Nanologica AB (publ)

Good morning, this is Andreas Bagwani, CEO and one of the largest owners of Nalogica. I thought I would give you a short update, due to the fact that we are releasing the figures for the quarter today. A little about the company, Better and Cheaper Medicine through Porous Silica. We believe that it is very important for all of us who work in this industry to either be in the area where we make sure that medicine becomes cheaper for more people, or that we are essentially better, and they emphasize essentially. much better than what we have today. And we are trying to do both and actually. We are trying to make it cheaper for diabetic patients to get insulin. We believe that it is not only those who lack insulin today that we have to focus on, but also the many more patients who come, especially in Asia, where we want to play an important role. The other area we want to make a difference in is inhalation medicine. It is very difficult to formulate drugs for the lungs, and we want to change that. We have a technique that we think will be able to do that. For those of you who don't know the company that much, we have a market cap of about 500 million, listed on Spotlight. There are about 20 employees in Södertälje. About our technology then, we are working with silicon dioxide. When you look at our products in trade, it is like a fine white powder. If you look at a microscope, you can see that there are individual particles and that the particles are the same size. If you look at an even larger magnification, we see that these particles are hollow or porous, as we say. We are best in the world at controlling the size of the particles, that they do not clump together, and also the size of the pores and what surface properties there are. And if you are best in the world at that, you want to make use of it, and we do that in two business areas. One is chromatography, especially in our case preparatory chromatography, which is the cleaning of peptides, where the most important peptide is insulin, which is used for diabetic patients. The other area of business is also in life science, which is the development of drugs, or to reformulate drugs, which today do not work or work very badly. And that's where our technology, especially in inhalation medicine, I think we will be able to make a big difference. To give a little context, we have this picture. For those of you who are familiar with the company, within analytical chromatography, the one on the far left, we have had good growth and there we recognize a number of brands. We have the big American, which are direct competitors, Agent, Waters, Thurman Fisher, but then we also have Svenska Byggertage och Genovi som inte är konkurrenter men som verkar inom samma segment. Vi har haft ganska mycket problem med det här segmentet på grund av covid. Analytisk kromatografi kommer att vara minskad i betydelse för oss utan det som kommer att öka är det som vi nu har fått ut godkänt material på och vi börjat producera i stor skala, nämligen preparativt kromatografi. There are smaller brands, Chromasil from Börn Svenskt, Osaka Soda and IMC, both in Japanese. It is something of an oligopoly market that we have started to get into. This will give a significant growth in cash flows and will be at some point at the end of next year, at the end of this year, at the beginning of next year. And the goal is to be able to convert a lot more within a period of time than we do. In drug development, we also have some companies that we want to compare with. Camurus is a company that we think has done a great job in both having their own projects and having projects together with partners that partly finance their own programs. Pearl we brought with us because it was a company that was sold to AstraZeneca. AstraZeneca did the clinical development program. and now sells this as a very good cool drug. It started as a technology company, just like ours, even though they had other technology, but within inhalation. And Nanoform, which is also an example, is a company that may not have come as far as we have, but they are a drug delivery company, not within inhalation either. If we look at the growth, it has been quite stable since the summer of 2018, and Q1 this year is no exception. Essentially much better sales than the corresponding period last year, and if we look in detail here, we see that we have invested 5.6 million SEK against 3.9 million SEK in the previous year, especially in our project within drug development, which has stood for that growth increase, and perhaps in particular our partner project with ViCore, where we produce GMP material for their clinical studies, VP02. The cost has also increased in periods when we have produced material for ViCore. 57 million i kassan vid periodens utgång. Lite highlights då som inte är finansiella förutom då att man ska betona att tillväxten fortsätter. Det är vi väldigt nöjda i trots dessa svåra covid-tider. But what is also super important is that the material that we have been upscaling for a long period over large production facilities, it was approved during the quarter and it is a great milestone for us because we have now started large-scale production for delivery at the end of the year. We have put together a very nice Scientific Advisory Board, which has taught us a lot about inhalation. It will be important for us, we will continue to invest in that area. We also made a consensus with Centiva, a large generic company. And then we have with us that we hired a SVP Sales within chromatography. And it is important because we will continue with that. We will continue to strengthen the marketing organization in time that we get out material from our large facilities. Because we will want to cover the major markets, namely the USA, Europe, India and China. And in the USA we had our own representation, so it feels great. So I think I'll end there. Very good quarter and we see that it continues. Tack så mycket.