Oncopeptides AB (publ)

Welcome to Oncopeptide's Q2 Earnings Call for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO Sophia Higas and CFO Henrik Bergentoft. Please go ahead.

Hi everyone and welcome to the presentation of Oncopeptides report for the second quarter of 2025. This is our standard disclaimer. I'm Sofia Hegis, CEO of Oncopeptides and I'm joined by our CFO Henrik Bergentoft who will give a financial update in just a few minutes. Let's start with the highlights from the quarter. Q2 was an eventful quarter and we took strong steps forward in Europe. We reached net sales of 19.2 million SEK. That's up 45% compared to Q1 and 135% versus last year. It's worth to point out that this is our third quarter in a row with more than 30% growth. Germany continues to perform well. Spain and Italy has been moving faster than expected on regional access and the positive clinical experience generated has already now been translated into real world publications that is supporting our launches. Momentum has carried into the summer too. Sales in July were three times higher than July last year. As August is a vacation period in most of Europe, we believe a strong July to be especially important. Another big milestone from outside of the quarter, PEPAXTI is now included in the EHA-EMN guidelines. This is an external validation of PEPAXTI's position in the treatment landscape and the recognition from leading experts that support us to build awareness and adoption. The amount of real-world data following the increased use of PEPAX-D in Europe is increasing, and we are pleased to have announced that studies from Spain and Italy will be presented at the IMS Congress in September, showing PEPAX-D's effectiveness and tolerability in the everyday practice. Outside of Europe, we continue to progress in Japan and we have received non-binding offers from two partners and are in advanced discussion with one. I will come back to Japan in more detail soon. To make sure we can keep building on this momentum, we've announced the rights issue of up to 150 million SEK. That will give us financial flexibility we need as we continue towards cash flow positivity in 2026. I will now hand over to Henrik to speak more about this and give a general financial update.

Thank you so much, Sofia. As the company has communicated since the release of our year-end report in February, we have been exploring various alternatives to financially support our plan to cash flow positivity towards the end of 2026. After a thorough analysis of our options, the company today announced the rights issue of 150 million SEC authorized by the AGM in 2025 and decided to be guaranteed up to 130 million SEC. The funds rates will be strategically used to ensure the ongoing commercial operations for Papaxity in Europe, executing the core company target aimed at achieving positive cash flow by the end of 2026, requiring an average quarter of a quarter sales growth of approximately 30 to 40%. Additionally, the proceeds will help advance the company's preclinical project portfolio and enhance business development opportunities. The commitment from the main owner HealthCap along with certain members of the management and the board of directors underscores confidence in the company's fundamentals. Notably, the company has demonstrated robust growth with three consecutive quarters exceeding 30% sales growth. And we are also actively negotiating a license agreement in Japan, all of which reinforce the long term positive outlook. This financial summary highlights the key performance metrics over the recent periods, showing a strong upward trend in net sales with a 45% growth compared to Q1 2025 and a 135% increase from Q2 2024. This marks the third consecutive quarter with a quarter-over-quarter sales growth of plus 30%. Despite this growth, operating expenses have remained stable compared to the previous quarter and are significantly lower than last year, reflecting the improved cost efficiency. Overall, the quarterly results demonstrate that the company is successfully scaling revenue while managing expenses carefully, positioning itself for profitability towards the end of 2026. In examining our operating expenses, we see the results of focused cost management. Sales and marketing costs have only slightly increased, reflecting our focus on efficiency, as we now see complete commercial organizations in Spain, Germany and Italy. General and administrative costs have seen a temporary increase in the quarter, mainly related to efforts in evaluating the most optimal financing for the company, as we saw the result of today. Research and development expenses has deliberately been decreased. Still, we continue to advance our preclinical portfolio. The measurable drop in costs from last year indicates our commitment to maintaining a lean operation while still investing in future growth. This slide focuses on the company's liquidity status. Highlighting a cash balance of 70 million SEK at the end of the second quarter, the cash position aligns with the company's expectations and communication that reaching cash flow positive requires additional financing. In line with what we have communicated today with the announcement of rights issue of 150 million SEK. To strengthen the liquidity, a short-term credit line of 20 million SEK has been utilized during the quarter, providing flexibility and time to secure the optimal financial solution for the company. Importantly, after today's launch rights issue, the company anticipates maintaining a sufficient liquidity position until it reaches positive cash flow by the end of 2026. This outlook is based on the company maintaining an average quarter over quarter growth rate of approximately 30 to 40%. This marks the end of that financial presentation and now I hand over back to you again, Sofia.