CEO’s statement

“The year 2024 started successfully with solid sales in the first quarter and continued strong order intake for the coming quarter. Production is operating at high speed ensuring that deliveries progress well. Financial results look promising and we are following our strategic plan towards profitability. Excluding goodwill amortization, the period’s result was -600 KSEK and we achieved a positive EBITDA of nearly 600 KSEK, which feels reassuring.”

Anders Hultman, CEO

Reporting period January 1st – March 31st

• Net sales amounted to KSEK 12,803 (11,053).
• Profit after financial items amounted to KSEK -10,505 (-13,668)*.
• Cash flow from operating activities for the period amounted to KSEK -4,214 (-4,522).
• Earnings per share before and after dilution amounted to SEK -0.05 (-0.06).
• Cash and cash equivalents at the end of the period amounted to KSEK 46,347 (59,956).

* Includes costs for goodwill amortization of KSEK 9,895 (9,895) for the quarter.

Events during the period January 1st – March 31st

• A recently conducted study has shown that levels of serum thymidine kinase 1 (sTK1) can predict the survival of patients with metastatic prostate cancer. The study also indicates that sTK1 is useful for predicting which patients may benefit from chemotherapy with the drug docetaxel, instead of hormonal treatment.

• AroCell has previously announced that it has entered into a distribution agreement with Sub-Saharan Biomedical P.L.C. for the sale of TUBEX® TF in Ethiopia. After working through the local regulatory process, AroCell has now obtained regulatory approval for TUBEX® TF in Ethiopia.

• Ellen Dittberner, CFO of AroCell, has taken maternity leave, and Lars Jakobsson has assumed the role of acting CFO.

• Two abstracts regarding the clinical applications of AroCell TK 210 ELISA have been accepted for poster presentations at AACR 2024.

• A new study examining the use of urine-based biomarkers, including UBC Rapid, for monitoring patients with high-risk non-muscle-invasive bladder cancer has been published.

• The Nomination Committee has presented proposals for the board of directors at AroCell for the Annual General Meeting 2024, where Max Pihlqvist is proposed as the chairman of the board and Fredrik Lindgren is proposed for election as a new board member.

Events after the period

• AroCell published the Annual Report for 2023.

• A new patent was approved in the USA. The patent demonstrated the clinical significance of TK1 protein measurements in serum with specific antibodies against the C-terminal region of TK1 in cancer.

• AroCell published the notice for the Annual General Meeting in 2024.

Interim report January 1st – March 31st, 2024 (Link)

Fredrik Lindgren has over 25 years of experience in the Life Science sector, where he has served as a CEO or board member in more than 10 different companies. He served as the Managing Director at Larodan AB until 2023, and previously, he held the role as CEO at Karo Pharma AB and Biolin Scientific AB. Fredrik holds a law degree from Lund University and an eMBA from Stockholm School of Business.

The nomination committee´s proposal for the board at the AGM is the re-election of Eva Nordström, Agneta Tufvesson Alm, Clas Runnberg, and Max Pihlqvist, and the new election of Fredrik Lindgren.

The Nomination Committee proposes the new election of Max Pihlqvist as the Chairman of the Board.

AroCells Nomination Committee consists of:
Christian Lindgren (Chairman)
Clas Runnberg
Jon Eiken

A word from the CEO
”2023 has proven to be a successful year for AroCell. We have observed consistent strong demand in both our bacteriology and oncology segments, with sales in these areas reaching record levels. We have significantly increased our collaboration in automation and are on the verge of introducing several biomarkers onto automated platforms in China.
 
Several studies were completed throughout the year that helped improve our products market standing. We have optimized our organization, and with a rise in product demand, we are now closer to achieving positive cash flow. We are experiencing ongoing, consistent growth and a rising order intake that we are now able to manage effectively. I am eagerly anticipating further growth in 2024.
 
