Interim Report for Kancera AB (publ) Q1 2013
All figures from the first quarter 2013 relate only to Kancera AB as a consequence of the liquidation of the subsidiary iNovacia AB. Therefore there are no consolidated accounts for the Kancera Group produced. In connection with this Kancera has passed from the RFR2 regulations, applicable to companies in groups, to BFN;s complementary regulation K3. The full year report and consolidated accounts fulfill the requirements of Nasdaq OMX First North for the accounting of Kancera AB. The transition to K3 did not affect the income statement or the balance sheet for 2012. The result for the period January 1, 2013 – March 31, 2013 and the balance sheet as of March 31, 2013 correspond to those accounted for according to earlier accounting principles. Comparative figures from the preceding year relate to the mother company Kancera AB.
First quarter 2013 in brief
Significant events in the first quarter
– Publications during the conference “American Society for Hematology” (ASH) in Atlanta, USA, from Kancera, its co-founder Professor Håkan Mellstedt at the Karolinska Institutet, and researchers at University of California, San Diego, showed the importance of ROR in the development of new pharmaceuticals against the most common forms of chronic and acute leukemia (CLL and AML, respectively).
– Further patent protection investments in the ROR project were made by the registration of an international patent application (PCT/EP2013/051772) during January 2013 and by the acquisition of exclusive rights to a patent application on human monoclonal antibodies (WO 2012/076727).
– Complementing analyses of Kancera´s earlier results showed that the level of inhibition of the PFKFB3 protein within the cancer cell correlates well with the growth inhibition observed in both cancer cells as in a whole tumor. This further strengthens PFKFB3 as a target for cancer treatment.
– Humlegården Fastigheter AB on the lease of smaller and more cost effective laboratories that are better adapted to the size and budget of the ROR project.
– Sobi AB to take over Sobi AB:s SEK 5m claim on iNovacia. This claim is secured by for instance iNovacia´s laboratory equipment and instruments via a floating charge on assets. The claim and the floating charge on assets was taken over against a payment to Sobi AB amounting to SEK 2m.
Significant events after the end of the reporting period
Statement from the CEO
In the first quarter, we now see the result of the organizational change of Kancera that was decided in the fourth quarter of 2012. The operational costs are now less than half and have been made more flexible, while the equity ratio has increased as laboratory equipment and instruments for drug discovery have been acquired under favorable conditions.
With a core of key personnel and customized laboratories at Karolinska Institutet Science Park, our focus is now on delivering a drug candidate in the ROR project during the fourth quarter of 2013 as planned. Kancera is regularly contacted by international pharmaceutical companies and life science investors showing interest in our projects. However, in order to be successful in an out-licensing deal and to achieve our desired negotiation position we know that a few additional product development steps are required. The activity profile of our ROR inhibitors show that cancer cells that resist current drug treatments, are killed efficiently and with great accuracy. This is a source of pride for us. It remains to deal with the stability of the future drug in the body before the critical efficacy and safety trials can start. Here we have made progress. Following detailed analyses of what happen to our ROR inhibitors in liver cells, we have a clear plan of the chemical changes to be made. For some steps in the remaining development of the drug candidate in the ROR project it is possible to assume good chances of success while the outcome of other steps are still difficult to assess. This uncertainty is natural since we are developing cancer drugs that the world has never seen before.
If we allow ourselves to look beyond a future successful delivery of the ROR project, I see good possibilities for Kancera to follow up with the development and sale of more drug candidates. One of these may come from the PFKFB project where Kancera´s strategy is to block the metabolism of the tumor. The PFKFB project is currently dormant but has shown promising effects against pancreatic cancer in an animal model of the disease. The project can be activated on short notice to deliver a drug candidate within about a year. In addition, Kancera has, within the framework of a comprehensive EU-funded project together with e.g. the Pasteur Institute in France, developed highly potent substances that can be further developed against both cancer and severe parasitic diseases. Overall we see that Kancera has the potential to develop and sell drug candidates both in the short and medium term.
CEO of Kancera
About Kancera AB (publ)
Kancera develops the basis for new therapeutics, starting with new treatment concepts and ending with the sale of a drug candidate to international pharmaceutical companies. Kancera is currently developing drugs for the treatment of leukemia and solid tumors, based partly on blocking survival signals in the cancer cell and partly on metabolic strangulation.. Kancera’s operations are based in the Karolinska Institutet Science Park in Stockholm and the company employs around 7 people. Kancera shares are traded on NASDAQ OMX First North and are held by around 1700 shareholders. Remium Nordic AB is Kancera’s Certified Adviser.
In 2006, Pharmacia’s and Biovitrum’s unit for the development of drug candidates was spun-out to create iNovacia AB. In 2008, a collaboration was started with the Cancer Research Center Karolinska (CCK); and later, a collaboration was initiated with Sprint Bioscience AB. In May 2010, Kancera AB was formed by iNovacia AB, Sprint Bioscience AB, expertise from the Karolinska Institute and a group of private investors through capital contributions and two developed drug projects focusing on cancer. NASDAQ OMX approved Kancera’s listing on First North with the first day of trading being February 25, 2011. In March 2013 Kancera acquired a complete drug development laboratory from its former subsidiary iNovacia AB and the drug development is since then performed within Kancera AB at the Karolinska Institutet Science Park, Stockholm.Back