Lipidor AB (publ) publishes interim report for Q1 2023
STOCKHOLM, Sweden, 11 May 2023 – Today, Lipidor AB (publ) (Nasdaq First North Growth Market: LIPI) publishes its interim report for the period January – March 2023. The report is available on the company's website lipidor.se and in the attached pdf.
To read the quarterly report (in Swedish) click here: https://lipidor.se/lipidor-ab-delarsrapport-q1-2023/
Summary of interim report
During the period, bridge financing was secured in order to create financial scope for the business. The capital injection of SEK 5.3 million was provided through a combination of loans and the sale of shareholdings in Emollivet AB. Lipidor still owns approximately 25% of the shares in Emollivet AB.
The operational work has consisted of both development efforts, primarily linked to the company's drug candidate AKP02, and strategy and financing work with the aim of defining the best way to utilize the potential of the company's drug candidates. Reorganization work was carried out to reduce the company's operating costs. The sale of shares in Emollivet AB, together with adjusted reserves, resulted in a positive result for the period.
|Q1 (Jan-Mar) 2023|
|Net sales 8 KSEK (0)
Operating income -2,340 KSEK (-11,121)
Result per share prior to and after dilution SEK -0.01 (-0.38)
|Selected financial data||2023 Jan-Mar||2022 Jan-Mar||2022 Jan-Dec|
|Net sales, KSEK (thousand kronor)||8||–||45|
|Operating income, KSEK||-2,340||-11,121||-41,470|
|Income after tax, KSEK||415||-11,100||-41,379|
|Total assets, KSEK||12,489||41,228||15,621|
|Cash flow for the period, KSEK||-726||-17,600||-42,380|
|Cash flow per share (SEK)||-0.03||-0.61||-1.46|
|Result per share prior to and after dilution (SEK)||0.01||-0.38||-1.43|
|Shareholder’s equity per share (SEK)||0.09||1.12||0.07|
|Equity ratio, %||20.51%||78.65%||13.74%|
Lipidor in brief
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.
Lipidor is a drug development company with a pipeline of drug development projects in the preclinical and clinical phase. The company develops drugs for the treatment of skin diseases such as psoriasis, acne vulgaris, bacterial skin infections and atopic dermatitis by reformulation of proven pharmaceutical substances.
In 2019, the subsidiary Emollivet AB was formed, with a focus on animal skincare products based on Lipidor’s formulation platform AKVANO®.
Significant events during the first quarter (Jan-Mar)
- On 17 January 2023, Lipidor held an extraordinary general meeting in Stockholm. At the meeting, it was decided to approve that the company transfers shares in the subsidiary Emollivet AB to two major shareholders in Lipidor. In February 2023, 653 shares of the parent company's 1,243 shares were sold. Thus, Lipidor still owns 590 shares, which corresponds to approximately 25% of the shares in Emollivet.
Significant events after the reporting period
- There have been no significant events after the reporting period.
Statement from Lipidor’s CEO
The first quarter of the year began at a high pace with both development and strategy work. The management team and the Board of Directors have been focussed on the best possible path forward after the company, by a narrow margin, missed its target in the Phase III study conducted for the psoriasis project AKP02 in 2022. Our efforts in the beginning of this year have staked out a plan for the future and we are pleased to be able to look forward with confidence and energy.
New Phase III in sight
Lipidor aims to take AKP02 through a new Phase III and will continue to work with its partners to develop and commercialise skin medicines that promote patient health and well-being. The study results have been carefully analysed during the first quarter and work is still ongoing to verify the hypotheses.
AKVANO® is designed to make life easier for patients. Together with the spray technology that delivers the drug substances, it provides a simple application that does not require lubrication and dries very quickly. Our conviction is that this gives the patient an improved experience and an easier everyday life without, for example, messy clothes. With these advantages, few similar drug candidates on their way to the market, and a growing need, there is significant potential for AKP02. Over the years, Lipidor has built up solid knowledge capital. The company has conducted several clinical studies and previously succeeded in a Phase III study with AKP01, which is the precursor to AKP02.
Secured bridge financing
In order to secure working capital for the beginning of the year, Lipidor's board decided to sell part of the shareholding in the subsidiary Emollivet, which develops and sells skincare spray products for animals. The sale was completed in February and after the sale Lipidor still owns circa 25% of shares in the company. Together with the sale and a loan of SEK 0.5 million, just over SEK 5 million was raised, which gave the company the funding throughout the spring to work on important future-oriented activities.
When the study results were confirmed at the end of 2022, measures were taken to drastically reduce Lipidor’s operating costs. Staff had to be laid off and the office closed down. By the end of the first quarter, the transition was completed. As a result, Lipidor has partly had to change shape, focus even more clearly, and adjust its operations to new conditions. The change process was carried out in a controlled manner, and amicably with the parties involved. The company has also been able to retain key expertise and our laboratory at Stockholm University in order to continue operations.
A strong starting position
The company continues to have positive dialogues with RELIFE about the future. We have established contacts with suppliers and a production line is ready. The investment made with our partner Aurena Laboratories ensures future GMP production. Building up a GMP production is both time and cost intensive. It is necessary from a commercial perspective to have a secured production capacity, so this is incredibly valuable for Lipidor.
Our patent portfolio is strong and innovation is high. Overall, the company's platform is valuable and a new Phase III study is within reach. The lessons learnt so far, together with continued systematic and quality-oriented work, will increase the chance of achieving good results. In summary, Lipidor is a company with projects in late clinical phase and a clear commercial focus, ready for a continued interesting journey.
Stockholm, 11 May 2023
|AGM 2023||8 June 2023|
|Interim report January – June 2023||23 August 2023|
|Interim report January – September 2023||22 November 2023|
See the interim report
The information was provided for publication by Lipidor’s CEO on 11 May 2023 at 8.30am (CEST).