Pharma Equity Group (PEG) Q2 2024 earnings summary

Executive summary

• Positive phase 2 clinical results, especially for RNX-051 in right-sided colon cancer and adenomas, have driven ongoing strategic and operational focus, including expanding studies and preparing for broader international participation.

• Loss after tax of DKK 13.0 million for H1 2024, in line with expectations; equity at DKK 25.9 million as of 30 June 2024.

• No commercial revenue recognized; focus remains on advancing clinical programs for future commercialization.

• Strategic efforts are underway to secure licensing partners and strengthen capital structure, with a focus on maximizing negotiation leverage.

• The company is prioritizing three key drug candidates and expects to provide updates on clinical progress soon.

Financial highlights

• H1 2024 net loss: DKK 13.0 million, compared to DKK 6.8 million loss in H1 2023; net loss for the period was DKK 5.8 million in a previous period, with full-year expectations of a DKK 24–29 million loss.

• Development costs for the half-year increased by approximately DKK 700,000 year-over-year due to organizational growth.

• Administrative expenses rose to DKK 3.1 million in Q2 from DKK 1.7 million the previous year, mainly due to a strengthened organization and professional board.

• Financial expenses increased to DKK 1.3 million from DKK 471,000, with about half related to convertible loans without liquidity impact.

• Cash and cash equivalents at period end: DKK 0.9 million; unused credit facility of approx. DKK 5 million.

Outlook and guidance

• 2024 guidance maintained: expected pre-tax loss of DKK 24–29 million; no commercial revenue anticipated in 2024.

• New guidance for 2025 is expected in Q3 or Q4.

• Strategic focus remains on securing larger investors and licensing partners to support future growth.

• Outlook excludes any potential gains or losses from recovery of the Portinho S.A. receivable.