MARINOMED BIOTECH AG Update Q1
2024
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Dear shareholders,
Since the beginning of 2024, Marinomed has made significant progress on its key initiatives: After successfully improving the stability of the Marino- solv lead products Budesolv and Tacrosolv, partnering discussions are gaining momentum for both products. For our Solv4U business, we concluded the second long-term partnership with one of the leading Brazilian pharma companies Aché. At the same time, we advanced our Carragelose business: We announced new partnerships for Eastern Europe and the Gulf Region, launched products in Mexico and Austria and published clinical data on the allergen-blocking properties of Carragelose. Additionally, a clinical study for our Carragelose-based eye drops is well underway. Our joint efforts with Procter & Gamble for the Carragelose nasal spray in the U.S. continue to progress well. We are waiting for feedback from the FDA that would allow the launch of our product in the upcoming season.
To strengthen our financial position, it was important that we reached an agreement with the EIB and our real estate lenders to suspend repayments for 18 months. This gives us more time and flexibility for the commercialization of our assets and to generate sufficient cash flows to cover the Company's financing needs. In parallel, we continue evaluating the whole Carragelose business with the goal to decide on its future by mid-year.
While these achievements make us optimistic to reach our goal of operating profitability, revenues recorded from the sale of Carragelose products for the first quarter declined to pre-pandemic levels. After SARS-CoV-2-driven record sales in the last years, the market is now suffering a pandemic
Marinomed Biotech AG | UPDATE Q1 2024
overhang with high customer stock levels and the return of the typical volatile seasonality. This resulted in significant lower order volumes from existing customers. Several initiatives, including new partnerships and launches, could have a positive impact and for the upcoming quarters, we expect revenues to increase from this Q1-level. Still, revenues from the sale of Carragelose products will be characterized by sufficient stock levels until the end of the year. To achieve our goal of operating profitability, upfront or milestone payments generated through the conclusion of partnerships must contribute to the revenue situation. This, together with evaluating strategic options for the whole Carragelose business, remains our top priority.
Virology
In Mexico, our partner M8 has successfully launched the Carragelose nasal spray under the trade name Barlo®. Furthermore, new distribution partnerships have been concluded with GAIA Healthcare and VitaPlus for the Gulf region and Eastern Europe, respectively. Upon a positive response by the FDA, we strive to launch the Carragelose nasal spray in the 2024/25 season in the U.S., the biggest cough, cold and allergy market in the world (Nicholas Hall, 2024).
Immunology
After adding the first Carragelose-based products to our Immunology portfolio in 2023, we saw the first launch of the allergen-blocking nasal spray in Austria in April 2024. Two publications on the effectiveness of Carragelose in blocking allergens
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have been published. For the moisturizing eye drops, a clinical study was started at the end of 2023 and we expect to launch the product in Austria still this year. For both the nasal spray and eye drops, business development processes for further partnerships and launches are gaining momentum. With these products, we extended the Carragelose product line to a non-seasonal, all year-product portfolio targeting large markets.
After successfully solving stability issues of our Marinosolv-based lead product Budesolv for treating allergic rhinitis, we are registering strong interest from prospective partners. Both the business development process for adding additional partners as well as the first partnership with Luoxin in China are picking up speed. For Tacrosolv, which is still in an earlier clinical development phase, concluding a first partnership with a specialized ophthalmology company remains our highest priority.
Solv4U
Entering a second long-term technology partnership with the Brazilian pharmaceutical specialist Aché Laboratórios has further underlined the significance of our Marinosolv solubilization technology and validates the Solv4U business model. In the future, we want to further leverage the potential of this technology and offer it to customers with the goal to develop more effective treatments.
Marinomed Biotech AG | UPDATE Q1 2024
Financials
After recording revenues from Carragelose product sales heavily influenced by the SARS-CoV-2 pandemic over the past years, the revenue in the first quarter of 2024 has declined to levels observed in 2019. In Q1 2024, we report revenues of EUR 0.7 million (Q1 2023: EUR 3.3 million). The operating result (EBIT) stood at EUR -1.9 million
(Q1 2023: EUR -1.4 million). Following a strict cash management, the cash position as of March 31, 2024, has decreased to EUR 1.9 million (Q1 2023:
EUR 7.0 million) compared to EUR 2.6 million as of December 31, 2023. In the reporting period, two tranches of the Nice & Green convertible note program contributed to the cash position. At the moment, the program has been paused to reduce the pressure on the share price.
As announced in April 2024, we were able to reach an agreement with the EIB to defer the capital repayments by 18 months. Interest rates remain unchanged. Our real estate lenders (ERP and NÖBEG loans) are also supporting this effort with a suspension of capital repayments for 18 months.
4 | Marinomed Biotech AG | UPDATE Q1 2024 |
Strategy for 2024 and beyond:
Commercialization of our assets
Our primary goal remains reaching operating profitability and the generation of near-term cash flows with our most valuable assets. This includes further deals for our Marinosolv lead product Budesolv and a first partnership for Tacrosolv. Regarding the evaluation of strategic options for our Carragelose business, we aim to make a decision by the end of the first half of the year.
