Crisis-hit biotech company Nordic Nanovector provided numbers for its second quarter Wednesday morning, Less than a week after it was learned that former CEO Eric Scholrod had finished his job.
The latest quarterly report shows NOK zero in revenue and a loss before tax of NOK 91.7 million in the second quarter.
As you know, the company completed the study of the model, announced the restructuring of the company.
In the quarterly report, it is now stated that 25 employees have been laid off, which is about 70 percent of the company’s total workforce. The company wrote that the management team has also been significantly reduced.
When the Oslo Stock Exchange opened on Wednesday morning, Nordic Nanovector’s share fell more than 20 percent.
Estimated costs 200 million
Nordic Nanovector expects it to cost NOK 170-200 million to complete the study. It is expected to remain with a cash balance of between 90 and 110 million after liquidation.
The quarterly report stated that “there is no guarantee of what the company’s review will lead to, but the company aims to complete the review before the end of the year.”
He further states that the Company has no further comments regarding the review before its conclusion, but that such statements will be provided if the Company deems appropriate.
However, Nordic Nanovector believes that, given the listing and remaining cash and assets, there are opportunities to “crystal shareholder value through a potential strategic deal,” as stated in the quarterly report.
President’s resignation
Nordic Nanovector announced early in July that it would restructure the company as a result of completing a model study.
On Friday last week, the company announced the departure of Erik Skullerud, then it was announced that Chief Financial Officer Malene Brondberg would take over the role on a temporary basis.
– Chairman Jan H. Egberts said in a letter on Friday: – It is important that we make the necessary changes to restructure our business under the difficult circumstances we face.
– In order to reduce costs, we have now implemented staff reductions at all levels of the company, he said.
So Skullerud’s departure came a week after it became clear the company had hired Carnegie to “explore strategic alternatives.”
Nordic Nanovector then wrote that the goal was “to improve shareholder value following the recent decision to end the study on the cancer treatment drug Betalutin.”
Betalutin is the company’s main product, and at the same time as the study was over, it was decided to restructure the company.
The main study completed
The model study was the main study for the lymphoma company, and it concluded at the beginning of July.
In June, the company announced that the board of directors had decided to conduct a comprehensive review of the study, in which very few patients were recruited.
The company has constantly had to postpone classes due to a staffing shortage, and the coronavirus pandemic hasn’t made it any easier either.
The study focused on a relatively rare type of lymphoma, follicular lymphoma, a subgroup of non-Hodgkin’s lymphoma, which is considered incurable.
Nordic Nanovector’s share is down more than 90 percent so far this year.
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