Nanoform Finland Oyj · OMXHEX:NANOFH
Nanoform Finland Oyj — SEB Nordic Seminar 2023
39 slides from Nanoform Finland Oyj's conference presentation, Jan 9, 2023
Slide 1: Nanoform Management Presentation
Nanoform Management Presentation SEB Nordic Seminar, Copenhagen January 9th, 2023 Our proprietary nanoforming technologies and services span the full range of drug development from small-molecule nanoparticles to large-molecule biologics. We support all phases of drug development, accelerating time
Slide 2: Disclaimer
Disclaimer Forward-Looking Statements This presentation contains forward-looking statements, including, without limitation, statements regarding Nanoform’s strategy, business plans and focus. The words may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” believe,” “est
Slide 3: Nanoform in a Snapshot
Nanoform in a Snapshot The Share Nanoform Platform Technology ➢ Listed June 4th, 2020, on ➢ Global experts in Bulk nanotechnology and ➢ CESS® technology for small drug particle engineering molecules (chemical Nasdaq First North Premier Growth Market in Helsinki API compounds) discovered in and Stock
Slide 4: Global pharma market
Global pharma market 32 in 2022 Projected to reach $1.8tn by 2026 > 5 000 companies < 50 medicines approved R&D expenditure in USA / yr > 20 000 drugs > $200B /yr in development 49 in 2022 Source: U.S. Food and Drug Administration (FDA); IQVIA Institute for Human Data Science; 4 EvaluatePharma; Phar
Slide 5: Low bioavailability is the key issue
Low bioavailability is the key issue Poor bioavailability and low efficacy most common reasons for drug failure Majority of new drugs suffer from poor solubility Solubility Reasons for drug failure in pre-clinical trials (share of molecules) High Low 45% 40% 35% Class I1 Class II1 On market: 35% On
Slide 6: How small is a nanometer (nm)?
How small is a nanometer (nm)? 1 nm = 10-9 m 6
Slide 7: Particle size is key
Particle size is key Smaller particle size can improve a drug’s bioavailability Pre-nanoforming Post-nanoforming ➢ Smaller particles have a larger surface area ➢ Larger surface area of particles enables better bioavailability of a drug ➢ The surface area increases 30 fold from a 10 micron1 sized par
Slide 8: Small molecules - Patented technology
Small molecules - Patented technology Green technology Controlled Expansion of Supercritical Solutions - CESS® > Supercritical CO2 is guided into a pressure 1 vessel loaded with API 1 4 2 > Increasing the pressure and temperature in the 2 vessel dissolves the API in supercritical CO 2 5 > The CO2 an
Slide 9: Small molecules - Small is powerful
Small molecules - Small is powerful® 9
Slide 10: Large molecules - Small is now possible in biologics too
Large molecules - Small is now possible in biologics too Our unique biological nanoforming technology can produce drug particles as small as 50 nm in diameter while retaining biological activity. It is a gentle bottom-up process, and its effectiveness has been demonstrated on peptides and proteins i
Slide 11: Simplified value chain
Simplified value chain High level overview of Nanoform’s value chain and business model Bulk API Launch of new drugs, improving existing drugs & reducing clinical attrition Clients Revenue ➢ Global large pharma Nanoformed ➢ Fixed fee per project ➢ Mid-sized and specialty pharma API ➢ Royalty as a %
Slide 12: Nanoform is here to fill the gap
Nanoform is here to fill the gap The solution to low bioavailability is to decrease the particle size of the Active Pharmaceutical Ingredient (API) Giving unsuccessful Improving Enabling drug candidates existing new drugs a second chance drugs > 20 000 > 58 000 > 5 800 drugs in failed drugs in exist
Slide 13: Commercial Relationships Q4/2019-Q3/2022
Commercial Relationships Q4/2019-Q3/2022 7 major pharma companies e.g. Astra Zeneca and Boehringer Ingelheim 22 mid-sized, specialty pharma & biotech companies e.g. Pharmanovia, Herantis and TargTex 1 co-development 3 collaborations e.g. Aprecia and Celanese Corp 13
