Nanologica AB (publ)

Hi, my name is Andreas Bhagwan. I am the CEO and one of the largest owners of Nanologica. I will now give you an update on our report for the first quarter. For those of you who are familiar with the company, you know that we have two quite different business areas. First, we are developing drugs, especially inhalation. And the other is chromatography. Cleaning of peptides and especially diabetes drugs. But I will only talk about chromatography, because that is what is at the focus now. If you look at this slide, you can see that we are making fine adjustments to the production steps. I will go into more detail about that very soon. We have delivered a slightly smaller order to a South American market, which we hope will be more. And then we continue to launch our products with our sales organization. The figures, 355,000 in sales and minus 10.7 million in turnover, something better than the corresponding period the year before. And the result is minus 12 million, also somewhat better than the corresponding period last year, and 56 million in liquid materials. Yes, customers then. We have delivered an order to the South American market, and it is a player who is working on the manufacture of diabetes products. And it's quite interesting because it's a company that has had a process problem for a long time and it has involved that they have to look at their step where they clean the peptide. And where they have had problems, they have taken the help of our experienced team, our experienced and quite advanced application team that has helped them. They have bought a few products that they have bought a few more. And now there is a possibility that they will buy in running production from us. I don't actually know how much that can be, but it can be a recurring customer. It's fun. Otherwise, we are quite restrictive in bringing in customers because we have not known when we could deliver. But I hope we will change that very soon. Then we have visited China, and China is a fantastic, interesting market. Unlike India, where there is a very strong focus on diabetes products, both insulin and insulin derivatives. as well as glucagon-like peptides, there is not really the same focus on it in China. There is, but there are a lot of slightly smaller players who are doing other types of peptides. And that market is quite exciting because many of those we meet are a little younger and relatively inexperienced. And that means that when they scale up, they will need quite a lot of help. And since we have a strong team in China and that we can help them with our own application team, we are well positioned in China compared to our competitors. And I also think that we have had training for our Chinese partner Yunbo and it has also been training for customers and it has been highly appreciated. And it is a very exciting market that has really taken off after Covid, just after the change of year, I would say. And if you look ahead, we will visit Tides in the USA, a big fair for us who are doing peptides. And then we will go back to CPHA in China in June, and then we hope to be a little more firm about what we can deliver and when we can deliver, because that is the big question among our customers. When can you deliver on a larger scale? And that leads us unsearched into our production. For those of you who have followed the company, you know that we started our production project in 2019. We have had several delays, both big and small, which has depended partly on Covid and then we have had some equipment problems. And we thought we were almost able to start delivering almost a year ago, and then we have had a recurring problem. As we have now identified, isolated and hopefully we have solved it, we do not really know. We are waiting for a couple of batches to come out in the short term and then we will know if we have succeeded. It's just a matter of time before we can start delivering on a large scale and it feels incredibly fun to be able to say that. We are not there yet, I would say, so I hope that in the short term we will be able to approve the first batch. And that means that after that we will be able to produce for customers. But we have also said that since we have perhaps the most demanding customers in the world, especially those who manufacture diabetes drugs, who run very, very hard with our type of product. we want to be able to be completely sure that the quality is as it is. And if we are to summarize in one single picture with two words, what is it then we are going to do? Namely, that we will continue to focus on getting the product and production to work, to get it stable and then to be able to deliver to customers so that we can start selling. Det var egentligen allt jag hade tänkt att säga. Jag hoppas att jag ser några av er som är intresserade av bolaget på Stämman, som är nästa vecka, den fjärde. Då kommer jag också ge en uppdatering. Med det hade jag tänkt att tacka för mig. Tack så mycket för att ni lyssnade på vår uppdatering kring rapporten för det första kvartalet. Tack och hej!