Interim Report Q1 2011 for Kancera AB (publ)


January 1 – March 31, 2011
This Interim Report covers the period January 1 – March 31, 2011. As Kancera was established on April 28, 2010, there are no historical comparison figures. All figures relate to the Kancera Group unless otherwise specified.

Q1 January 1 – March 31, 2011 in brief

  • Net sales totaled SEK 0.6m for the quarter
  • R&D expenses totaled SEK 3.9m for the quarter
  • Operating income was SEK 0.9m for the quarter
  • Income after net financial items was SEK 0.7m for the quarter
  • Operating income and income after financial items were affected by the release of negative goodwill of SEK 7m that arose as a result of the acquisition of iNovacia; this negative goodwill was recognized as revenue during the period
  • Earnings per share were SEK 0.06  for the quarter
  • Equity totaled SEK 38.1m, or SEK 3.95 per share, at the end of March 2011 and the equity/assets ratio on the reporting date was 72 percent
  • Cash flow from operating activities totaled SEK -5.0m for the quarter
  • Cash and cash equivalents totaled SEK 34.4m and in the Parent Company SEK 25.1m at March 31, 2011
  • New share issues during the period injected SEK 25.2m before issue expenses

Significant events in the first quarter

  • Kancera’s new public share issue was completed and provided the company with SEK 25.2m; expenses related to this share issue were SEK 2.1m in 2010 and SEK 1.0m in 2011
  • Kancera exercised its option to acquire iNovacia AB on February 17 for SEK 2.3m, which resulted in a group relationship and an obligation to draw up consolidated financial statements
  • Before Kancera acquired iNovacia, iNovacia sold its shareholding in Kancera for SEK 6m (SEK 7 per share); the sale related to existing shares and results in no dilution, but injects liquidity into the company
  • NASDAQ OMX First North approved Kancera’s listing on First North; the first day of trading was February 25, 2011
  • Kancera has developed new active compounds that target the energy metabolism of cancer, which have provided the basis for the first of two international patent applications planned for 2011
  • Results from Kancera’s leukemia project suggest that the active compounds developed may also be of relevance in the development of therapeutics against eight other blood malignancies; this will facilitate the further development and marketing of the project

Significant events after the end of the reporting period

  • Kancera has established a collaboration with the Northwestern University Feinberg School of Medicine, Chicago, USA to develop drugs to combat aggressive cancer
  • Kancera has signed a lease with the Karolinska Institute Science Park for specially designed drug discovery laboratories that will be ready for use as of September 2011