Oncopeptides AB (publ)

Welcome to Oncopeptide's third quarter 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 Hagas and CFO Henrik Bergentoft. Please go ahead.

Hi everyone and welcome to the presentation of Oncopeptides report for the third quarter of 2025. My name is Sofia Heggis and I am the CEO of Oncopeptides. As we have increased our shareholder base the last quarter I wish to welcome old as well as new shareholders to this earnings course. This is our standard disclaimer. As usually I'm joined by our CFO Henrik Bergentoft and together we present our financial and operational performance for the third quarter, which is concluding that we are still on track towards becoming a profitable company by the end of 2026. The third quarter was a strategically important period for local peptides, as we knew we would have to demonstrate resilience in execution given the vacation period. Net sales reached 20.2 million sets representing a 174% increase year over year and marking our fourth consecutive quarter over quarter growth. In July, we delivered an all-time high which was followed by another all-time high in September. In between, we saw a seasonal slowdown typical during the European vacation period. And all in all, we saw a quarter of growth, which is a stronger result than the same period in 2024. So even though we are still sensitive to seasonal effects, this is a sign of how we have strengthened our position and advanced our launch. Our cash position at the end of the period was 147.9 million SEK, reflecting the successful completion of a rights issue of 150 million SEK, which was oversubscribed by 157%. The strong investor interest underlies confidence in a long-term strategy and provides the financial flexibility to continue building momentum. while advancing our partnering discussions, including ongoing negotiations in Japan. On the scientific side, PEPAXD continued to gain credibility and recognition, and following its inclusion in the IHA-EMA clinical guidelines earlier this year, new independent publications and real-world presentations at the IMS annual meeting have further reinforced PEPAXD's efficacy and tolerability in real-life use. We also saw continued commercial traction in all our key European markets, with Italy leading the growth, Spain reaching full regional access, and Germany demonstrating more resilience than previous year in the same period. In short, a resilient and strategically important quarter that positioned us well for a strong finished 2025. I'll now hand over to Henrik for a closer look at the financials.

Thank you so much, Sofia. Let's start with the financial summary for the first quarter of 2025. As said, net sales increased to 20.2 million SEK, a 174% growth compared to last year, excluding the milestone payment from the South Korea licensing deal in 2024. This demonstrates significant top-line momentum. The gross profit reached 19.9 million SEK, reflecting a robust gross margin of 99%, which underscores the strength and scalability of our business model. Operating expenses decreased by about 3% for both the quarter and the nine-month period, showing our continued focus on cost control. As a direct function of sales growth and cost control, our EBIT improved from minus 61.3 billion SEK last year to minus 47.1 million SEK this quarter. The net profit amounted to minus 60.9 million SEK, highlighting that this includes net financial items that were impacted by the non-cash fair valuation of warrants amounted to minus 10.6 million SEK. Overall, these results demonstrate strong revenue growth and improved cost efficiency, despite ongoing investments in our operations, altogether taking us towards the next platform of being profitable. Looking at operating expenses, our quarterly sales and marketing cost increased from 29.8 million SEK in 2024 to 31.9 million SEK in 2025. This reflects our expansion efforts with the completion of our organization in Spain and Germany last year and the establishment of our Italian organization this year. General and administrative costs rose just slightly from 18.4 to 19 million SEK this year. Research and development costs decreased from 21.9 million SEK to 17.3 million SEK as we currently have no ongoing clinical studies. However, we are still advancing our preclinical portfolio. All combined, the cost trends shows our commitment to strategic cost conscious growth while maintaining discipline in our R&D spending. Turning to liquidity, our cash position at the end of Q3 amounted to 148 million SEK. following the successful rights issue in the third quarter, which was oversubscribed at 157% and injected approximately 150 million SEC before issue related costs. Our liquidity is now estimated to last until we reach cash flow positive at the end of 2026, assuming continued sales growth. We certainly are proud to have attracted such an interest from both existing and new shareholders in the rights issue. So ending up with some key takeaways from the financial perspective. The company is delivering rapid revenue growth and maintaining exceptional gross margins. Cost control measures are yielding results with operating might mean while revenue is growing. Liquidity is strong and recent capital raise provides a runway for continued execution and growth. The business is well positioned to achieve cash flow positive by the end of 2026, assuming our ongoing sales momentum. That concludes the financial presentation and I'll hand over back to you again, Sofia.