Second Quarter April – June 2019
- Nets sales: TSEK 0 (0)
- Other operating revenues TSEK 3,137 (0)
- Profit from financial items: TSEK -2,814 (-2,159)
- Earnings per share: SEK -0,05 (-0.13)
Period January – June 2019
- Nets sales: TSEK 0 (0)
- Other operating revenues TSEK 4,772 (50)
- Profit from financial items: TSEK -5,285 (-4,158)
- Earnings per share: SEK -0.10 (-0.24)
- Liquidity as per the end of the reporting period: TSEK 21,839 (3,561)
- Equity/assets ratio as per the end of the reporting period: 59,35 (77.07) %
Operations during the second quarter of 2019
- CombiGene has submitted a public offering to holders of shares and warrants of series TO1 in Panion Animal Health AB (publ).
- CombiGene has held a meeting with a clinical advisory board in the UK to elucidate how CG01 can be used in practice in health care.
Significant events after the end of the reporting period
- CombiGene extends the acceptance period for holders of shares and warrants in Panion.
- CombiGene completes the offer to holders of shares and warrants in Panion, concludes the acceptance period and decides to introduce a non-cash issue. After completion of the offer CombiGene controls 21,959,690 shares and 3,847,594 warrants, corresponding to 88.35 percent of the total number of shares and votes in Panion and about 84.91 percent of the total number of the outstanding warrants.
A word from the CEO
The second quarter of 2019 has involved continued intensive work with our candidate drug, CG01, with focus on preparations for the very important toxicology and biodistribution studies. During the quarter CombiGene submitted a public takeover bid to holders of shares and warrants of series TO1 in Panion Animal Health AB (publ). Among other things, the purpose of the offer was to take advantage of the practical and financial synergies in both companies’ development processes and partnering. As of the close of July we hold 88.35 percent of the total number of shares and votes in Panion and about 84.91 percent of the total number of the outstanding warrants. Based on this fundamentally positive outcome, CombiGene decided to complete the offering.
Continued high level of activity in the CG01 project
Progress on CG01 has continues during the first half of the year. We expect to complete final selection of the CMO and CRO companies (Contract Manufacturing Organisation and Contract Research Organisation) during 2019. On our behalf, the CMO and CRO companies will produce CG01 and conduct the safety studies which are necessary before clinical trials can begin.
CombiGene completes the offering to Panion’s shareholders
In April CombiGene submitted a public takeover bid to holders of shares and warrants of series TO1 in Panion Animal Health AB (publ). In late June we extended the acceptance period until July 10th. As of the close of the acceptance period it was apparent that we ha gained control of 88.35 percent of the total number of shares and votes in Panion and about 84.91 percent of the total number of the outstanding warrants. CombiGene has thereby completed the offering to Panion. The acquisition will be financed via the recently announced non-cash issue.
Naturally, it would have been more gratifying if we had acquired at least 90 percent of the shares and warrants. At the same time it is very pleasing to note that so many wish to be shareholders in CombiGene. However, we will control more than 88 percent of the shares and nearly 85 percent of the warrants, which means that we will reach all of our original objectives with respect to the acquisition of Panion. Among the most important of these are the practical and financial synergies synergies to be realized in the development process and, not least, in our efforts to find interesting partners. We also gain full control over our intangible assets, which is particularly important with respect to our relations with future strategic partners.
CombiGene’s business development
CombiGene’s business development strategy is twofold. While we are actively seeking interesting new gene therapy projects that match CombiGene’s business, for several years we have also been working continuously to establish and maintain good contacts in the international pharma industry in order to pave the way for future collaboration.
These discussions are ongoing, above all, at various types of conferences and congresses. During 2019 we have also been asked by pharmaceutical companies with whom we have not had previous contact to present CG01. This is something of a new situation for us; previously, CombiGene has always taken the initial contact.
In early June CombiGene’s chairman, Arne Ferstad, and I took part in the BIO International Convention in Philadelphia, USA. The BIO International Convention, the world’s largest partnering event in the field of life sciences, is an excellent opportunity to meet players of potential interest. CombiGene has participated in this gathering several times and has established many valuable contacts among CRO/CMO companies, institutional investors and major pharma companies.
During 2018 we identified several academic groups that are working with gene therapy solutions which, in the long term, could prove interesting for us. However, it is too soon to say with any certainty exactly when any possible collaboration can be initiated.
Jan Nilsson
CEO