Half Year 2026 ExpreS2ion Biotech Holding AB Earnings Call

August 20, 2026

Speaker #1: Welcome to today's event, where we have the pleasure of presenting ExpreS2ion Biotech. Throughout today's presentation, we are joined by CEO Ben Frantzen and CFO Keith Alexander.

[Analyst]: Welcome to today's event, where we have the pleasure to present ExpreS2ion Biotech. Throughout today's presentation, we are joined by CEO Bent Frandsen and CFO Keith Alexander. The topic for today, of course, the Q2 results, fresh from the press this morning, but maybe also more the strong data, which I saw you have communicated during the quarter on your risk candidates. That will be the main topics for today's presentation. As always, there is a box down below where you can ask questions. Do feel free to do it during the presentation, but we will take the Q&A in the end. For info, we have a fixed deadline at 10:30. We will try and catch all the questions, but if not, then of course, they are free to send it to you. That was all the messaging before that.

Speaker #1: The topic for today, of course, is the Q2 results—fresh from the press this morning—but maybe also more the strong data which I saw you have communicated during the quarter on your best-case candidates.

Speaker #1: So, that will be the main topics for today's presentation. As always, there's a box down below where you can ask questions. Do feel free to do so during the presentation, but we will take the Q&A at the end.

Speaker #1: And for informal, we have a fixed deadline at 10:30, so we will try and catch all the questions, but if not, then of course you are free to send them to us.

Speaker #1: But that was all the messaging before that. So now, I will hand the stage over to you, Ben.

[Analyst]: Now I will hand the stage over to you, Bent.

Speaker #2: Thank you very much, Michael, and good morning, everybody. Welcome to ExpreS2ion's Q2 2026 results webcast. I'm Ben Frantzen, CEO, and I'm joined today by my CFO, Keith Alexander.

Bent Frandsen: Thank you very much, Michael, and good morning, everybody, and welcome to ExpreS2ion's Q2 2026 results webcast. I am Bent Frandsen, CEO, and I am joined today by our CFO, Keith Alexander. I will begin with our operational and technical progress, with particular focus on ES2B-C001. Keith will then take us through the Q2 financial results, after which we will open for questions. Our agenda is straightforward. Firstly, updates on the quarter and since the previous event, and second, our financial results. Final Q&A. Forward-looking statement disclaimer in the presentation, which we will publish on our webpage afterwards, after this webinar. Since our last quarterly update, we have advanced our clinical program, our platform, and our financing activities.

Speaker #2: I will begin with our operational and technical progress, with particular focus on year-to-year Q1. Keith will then take us through the Q2 returns and our final results.

Speaker #2: We will now open for questions. Our agenda is straightforward: first, updates for the quarter since the period end; second, our financial results; and finally, Q&A.

Speaker #2: Outlook and statement disclaimer in the presentation, which will be published on our webpage afterwards, after this webinar. Since our last quarterly update, we have advanced our clinical program, our platform, and our financing activities.

Speaker #2: During Q2, we published a patent application in Hong Kong, strengthening our glycoengineering platform, highlighted clinical malaria data supporting platform validation and scalability, and completed the rights issue and provided a further update on year-to-year CO1.

Bent Frandsen: During Q2, we published a patent application in Hong Kong strengthening our glycoengineering platform, highlighted clinical malaria data supporting platform validation and scalability, and completed the rights issue and provided a further update on ES2B-C001.

Speaker #2: After the quarter closed, this was published, and on 12 August we reported a positive independent DSMB outcome, together with expanded preliminary Phase 1 data. More about that later.

Bent Frandsen: After the quarter closed, the related US patent application was published, and on 12 August, we reported a positive independent DSMB outcome, together with expanded preliminary phase I data. More about that later. The central message is consistent. ES2B-C001 is progressing. Our platform continues to gain clinical and partner validation, and the financing completed in the quarter supports execution towards our next milestones. Our investment case rests on three pillars. First is ES2B-C001, our proprietary HER2-targeted immunotherapy now in phase I. Second is the ExpreS2ion protein manufacturing platform, which has been validated through clinical development, including phase III. Third is our 34% ownership of AdaptVac, which gives us strategic exposure to VLP technology and supports a clear partnering pathway. Why is this relevant now? ES2B-C001 has a first-in-class profile.

Speaker #2: The central message is consistent: year-to-year, CO1 is progressing, our platform continues to gain clinical and partner validation, and the financing completed in the quarter supports execution towards our next milestones.

Speaker #2: Our investment case rests on three pillars: First is year-to-year CO1, our proprietary HER2-targeted immunotherapy now in phase one. Second is the ExpreS2ion protein manufacturing platform, which has been validated through clinical development, including phase three.

Speaker #2: Third is our 34% ownership of Adapac, which gives us strategic exposure to VLP technology and supports a clear partnering pathway. Why is this relevant now?

Speaker #2: Year-to-year, CO1 has a first-in-class profile: early Phase 1 data show drug-specific immune responses, with no safety signals of concern identified to date. And we have a disciplined route toward partnering as the clinical evidence matures.

