ExpreS2ion Announces 2020 Fourth Quarter and Full-Year Results

Hørsholm, Denmark, February 25, 2021 – ExpreS2ion Biotech Holding AB (“ExpreS2ion”) today announces its full-year financial results for 2020 and the fourth quarter of 2020. The report is available as an attachment and on ExpreS2ion's website (www.expres2ionbio.com). Below is a summary of the report.

CEO Bent U. Frandsen comments
“I am exceedingly proud of the major accomplishments achieved by ExpreS²ion in 2020, both from a global health perspective and when it comes to building strong long-term value for our shareholders. Our team has proven itself to be both quick on its feet and to deliver in an outstanding fashion when it counts the most.

In 2020, we achieved the company’s highest revenues ever of SEK 15.3 million, a 10% annual increase, despite significant headwinds from the COVID-19 pandemic. We also demonstrated the company’s agility by quickly focusing our efforts on the preclinical development of the COVID-19 vaccine, in consortia with other leading biotech institutions. Looking forward, we are very confident about the steps we are taking towards becoming a more pipeline-driven company and are excited to be focusing on the E2SB-C001 breast cancer vaccine candidate.”

Fourth quarter (October – December 2020)

• Net sales amounted to 5,277 (3,611) KSEK. 
• Result after financial items amounted to -18,772 (-7,502) KSEK.
• Net income amounted to -17,634 (-6,896) KSEK.
• Net income per share* amounted to -0.76 (-0.47) SEK.

Twelve months (January – December 2020)

• Net sales amounted to 15,263 (13,829) KSEK. 

• Result after financial items amounted to -35,204 (-19,641) KSEK. 
• Net income amounted to -31,994 (-17,257) KSEK. 
• Net income per share* amounted to -1,84 (-1.27) SEK. 
• Cash flow from operating activities amounted to -18,371 (-12,691) KSEK. 
• Equity ratio** amounted to 79.6% (-5.8%). 
• Cash and cash equivalents amounted to 106,832 (5,418) KSEK.

Numbers in parenthesis are the numbers from the same period in 2019.

*The Group’s net income per share: The net income for the period divided with the average number of shares for the period. For the period October to December 2020, the average number of shares amounted to 23,237,523 and for the period January to December 2020, the average number of shares amounted to 17,342,846. As of 31/12/2020, the total number of shares in ExpreS²ion Biotech Holding AB was 27,608,301.

**Equity ratio: Shareholder’s equity divided by total capital.

Significant events during the third quarter

• On 14 October 2020, and in accordance with previous communication, the company announced that Monday, October 19, 2020 was the last day for subscription in the ExpreS²ion Biotech Holding AB share issue with preferential rights for the Company's existing shareholders including warrants. The last day for trading in unit rights was October 15th, 2020. 

• On 23 October 2020, ExpreS²ion Biotech Holding AB completed the rights issue of shares and warrants with last day for subscription on October 19, 2020 (the "Offering"). The Offering was subscribed to 142.2 percent. Through the Offering ExpreS²ion received proceeds amounting to approximately SEK 131 million before deduction of costs related to the Offering.

• On 6 November 2020, the company announced that the last day of trading in subscribed paid units in ExpreS²ion Biotech Holding AB would be November 10, 2020 and stop day would be on November 12, 2020.

• On 12 November 2020, as previously communicated, ExpreS²ion Biotech Holding AB announced that it had issued 5,455,297 units in the recently completed rights issue. One (1) unit comprise of two (2) new shares, one (1) warrant of series TO4 free of charge and one (1) warrant of series TO5 free of charge. The first day for trading of warrants of series TO4 and TO5 was set for November 16th, 2020.

• On 16 November 2020, ExpreS²ion Biotechnologies ApS announced that the capsid virus like particle based COVID-19 vaccine, which is licensed to Bavarian Nordic, had been successfully manufactured with a full batch release to follow after final quality analysis. The project remained on track for presenting initial clinical Phase I/IIa results in Q1 2021, depending on the speed of the clinical trial application approval procedure. Furthermore, the cVLP technology and manufacturing processes used are perfectly suited for rapidly manufacturing new vaccines in response to potential COVID-19 mutations.

• On 19 November 2020, ExpreS²ion Biotech Holding AB announced its interim financial results for the first nine months of 2020 and the third quarter of 2020. The Interim Report (Q3) is available as an attachment and on ExpreS2ion's website (www.expres2ionbio.com). 

• On 27 November 2020, ExpreS²ion Biotech Holding AB announced that SEK 3.5 million (excluding accrued interest) of the loan provided by Modelio Equity AB would be set-off against 331,816 new shares at a price of SEK 10.548 per share (corresponding to a 10 percent discount to the volume weighted average share price of ExpreS²ion's shares on Nasdaq First North Growth Market during the last 15 trading days prior to 19 November 2020).

