Half Year report July 1 – December 31, 2019

By “Company” or “DexTech” is meant DexTech Medical AB with organization number 556664-6203.

Summary of the First Half Year (2019-07-01 – 2019-12-31)

• Net sales amounted to MSEK 0.0 (0.0)
• Operating profit/loss amounted to MSEK -3.9 (-4.2)
• Earnings per share * SEK -0.26 (-0.29)
• Cash and cash equivalents at the end of the period amounted to MSEK 7.4 (0.0)

* Before and after dilution. Earnings per share: Profit for the period divided by the average number of shares 14,920,478. For the comparison period, the average number of shares was 14,752,833. Amounts in brackets refer to the corresponding period last year.

Summary of the Second Quarter (October – December 2019)

• Net sales amounted to MSEK 0.0 (0.0)
• Operating profit/loss amounted to MSEK -1.9 (-2.3) • Earnings per share * SEK -0.13 (-0.16)

* Before and after dilution. Earnings per share: Profit for the period divided by the average number of shares 14,904,078. For the comparison period, the average number of shares was 14,752,833. Amounts in brackets refer to the corresponding period last year.

CEO’s comment

DexTech works according to the company’s primary goals, i.e. to enter into an agreement with a licensee for the company’s drug candidate OsteoDex for the treatment of skeletal metastases in advanced prostate cancer (mCRPC). The collaboration with the US company CYTO Consulting LLC, which started in August 2019, continues to be very satisfactory. CYTO focuses on potential licensees in the US and China.

The OsteoDex Phase IIb study ends when the results of the 24-month follow-up are available. Patients are followed 24 months after discontinuing OsteoDex treatment. The result relates to information about whether the patient is alive or deceased (so-called OS, overall survival). Interim results as of October 14 show that of patients who had stable (unchanged) disease in skeletal metastasis at the end of treatment, 58% were alive, 48% of patients who had discontinued or discontinued treatment with progressive disease (advanced disease development), and of those patients who at the end of treatment had objective skeletal regression (reduction of existing skeletal metastases) lives 86%. The results indicate prolonged survival after OsteoDex treatment.

Of course, this measure of overall survival is of great importance to potential stakeholders and can be crucial to the possibility of conducting a licensing deal. Our partial results so far are considered very positive. Finished follow-up results are expected to be presented in May 2020, slightly earlier than previously announced.

The formal clinical study report (CSR) for the phase IIb study was available in December 2018. The results show that OsteoDex acts as a brake medicine at mCRPC. The course of the disease in the skeleton was stabilized in the majority of patients who completed the entire treatment. The study also confirmed the results of phase I i.e. OsteoDex has a very high tolerability with the absence of serious side effects.