Bent Frandsen: Early phase I data show drug-specific immune responses with no safety signals of concern identified to date, and we have a disciplined route toward partnering as the clinical evidence matures. This slide shows the focused structure of our pipeline. At the top is ES2B-C001, our proprietary and internally sponsored oncology program. Alongside it, our malaria, Nipah, and influenza programs are largely advanced through grants, academic consultants, and commercial partnerships. That combination lets us concentrate our own capital on the lead oncology assets while continuing to generate platform validation and potential future value across infectious diseases. Execution is supported by a team and board with deep experience in clinical development, oncology, vaccines, manufacturing, licensing, and finance. Together with our 15 employees and consulting executives, the organization brings more than 200 years of relevant pharma and biotech experience.

Speaker #2: The next slide shows the focus structure of our pipeline. At the top is year-to-year CO1, our proprietary and internally sponsored oncology program. Alongside it, our malaria, Zika virus, and influenza programs are largely advanced through grants: academic consortium and commercial publishers.

Speaker #2: That combination lets us concentrate our own capital on the leading oncology assets, while continuing to generate platform validation and potential future value across infectious diseases.

Speaker #2: Execution is supported by a team and board with deep experience in clinical development, oncology, vaccines, manufacturing, licensing, and finance. Together with our 15 employees and consulting executives, the organization brings more than 200 years of relevant pharma and biotech experience.

Speaker #2: We believe this is the right capability base to move year-to-year CO1 forward towards clinical proof of concept. The strategic potential of year-to-year CO1 comes from the combination of three intended advantages.

Bent Frandsen: We believe this is the right capability base to move ES2B-C001 forward towards clinical proof of concepts. The strategic potential of ES2B-C001 comes from the combination of three intended advantages. As an active immunotherapy, it is designed to generate durable immune control, to be compatible with existing standards of care, and to address resistance mechanisms. No approved HER2 therapy combines all three. That is what gives ES2B-C001 its first-in-class profile and provides the rationale for the clinical and translational program now underway. Turning to the clinical program, the phase I study is an open-label, dose-escalation trial in patients with advanced HER2-positive or HER2-low breast cancer. Patients receive five intramuscular doses across three escalating dose cohorts, and the principal objectives are safety, tolerability, and immunogenicity. The 50 and 150 microgram cohorts have completed dosing, and the 450 microgram cohort is progressing.

Speaker #2: As an active immunotherapy, it is designed to generate durable immune control, to be compatible with existing standards of care, and to address resistance mechanisms.

Speaker #2: No approved HER2 therapy combines all three. That is what gives Year-to-Year C01 its first-in-class profile and provides the rationale for the clinical and translational program now underway.

Speaker #2: Turning to the clinical program, the phase one study is an open-label, dose-escalation trial in patients with advanced HER2-positive or HER2-low breast cancer.

Speaker #2: Patients receive five intramuscular doses across three escalating dose cohorts, and the principal objectives are safety, tolerability, and immunogenicity. The 50 and 150 microgram cohorts have completed dosing, and the 450 microgram cohort is progressing.

Bent Frandsen: In the preliminary data set available as of today, drug-specific antibody responses were observed in 12 of 13 evaluable patients. Titers increased across successive dosing visits and remained elevated at later follow-up. Importantly, no safety signals of concern have been identified to date. These observations remain preliminary and exploratory, and patient numbers vary by visit as follow-up continues. We are also planning maintenance dosing to assess booster responses and longer-term treatment effects, subject to regulatory approval. This can continue alongside phase II development. The end 2026 phase I readout remains on track and will include broader translational analysis of immune correlates, durability, mode of action, and preliminary efficacy signals. The previous slide showed drug-specific antibody responses in 12 of 13 evaluable patients. The next question is what those antibodies may be capable of doing.

Speaker #2: The preliminary dataset available as of today shows that drug-specific antibody responses were observed in 12 of 13 evaluable patients. Titers increased across successive dosing visits and remained elevated at later follow-up.

Speaker #2: Importantly, no safety signals of concern have been identified to date. These observations remain preliminary and exploratory, and patient numbers vary by visit as follow-up continues.

Speaker #2: We are also planning maintenance dosing to assess booster responses and longer-term treatment effects, subject to regulatory approval. This can continue alongside phase two development.

Speaker #2: The end-2026 phase one readout remains on track and will include broader translational analysis of immune quality, durability, mode of action, and preliminary efficacy signals.

Speaker #2: The previous slide showed drug-specific antibody responses in 12 of 13 evaluable patients. The next question is: what those antibodies may be capable of doing, unlike the standard of care, trastuzumab, which is a single predefined antibody. Year-to-year, CO1 is designed to generate a broader family of antibodies.

