Lipidor AB (publ) publishes interim report for Q1 2024

To read the quarterly report (in Swedish) click here: https://lipidor.se/investors/financial-reports/

Summary of first quarter

Lipidor is working towards conducting a Phase III study for the psoriasis candidate AKP02G2 with the aim of presenting study results Q1/25. During the period, the application for study start was approved by the Indian Medical Products Agency (DCGI).

In addition to development efforts, the operational work during the first quarter consisted of financing work for both the short and long term. During the period, one of the Company's patents was sold to strengthen the cash position in the short term, and the remaining ownership in Emollivet AB was divested.

After the end of the period, it was announced that financing for the clinical study for AKP02G2 had been secured through a partially secured rights issue and a co-investment agreement. In addition, a credit facility was entered into to start activities related to the implementation of the clinical study for AKP02G2.

Lipidor in brief

Lipidor develops medicinal products for the treatment of skin diseases with a focus on psoriasis by reformulating well-proven medicinal substances. With the lipid-based and patented formulation technology AKVANO®, Lipidor aims to develop medicines that have at least an equivalent effect to the leading original product, but which have the clear patient benefits of being quick-drying and easier to apply (sprayable) compared to existing products on the market.

Lipidor AB (publ), Org. Nr. 556779-7500 is a Swedish limited company based in Stockholm. The company address is: Lipidor AB, c/o Ekonomistubben, Box 55931, 102 16 Stockholm.

Significant events during the first quarter (Jan–Mar)

• On 24th January, it was announced that one of the Company's patents, which was previously out-licensed to Emollivet AB, has now been sold to the same party. The sale was aimed at strengthening Lipidor's cash position in the short term.
• On 6th March, it was announced that a sale of 100 Emollivet shares, corresponding to SEK 0.7 million, has been completed to strengthen the company's cash position in the short term, and on 26th March, it was announced that the remaining ownership in Emollivet, according to plan, has been divested. The company thereby received an additional approximately SEK 0.5 million.
• On 21st March, it was announced that approval for the start of a clinical phase III study with the psoriasis candidate has AKP02G2 been obtained from the Indian Medical Products Agency (DCGI).

Significant events after the reporting period

• On 10th April, it was announced that Lipidor resolves on a rights issue of approximately SEK 58 million and that a co-investment agreement of SEK 12.4 million has been entered into. The Rights Issue is guaranteed to approximately 66 percent through subscription commitments and guarantee commitments. This will secure funding for the planned Phase III study with AKP02G2. A credit facility of SEK 3 million is entered into for start-up activities linked to the implementation.
• Lipidor AB held an Extraordinary General Meeting in Stockholm on 21 May 2024. The AGM resolved to approve the Board of Directors' resolution on a new issue of units, consisting of shares and warrants of series TO 2, with preferential rights for the shareholders, in accordance with what the company announced in a press release on 10th April 2024.

Statement from Lipidor’s CEO

A couple of weeks ago, we announced to the market the very good news that Lipidor has secured funding for a Phase III study of our drug candidate for psoriasis. With financing in place, it's time to proceed at full speed with operational activities. All focus is now on conducting a Phase III study with our drug candidate AKP02G2, with the aim of presenting study results as early as the end of Q1 2025.

During the period, a patent linked to the animal segment was sold, and the remaining shares in the former subsidiary Emollivet were divested. Our focus strategy on drug candidates for psoriasis in late clinical phase has previously meant pausing other pre-clinical drug projects. All in all, Lipidor has executed on the strategic transition that has been deemed necessary and beneficial for the Company’s development.

Upcoming milestones

As previously reported, we have already received approval from the Indian authority to conduct the clinical study. We have also now activated both our CRO (Clinical Research Organisation) and CMO (Clinical Manufacturing Organisation). An important goal is ensuring that trial materials are available at our CRO after the summer. This is a necessity in order to be able to present study results according to plan. Other important milestones are the start of the study, how recruitment proceeds, and when the last patient enters the clinical study. We look forward to keeping you informed.

The coming months

Yesterday, a decision was made at an Extraordinary General Meeting on the upcoming rights issue, with a subscription period starting on 29/5 and continuing until 12/6. A prospectus will be available shortly on our website. I hope that as many people as possible find the offer interesting and choose to join us on our exciting journey.

It is good that we now have guaranteed financing, and that we still have the support of both major owners and partners. Conducting a Phase III study is a privilege that not every company enjoys, and we will do our utmost to ensure that the conditions for a correct delivery in terms of time and quality are made.

We are in a favorable position and in the starting blocks for a number of important activities and milestones. It is with great joy and confidence that we continue to work towards our set goals.

Stockholm, 22nd May 2024

Ola Holmlund

CEO

Financial Calendar

See the interim report

To read the Q1 report (in Swedish) click here: https://lipidor.se/investors/financial-reports/

Publication

The information was provided for publication by Lipidor’s CEO on 22nd May 2024 at 8.30am (CET).