SynAct Pharma (SYNACT) Q2 2024 earnings summary

Executive summary

• Achieved significant progress in advancing resomelagon (AP1189) for rheumatoid arthritis, with Phase IIb ADVANCE study filings in the US and EU and recruitment set for Q3 2024.

• Raised SEK 49 million in a directed share issue, strengthening financial position and investor base.

• Reduced operating expenses by 56% year-over-year, reflecting lower clinical activity post-Phase II trials.

• Board and management changes implemented following extraordinary general meetings in Q2.

Financial highlights

• Net sales remained at SEK 0 for both Q2 and H1 2024, consistent with the pre-revenue stage.

• Q2 operating expenses were SEK 19,167 thousand, down from SEK 43,495 thousand year-over-year; H1 expenses were SEK 44,873 thousand, down from SEK 101,743 thousand.

• Q2 loss after tax was SEK 18,628 thousand (vs. SEK 43,511 thousand); H1 loss after tax was SEK 43,534 thousand (vs. SEK 93,389 thousand).

• Q2 EPS was SEK -0.47 (vs. -1.37); H1 EPS was SEK -1.16 (vs. -2.96).

• Cash and cash equivalents at June 30, 2024, were SEK 62,799 thousand (vs. SEK 44,421 thousand).

Outlook and guidance

• ADVANCE Phase IIb study for resomelagon in RA to begin recruitment in Q3 2024, with enrollment completion targeted for Q4 2025.

• No revenue expected before completion of Phase II program, earliest in 2026.

• Current cash is insufficient for the next 12 months; board is evaluating further capital raising options.