EVENTS IN THIRD QUARTER
· An Extraordinary General Meeting on November 6, 2019 resolved to authorize the Board of Directors of Oasmia to carry out the proposed rights issue of shares with preferential rights for Oasmia’s shareholders.
· The fully subscribed rights issue generated proceeds of approximately SEK 399 million before transaction costs.
EVENTS AFTER THE BALANCE SHEET DATE
· Oasmia launched its product, Apealea® 60 mg, in Sweden, Denmark and Finland. The first batch of the drug was shipped to distributors in these countries.
· The Board of Directors appointed Dr. Francois Martelet as the new CEO. He took up his position on March 9 and replaced Dr. Sven Rohmann, who has been acting CEO during a crucial transition period. Dr. Rohmann remains in his position as Board member and will continue to play an active role in the company’s commercialization strategy going forward.
· The outbreak of Covid19 and its effects on society accelerated during March. Due to the situation with the Covid 19 virus, the company is experiencing a slowdown in its Apealea launch activities in Sweden, Denmark and Finland. The Board and Management are monitoring the situation closely.
· Oasmia and Elevar signed a global strategic partnership for the commercialization of Apealea® with an upfront payment of USD 20 million, milestone payments with a potential of up to USD 678 million and double digit royalties.
THIRD QUARTER November 1, 2019 – January 31, 2020
· Consolidated net sales amounted to TSEK 144 (1,427)[1]
· Operating loss was TSEK -57,708 (-26,248)
· Net loss after tax amounted to TSEK -59,212 (-30,260)
· Loss per share was SEK -0.16 (-0.10)[2]
THE PERIOD May 1, 2019 – January 31, 2020
· Consolidated net sales amounted to TSEK 577 (1,714)[1]
· Operating loss was TSEK -141,198 (-75,626)
· Net loss after tax amounted to TSEK -117,594 (-122,343)
· Loss per share was SEK -0.42 (-0.47)[2]
[1] Figures in brackets show outcomes for the corresponding period of the previous financial year.
[2] The key figures in this report have been adjusted for the bonus issue component in the rights issue carried out during the period.
CEO’S COMMENTS
The strategic partnership moves us to the next level of growth
Having been on the job for a very short time, I am impressed with the Oasmia achievements over the last 18 months in particular with the rights issue last December. Let me thank Dr. Sven Rohmann, former acting CEO, and the management team who have done a great job in the recent months with the approval and launch of Apealea® 60 mg in the Nordics as well as the groundwork for the strategic partnership that we have announced earlier this week.
One of the main reasons why Oasmia is quite unique in the biotech world because it is an integrated pharmaceutical company with R&D, production, marketing and sales capabilities. Now it is time to review and strengthen our internal capabilities in order to become a significant European oncology player. We will now work on articulating a business plan that will be matching our high expectations. We will then be focusing on the execution of the plan to transform the company accordingly.
As we announced on March 25, Oasmia and Elevar Therapeutics Inc. have signed a global strategic partnership deal regarding the commercialization of Oasmia’s anticancer product Apealea®. The overall deal value is USD 698 million and royalties, that includes an upfront fee of USD 20 million and milestone payments with a potential of up to USD 678 million depending on Elevar’s achievement of future sales milestones, clinical development milestones and regulatory approval milestones. Elevar will also pay Oasmia double-digit royalties on the sales of Apealea®.
We view this deal as a major step forward for Oasmia that will propel the company into the commercialization space and we will be working in close collaboration with Elevar in order to maximize the value of the deal. We will also be looking at strengthening our portfolio by licensing in and/or acquiring other oncology assets, in line with our ambition to become a major oncology player in Europe.
We will continue to maximize the value of our core technology platform XR-17 by generating new oncology compounds. Nowadays, the development will very much be about combinations of chemotherapies with immunotherapy and also about targeted anti-cancer drugs. Oasmia and its technology platform is in a good position to be at the forefront of that development.
Today we are carefully monitoring the Covid19 situation and its impact on our community. We are experiencing a slowdown in our Apealea launch activities in Sweden, Denmark and Finland due to the situation with the Covid19 virus.
I will do my best to communicate in a transparent and ethical way with shareholders, investors and the medical community going forward. On a personal note, I am delighted to be back working in Sweden where I lived many years ago.
Dr. Francois Martelet, CEO of Oasmia
For more information:
Urban Ekelund
IR Manager Oasmia
Phone: +46 18-50 54 40
E-mail: IR@oasmia.com
About Oasmia Pharmaceutical AB
Oasmia Pharmaceutical AB develops, manufactures, markets and sells an improved generation of drugs within human and veterinary oncology. Product development aims to produce novel formulations of well-established cytostatic agents which show improved performance, an improved side-effect profile and a wider range of therapeutic areas compared with existing alternatives. Product development is based on Oasmia’s proprietary technology platform XR-17. Oasmia has been successful in driving its first product candidate, Apealea® (paclitaxel micellar), through clinical development, and has applied for and achieved market approval in the European Union and other territories. Oasmia is in the process of transitioning into the commercialization phase of the product Apealea® and making the product accessible to patients via its partnership with Elevar and its existing operations and partnerships in its retained territories.