Significant events after the end of the period

• On 8 January 2021, ExpreS²ion Biotechnologies announced that the clinical trial application (CTA) for a clinical Phase I/II study for the ABNCoV2 capsid virus-like particle based COVID-19 vaccine had been submitted to the Central Committee on Research Involving Human Subjects in the Netherlands. The CTA is expected to be approved under a COVID-19 fast-track review procedure. The CTA submission is in line with the plans to present initial clinical Phase I/IIa results in Q1 2021.

• On 11 January 2021, ExpreS²ion Biotechnologies announced that it is reorganizing the company's top management to reflect its increased strategic focus on pipeline development. Several appointments within research and development will ensure the advancement of ExpreS²ion's development projects towards clinical investigations, with the first fully controlled project being the unique Her2-cVLP breast cancer project. This project will be in-licensed from ExpreS²ion's joint venture AdaptVac ApS and developed under its new designated project code name ES2B-C001.

• On 12 January 2021, ExpreS²ion Biotechnologies announced the publication of strong virus neutralization properties in animal proof-of-concept data for ABNCoV2, a unique capsid virus like particle based COVID-19 vaccine coated with ExpreS²-made SARS-CoV-2 antigens, in the esteemed scientific journal Nature Communications. The ABNCoV2 COVID-19 vaccine is the result of a strong collaboration effort by ExpreS²ion and its joint venture partner AdaptVac ApS together with the PREVENT-nCoV consortium, with an exclusive global license granted to Bavarian Nordic A/S.

• On 2 February 2021, ExpreS²ion announced that the company exercised its option to license a unique breast cancer vaccine by signing a final Patent License Agreement with AdaptVac ApS. ExpreS²ion was granted an exclusive global license to a preclinical-stage novel HER2-cVLP breast cancer vaccine programme. Supported by the proceeds from the recent right issue, ExpreS²ion plans to develop the first vaccine candidate, that will be designated ES2B-C001, to human clinical studies. According to the Agreement, ExpreS²ion pays an upfront fee of DKK 2.5 million (approx. EUR 0.34 million) upon signing, followed by aggregated milestone-based payments of DKK 215 million (approx. EUR 29 million) during development until market approval, and a lower single-digit percentage royalty based on net sales. Furthermore, as a consequence of exercising the option and signing the Agreement, the Shareholder Agreement between ExpreS²ion and NextGen Vaccines ApS ("NextGen") is adjusted, with ExpreS²ion now owning 34% of AdaptVac, and NextGen owning 66% of AdaptVac.

• On 23 February 2021, ExpreS²ion and the University of Bologna announced a research collaboration agreement which covers testing of the novel HER2-cVLP breast cancer vaccine program, including the selected lead candidate ES2B-C001, in proprietary state-of-the-art breast cancer mice models. The collaboration follows the recently presented in-licensing of the HER2-cVLP technology from AdaptVac. The outcome of the collaboration is expected to support ExpreS²ion's breast cancer vaccine project and will constitute a proof of preclinical concept. The research collaboration is budgeted and planned for within the proceeds from the recent rights issue.

Certified Adviser
Svensk Kapitalmarknadsgranskning AB
Telefon: +46 11 32 30 732
E-post: ca@skmg.se

This press release constitutes inside information that ExpreS2ion Biotech Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information was sent for publication, through the agency of the contact persons set out below, at the time stated by the Company’s news distributor, Cision, at the publication of this press release.

For further information about ExpreS²ion, please contact:

Bent U. Frandsen, CEO
Telephone: +45 4256 6869
E-mail: buf@expres2ionbio.com

Keith Alexander, CFO
Telephone: +45 5131 8147
E-mail: ka@expres2ionbio.com

About ExpreS²ion

ExpreS²ion Biotechnologies ApS is a fully owned Danish subsidiary of ExpreS²ion Biotech Holding AB with company register number 559033-3729. ExpreS²ion has developed a unique technology platform, ExpreS², for fast and efficient non-clinical development and production of complex proteins for new vaccines and diagnostics. ExpreS² is regulatorily validated for clinical supply. The platform includes functionally modified glycosylation variants for enhanced immunogenicity and pharmacokinetics. Since 2010, the Company has produced more than 300 proteins and 40 virus-like particles (VLPs) in collaboration with leading research institutions and companies. Since 2017, ExpreS²ion develops novel VLP based vaccines through its joint venture AdaptVac ApS. For additional information, please visit www.expres2ionbio.com and www.adaptvac.com.