall into place before it can really happen. Most importantly, the clinical need for Prostatype® remains unshaken. We hear daily from customers about the challenges of choosing the right treatment for patients and that Prostatype® is a welcome addition to the arsenal, which of course strengthens us in our work.
If we compare with our other main market, the USA, we see a very different situation, gratifyingly.
In mid-May, we attended what turned out to be the most exciting event in a very long time, the American Urology Association Meeting 2022 in New Orleans. The clinical study with Prostatype® carried out at the University Hospital in Uppsala was selected for presentation to an audience of leading urologists from all over the world, which of course was very gratifying and led to several interesting discussions with American urologists as well as with potential commercial partners. We can already see that the US will be an important market for Prostatype Genomics, indeed, with high probability the most important of all.
Both during our presentation and in the conversations and meetings we had during the week, it became very clear how far American healthcare and American urologists have come when it comes to using genetic testing as a natural part of the healthcare process for diagnosed prostate cancer. Instead of explaining and discussing the benefits of prognostic testing in general, we were able to go straight to our concrete product benefits and we were immediately heard. American healthcare has enormously strong commercial driving forces and one of the advantages of that is that you are extremely open to finding and implementing innovations. If you can then, as we can, offer a real win-win, something that helps the patients at the same time as it increases the clinics' profitability and reduces the total cost of care, it is not difficult to get the audience really interested.
In our last quarterly report, I told you a bit about how we started our US investment, with the fully owned subsidiary Prostatype Genomics, Inc already established. As you may understand, our meetings during the AUA meant that we became even more motivated to accelerate the investment and during the summer we have worked intensively to identify the key resources we need, both to find exactly the right people for the company and to carry out the necessary validation studies with the right partners. In both areas, we will return very soon with exciting and value-creating news.
To finance the intensified market work in Europe while seriously establishing an American presence, we carried out a rights issue during the summer, which ended on July 20. The issue was subscribed to almost 80% by existing shareholders, which was then filled up to 100% with the help of external guarantors. A total of 22.5 million was added to the company before issue costs. With a strong financial position and very exciting signals from the markets both in Europe and the USA, we look forward to an exciting autumn with very positive news!
CEO, Prostatype Genomics AB
Solna 18 August
This disclosure contains information that Prostatype Genomics AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 18-08-2022 08:00 CET.