Bent Frandsen: Unlike the standard of care, trastuzumab, which is a single predefined antibody, ES2B-C001 is designed to generate a broader family of antibodies. In exploratory testing using antibodies from vaccinated non-human primates, we observed three complementary effects. First, the antibodies activated the complement system, which can damage tumor cells directly, a pathway trastuzumab does not engage. Second, they help immune cells engulf tumor cells, reaching a higher maximum response than trastuzumab in the same test. Third, they recruit immune cells to kill tumor cells with a maximum response comparable to trastuzumab. These are early exploratory findings from non-human serum and do not demonstrate clinical benefit or superiority. However, the same tests are now being run using serum from phase I patients, with results expected in Q4 2026. Those data will help us understand not only how much antibody patients produce, but what those antibodies may be capable of doing.

Speaker #2: In exploratory testing using antibodies from vaccinated non-human primates, we observed three complementary effects. First, the antibodies activated the complement system, which can damage tumor cells directly.

Speaker #2: A pathway trastuzumab does not engage. Second, they helped immune cells engulf tumor cells, reaching a higher maximum response than trastuzumab in the same test.

Speaker #2: Third, they recruited immune cells to kill tumor cells with a maximum response comparable to trastuzumab. These are early exploratory findings from non-human serum and do not demonstrate clinical benefit or superiority.

Speaker #2: However, the same tests are now being run using serum from Phase 1 patients, with results expected in Q4 2026. Those data will help us understand not only how much antibody patients produce, but what those antibodies may be capable of doing.

Speaker #2: If supportive, they should also strengthen the translational package for partnering discussions. Our development strategy remains focused on creating a partnering and value inflation opportunity at clinical proof of concept, or earlier if emerging data support it.

Bent Frandsen: If supported, they should also strengthen the translational package for partnering discussions. Our development strategy remains focused on creating a partnering and value inflation opportunity at clinical proof of concept or earlier, if emerging data support it. As communicated here in August, we now expect a phase II initiation in H2 2027, representing a one-quarter shift from our previous planning assumption. Importantly, the end 2026 phase I readout remains unchanged. Through 2026, the priority is data maturation and completion of the phase I package. As the data set develops, we will make the phase II design decision and continue strategic discussions to progress this asset. The breast cancer market remains large and partner-active, but our approach is disciplined, build a robust clinical and translational data set, prepare a focused proof-of-concept study, and preserve optionality on timing and deal structure.

Speaker #2: As communicated here in August, we now expect Phase Two initiation in the second half of 2027. We're presenting a one-quarter shift from our previous planning assumption.

Speaker #2: Importantly, the end-2026 Phase One readout remains unchanged. Through 2026, the priority is data maturation and completion of the Phase One package. As the dataset develops, we'll make the Phase Two design decision and continue strategic discussions.

Speaker #2: To progress this asset, the breast cancer market remains large and partner-active, but our approach is disciplined: build a robust clinical and translational proof-of-concept study and preserve optionality on timing and deal structure.

Bent Frandsen: Turning to malaria, the ExpreS platform supports a broad set of University of Oxford-led clinical programs. Across the portfolio, 11 phase I and phase II trials are ongoing or completed, including a phase IIb study expected to read out in 2026. Several trials have concluded, others are fully recruited, and the remaining studies continue across the UK and Africa. A particularly important milestone is the 2025 licensing agreement with the Serum Institute of India for RH5.1 and R78C, which expands the global footprint of our ExpreS production platform. This portfolio provides continued evidence of clinical utility, manufacturability, and scalability for the ExpreS platform, while the grant and partner-led model limits the direct capital burden on our company. Other collaboration projects also continue to advance. The Nipah vaccine program remains fully grant-funded through completion of phase I. The toxicology batch has been completed.

Speaker #2: Turning to malaria, the ExpreS platform supports a broad set of University of Oxford-led clinical programs. Across the portfolio, 11 phase one and phase two trials are ongoing or completed, including a phase 2b study expected to read out in 2026.

Speaker #2: Several trials have concluded, others are fully recruited, and the remaining studies continue across the UK and Africa. A particularly important milestone is the 2025 licensing agreement with the CER Institute of India for RH5.1 and R7T8C, which expands the global footprint of our ExpreS2 production platform.

Speaker #2: This portfolio provides continued evidence of clinical utility, manufacturability, and scalability for the ExpreS2 platform, while the grant- and partner-led model limits the direct capital burden on our company.

Speaker #2: Other collaboration projects also continue to advance. The NIPA vaccine program remains fully grant funded through completion of Phase One. The toxicology batch has been completed, the toxicology study is pending initiation, and GMP manufacturing is now in progress in all three biotechs.

Bent Frandsen: The toxicology study is pending initiation, and GMP manufacturing is now in progress in Oxford Biomedica. In MucoVax, which is approximately 67% grant-funded, influenza antigens have been designed using our ExpreS and glyco-modified cell line technologies and coupled to an antigen-presenting platform. Animal testing and comparison of the alternative platforms are now ongoing. The INDIGO consortium concluded in Q1. As previously mentioned, we continue to evaluate whether a future development path can preserve optionality without material near-term investment. Looking ahead, our central catalyst is the ES2B-C001 phase I primary readout, including translational data targeted to the end of 2026. These analyses will assess proof-of-response and durability, while business development activity in phase II preparation continues. For Nipah, the next steps are CMC manufacturing, toxicology, and R&D enabling work, followed by a potential phase I initiation. For malaria, we expect selected clinical readouts and potentially additional licensing opportunities.