Nevertheless, the fourth quarter of 2023 could have been more successful. Some sales from the end of last year were delayed to 2024 due to issues with subcontractors and transportation. These delays caused a potential loss in turnover of 4 MSEK in 2023. However, of this, 2 MSEK has been recovered in January 2024.”
 
Anders Hultman, CEO
 
Reporting period October 1st – December 31st
· Net sales amounted to KSEK 9,511 (12,471).
· Profit after financial items amounted to KSEK -17,136 (-16,520)*.
· Cash flow from operating activities for the period amounted to KSEK -912 (-2,321).
· Earnings per share before and after dilution amounted to SEK -0.07 (-0.07).
· Cash and cash equivalents at the end of the period amounted to KSEK 50,723 (65,189).

* Includes costs for goodwill amortization of KSEK 9,895 (9,895) for the quarter.
 
Reporting period January 1st – December 31st
· Net sales amounted to KSEK 43,039 (36,986).
· Profit after financial items amounted to KSEK -59,297 (-59,299)*.
· Cash flow from operating activities for the period amounted to KSEK -13,436 (-13,694).
· Earnings per share before and after dilution amounted to SEK -0.26 (-0.28).
· Cash and cash equivalents at the end of the period amounted to KSEK 50,723 (65,189).

* Includes costs for goodwill amortization of KSEK 39,578 (39,578) for the period.
 
Events during the period October 1st – December 31st
· After the conclusion of the period, the warrant program has been implemented. The total number of warrants issued is 5,000,000, with a premium of 0.05 öre. The program has a duration of 3 years and is allocated among various groups, including the CEO, management team, other executives, and other employees. The strike price has been set at SEK 1, and the warrants are subscribed on market terms.

· AroCell presented information on the nomination committee’s proposal prior to the 2024 annual general meeting.
 
Events after the period
· A recent study has shown that serum thymidine kinase 1 (sTK1) levels can predict the survival of patients with metastatic prostate cancer. The results also suggest that sTK1 is useful in predicting which patients may benefit from chemotherapy with the drug docetaxel instead of a hormonal treatment. 

· Previously, AroCell announced a distribution agreement with Sub-Saharan Biomedical P.L.C. for the sales of TUBEX® TF in Ethiopia. After navigating through the local regulatory process, AroCell has now obtained regulatory approval for TUBEX® TF in Ethiopia. 

· Ellen Dittberner, who serves as the CFO at AroCell, is currently on parental leave, and Lars Jakobsson has stepped in as the acting CFO.
 
Interim report January 1st – December 31st, 2023 (Link)

The results of the study show that sTK1 levels were elevated in the blood of patients with metastatic prostate cancer, including both newly diagnosed patients and patients with castration-resistant disease. Importantly, a strong association between elevated sTK1 levels and patient survival was observed. Thus, patients with elevated sTK1 had an approximately 3-fold higher risk for an adverse outcome compared to patients with lower levels of sTK1. The association between sTK1 and poor survival remained significant in multivariate analyses including adjustment for Gleason score, PSA level, and clinical T-stage. sTK1 therefore contributes important clinical information not obtained using other markers.

The association between elevated sTK1 levels and poor survival was particularly strong in prostate cancer patients treated with antihormonal drugs. In contrast, a more favorable outcome was observed when patients with high sTK1 levels were treated with docetaxel chemotherapy. Docetaxel is known to target proliferating cells and the results suggest that the proliferation-associated marker sTK1 can be used to identify tumors that are sensitive to this drug.
 
The results of the study has been submitted and accepted as an abstract for a presentation at the PAMM/EORTC conference in February. The study was performed in collaboration with Tampere University, the Medical University of Vienna, and the Semmelweis University in Budapest.
 
“We are very pleased with these results, which confirm previous findings showing that AroCell's TK 210 test can be used to predict the prognosis of patients with metastatic prostate cancer. The results also raise the possibility of using the TK 210 test for the selection of patients for different treatment options,” says Anders Hultman, CEO of AroCell.