Slide 14: Selected Company Milestones 2022
Selected Company Milestones 2022 NEW NANOFORM FILED ASTRAZENECA PLC HIGLY PROMISING NANOFORM COLLABORATION TO FIMEA A CONCLUDES IN-VIVO DATA PARTNERS AGREEMENT "NOTIFICATION OF AN TECHNOLOGY FOR WITH WITH 3 PARTNERS UPDATE TO EVALUATION WITH GLIOBLASTOMA PHARMANOVIA FOR A BLOCKBUSTER MANUFACTURER'S
Slide 15: Tumour Eradication in Rodents from a Nanoformed Glioblastoma drug
Tumour Eradication in Rodents from a Nanoformed Glioblastoma drug • In-vivo study (rodents) conducted by customer TargTex. • The nanoformed drug product provided a controlled release and deep drug diffusion across the brain parenchyma. • Results were presented October 2022 at PODD in Boston: 1) Long
Slide 16: New collaboration agreement - for a blockbuster drug
New collaboration agreement - for a blockbuster drug • Nov 2021 - Agreement to manufacture nanoformed GMP material on a existing blockbuster drug for a European headquartered international company. • Nov 2022 - Following 12 months of preclinical development work, 2 privately held European pharmaceut
Slide 17: Business Model, Financials, Business Targets 2025
Business Model Financials Business Targets 2025 17
Slide 18: Revenue drivers & industry attrition rates
Revenue drivers & industry attrition rates Nanoform pre-clinical and clinical revenue drivers Global Pharmaceutical industry’s pre-clinical and clinical success rates NME Biologic Non-NME 1) Non-GMP GMP 100% 90% ➢ Attrition between 90% 88% previous and current phase 80% 78% 74% ➢ Price per phase per
Slide 19: Nanoform - Attractive revenue model
Nanoform - Attractive revenue model Predictable revenue streams through capitalizing the entire pharmaceuticals value chain Phase Proof of Concept / Proof of Process Phase I – III trials Drugs on the market Certification Non-GMP GMP GMP ➢ Proof of concept study - ➢ API for clinical trials are ➢ Drug
Slide 20: Nr of employees & nr of lines ~4x during last 3 years
Nr of employees & nr of lines ~ 4x during last 3 years Nr of employees Nr of lines 160 18 17 143 140 16 14 116 14 120 12 100 10 80 68 8 8 60 48 6 6 34 34 4 4 40 27 4 3 17 20 2 1 0 0 3Q19 3Q20 3Q21 3Q22 3Q19 3Q20 3Q21 3Q22 Nr of employees Added in 1 year Nr of lines Added in 1 year 20
Slide 21: Number of projects
Number of projects Nr of projects signed in 9M and cumulatively Nr of projects generating revenue 50 - rolling 12 months 45 2 40 36 40 35 32 35 30 30 30 25 22 25 19 20 43 20 17 17 15 15 12 26 10 9 10 7 14 15 6 5 9 5 7 0 0 9M20 9M21 9M22 =>9M20 =>9M21 =>9M22 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 3Q21 4Q21 1Q
Slide 22: Continued revenue growth
Continued revenue growth (EURm) Revenue Revenue - rolling 12 months (EURm) 3.00 3.50 3.16 2.50 3.00 2.78 2.50 2.44 2.50 2.00 1.95 2.00 1.50 1.49 1.30 1.50 1.17 1.00 0.85 1.00 0.82 0.69 0.55 0.50 0.50 0.39 0.48 0.20 0.50 0.16 0.00 3Q20 2Q21 1Q20 2Q20 4Q20 1Q21 3Q21 4Q21 1Q22 2Q22 3Q22 0.00 3Q20 3Q21
Slide 23: with record gross profit and gross margin
with record gross profit and gross margin (EURm) Gross profit & gross margin Revenue, gross profit & margin 3.00 100% (EURm) - rolling 12 months 96% 93% 95% 3.5 92% 92% 92% 93% 100% 91% 89% 2.50 88% 85% 90% 90% 3.0 78% 72% 80% 85% 2.5 2.00 70% 80% 2.0 60% 1.50 72% 75% 1.5 40% 50% 70% 40% 1.0 1.00 64
Slide 24: Nanoform mid-term business targets 2025
Nanoform mid-term business targets 2025 35 lines >70 of which new APIs 200-250 7-14 are employees per year GMP compliant >90% Cash flow gross positive Strong margin balance sheet, €76m in cash, no debt (Q3 2022) API = Active Pharmaceutical Ingredient 24 GMP = Good Manufacturing Practice
Slide 25: Q&A
Q&A www.nanoform.com San Diego - Chicago - New York - Lisbon - Newcastle - Oxford – London - Cambridge - Bordeaux - Stockholm - Helsinki 25
Slide 26: Appendix
Appendix 26
Slide 27: Nanoform educational material
Nanoform educational material VIDEOS CPhI Discover 2021 presentation: “Overcoming Drug Development Challenges with Nanotechnology” – Nanoform, Johnson Matthey and Quotient Sciences experts shared insights into the power of sparse-data AI in drug development and the collaborative studies investigatin