Speaker #2: In Mucovax, which is approximately 57% brain-counted, influenza antigens have been designed using our ExpreS2 and glyco-modified cell line technologies and coupled to an antigen-presenting platform.

Speaker #2: Animal testing and comparison of the alternative platforms are now ongoing. The INDIGO consortium concluded in Q1. As previously mentioned, we continue to evaluate whether a future development path can preserve optionality without material near-term investment.

Speaker #2: Looking ahead, our central catalyst is the year-to-year CO1 phase one primary readout, including translational data targeted for the end of 2026. Maintenance dosing will assess booster response and durability, while business development activity and phase two preparations continue.

Speaker #2: For NIPA, the next steps are CMC manufacturing, toxicology, and R&D-enabling work, followed by potential Phase One initiation. For malaria, we expect selected clinical readouts and potentially additional licensing opportunities.

Speaker #2: These milestones are forward-looking and remain subject to clinical progress, regulatory interactions, manufacturing outcomes, funding, and partner decisions. That concludes the operational and clinical update, so I'll now hand over to Keith to take us through the Q2 and first half 2026 financial results.

Bent Frandsen: These milestones are forward-looking and remain subject to clinical progress, regulatory interactions, manufacturing outcomes, funding, and partner decisions. That concludes the operational and clinical update. I will now hand over to Keith to take us through the Q2 and H1 2026 financial results. Over to you.

Speaker #2: Over to you.

Speaker #1: Thank you, Bent. I'm Keith Alexander, CFO of ExpreS2ion, and I'll take you through the financial results for Q2 and the first half of 2026.

Keith Alexander: Thank you, Bent. I'm Keith Alexander, CFO of ExpreS2ion, and I will take you through the financial results for Q2 and H1 2026. As Bent described, we made significant clinical progress in the quarter, and I will show you what that looked like in the numbers. Starting with the headline figures. Operating income was SEK 11.5 million, up 238% year-on-year, primarily driven by grant income. CRO net sales were SEK 2 million, up 31% year-on-year. Operating loss increased 2% year-on-year to SEK 12 million, and the net loss for the period was SEK 9.7 million, down 3% from Q2 2025. On cash, we closed the quarter with SEK 34.4 million after SEK 32.4 million in proceeds from a rights issue, including a guarantor set-off issue. The TO 13 exercise period begins today, 20 August, and runs through 2 September.

Speaker #1: As Bent described, we made significant clinical progress in the quarter, and I'll show you what that looked like in the numbers, starting with the headline figures.

Speaker #1: Operating income was SEK 11.5 million, up 238% year-on-year, primarily driven by grant income. CRO net sales were SEK 2 million, up 31% year-on-year. Operating loss increased 2% year-on-year to SEK 12 million.

Speaker #1: And the net loss for the period was SEK 9.7 million, down 3% from Q2 2025. On cash, we closed the quarter with SEK 34.4 million, after SEK 32.4 million in proceeds from a rights issue, including a guarantor set-off issue.

Speaker #1: The TO13 exercise period begins today, August 20th, and runs through September 2nd. Proceeds from the warrants are dependent on the level of exercise and the applicable exercise price.

Keith Alexander: Proceeds from the warrants depend on the level of exercise and the applicable exercise price. The R&D spend figure, SEK 11.4 million, was up 483% year-on-year. I would like to address that directly now. A significant portion of that increase relates to VICI-Disease CMC, which is 100% grant funded and fully offset in income. I will show you that clearly on the next slides. Now to looking at income in more detail. The left chart shows total operating income in the quarter since Q1 2024. The step-up in Q2 2026 to SEK 11.5 million is substantial, up 238% against Q2 2025. That growth is from the grants line. CRO net sales were SEK 2 million, up 31% from Q2 2025, reflecting higher CRO activity in the quarter. That is a fluctuation we expect given the project-driven nature of that business. Other operating income, the grants line, was SEK 9.5 million, up 407%.

Speaker #1: The R&D spend figure, 11.4 million, was up 483% year-on-year. I would like to address that directly now. A significant portion of that increase relates to VC Disease CMC, which is 100% grant funded and fully offset in income.

Speaker #1: I'll show you that clearly on the next slides. Now, looking at income in more detail. The left chart shows total operating income in the quarter since Q1 2024.

Speaker #1: The step-up in Q2 26 to 11.5 million is substantial, up 238% against Q2 25. That growth is from the grants line. CRO net sales were 2 million, up 31% from Q2 25, reflecting higher CRO activity in the quarter.

Speaker #1: That's a fluctuation we expect given the project-driven nature of that business. Other operating income—the grants line—was 9.5 million, up 407%. As you can see from the callout on the right chart, this includes grant income associated with VC disease CMC subcontracting activities, with corresponding costs recognized in R&D.

