AroCell AB: Interim report, Q2 2017
AroCell AB (publ)
Reporting period 1 April - 30 June 2017
- Net sales were 237 (0) KSEK
- Losses after financial items were - 3,606 (- 1,962) KSEK
- Earnings per share were - 0.27 (- 0.17) SEK
- Cash flow from operating activities was - 3,163 (- 1,229) KSEK
- Cash flow from investing activities was - 318 (- 1,800) KSEK
Interim report, 1 January - 30 June 2017
- Net sales were 293 (0) KSEK
- Losses after financial items were - 7,831 (- 4,804) KSEK
- Earnings per share were - 0.27 (- 0.17) SEK
Revenues and expenses April - June 2017 (2016) KSEK
Sales for the period were 237 (0). Expenses were 3,771 (1,962). Taking into account capitalization of R&D, total expenses for the same period in 2016 amounted to 3,762. As the product has been fully developed and CE-marked, R&D expenses are no longer capitalized. According to plan marketing and sales expenses have increased which reflects our ambition to get TK 210 ELISA test to the market. Total cash flow for the period was -3,531 (-3,029). Cash at the end of the period was 24,423.
Revenues and expenses January - June 2017 (2016) KSEK
Sales for the period were 293 (0). Expenses were 8,052 (4,804). Taking into account capitalization of R&D, total expenses for the same period in 2016 amounted to 9,824. As the product has been fully developed and CE-marked, R&D expenses are no longer capitalized. According to plan marketing and sales expenses have increased which reflects our ambition to get TK 210 ELISA test to the market. Total cash flow for the period was -8,429 (-7,521). Cash at the end of the period was 24,423.
AroCell is obliged to make public this information pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication through Jan Stålemark, at 08:15 CET on 24 August 2017.
About AroCell
AroCell AB (AROC) is a Swedish company that develops standardized modern blood tests to support the prognosis and follow up of cancer patients. AroCell's new technology is based on patented methods to measure TK1 protein levels, which provide valuable information about the rate of cell turnover. A tumor has high cell turnover (rate of cell division and cell death) and as a result TK1 can be detected in the blood with a simple laboratory test, called TK 210 ELISA. The test provides valuable clinical information for prognosis and optimization of treatment strategies. The test may also be used for monitoring disease relapse. AroCell (AROC) is listed at Nasdaq First North and has about 2,500 shareholders. For more information, please see www.arocell.com. Redeye AB is AroCell:s Certified Adviser.
CEO Comments
As a result of our increased commercial activities we have begun to receive the first commercial orders from customers which is encouraging. The increase in the interest of our TK 210 ELISA test comes from pharmaceutical companies, IVD (in vitro diagnostic) companies as well as academic research groups. The key point of interest is that TK 210 ELISA is unique and the only CE marked IVD test for measuring TK 1 protein concentrations on the market. The AroCell team has been actively promoting TK 210 ELISA with potential customers in the US, Europe and Asia to identify future business opportunities. Recently a road tour has taken place in Japan and valuable contacts established.
The clinical validation remains a priority to ensure customer acceptance and long term growth. We have made good progress in the clinical development plan and we are excited about the first results which have been submitted for publication. The biomarker data specific to TK 210 ELISA from the Swedish Promix multicentre study has been submitted for presentation at a scientific meeting towards the end of this year. We will be able to share these results when they have been accepted for publication.
The second half of the year will be focused on further increasing customer interactions and identifying new opportunities for using TK 210 ELISA in clinical practice. There is also a focus on the R&D program to provide further data to support the clinical use of TK 210 ELISA.
Jan Stålemark
CEO
Essential risks
Financial risks
AroCell's business activities are based on external financing. To date, the company has been successful in obtaining financing, but there are not guarantees of this happening in the future in a way that is advantageous to the company's shareholders. A sufficiently serious failure in future financing may affect the company's development and market value.
Development and production risks
Development and transfer to production are always associated with risks. A product manufactured at production scale does not always display the same characteristics as one manufactured at research scale. Developing future products may also prove to be more complicated and take longer than expected.
Commercialization risks
There is always a risk that the products AroCell has developed will not achieve the expected positive reception on the market and that the product will need longer time to gain acceptance. Particularly in the early stages, the quantity of products sold may then be lower and the time it takes to establish the product on the market may be longer than the company allowed for in its sales estimates.
Currency risks
The company expenses are partially based in Euro, and this means that there is a risk that weakening of the Swedish krona against the Euro may lead to increased expenses for the company. A portion of the sales proceeds in future can be associated with currencies from other countries, which means that there is a risk that if the Swedish krona becomes stronger to other currencies, this may lead to decreased profits for the company in SEK.
