Nanologica AB (publ)

Hi, my name is Andreas Bagwani. I am the CEO and one of the largest owners of Nanologica. I am here to present the report for the first quarter. Before I do so, I would like to say something about our vision, Better and Cheaper Medicine through Porous Silica. It is crucial to have the patient in mind when producing products in life science, and unfortunately not everyone does so. That is, either we and our products have to make sure that it becomes significantly better for our patients, or the patients who use our products, or our customer products. Or it has to be significantly cheaper. That is, to be a little better and much more expensive, it will not work. I will return to that a little bit during the presentation, but for us it is completely central to succeed with this. What has happened during the first quarter? Yes, above all, we have listed on Nasdaq. It is also visible above all on our costs. We are now finally launching our product for preparatory chromatography. It feels really cool and we have been working on production for a long time and we are almost there. We have also hired a SVP for chromatography to lead the area, Katarina Ahlernäs. Some of the numbers then, not so much sales and maybe we look at what is most interesting In the cash register, we have meant less than the previous period, but we also have a credit line, so that is a bit misleading. And you can also see that we have higher costs, and that is mainly due to listings. Yes, we did list, and the reason for listing was quite simple. We have had quite a lot of contact with institutional investors, especially those outside of Sweden, and there are several who do not invest outside the main market. And since we are going to between 100 and 300 million in a couple of years, to the big list, and now we have done it. And with many larger projects that take a long time, sometimes you feel that it will never work, simply because you have worked for a very long time. I think the team has done a fantastic job here, but especially at CFO Eva Osterman and her team, who have done a great job. The board has also been very involved and done an incredible amount of work. So thanks to all of you for a fantastic job and we also reached the goal, even though sometimes it didn't feel like that. Our technique then, what is it we do? Well, we have a nice white powder and when you look at it, you have it in your hand and when you look at it in a microscope, you see that the powder is like sand and these sand cones are at least as big. And if you look at another microscope, you can see that they are hollow or porous, as we say. And we are best in the world of controlling particle size and pore size, but also surface properties. And when you are best in the world of that, you have to build unique particles, unique products. And we have done that. And that is also what we will make money on. And if you look at our one business area, chromatography, to clean peptide drugs, and then above all such as insulin. What we do is that our product is used to purify them, and our product lasts longer and purifies better, and that means that we can save costs for these peptide manufacturers, especially those that produce insulin. And there is a great interest in our products. And what we are doing now, right now, is that we are working on, speaking of projects that have been going on for a long time, we are working on completing our first-hand production, larger production in our factory, and that we are launching our products. So a lot of exciting things are happening as well. If we start with the production, it's a bit like the listing, that we've been doing it for a long time and many, perhaps also shareholders, think, will you ever be able to do it? We will, and it's very close because we will soon be able to deliver the first products. It feels incredibly fun, we've been doing it since the summer of 2019, had a lot of delays and then in At the beginning of January, we had a person on site. It is a person who has moved home now and we have a new person on site from the beginning of May. I think the lesson is that now that we have had people on site, we have been able to solve a lot of problems that we otherwise would not have been able to solve. And had not Covid come in between, we would have had people there all the time and then we probably would have been able to handle it long ago. But it's easy to be smart and there were a lot of shutdowns, especially in England where the factory is located. But now we are there and we are also very, very happy and proud of that. Maybe even more fun is that we have finally met customers again. I made my last trip in December 2019, it was also to India. And now we were in Hyderabad, India, again at a conference called Purify 22. It was a bit of a start of our launch of our product. Super exciting to be out and meet customers. It is also quite clear that many of these manufacturers of drugs switched over to COVID-projects. Some did it by business opportunities and some were almost forced to do it. But all of those projects have either gone into production or have been put down. And that means that the movement back towards the type of products or projects that use our products is very strong. And it's really fun to see. So it was a very good journey and we met both existing and new customers, so it's really exciting to get to do more of that. And now we have a range of activities that came here now. We have a team that is going to the USA soon and there are a few conferences, then there is someone in Europe at the beginning of the summer and then we continue in Europe and then in the USA until autumn and then it will be India again. almost before Christmas. We don't really know how it will be in China, there are still quite a lot of ups and downs, but we hope to be able to get to China as well. But it's super, super fun to finally be able to meet customers again, so there's a lot of exciting things happening and that will happen in 2022, both on the manufacturing side and on the customer side, on the sales side. The principle of drug development is quite simple. We have the same type of particles, which are porous, not the same product, but the same type. We fill them with drugs, put them in a small dry powder inhaler, and then you have the particle with the drug inside the particle, as you can see in the picture. The particle melts and the drug is released into the lungs. In this way, you can get a lot of drugs that cannot be formulated into the lungs today, just to be delivered in the lungs. And I would really like to show the next picture here. If we look at the right side, what we are doing there now is that we are modifying this particle. For us, it is important then, I told you that we are good at controlling particle technology, and what we are doing now is that we design some different particles for whether they should melt slowly or quickly in the lungs. And then we also want to test the clearance, that is, how long it takes before it disappears from the lungs, and it is mainly on gnawing when we do that. So hopefully we will get more information about that during the year. But the main focus is chromatography. We are ending our large-scale production campaign, the first one, and that means that we will start producing. We will get products out in the second quarter and then it will come all at once. It also means that it is a very good timing that we launch our products and it is super cool to be able to be out there and meet customers again and that we also expect sales. We will have a lot of sales probably in the second quarter and it will increase gradually, assuming that we will see a little bigger effects in the fourth quarter. But it's hard to say what it looks like now. But we still have the goal of 100 to 300 million kronor by 2024. I want to end the presentation with where I started, Burden, Chipper, Medicine through Porosilica. Our products are either used to open up for completely new treatments in the lungs, and the timing there, what we are doing there now is that we are trying to adjust the platform so that it can melt faster in the lungs or slower, and we also want to test that in gnawing. And when we succeed in that, we will be able to lock up a number of drugs for significantly better treatment with the help of porous Sysil-diffused porosilicate. But our main focus is of course to transfer products into chromatography, and since our products purify better and last longer, they lower the costs for peptide manufacturers, and above all those who manufacture diabetes products, for example insulin. We have products that are coming out now, the second quarter, and we have a launch of those products. Super exciting! That we are now on a listed Nasdaq Main Market feels very good in that context, but the most important thing is what we do with the customers. Thank you very much for listening to me. We see very big, we think it will be very exciting with what is happening in the coming time here at Nanologica. Thank you very much, bye!