Keith Alexander: As you can see from the call-out on the right chart, this includes grant income associated with VICI-Disease CMC subcontracting activities, with corresponding costs recognized in R&D. The program therefore has a significant gross of effect on both reported income and R&D expense. The Nipah vaccine project has development momentum and is grant funded, but I want to be clear that the revenue comes with a corresponding cost. We currently expect VICI-Disease CMC activity, and therefore the associated grant income and R&D expense, to be materially lower going forward. Turning to costs. Total operating expenses were SEK 23.5 million, up 56% year-on-year. The left chart shows the quarterly progression. Q2 2026 is elevated, but can be explained by the composition. R&D costs were SEK 11.4 million, up 483%.

Speaker #1: The program, therefore, has a significant growth effect on both reported income and R&D expense. The NIPA vaccine project has development momentum and is grant-funded, but I want to be clear that the revenue comes through the corresponding costs.

Speaker #1: We currently expect VC disease CMC activity, and therefore the associated grant income and R&D expense, to be materially lower going forward. Turning to costs.

Speaker #1: Total operating expenses were SEK 23.5 million, up 56% year-on-year. The left chart shows the quarterly progression. Q2 26 is elevated but can be explained by the composition.

Speaker #1: R&D costs were 11.4 million, up 483%. As the callout in the top right chart states, this includes VC Disease CMC, which is 100% grant funded and fully offset in income.

Keith Alexander: As the call-out in the top right chart states, this includes VICI-Disease CMC, which is 100% grant funded and fully offset in income. Strip that out, and the underlying R&D trajectory primarily reflects continued ES2B-C001 clinical activity. Personnel costs increased 14% year-over-year in the quarter at SEK 8.1 million versus SEK 7.1 million in the quarter a year ago. The increase primarily reflects higher contractor costs as we head toward completion of the phase I trial of ES2B-C001, and preparation of a phase II development plan package, as well as non-recurring items that benefited the prior year quarter. What the headline OPEX number doesn't immediately show is that other external costs fell 30% year-on-year, from SEK 4.4 million to SEK 3.1 million.

Speaker #1: Strip that out, and the underlying R&D trajectory primarily reflects continued ESTB CO1 clinical activity. Personnel costs increased 14% year-over-year in the quarter, at SEK 8.1 million versus SEK 7.1 million in the quarter a year ago.

Speaker #1: The increase primarily reflects higher contractor costs as we head toward completion of the Phase One trial of ESTB C01 and preparation of a Phase Two development plan package.

Speaker #1: As well as non-recurring items that benefited the prior-year quarter. What the headline opex number doesn't immediately show is that other external costs fell 30% year-on-year, from 4.4 million to 3.1 million.

Speaker #1: These costs were lower in the second quarter of this year, due primarily to higher external consulting costs in the prior-year quarter and lower vendor costs during Q2 2026.

Keith Alexander: These costs were lower in the Q2 of this year, due primarily to higher external consulting costs in the prior year quarter and lower vendor costs during Q2 2026. Putting it together, the net loss for the period was SEK 9.7 million, compared to SEK 10 million in Q2 2025. That is a 3% improvement. The bottom left chart breaks down the drivers. The operating result improved by SEK 291,000. Net financial items were immaterial, and the R&D tax credit accrual increased by SEK 622,000, up 44% year on year, which reflects the higher qualifying R&D spend in the period. Those factors together accounted for SEK 300,000 improvement in the net loss, so it is primarily driven by the R&D tax credit.

Speaker #1: Putting it together, the net loss for the period was $9.7 million, compared to $10 million in Q2 2025. That's a 3% improvement. The bottom left chart breaks down the drivers.

Speaker #1: The operating result deteriorated by $291,000. Net financial items were immaterial. And the R&D tax credit accrual increased by $622,000, up 44% year-on-year, which reflects the higher qualifying R&D spend in the period.

Speaker #1: Those factors together accounted for a SEK 300,000 improvement in the net loss, so it's primarily driven by the R&D tax credit. Looking at year-to-date loss on the right side, loss decreased 10% in the first half of 2026 compared with the year-to-date 2025 result.

Keith Alexander: Looking at year-to-date loss on the right side, loss decreased 10% in the H1 of 2026 compared with the year-to-date 2025 result. The bottom right chart breaks down the drivers.

Speaker #1: The bottom right chart breaks down the drivers. Operating result, financial investments result, and the R&D tax credit were all better year-to-date than in the first half of 2025, driving a total improvement of €2.2 million.

Keith Alexander: Operating results, financial investments result, and the R&D tax credit were all better year to date than the H1 of 2025, providing a total improvement of SEK 2.2 million. The cash waterfall chart shows cash development over the last year, from June 2025 through June 2026. We started at SEK 48.8 million. Operating cash outflows through the year reflects continuing investment in ES2B-C001 and grant-funded program activities. We closed Q2 2026 at SEK 34.4 million. The single largest movement in Q2 was the financial cash flow of SEK 24.90 million, which was driven by the rights issue. Operating cash flow was negative SEK 12.5 million in Q2, compared with negative SEK 25.5 million in Q1, and was higher than the prior two quarters. Note that the final quarter of the last several years has benefited from the annual payment of the R&D tax credit, which is usually in November.

