Release Date: July 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Flerie AB (STU:1NP1, Financial) successfully listed on NASDAQ Stockholm, marking a significant milestone for the company.
- The company has a strong financial position with over SEK1 billion in cash and available liquidity to support further value creation.
- Flerie AB has a diversified portfolio with a year-on-year increase in portfolio value of 14% per annum since inception in 2011.
- The company has a robust network of reputable global investors, enhancing its ability to co-invest and support portfolio companies.
- Flerie AB's active ownership model and diversified portfolio approach provide significant risk mitigation in the biotech and pharma space.
Negative Points
- The biotech sector presents significant challenges, including high capital requirements and long development phases.
- The outcome of biotech investments can often be binary, posing a risk to investors.
- The company incurred substantial one-time costs related to its listing process, impacting net asset value per share.
- Some portfolio companies, like Vitaros, faced development delays, leading to a conservative valuation adjustment.
- The commercial growth segment saw a decrease in fair value due to negative share price development for listed companies.
Q & A Highlights
Q: Can you provide insights on the key readouts from your product development companies that could significantly impact the portfolio's fair value over the next 12 months?
A: Ted Fjällman, CEO: We have over 50 products in development, with significant inflection points expected from those in Phase 1 and Phase 2, especially those with patient data. Empros Pharma, for instance, is preparing for a Phase 3 study following a successful end of Phase 2 FDA meeting. Other exciting developments include osteoarthritis and leg ulcer trials, as well as Genius Therapeutics' ongoing liver cancer treatment data.
Q: With xspray being a significant holding, what are your expectations for its sales ramp-up post-approval, and are there any financing needs?
A: Ted Fjällman, CEO: While we can't make forward-looking statements, we believe xspray is well-prepared with four products in development, indicating a robust platform. They have built a strong sales capability in the US, and we remain confident in their future performance.
Q: Could you provide details on your shareholdings in the respective companies?
A: Cecilia Schéele, CFO: Our shareholdings and their respective percentages are available in our reporting, specifically on pages three or four, which also include the fair value as of the end of June.
Q: Can you elaborate on your cash usage plans over the next 12 months, particularly the split between commercial growth and product development?
A: Ted Fjällman, CEO: We plan to maintain our current distribution between commercial growth and product development. We estimate deploying around 10% of our net asset value annually, with adjustments based on company performance and exits.
Q: Are there any changes planned in the composition between commercial growth and product development following the capital raise?
A: Ted Fjällman, CEO: We are satisfied with our current distribution and do not foresee significant changes. Mark Quick, Partner, added that commercial growth companies, being revenue-generating, typically require less cash compared to product development companies.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