Slide 28: Selection of Nanoform Institutional Shareholders
Selection of Nanoform Institutional Shareholders1 1) Latest ownerhsip data can be found at https://nanoform.com/en/ownership-structure/ 28
Slide 29: Nanoform end of Q3 2022 vs June 2020 IPO
Nanoform end of Q3 2022 vs June 2020 IPO IPO June 2020 September 2022 Growth Employees 50 143 ~3x Nationalities 9 30 ~3x PhD's 18 40 ~2x Commercial team 2 11 ~5x Manufacturing lines 5 17 ~3x Customers enrolled 5 33 ~7x Customer projects started 5 45 ~9x 29
Slide 30: Financial KPI's
Financial KPI’s Financial KPI's EUR thousand 7-9/2022 7-9/2021 1-9/2022 1-9/2021 1-12/2021 1-12/2020 1-12/2019 Revenue 85 7 2,50 30 955 7 A9 F nue growtt 9 159 185 r n.m G profit Investments in property, plant, and equipment nanoform.com | @nanoformf
Slide 31: Income statement
Income statement 1-9/2022 comments ➢Revenue grew by 92% to EUR 2.50 million in 9M22, stemming from 33 different customer projects (18 projects in 9M21). The impact from the two GMP contracts signed in 4Q21 was yet modest on the revenue recognized. Revenues are recognized over the lifetime of the pro
Slide 32: Operational KPI's
Operational KPI's Operational KPI's 7-9/2022 7-9/2021 1-9/2022 1-9/2021 1-12/2021 1-12/2020 1-12/2019 Total number of new customer projects 2 6 15 14 18 10 2 Total number of lines (end of period) 17 14 17 14 15 9 4 Number of ¢ nanoform.com | @nanoformf
Slide 33: Nanoform near-term business targets 2022 – status at Q3 report 2022
Nanoform near-term business targets 2022 – status at Q3 report 2022* HIGH POTENT Topic Target Status GMP Line Capacity “2 new GMP lines in 2022” GMP2 achieved, GMP3 on track Biologics pilot-GMP “Biologics pilot line for GMP in 2022” Achieved “At least 20 new customer non-GMP Non-GMP Projects project
Slide 34: Small molecules - CESS Superior to Existing Technologies
Small molecules - CESS® Superior to Existing Technologies CESS® comparison with existing technologies Controlled Expansion of Solid dispersion Supercritical Solutions Jet milling Nanomilling (e.g. spray drying) (CESS®) Extracts API from supercritical CO2 API is dispersed into a solid Application of
Slide 35: International team of highly skilled professionals
International team of highly skilled professionals Personnel split by main functions R&D and non-GMP projects 1% 2% GMP Manufacturing 4% ~150 ~30 4% Quality Control employees 5% nationalities Quality Assurance 33% Sales & Marketing 6% Administration 6% Finance Balanced ~40 PhD’s Project Management c
Slide 36: Global sales team
Cambridge Helsinki Chicago Chief Commercial Officer Commercial Associate Vice President Christian Jones Britta Madison Helsinki Business Development Commercial Associate Sergie Letser Leonor da Silva Oxford Commercial Insights Officer Dr. Jamie Unwin San Diego Durham Vice President Vice President Bu
Slide 37: Management team: Multi-disciplinary with international merits
Management team: Multi-disciplinary with international merits CEO & Co-founder; Ph.D. (applied Physics), MBA CFO and member of the Board; B.Sc. (Econ.) Edward Hæggström Albert Hæggström • Professor at the University of Helsinki, Head of Electronics Research Lab. • 20 years of finance and investing e
Slide 38: Board of directors: Top executives from leading industry positions
Board of directors: Top executives from leading industry positions Miguel Calado Albert Hæggström Chairman of the Board CFO and Board Member • Previously CFO at international particle engineering CDMO • 20 years of finance and investing experience company Hovione Group • Prior roles include senior p
Slide 39: Further Enquiries
FURTHER ENQUIRIES CFO Albert Hæggström albert.haeggstrom@nanoform.com / +358 29 370 0150 Director of Investor Relations Henri von Haartman hvh@nanoform.com / +46 7686 650 11 FINANCIAL CALENDAR Jan 9, 2023 - SEB Nordic Seminar, Copenhagen Jan 18, 2023 - Analyst Day (sell side) at Nanoform HQ, Helsink