AroCell AB (publ) Interim Report January 1st to June 30th, 2021

A word from the CEO
”In July, AroCell AB acquired IDL Biotech AB, which develops and markets diagnostic tests for healthcare with a focus on oncology. This will be the last interim report for the original AroCell, with the next report covering both companies. We are now in the middle of an exciting and intense period where the two companies merge into a new, stronger AroCell.

The time since the last report has been very eventful and AroCell has made great progress, but also encountered some setbacks”.

Anders Hultman, CEO

Reporting period April 1st - June 30th

• Net sales were 30 (-) KSEK
• Loss before financial items was -6 727 (-6 195) KSEK
• Cash flow from operating activities was -5 185 (-4 419) KSEK
• Earnings per share before and after dilution were -0,09 (-0,08) SEK
• Cash and cash equivalents were at the end of the period 29 698 (51 428) KSEK

Reporting period January 1st - June 30th

• Net sales were 73 (64) KSEK
• Loss before financial items was -12 805 (-11 669) KSEK
• Cash flow from operating activities was -11 421 (-9 488) KSEK
• Earnings per share before and after dilution were -0,17 (-0,16) SEK
• Cash and cash equivalents were at the end of the period 29 698 (51 428) KSEK

Events during the reporting period January 1st - Mars 31st

• AroCell submitted a public takeover bid to the shareholders of IDL Biotech AB to transfer all shares in IDL (63,060,677) to AroCell in exchange for 0.63 AroCell shares for each share in IDL Biotech AB. The shares in IDL are listed on Spotlight Next ("Spotlight"). The issue of the consideration shares may comprise up to 39,728,226 shares in AroCell, corresponding to 34.4% of the shares and votes in AroCell after the issue of the consideration shares.

• A recently published doctoral dissertation deepens the knowledge about early detection, course, and prediction of treatment effects in prostate cancer. One of the sub-papers in the dissertation examines the extent to which the concentration of the enzyme Thymidine kinase 1 (TK1) in the blood can be used to predict whether the patient will die of prostate cancer.

• AroCell announced the extension of the indication for use of the CE marked AroCell TK 210 ELISA for clinical use in the treatment of prostate cancer. AroCell TK 210 ELISA can now be used to measure TK1 as a prognostic/predictive marker in local or widespread prostate cancer.

• The US Food and Drug Administration (FDA) has announced that they have resumed review of AroCell's 510(k) application following the impact of the relocation of resources due to the COVID-19 pandemic.

• AroCell published the prospectus regarding the publication of the takeover bid to the shareholders of IDL Biotech AB.

• AroCell announced that Professor Ferruccio Bonino will join AroCell's advisory board. Ferruccio Bonino, MD, is Professor of Gastroenterology at the University of Pisa, Department of Clinical and Experimental Medicine, and Senior Research Associate at IBB-CNR in Italy.

Events after the reporting period

• AroCell informed that the Offer to shareholders in IDL Biotech AB is unconditional and completes the offer and to extend the acceptance deadline until 9 August 2021.

• AroCell announced that after a discussion with the FDA, it has been concluded that the predicate device selected for the AroCell 510 (k) application is not possible given the intended use. Due to this, AroCell has decided to withdraw the 510 (k) application in its current form.

• AroCell announced the outcome of the Offer to shareholders in IDL Biotech AB. The offer was accepted by 98% of the shares and votes in IDL.

• AroCell announced that a patent application has been filed in the United States for the measurement of thymidine kinase 1, for the prediction of cancer recurrence based on serum TK1 levels. The patent application is based on a study of patients with diffuse large-cell B-cell lymphoma (DLBCL).

• AroCell announced a new publication entitled “Serum concentration of Thymidine kinase 1 measured using a novel antibody-based assay in patients with Hodgkin's Lymphoma”. The study showed that patients with Hodgkin's lymphoma had significantly higher TK1 concentration, and where TK1 increases with more severe disease category.

Interim report January 1st - Mars 31st, 2020 (available in Swedish only) (Link)