Interim report July 1, 2020 – March 31, 2021

Summary of the Nine-Month period (2019-07-01 – 2020-03-31)

• Net sales amounted to MSEK 0,0 (0,0)
• Operating profit/loss amounted to MSEK -4,6 (-5,8)
• Earnings per share * SEK -0.31 (-0.39)
• Cash and cash equivalents at the end of the period amounted to MSEK 4,2 (6,1)

* 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 14,909,545. Amounts in brackets refer to the corresponding period last year.

Summary of the Third Quarter (January 1 – March 31, 2020)

• Net sales amounted to MSEK 0,0 (0,0)
• Operating profit/loss amounted to MSEK -1,5 (-1,9)
• Earnings per share * SEK -0.1 (-0.13)

* 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 14,920,478. Amounts in brackets refer to the corresponding period last year.

CEO’s comment

In June 2020, DexTech’s Phase IIb study of the drug candidate OsteoDex for the treatment of advanced prostate cancer, skeletal metastatic castration-resistant prostate cancer (mCRPC), was completed, with 2-year follow-up results obtained from the last patients. The follow-up results from the study were very positive and show that OsteoDex treatment can slow down the disease. The results show significantly longer survival for patients who responded to the treatment. The treatment was very well tolerated (no serious side effects) and good disease-inhibiting effect was seen even in the lowest doses. Slowing and regression of the disease was also seen in patients where the disease has progressed after treatment with several of the other available drugs for castration-resistant prostate cancer.

OsteoDex indications in addition to CRPC focus on breast cancer and now also multiple myeloma (MM). MM is a form of blood cancer that develops in the patient’s bone marrow. The disease cannot be cured and also causes degradation of the skeleton. There are a number of different treatments that can slow down the process but often with severe side effects. The mechanism of action of OsteoDex, with both potent tumor cell killing effect and inhibition of bone-degrading cells, proves to be very promising against MM. The mild side effect profile of OsteoDex is also important in this context. In in vitro experiments at Karolinska Institutet, OsteoDex shows a cell-killing effect at very low concentrations. The cell killing effect is superior to the standard drug Melphalan. The results from the MM studies give us strong arguments in license discussions and are part of our strategy to point out the potential of OsteoDex in other malignant diseases. We also note a growing interest in the company’s PSMA binding association, which has now received an approved patent in Europe.

DexTech continues to work towards the company’s primary goal, 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 Covid 19 pandemic continues to slow down dialogue with stakeholders. Contacts with stakeholders are slower and exclude physical meetings that are replaced by telephone / video meetings. Herein lies an educational challenge, i.e.. to be able to explain and shed light on the clinical status of CRPC and OsteoDex’s place in the treatment, and, not least, the great potential of our platform technology. As general information, both for stakeholders and shareholders / market, a video presentation has been compiled in which the possibilities of the GuaDex platform, the situation within treatment of prostate cancer and OsteoDex’s place in the treatment are described. The presentation is available below.

Regarding the ongoing pandemic, the continued work in 2021 can be facilitated through an increased vaccination rate that enables direct contact with stakeholders.

Anders R Holmberg

CEO