Speaker #1: The cash waterfall chart shows cash development over the last year, from June 2025 through June 2026. We started at 48.8 million. Operating cash outflows through the year reflect continued investment in ESTB CO1 and grant-funded program activities.

Speaker #1: We closed Q2 2026 at 34.4 million. The single largest movement in Q2 was the financial cash flow of 24.9 million, which was driven by the rights issue.

Speaker #1: Operating cash flow was negative SEK 12.5 million in Q2, compared with negative SEK 25.5 million in Q1, and was higher than the prior two quarters. Note that the final quarter of the last several years has benefited from the annual payment of the R&D tax credit, which is usually in November.

Speaker #1: Operating cash flow is still primarily driven by ESTB CO1 clinical development and the VC disease CMC. As I mentioned, looking forward, VC disease CMC costs and the income are expected to be much lower.

Keith Alexander: Operating cash flow is still primarily driven by ES2B-C001 clinical development and the VICI-Disease CMC. As I mentioned, looking forward, VICI-Disease CMC costs and income are expected to be much lower. Pulling it together on cash, our Q2 closing cash was SEK 34.4 million. The TO 13 warrants have a pricing period starting today, 20 August, and running until 2 September of this year, subject to a floor of SEK 1.6. Followed by a subscription period from 7 September to 21 September. If exercised, it could provide potential additional proceeds, subject of course to the exercise level and share price at the time. The company's current priorities are to complete the phase I program for ES2B-C001, support the targeted end 2026 primary readout and translational analyses, and advance business development activities. Timing remains subject to clinical, regulatory, operational, and funding factors as set out in the presentation.

Speaker #1: Pulling it together on cash—our Q2 closing cash was $34.4 million. The TO13 warrants have a pricing period starting today, August 20, and running until September 2 of this year.

Speaker #1: Subject to a floor of 1.6 SEK, followed by a subscription period from September 7th to 21st. If exercised, it could provide potential additional proceeds, subject of course to the exercise level and share price at the time.

Speaker #1: The company's current priorities are to complete the phase one program for ESTB CO1, support the targeted end-2026 primary readout and translational analyses, and advance business development activities.

Speaker #1: Timing remains subject to clinical, regulatory, operational, and funding factors as set out in the presentation. That covers the financial section. To summarize the quarter in one sentence: grant activity increased reported income and supported corresponding VC disease CMC activity.

Keith Alexander: That covers the financial section. To summarize the quarter in one sentence, grant activity increased reported income and supported corresponding Nipah virus CMC activity, while we continue to invest in the ES2B-C001 phase I program and maintain focus on cost discipline. I will now hand back over to Michael, who will moderate the Q&A. Michael?

Speaker #1: While we continue to invest in the ESTB CO1 Phase One program and maintain focus on cost discipline, I'll now hand back over to Michael, who will moderate the Q&A.

Speaker #1: Michael?

Speaker #2: Perfect. The first question, I think, is to Bent: congratulations on the impressive Phase 1 results you've shown so far on the ES-TB C011. I think you already alluded a little bit to it, but the question here is, what are you looking at, and are you actually showing some tumor activity in the end?

[Analyst]: Perfect. The first question I think is to Bent. Congratulations on the impressive phase I results you have shown so far on the ES2B-C001. I think you already alluded a little bit to it, but the question here is, what are you looking at, and are you actually showing some tumor activity in the end? I know it's a safety study and jitters, but a little bit on would you actually be able to show something, whether the cancer potentially disappears? You went a little bit into it, Bent, but maybe you can allude a little bit more to it.

Speaker #2: I know it's a safety study and jitters but a little bit on would you actually be able to show something whether the the cancer potentially disappears.

Speaker #2: So, you went a little bit into it, Bent, but maybe you can allude a little bit more to it.

Speaker #1: It's a good question. As I've mentioned before, the phase one study is primarily a safety study, and the primary endpoints are safety and tolerability. Secondary endpoints are imaging necessity.

Bent Frandsen: It's a good question. As I've mentioned before, the phase I study is primarily a safety study, and the primary endpoints are safety and tolerability. Secondary endpoints are immunogenicity. We're able to detect the level of antibodies that are increased, received by our immunotherapy. Thirdly, tertiary objectives are actually to see if there any anti-tumor activity. That will be measured by scanning of the patients enrolled in this. We don't release that until we have the final scanning, by the end of this year. That's going to be exciting. Yeah.

Speaker #1: So we're able to detect the level of antibodies that are increased, we see, by our immunotherapy. And thirdly, tertiary objectives are actually to see if there is any anti-tumor activity.

