Consolidated interim report 1 January – 31 March 2023
May 10 2023 - 12:49AM
Consolidated interim report 1 January – 31 March 2023
May 10,
2023
Announcement
no. 31
Consolidated interim report 1
January – 31 March 2023
Key points
(Q1
2023)
The transaction with Reponex
Pharmaceuticals A/S
On 10 May 2023, the Board of Directors and
Executive Management of Pharma Equity Group A/S ("PEG" or "the
Group") have considered and approved the reviewed consolidated
interim report for the period 1 January – 31 March 2023, which has
been subject to review performed by the Company’s independent
auditor. The comparative figures for 1 January – 31 March 2022 have
neither been audited nor reviewed.
The transaction between Pharma Equity Group A/S
and Reponex Pharmaceuticals A/S ("Reponex") became final on 28
March 2023. This is PEG’s first investment in Biotech companies and
PEG is the first Danish biotech company in several years to be
listed on Nasdaq Copenhagen main market stock exchange.
As a result of the transaction in Q1 2023, a
legal group has been established with PEG as the legal parent, and
Reponex as a 100% owned subsidiary, and hence PEG is required to
publish consolidated financial statements for the first time from
2023. As further described in the Q1 interim report, the
consolidated financial statements have been prepared applying the
rules for reverse take-over where Reponex has been identified as
the acquirer for accounting purposes.
About Reponex
Pharmaceuticals
Reponex is a Danish biopharmaceutical company
with a pipeline based on the innovative thinking of Danish
clinicians, and the clinical development takes place in close
collaboration with public research institutions and university
hospitals in Denmark.
Reponex has six promising drug candidates under
clinical development and testing in four areas, each of which is
characterized by a great need for treatment, where Reponex is
currently expected to offer better and/or cheaper treatments:
• Prevention of colon and rectal cancer and
prevention of metastases
• Prevention and treatment of bacterial
peritonitis
• Alleviation of the symptoms of the
inflammatory disorders Crohn's disease and pouchitis
• Treatment of chronic wounds and infected
chronic wounds
Reponex's repositioning strategy and model make
it possible to meet the treatment needs of patients faster than
with conventional drug development, and at the same time the total
development costs and risks associated with drug development are
significantly lower. With its listing, PEG can attract the
investors needed to realize the great potential of the business
model and to get the individual drug candidates all the way to the
patients, where they can make a difference.
Reponex takes drug candidates up to and
including clinical phase 2, where a data basis has been obtained
that confirms the drug's clinical relevance. After this, the
strategy is to enter into license agreements with larger
pharmaceutical companies, which can take the drugs further in the
process towards the final regulatory approval for marketing and
distribution.
In 2023, Reponex is expected to continue
investing in the development of the existing portfolio of drug
candidates and it is expected that the organization in both Reponex
and in PEG will be strengthened in several areas. In addition, it
is expected that the efforts to enter into partnerships will be
strengthened. There will also be a particular focus on increasing
the awareness of PEG and Reponex among potential investors
throughout 2023.
Financial
Summary
PEG achieved in Q1-2023 a loss after tax of DKK
2.9 million, which is in line with expectations for the quarter. As
of 31 March 2023, Equity equals DKK 61.4 million.
Outlook
PEG maintains the previously announced
expectations for 2023, a loss before tax in the range of DKK 18 to
DKK 22 million. The outlook does not reflect any potential
gains/losses relating to the upcoming settlement of the Portinho
S.A receivable.
Receivable from
Portinho S.A.
The Group’s receivable from Portinho S.A has a
principal outstanding amount of EUR 9.55 million. An agreement was
reached at the beginning of 2021 with settlement date being
deferred until 1 July 2023 at the latest.
The receivable is included in the statement of
financial position on 31 March 2023 with a carrying value of DKK
62.4 million based on a fair value assessment required by IFRS
regulation as a result of applying the accounting rules for reverse
take-over.
Capital
resources
PEG has entered into agreements with its
financial lenders that the financial loans fall due when payment is
received from Portinho S.A.
If for any reason, PEG has to or will accept an
agreement about postponing the settlement date, PEG has agreed with
most of its financial lenders that the payment of the financial
debt similarly will be postponed through individual instalment
plans where debt of DKK 15.6 million will not be required to be
paid until after 31 March 2024.
Contact person – Investor
Relations
Please see the Company’s website
www.pharmaequitygroup.com further information and all published
announcements can be found.
Inquiries regarding relations with investors and
the stock market can be directed to:
Thomas Kaas Selsø, CEO, Phone: +45 4022 2114
E-mail: investor@pharmaequitygroup.com
- 2023 05 10 - Q1 Report - PEG- FV
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