In addition, there are risks associated with patent security and how the market assesses studies, approvals and certifications. Taking risk factors into consideration in decision processes and when designing routines and drawing up documentation means that the risks are assessed and their effects can be minimized, and to some extent, avoided.
The share
AroCell AB (publ) was listed on Nasdaq First North, Stockholm, June 30 2016 under AROC.
On March 31, 2017 there were 28 674 506 shares (quota value SEK 0.10).
Accounting principles
This Interim Report has been prepared in accordance with the Swedish law: Årsredovisningslagen and Bokföringsnämndens allmänna råd BFNAR 2012:1 Årsredovisning och Koncernredovisning (K3).
Report review
This interim report has not been reviewed by the companys auditor.
Contact information
Jan Stålemark VD AroCell AB (publ)
jan.stalemark@arocell.com Virdings allé 32B
0706-92 62 06 754 83 UPPSALA
www.arocell.com SVERIGE
Financial Calender
11/22/2017 Interim report 3 - 2017
02/22/2018 Interim report 4 - 2017
04/25/2018 Interim report 1 - 2018
08/23/2018 Interim report 2 - 2018
Submission of interim report
Uppsala August 23, 2017
The board of directors
| Summary Income statement | |||||
| (TSEK) | 2017 | 2016 | 2017 | 2016 | 2016 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
| 3 mths | 3 mths | 6 mths | 6 mths | full year | |
| Net sales | 237 | - | 293 | - | 59 |
| Cost of goods sold | -72 | - | -72 | - | - |
| Selling expenses | -1,494 | -968 | -3,682 | -2,394 | -5,020 |
| Administrative expenses | -807 | -625 | -1,688 | -1,343 | -2,193 |
| Research and development expenses | -1,470 | -369 | -2,682 | -1,067 | -2,075 |
| Operating loss | -3,606 | -1,962 | -7,831 | -4,804 | -9,229 |
| Net financial items | -6 | ||||
| Loss after financial items | -3,606 | -1,962 | -7,831 | -4,804 | -9,235 |
| Loss for the period | -3,606 | -1,962 | -7,831 | -4,804 | -9,235 |
| Summary balance sheet | |||||
| (TSEK) | 2017 | 2016 | 2016 | ||
| Jun 30 | Jun 30 | Dec 31 | |||
| ASSETS | |||||
| Fixed assets | |||||
| Intangible assets | 31,328 | 26,830 | 31,328 | ||
| Tangible assets | 475 | 11 | 170 | ||
| Financial assets | 50 | - | - | ||
| Total fixed assets | 31,853 | 26,841 | 31,498 | ||
| Current asset | |||||
| Inventories | 2,243 | 1,419 | 1,419 | ||
| Other receivables | 663 | 682 | 652 | ||
| Cash and cash equivalents | 24,423 | 42,181 | 32,852 | ||
| Total current assets | 27,329 | 44,282 | 34,923 | ||
| Total assets | 59,182 | 71,123 | 66,421 | ||
| EQUITY AND LIABILITIES | |||||
| Share capital | 2,867 | 2,867 | 2,867 | ||
| Restricted reserves | 9,518 | - | 9,518 | ||
| Other contributed capital and reserves | 102,615 | 69,824 | 102,615 | ||
| Non-restricted equity | -59,376 | -4,804 | -51,544 | ||
| Total equity | 55,624 | 67,887 | 63,456 | ||
| Current liabilities | 3,558 | 3,236 | 2,965 | ||
| Total equity and liabilities | 59,182 | 71,123 | 66,421 | ||
| Summary cash flow statement | |||||
| (TSEK) | 2017 | 2016 | 2017 | 2016 | 2016 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
| 3 mths | 3 mths | 6 mths | 6 mths | full year | |
| Cash flow from operating activities | -3,163 | -1,229 | -8,061 | -2,501 | -7,168 |
| Cash flow from investing activities | -318 | -1,800 | -318 | -5,020 | -9,682 |
| Cash flow from financing activities | -50 | 0 | -50 | 0 | 0 |
| Cash flow from the period | -3,531 | -3,029 | -8,429 | -7,521 | -16,850 |
| Cash and cash equivalents at beginning of period | 27,954 | 45,210 | 32,852 | 49,702 | 49,702 |
| Cash and cash equivalents at end of period | 24,423 | 42,181 | 24,423 | 42,181 | 32,852 |
| Share data | |||||
| 2017 | 2016 | 2016 | |||
| Jan-Jun | Jan-Jun | Jan-Dec | |||
| Earnings per share (SEK) | |||||
| Before dilution | -0.27 | -0.17 | 0.32 | ||
| After dilution | -0.27 | -0.17 | 0.32 | ||
| Average number of shares | 28 674 506 | 28 674 506 | 28 674 506 | ||
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Source: AroCell AB via Globenewswire