Speaker #1: And that that will be measured by by scanning of the patient's enrolled in the in this. We don't release that until we have the the final scanning by the end of this year.

Speaker #1: So that's going to be exciting. Yeah.

Speaker #2: Perfect, thank you. Then to Keith: If we assume a quarterly burn rate of $10 million, can we then proceed with the assumption that your current cash reserve, excluding the TO13, will last you for three quarters?

[Analyst]: Perfect. Thank you. Then to Keith, if we assume a quarterly burn rate of SEK 10 million, can we then proceed the assumption that your current cash reserve, excluding the TO 13, will last you for three quarters? I don't know whether you comment or guide on the cash, but the assumptions here are from the person answering that. Is it totally wrong assumptions, Keith?

Speaker #2: I don't know whether you comment or guide on the gas but but but the assumptions here are are the from the from the person answering that is it totally wrong assumptions Keith?

Speaker #1: You know, I see where your question is coming from, but we haven't in the past and we still won't continue to guide on runway publicly.

Keith Alexander: I see where you're going with it, and it's a fair question, but we haven't in the past, and we still won't continue to guide on runway publicly. I think I just have to point to our cash position, SEK 34.4 million. Our targets of reaching the end of the phase I study and the translational analyses by the end of the year, and that's where our primary focus is. That and of course, partnering for our main programs.

Speaker #1: So I think I just have to point to our cash position—34.4 million—and our targets of reaching the end of the phase one study and the translational analyses by the end of the year.

Speaker #1: And that's where our primary focus is—that, and of course, partnering for our main programs.

Speaker #2: And then of course on the partnering we we know this will it's always of course very very interesting. There's a question here. Have have you seen any increase in partnering interest after you have released these data that keep showing this and and and and a buy question is the Moderna Merck yesterday maybe it's a little bit too early to see whether that gives a pickup in in who calls you but that was a vaccine I know it was an individualized and mRNA but it's still a vaccine in the cancer field.

[Analyst]: And then, of course, on the partnering, we know this is always, of course, very, very interesting. There is a question here. Have you seen any increase in partnering interest after you have released these data that keeps showing this? A bi-question is the Moderna-Merck yesterday. Maybe it is a little bit too early to see whether that gives a pickup in who calls you, but that was a vaccine. I know it is individualized and mRNA, but it is still a vaccine in the cancer field. So a little bit your data, Moderna, are you seeing a pickup in people calling you, or is it too early to see that effect yet, Bent?

Speaker #2: So, a little bit on your data, Moderna—are you seeing a pickup in people calling you, or is it too early to see that effect yet, Bent?

Speaker #1: Well, we can say that we are active with our business development and partnering activities. So every time we release data, that's of course encouraging for the ES-TB CO1 program and our ability to open doors around the world.

Bent Frandsen: Well, we can say that we are active with our business development and partnering activities. So every time we release data, that is of course encouraging for the ES2B-C001 program and our ability to open doors around the world. You can say part of what we have also alluded to, especially on this call and the last call, was the translational analysis that we now do. We have just seen very important translational outcome from our non-human primate sera. We are going to do the same with the patient sera here in the H2. Actually, that is even inspired by various dialogues that we have. It will be important to document the mechanism of action, and it is great that we already now in non-human primate see some that even reinforce our hypothesis around this program.

Speaker #1: And you can say part of what we've also alluded to, especially on this call and the last call, was the translational analysis that we now do.

Speaker #1: We've just seen very important translational outcomes from our anti—sorry, non-human primate serum. We're going to do the same with the patient serum here in the second half.

Speaker #1: Actually that is that is that is even on on inspired by various dialogues that we have. It will be important to document the mechanism of action and it's great that we already now in non-human primate see some that even reinforce our hypothesis around this program.

Speaker #2: And then the Moderna Merck I I know it's not you to comment on others but a cancer and a vaccine even if we can discuss all the the differences mRNA and so on do we expect to see maybe a pickup in interest in in the coming quarters by someone showing primary endpoints in in a phase three study.

[Analyst]: Then the Moderna-Merck, I know it is not you to comment on others, but a cancer and a vaccine, even if we can discuss all the differences, mRNA and so on. Do you expect to see maybe a pickup in interest in the coming quarters by someone showing primary endpoints in a phase III study?

Speaker #1: I I think it's it's great with the Moderna's outcomes. This is a clinical phase three trial which they've made in collaboration with Merck and what they actually do is show that their neoantigen focused mRNA cancer immunotherapy in combination with Merck's Keytruda provides an effect in a clinic clinical phase three study.

Bent Frandsen: I think it is great with Moderna's outcome. This is a clinical phase III trial which they have made in collaboration with Merck. What they actually do is show that their neoantigen-focused mRNA cancer immunotherapy in combination with Merck's KEYTRUDA provides an effect in a clinical phase III study. So that actually demonstrates a combination strategy, which we are also focusing on with our treatment. So in that sense, it is quite important and good news.

Speaker #1: So that actually demonstrates the combination strategy, which we are also focusing on with our treatment. So, in that sense, it's quite important and good news.

