Oncopeptides AB (publ)

Welcome to Oncopeptide's year-end 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.

Hello everyone and welcome to the presentation of Oncopeptide's year-end report for 2025. My name is Sofia Hegis and I'm the CEO of the company. Before we begin, I would like to direct your attention to our standard disclaimer regarding forward-looking statements. I am joined by our CFO, Henrik Bergentoft, and today we will review a highly transformative year for the company and outline a 2026 that brings exciting potential. Let's look at where we stand today. As we have already communicated, we delivered strong commercial progress in 2025, with full year net sales more than doubling to 71.1 million SEK, representing a 125% increase compared to 2024. For the fourth quarter, net sales reached 18.6 million SEK, an 88% increase compared to the same period in 2024. We have today also announced a rights issue of up to 200 million SEK, allowing us to invest in the first step to expand our PDC platform into the high unmet need of glioblastoma patients. An opportunity that comes with the potential to unlock significant value for both patients and oncopeptides in the future. The rights issue will furthermore bridge our commercial operations towards our goal of positive cash flow in 2027. Henrik will discuss this in more detail shortly. The fourth quarter was shaped by a diverse performance in our key markets. The demand for pipaxity in Italy exceeded our expectations. Our positive growth trajectory during the first half on European level was however muted during the second half of the year by a slower than expected growth in Germany and a medical doctor strike in Spain during Q4. Looking at events post-period, we have completed a strategic review of our German as well as R&D operations to sharpen our focus and optimize our business model. As many of the facts and figures for the fourth quarter has already been communicated, I will spend much of this presentation focused on our pipeline and the exciting opportunities that comes with the potential to completely transform oncopeptides. Before that, I will hand over to Henrik to provide a closer look at our financials and the rationale behind today's capital race.

Good morning and thank you all for joining today's call. Let me begin with the rights issue announced today. Based on the mandate received from the AGM in 2025, the board has decided to launch a rights issue of 200 million SEK. of which 190 million is guaranteed through underwriting and subscription commitments. Our main shareholder, HealthCap, together with members of management and the board, intend to participate in the rights issue. The purpose of the rights issue is to support the continued commercialization of hepaticity in Europe. While the Lawrence efforts have been focused and diligent, external market factors have negatively impacted the acceleration of our sales trajectory. Hence, the company has assessed the additional liquidity required for our commercial operations to reach cash flow positivity in 2027, based on the European commercialization of the taxi. In addition, we have promising development projects within our pipeline, particularly related to the indication glioblastoma. Part of the proceeds will be used to enable a window of opportunity study in man for glioblastoma, an important step in clinical advancement of the assets. Turn into the quarter's financial performance. Net sales for the fourth quarter increased to 18.6 million SEC, nearly doubling compared to the same quarter last year. For the full year, net sales more than doubled to 71.1 million SEC. Gross profit for the year came in at 68.7 million SEC, corresponding to a strong gross margin of 97%. which continues to demonstrate the scalability and robustness of our business model. Operating expenses decreased by 16% in the quarter and 7% for the full year, reflecting disciplined cost control across the organization. EBIT for the year improved to minus 224.7 million SEC from 283 million minus SEC last year. The full year financial items were impacted by a non-cash fair valuation of warrants amounting to minus 12.2 million SEK. All in all, the year showed strong revenue growth, stable gross margin and reduced operating expenses. All key pillars supporting a path towards a positive cash flow in 2027. Looking more closely at our operating expenses, sales and marketing expenses for the full year amounted to 137.2 million SEC in line with last year. Already during 2024, we finalized our commercial organization in Spain and Germany, and in 2025, we established our Italian organization, all key markets for the launch of Apaxity in Europe. General and administrative costs decreased to 57.4 million SEK from 60.8 million SEK, while R&D expenses decreased to 103 million SEK from 121.2 million SEK, reflecting a more focused R&D structure. We currently have no ongoing clinical studies, but we have made meaningful progress in our preclinical portfolio, particularly with glioblastoma. The chart illustrates the quarterly development of our operating expenses over time, showing a steady and disciplined cost trend that supports our financial targets. Finally, a look at liquidity. Cash at year end amounted to 82 million SEK. Our liquidity position will be significantly strengthened through the announced rights issue of approximately 200 million SEK. With the proceeds from the rights issue, we will be well positioned to continue executing our strategy and drive value creation. The proceeds will enable us to maintain momentum in our European launch while accelerating the development of our PDC platform towards indications beyond multiple myeloma. where we particularly look forward to initiating our clinical trial in glioblastoma in 2026, where we have the potential to address a significant unmet medical need. And by that, I conclude the financial update and hand over back to you, Sofia.