WntResearch publishes quarterly report Q3 2020

The first part of the WntResearch Q3 report can be read in English below and the complete Swedish Q3 report is attached.

THIRD QUARTER (JULY-SEPTEMBER 2020)

• Operating income amounted to MSEK 0 (0)
• Costs amounted to MSEK 5.2 (7.3)
• The result before and after taxes amounted to MSEK -5.2 (-7.3)
• Earnings per share amounted to SEK -0.10 (-0.29)

THE FIRST NINE MONTHS OF THE YEAR
(JANUARY-SEPTEMBER 2020)

• Operating income amounted to MSEK 0 (0)
• Costs amounted to MSEK 15.4 (17.1)
• The result before and after taxes amounted to MSEK -15.4 (-17.1)
• Earnings per share amounted to SEK -0.41 (-0.73)

SIGNIFICANT EVENTS DURING THE THIRD QUARTER

• WntResearch received a positive opinion from the European Patent Office, EPO, regarding Foxy-5 manufacturing.

• WntResearch announced that the CEO, Peter Morsing, will resign after the year-end.

• WntResearch announced the postponement of analysis of circulating tumour DNA due to COVID-19, as the clinics in Spain had limited opportunities to carry out the planned blood sampling when the study was on hold.

• WntResearch announced that Anders Rabbe was appointed acting CEO of WntResearch and would take position on October 15, replacing Peter Morsing. Peter Morsing remains in an advisory role in the company until January 2021.

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

• WntResearch announced that Chief Financial Officer (CFO) Per-Ola Forsberg will step down from his role in the company.

• WntResearch announced that Anders Tidfors was appointed new CFO of WntResearch.

RESULT IN BRIEF

COMMENTS FROM OUR CEO

As the new CEO of WntResearch, I look forward to participating in the future development of the Foxy-5 drug candidate with potential to improve the treatment for cancer patients. The research undertaken on the significance of WNT5A in relation to cancer spread is very interesting. The competitive landscape of Foxy-5 is very limited as regards the development of other drug candidates with a focus on the WNT5A mechanism; with documented activity, Foxy‑5 could thus form the basis of a novel class of cancer drugs that keep the disease in control by preventing the spread of cancer through the body. The company is currently in a development phase, which I have previous experience in building successfully upon. The aim is to create the conditions necessary to successfully implement a development plan towards market registration of Foxy-5. Naturally, a lot of things have to be shown and documented before the company reaches that goal, by its own or as part of a partnership. Nevertheless, if the ongoing Neofox study provides indication that patients treated with Foxy-5 experience a reduced spread of tumour cells and thus a lower risk of recurrence, the company will be in a very intriguing position for future development.  The companys strategy is thus to use the results of the Neofox study as the basis of the future development plan and prospective cooperation agreements with partners, in order to bring Foxy-5 to market registration. I consider the outcome of the Neofox study to be the first clinical platform on which to build a regulatory and commercially viable clinical development plan for Foxy-5.It is my ambition to make use of previous experience in leading an oncology company and its drug candidate from early research to a Phase 3 registrational trial. A key to success is to take the right action at the right time, stay consistently pro-active and instill this way of thinking throughout the company. A small Biotech company must be able to prioritize and pursue important processes in parallel at the same time. To continue to develop the company towards that end, it is crucial to establish a close dialogue with shareholders, the investment market and the pharmaceutical industry to ensure that the company has access to long-term funding of its operations and provide an exit to shareholders. I intend to dedicate a significant amount of my time to pursue such efforts, with the objective of establishing the company as an interesting investment opportunity within the Life Science industry.For a small, Swedish company with limited resources, the preparation and execution of an extensive oncology study across Europe is a daunting task. Unfortunately, the corona pandemic has put additional obstacles in WntResearch's path. All in all, the company will, as a consequence, need additional time to recruit patients to the Neofox study and, accordingly, additional time to reach the sufficient sample size to conduct a reliable analysis. This has previously been disclosed to the market, and our main focus is currently to create the best possible conditions – within the limits of the company’s financial framework – for patient recruitment to the study and efficient analysis of the results. Together with the Board of Directors, other key individuals and the company’s suppliers, I have initiated a process to evaluate different sets of measures to mitigate the adverse effects of the COVID-19 pandemic on the recruitment of patients. The outcome of this effort as well as other activities initiated to strengthen the company in the short term will be disclosed to the market.In parallel, we will continue to strengthen the scientific platform regarding WNT5A, Foxy-5 and its modes of action. This work will form the basis for input from physicians and key opinion leaders within the therapeutic areas where Foxy-5 has the potential to meet medical needs. It will be both exciting and challenging to work on these matters in particular and as the CEO of WntResearch in general. Foxy-5 is a very interesting drug candidate that can contribute to a greatly improved treatment for many cancer patients.Anders Rabbe, acting CEO

WNTRESEARCH’S MAIN FOCUS IS TO DEVELOP NOVEL DRUGS THAT CAN INCREASE SURVIVAL RATES FOR CANCER BY PREVENTING METASTASIS

Our vision is for cancer patients to not have to endure metastasisOne in every three people will contract cancer at some point in their lives. Although modern cancer therapies have become more efficient, effective preventive measures and treatment options for metastasis are still lacking. Approximately 90 percent of all cancer-related deaths are directly linked to metastasis. Thus, there is great medical need for drugs that focus on preventing the formation and spread of metastases. Our mission is to prevent the metastatic process by supplying novel cancer therapies.The lack of treatment options capable of preventing metastastis is the driving force behind WntResearch. Metastases, daughter tumours, are treated with therapies similar to the ones used against the primary tumour as well as therapies that specifically target the daughter tumour.  Such therapies are often associated with significant adverse effects. They are usually costly and provide a relatively limited improvement of the survival rate. With the drug candidate Foxy-5, WntResearch attempts to prevent metastases from forming in the first place. The focus on this key aspect of cancer therapy makes WntResearch's approach unique.  Metastasis in solid tumours is regarded as the cause of approximately 90 percent of all cancer-related deaths. Cancer patients who are expected to have a low expression of WNT5A in their primary tumours are treated with Foxy-5. The fundamental argument is that a successful treatment with Foxy-5 should prevent the tumour cells from spreading, which would improve the chance of survival considerably. Our mission is to prevent the metastatic process by supplying novel cancer therapies, of which Foxy-5 is our main priority.

UPCOMING ANNOUNCEMENTS

Year-end report for 2020 is presented on February 8, 2021

Interim report January – March 2021 is presented on May 6, 2021

Interim report January – June 2021 is presented on August 19, 2021

Interim report January – September 2021 is presented on November 18, 2021

Year-end report for 2021 is presented on February 24, 2022

IF YOU HAVE ANY FURTHER QUESTIONS, PLEASE CONTACT:

Anders Rabbe, acting CEO WntResearch, e-mail: anders.rabbe@wntresearch.com

Address: WntResearch AB, Medeon Science Park, Per Albin Hanssons väg 41, 205 12 Malmö, Sweden