While the revenues recorded from the sale of Carragelose products this year will be significantly below pandemic levels, we are confident to
compensate for this decline through the commercialization of our Carragelose and Marinosolv assets. We have started several initiatives in parallel to translate the clinical success of our product developments into commercial success. Concluding deals for both our Marinosolv and Carragelose assets is closer than ever. We are optimistic that the cash flows generated from these deals will be sufficient to fuel our financing needs and the further development of our pipeline. While the current circumstances require a lot of patience, we are thankful for the continued trust and support of our employees, customers, part- ners, shareholders, investors and funding partners
Andreas Grassauer | Eva Prieschl-Grassauer | Pascal Schmidt |
5 | Marinomed Biotech AG | UPDATE Q1 2024 |
Statement of profit or loss and other comprehensive income (loss)
all amounts in kEUR | 1-3/2024 | 1-3/2023 | ||
Profit or loss | ||||
Revenues | 737.5 | 3,319.0 | ||
Other income | 22.0 | 102.2 | ||
Expenses for materials | -445.9 | -2,154.4 | ||
Expenses for services | -296.5 | -724.0 | ||
Personnel expenses | -1,337.8 | -1,276.1 | ||
Depreciation and amortization | -164.6 | -167.3 | ||
Other expenses | -392.5 | -490.4 | ||
Operating result (EBIT) | -1,877.8 | -1,391.0 | ||
Financial income | 412.5 | - | ||
Financial expenses | -664.0 | -667.8 | ||
Financial result | -251.5 | -667.8 | ||
Loss before taxes | -2,129.2 | -2,058.8 | ||
Taxes on income | -1.0 | -1.0 | ||
Loss for the period | -2,130.2 | -2,059.8 | ||
Thereof attributable to the shareholders of the Company | -2,130.2 | -2,059.8 | ||
Other comprehensive income (loss) for the period | - | - | ||
Total comprehensive loss for the period | -2,130.2 | -2,059.8 | ||
Thereof attributable to the shareholders of the Company | -2,130.2 | -2,059.8 | ||
6 | Marinomed Biotech AG | UPDATE Q1 2024 |
Statement of financial position
all amounts in kEUR | 31.03.2024 | 31.12.2023 | ||
ASSETS | ||||
Non-current assets | ||||
Intangible assets | 1,456.1 | 1,524.5 | ||
Property, plant and equipment | 5,848.2 | 5,944.9 | ||
Deposits and other non-current receivables | 5.6 | 6.7 | ||
7,310.0 | 7,476.2 | |||
Current assets | ||||
Inventories | 1,057.4 | 1,012.4 | ||
Trade and other receivables | 1,922.7 | 3,531.8 | ||
Current tax receivables | 2.4 | 2.4 | ||
Cash and cash equivalents | 1,855.7 | 2,588.8 | ||
4,838.2 | 7,135.4 | |||
Total assets | 12,148.2 | 14,611.7 | ||
7 | Marinomed Biotech AG | UPDATE Q1 2024 |
all amounts in kEUR | 31.03.2024 | 31.12.2023 | ||
EQUITY AND LIABILITIES | ||||
Capital and reserves | ||||
Share capital | 1,540.5 | 1,523.8 | ||
Capital reserves | 45,298.8 | 44,889.9 | ||
Retained losses | -58,680.4 | -56,550.1 | ||
-11,841.0 | -10,136.4 | |||
Non-current liabilities | ||||
Non-current borrowings | 21,149.8 | 14,840.2 | ||
Other non-current liabilities | 258.2 | 254.7 | ||
21,408.0 | 15,094.9 | |||
Current liabilities | ||||
Current borrowings | 595.5 | 6,957.1 | ||
Trade payables | 580.0 | 1,531.3 | ||
Current contract liabilities and other current liabilities | 1,405.6 | 1,164.8 | ||
2,581.1 | 9,653.2 | |||
Total equity and liabilities | 12,148.2 | 14,611.7 | ||
8 | Marinomed Biotech AG | UPDATE Q1 2024 |
Statement of cash flows
all amounts in kEUR | 1-3/2024 | 1-3/2023 |
Cash flow utilized by operating activities Cash flow utilized by investing activities Cash flow generated from financing activities Total change in cash & cash equivalents
-944.7-755.8
0.0-26.4
211.6-370.8
-733.1-1,153.0
Cash & cash equivalents at beginning of period | 2,588.8 | 8,175.4 |
Cash & cash equivalents at end of period | 1,855.7 | 7,022.4 |
9 | Marinomed Biotech AG | UPDATE Q1 2024 |
Statement of changes in equity
all amounts in kEUR | Nominal capital/ | Capital | Retained | Total | ||
Share capital | reserves | losses | ||||
December 31, 2022 | 1,506.2 | 44,092.1 | -49,755.3 | -4,157.1 | ||
Loss for the period | - | - | -2,059.8 | -2,059.8 | ||
Total comprehensive income (loss) | - | - | -2,059.8 | -2,059.8 | ||
for the period | ||||||
ESOP 2019 | - | 1.2 | - | 1.2 | ||
Convertible notes | 13.0 | 635.7 | - | 648.7 | ||
March 31, 2023 | 1,519.2 | 44,728.9 | -51,815.1 | -5,567.0 | ||
December 31, 2023 | 1,523.8 | 44,889.9 | -56,550.1 | -10,136.4 | ||
Loss for the period | - | - | -2,130.2 | -2,130.2 | ||
Total comprehensive income (loss) | - | - | -2,130.2 | -2,130.2 | ||
for the period | ||||||
ESOP 2019 | 16.7 | - | - | 16.7 | ||
Convertible notes | - | 408.9 | - | 408.9 | ||
March 31, 2024 | 1,540.5 | 45,298.8 | -58,680.3 | -11,841.0 | ||
1 0 | Marinomed Biotech AG | UPDATE Q1 2024 |
Research and development expenses
all amounts in kEUR | 1-3/2024 | 1-3/2023 | ||
Personnel expenses | -599.6 | -579.5 | ||
Expenses for services | -165.1 | -521.6 | ||
Expenses for materials | -38.4 | -25.1 | ||
Other expenses | -76.7 | -111.2 | ||
Depreciation and amortization | -119.9 | -121.8 | ||
Financial expenses | -585.1 | -579.5 | ||
Total | -1,584.8 | -1,938.8 | ||
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Marinomed Biotech AG published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 06:04:05 UTC.