Speaker #2: Perfect. Then, partnering for phase two—I think you had alluded, as much as you can, saying you're keeping the option open. And there's a little bit, when, how are you working or preparing the upcoming phase two study, and how will it affect your operational expenses in the coming quarters?

[Analyst]: Perfect. Then partnering for phase II, I think you have alluded as much as you can, saying you are keeping the option opening, and that is a little bit. How are you working, preparing the upcoming phase II study, and how will it affect your operational expenses in the coming quarters? I am not sure you want to allude to that, but there is also a question here. When will you communicate this to market? When do we expect to maybe have something settled down, a plan, and can communicate to market about those things? Of course, going back to the partner, is this still phase II? Is that still expected to be partnered with?

Speaker #2: I'm not sure you want to allude to that, but there's also a question here. When will you communicate this to the market? When do you expect to maybe have something settled down—plan, and can communicate to market about those things? And of course, going back to the partner, this is still Phase 2. Is that still expected to be partnered with?

Speaker #1: Well, the planning of it and the design of the phase two is in the works, and, you know, we have an oncology scientific advisory board consisting of a handful of world-renowned key opinion leaders in the field.

Bent Frandsen: Well, the planning of it and the design of the phase II is in the working. We have an oncology scientific advisory board consisting of a handful of worldly known key opinion leaders in the field, and we also engage with them to make sure that we progress with a phase II design on the back of a phase I trial with their expert advices. Of course, we also need engagement with the regulatory authorities. So all of this taps into the design of the phase II. This is in the works, and it is not a trivial matter, so it takes its time. But as we mentioned, we want to initiate this in 2027, in the second half of 2027.

Speaker #1: And we also engage with them to make sure that we progress with a phase two design on the back of a phase one trial with their expert advisors.

Speaker #1: And of course, we also need engagement with the regulatory authorities. So all of this fed into the design of the Phase 2. This is in the works, and it's not a trivial matter.

Speaker #1: So it takes its time. But as we mentioned, we want to initiate this in the second half of 2027.

Speaker #2: Perfect. And then, the last quick question—actually, so we will stay well within the 30 minutes. Do you have a plan in case sufficient capital is not available, and what does that involve?

[Analyst]: Perfect. Then the last quick question, actually, so we will stay well in the 30 minutes. Do we have a plan in case sufficient capital is not available, and what does that involve? You have your ongoing TO 13, but there is a case here, there is a question here, a plan B in case capital is not available. Can you talk a little bit about what you are thinking as maybe potential other plans?

Speaker #2: You know you have your ongoing Q1–Q3, but there's a case here, there's a question here—a plan B in case capital is not available. Can you talk a little bit about what you're thinking as maybe potential other plans?

Bent Frandsen: Keith, do you want to take this one?

Speaker #1: Keith, do you want to take this one?

Speaker #3: Yeah. I mean I I think our response is kind of as you would expect that we you know we're we're in frequent conversation with advisors and we're considering all options on the table and and as is the board they're very much aware of of the options and part of the dialogue.

Keith Alexander: Sure. I think our response is as you would expect, that we are in frequent conversation with advisors, and we are considering all options on the table. As is the board, they are very much aware of the options and part of the dialogue. Partnering is, of course, our key or one of our biggest activities right now. So it is something we are very much focused on. We are doing everything that can be done there. The data that we are getting from the phase I trial that we reported last week, we are pretty positive on. These ongoing translational analyses are a part of that package that we present to them. So we are doing everything that can be done. We have got a good package that we have put together, and now it is just a matter of time, letting the data come in and having conversations and seeing where that leads us.

Speaker #3: And, you know, partnering is, of course, our key or one of our biggest activities right now. So it's something we're very much focused on.

Speaker #3: We're doing everything that can be done there. The data that we're getting from the Phase 1 trial that we reported last week, we are pretty positive on, and these ongoing translational analyses are part of that package.

Speaker #3: That we present to them. So we're doing, you know, everything that can be done. We've got a good package that we've put together, and now it's just a matter of time—letting the data come in and having conversations and seeing where that leads us.

Keith Alexander: So we are doing everything that can be done. We have got a good package that we have put together, and now it is just a matter of time, letting the data come in and having conversations and seeing where that leads us.

Speaker #2: Perfect. That was the last question. Thank you to you two for taking us through your milestones through the quarter, the operational results and the financial results, and answering questions here.

[Analyst]: Perfect. That was the last question. Thank you for you two for taking me through your milestones through the quarter, the operational results and the financial results, and answering questions here. So thank you to you both, and thank you for the audience listening in. May everybody have a nice day.

Speaker #2: So, thank you to you both, and thank you to the audience listening in. May everybody have a nice day.

Bent Frandsen: Thank you.

Keith Alexander: Thank you, Michael.

Browse all earnings call transcripts

Half Year 2026 ExpreS2ion Biotech Holding AB Earnings Call

Request TrialDemo

ExpreS2ion Biotech Holding

Earnings