Scandinavian ChemoTech AB (publ) Executive Summary of Interim report Q1 January – March 2024

First quarter

• Net sales amounted to kSEK 1 345 (54)
• Profit before tax amounted to kSEK -3 203 (-5 034)
• Earnings per share amounted to SEK -0,18 (-0,42)
• Cash flow from operating activities totaled to kSEK -4 853 (-4 705)

Important events during the quarter

• The Ethics Committee of the University Hospital of Jodhpur approves the change in the study protocol for the treatment of head and neck cancer and places TSE within the curative treatment options.
• ChemoTech is aligning its strategy and short-term goals for Human Care.
• ChemoTech’s Animal Care receives an order worth kEUR 48 from Europe’s leading horse clinic.
• Important events after the quarter
• ChemoTech obtains patent protection for two important patents in India. The patent provides protection for the TSE technology and extends to 2038.
• ChemoTech announces that QM/RA
• Director Eva Ståhl Wernersson will leave the Company on July 31, 2024.

”We are now one of the few companies in our industry and size that conducts studies that also include patients who are still in a curative stage.” - Mohan Frick, CEO

SUMMARY

In the first quarter of 2024, the Company achieved a record-high revenue of kSEK 1 345, marking its best quarter to date. While the figures remain modest, Animal Care remains the primary revenue driver, with substantial progress in the clinical field, particularly in India. Although India does not contribute to immediate cash flow, the Company is now conducting groundbreaking studies involving patients with curable-stage cancer, setting it apart in the industry.

The Company currently operates seven IQwave and fifteen vetIQure systems, with over 100 treatments completed in April. Despite operating under loan financing, the Company is actively exploring financing options to secure the necessary capital until it reaches cash flow positivity.

Revenue growth was supported by cost reduction measures, including a kSEK 600 decrease in operating expenses, driven by reduced local, marketing, and consultancy costs. As a result, the operating loss for the quarter was kSEK -2 798, an improvement from kSEK -4 926 in the previous year. The Company’s clinical trials, particularly in India, are generating significant interest, especially among researchers and academics. The hope is that TSE (Tumour Specific Electroporation) technology will improve treatment outcomes, reduce side effects, and increase survival rates in head and neck cancer patients.

Commercial progress in Animal Care continues to be strong, with growing demand for TSE treatments, particularly for horses. This has been bolstered by a successful collaboration with the Royal Veterinary College (RVC) in the UK, which has led to increased interest from clinics in the UK, Belgium, and Germany. The Company’s competitive advantage in tumor treatments for horses is evident, as TSE offers a faster, safer alternative to traditional, more invasive treatments.

Looking ahead, the Company faces the challenge of expanding its operations, particularly in central Western Europe, to support growth. Plans are underway to build local sales and marketing resources and streamline production and regulatory processes to manage larger volumes. The Company remains focused on completing key regulatory milestones, including product registration in India and Australia, and is optimistic about its continued clinical and commercial progress in Animal Care.

For more information, please contact:

Mohan Frick, CEO

Phone: +46 (0)10-218 93 00
ir@chemotech.se

Certified Adviser: Redeye AB

Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology Company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation™ (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the Company continuously evaluates new opportunities and areas of application for the technology. ChemoTech’s shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Redeye AB is the Company’s Certified Adviser. Read more at: www.chemotech.se

The full version of the Interim Q1 report was published in Swedish May 7th 2024 at 08.30.