Nanologica AB (publ)

Hi, my name is Andreas Bhagwan, I am the CEO and CEO of Nandrologica and I am here to present the report for the second quarter. For those of you who are not familiar with the company, we are listed on Spotlight, about 400 million in market cap. It is in Södertälje and what we want to do, our mission, is that we want to reduce costs for peptide manufacturers, especially those who make diabetes medicine. as well as greatly improve the situation for those with severe lung diseases. I will tell you a little bit about how we plan to get it together. A little bit about what we do. We are working with chisel dioxide. When you hold it in your hand, it is like a fine white powder, like sand. If you look in the microscope, you can see that the sand cones are particles. The particles are spherical, round, and they are just as big. And if you look at it even more in magnification, you can see that these pores are just as large. And just to be able to control pore size, to be able to control surface properties and surface area, and even particle size, it is actually quite crucial to be able to save money for peptide manufacturers and to be able to help people with severe lung diseases. And I will come in a little closer to that in a moment. A little bit about these two business areas. Chromatography is a cleaning step when producing peptides, especially insulin and other diabetes drugs. And where we have started to sell, but above all, we are waiting for a slightly larger delivery from our factory, so we will be able to sell. In the development of pharmaceuticals, we mainly work with inhalation, where our products are in demand. And there we have more project sales today and we will look forward to having much more activity there in the future. If we look at the figures, we have had a fairly steady growth since the summer of 2019. And it continues with this quarter, which is very promising. And if you look at the sales, we see that it lands at around 4.5 million, which is very good since we have not yet started selling preparatory chromatography and it will take another quarter before we do that. On the cost side, we see that the costs are significantly higher and also the loss is higher. This is due to the fact that we are really bombing our production facility in England with production. Approximately 45 million SEK in the cash at the beginning of the period. Within chromatography, a lot of exciting things have happened. We continue our commercial production. In about a quarter of Q3, we will get the first slightly larger batches from there and we will have full-scale production under Q4-Q1. We have sent samples from the facility to the customers and we have received good feedback. This means that it is actually the same as what they have tested before, which is very And then we have invested in the US, and we have received our first order from there, and it is not a big order, but it is very good because it means that our man in the US, PK Data, has started, and that is very cool, we think. In drug development, the principle is the same type of products, but where you load the drug into these pores and then you release it on the spot. And just to be able to do that, we have worked with tablets, we have worked with sublingual tablets, but it is within inhalation medicine that we see that we have the great opportunity. I told you in the beginning that our particles are the same size, so when we make a 2 micrometer particle, all particles are 2 micrometers. And then it happens that making particles between 2 and 5 micrometers, which is what you want to be when you are delivering to the lungs, is very difficult. And what often happens is that they aggregate, that is, they clump together and become very large, and then they do not come down to the lungs, they do no good. And our particles, they usually do not aggregate in that way. So we have a pretty big advantage. It also means that we can work with painless drugs. And that means that you can deliver, all of a sudden, with our technology, you can deliver drugs that today cannot be delivered to young people. And that is why we are so excited, and not just us, but our partners and our Scientific Advisory Board think this is super exciting. If you look at what we are doing here now, we are doing a TOC study now, we have just completed our first pilot study. And it will be followed by more studies. We have hired Ulf Eriksson as Vice President for Drug Development. He will be from AstraZeneca. We think it will be very exciting to have him on board. Then I told you about the aggregation of particles, and that is something we work hard with, because some drugs can create, can mean that, even if they are inside the particles, it can mean to aggregate a little more. So then we work with to get all the forms not to be aggregated. And then we also want to be able to work with different types of authorization profiles, and we have done that the past year above all, where you want to be able to have a fast authorization as well as a significantly slower authorization. And then we are working on GMP production of our platform and it's also super exciting. A lot is happening here in this area. It's very fun. And I think you will see a very large activity from our side during the coming half of the year in this area. Super exciting. Big opportunities to make a difference for very sick patients and thus also build very, very large values. Looking forward to what will happen, what everyone is waiting for is future customer contracts with more customer contracts. We have worked with many of these customers since 2016-17. It may look a little different now, what will happen now. It may be that some will want to be able to order a full-scale production once. To then, for example, put a three-year contract. Some will go on a longer contract at once. But when this comes, it is very difficult to say. And we expect a little larger production, partly under Q3 and partly under Q4Q1. In drug development, it is precisely because we are going to have our TOCS study, but we are also working on a number of drugs that we loaded in the other day, a drug that is currently being used for lung disease, but which does not work particularly well. It will be super exciting to see how it works with the help of our particles. And that is something we will be working on in the animal study during the fall. Under 2022, I think we will see a completely different level of sales. I have talked earlier about the fact that it is within the preparatory chromatography, that we will see this very strong increase in sales and it is not unlikely that it will happen sometime in 2022. So it is very exciting. And within drugs, what we can say, it will happen a lot there, but what we know is that our partner, Viacorp, with its VP02, has announced that it will go into the clinic and it will also be a huge milestone. Så man kan säga att det är ytterligare ett kvartal med tillväxt, ser väldigt mycket an emot framtiden, kul med lite nya medarbetare och därmed önskar jag en glad sommar. Tack så mycket för mig!