Slide 1: Half-year financial report 2020 conference call presentation
Nanoform Half-year financial report 2020 Conference call presentation Aug 28th 9:00 EEST
Slide 2: Global pharma industry needs a game changer
Global pharma industry needs a game changer In relation to money spent on R&D, few drugs reach the market… only produces ~USD 160bn ~45 drugs annual R&D spend (5 year avg.) per year (5 year avg.) 70-90% of new drugs are poorly …and one of the key reasons for this is low bioavailability soluble1 Sour
Slide 3: 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 4: Particle size is key
Particle size is key Smaller particle size improves a drug’s bioavailability Pre-nanoformation™ Post-nanoformation™ > Smaller particles have a larger surface area > Larger surface area of particles enables better bioavailability of a drug > Improved bioavailability implies better absorption of a dru
Slide 5: The power of CESS
The power of CESS®1 Increased Increased solubility bioavailability Reduced New drugs dose Patent expansions Potentially for reduced customers side effects Increased Reduced environmental Reduced production sustainability capex costs requirement Source: Company information 1) Potential benefits assum
Slide 6: 2020 Key Milestones YTD
2020 Key Milestones YTD Jan June US subsidiary Nanoform USA Inc established Peter Hänninen appointed Nanoform General Counsel 2020 2020 Mar Orion signed as a repeat client to collaborate on next- June Global US Business Development Team expanded with 2020 generation drug development 2020 appointment
Slide 7: Milestones after June 4th IPO
Milestones after June 4th IPO Clients – Two new clients signed - UK respiratory Biotech and West Coast US Biotech Commercial – Global Business Development Team expanded with the appointment of US-based senior executives Eric Peter and Sergie Lester Manufacturing – Number of non-GMP production lines
Slide 8: Nanoform convenes EGM to elect Cynthia Schwalm as board member
Nanoform convenes EGM (Sep 1st) to elect Cynthia Schwalm as board member Cynthia Schwalm Board Member (subject to EGM Sep 1st 2020) • Began her career as an Oncology and Critical Care Nurse at the Albert Einstein Medical Center & Rutgers University Camden Medical Center, where she developed a patien
Slide 9: Near-term business targets for 2020 and 2021
Near-term business targets for 2020 and 2021 Target Guidance Status GMP “GMP approval expected no Achieved - GMP certificate Approval later than Q3 2020” awarded April 2020 ✓ Ongoing “For 2020, our ambition is to Achieved – 4 new customers client intake accelerate our growth by winning more new cust
Slide 10: Nanoform's current client portfolio
Nanoform’s current client portfolio Nanoform targets to achieve scale in APIs Client announced 2019 1 Global large pharma Client announced 2020 Tier 2 – Mid-sized and specialty pharma and biotech ✓ Financially stable organizations ✓ Broad pipeline of APIs in development Mid-sized and specialty pharm
Slide 11: New US based senior executives Sergie Letser and Eric Peter
New US based senior executives Sergie Letser and Eric Peter Sergie Letser and Eric Peter have been appointed to drive Nanoform’s business development in the US. The expansion to Nanoform’s commercial team will give the company a strengthened presence in the US market and enable a continued rate of r
Slide 12: Sales & marketing team
Sales & marketing team CCO and CBO has brought in their industry contacts and expertise to perfect the commercial positioning to the Commercial Pharma industry Associate BD Britta Sergie Madison Letser UK based marketing communication agency supports Nanoform on a continuous basis CCO Christian BD J
Slide 13: Attractive revenue model
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 - assessment of the > API for clinical trials are
Slide 14: Revenue drivers and industry attrition rates
Revenue drivers and 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% 88% > Attrition between previous 90% and current phase 78% 80% > Price per phase per A
Slide 15: Company mid-term business targets 2025
Company mid-term business targets 2025 25 lines of >50 which Cash new APIs 5-10 are flow per year GMP positive compliant >90% ~200 gross employees margin Source: Company information 15
Slide 16: Key performance indicators, KPI's
Key performance indicators, KPI’s Financial KPIs Operational KPIs EUR thousand EUR thousand 4-6/2020 4-6/2019 1-6/2020 1-6/2019 1-12/2019 4-6/2020 4-6/2019 1-6/2020 1-6/2019 1-12/2019 Revenue 191 342 49 Number of new projects started during Gross profit 159 -90 262 -145 -323 the period EBITDA -6,348
Slide 17: Income statement
Income statement Consolidated statement of comprehensive income 1-6/2020 comments EUR thousand 4-6/2020 4-6/2019 1-6/2020 1-6/2019 1-12/2019 > Revenue stemmed from seven PoC projects for clients (7th non-GMP line commissioned during Q2/2020). Revenue 191 342 49 > In Q2 revenue grew 28% sequentially,
Slide 18: Q&A
Q&A
Slide 19: Further enquiries
Further enquiries: Albert Hæggström, CFO albert.haeggstrom@nanoform.com +358 29 370 0150 Henri von Haartman, Director of Investor Relations hvh@nanoform.com +46 7686 650 11 Financial calendar: Interim report for Q3 and January-September report will be published November 27, 2020.