In This Article:
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Cash Position: NOK107 million (approximately $9 million) at the end of Q4 2024.
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EBIT (Operating Profit): Q4 2024: minus NOK121 million; Full Year 2024: minus NOK224 million.
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Profit Before Tax: Q4 2024: minus NOK119 million; Full Year 2024: minus NOK213 million.
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Impairment/Write Down: Total of NOK72 million, including NOK4 million related to patents and NOK68 million related to licenses and goodwill.
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Workforce Reduction: Approximately 50% reduction during 2024.
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Private Placement Commitment: NOK51.7 million at a price of 2.60 per share, providing a financial runway through Q2 2026.
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Operating Cash Flow: Significant reduction in Q4 2024 due to workforce reduction and completion of R&D projects.
Release Date: January 31, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Ultimovacs ASA announced a business combination with Zelluna Immunotherapy, creating a new entity named Zelluna ASA, which is expected to enhance strategic capabilities.
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The capital raise of NOK51.7 million is fully committed, providing a financial runway through the second quarter of 2026, ensuring the advancement of key R&D projects.
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The merger aims to advance the world's first major TCRNK program into clinical trials, potentially revolutionizing cancer treatment.
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Zelluna's TCRNK platform combines clinically validated T-cell receptors with natural killer cells, offering a novel approach to target solid tumors effectively.
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The company holds a robust IP position with a concept patent that allows land grabbing of the entire TCRNK therapeutic space, providing a competitive advantage.
Negative Points
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Ultimovacs reported negative financial results for Q4 2024, with an operating loss of NOK121 million and a full-year loss of NOK224 million.
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The company underwent significant workforce reductions, cutting approximately 50% of its staff in 2024 due to negative trial results and operational adjustments.
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The UV1 Phase 2 trials yielded negative results, impacting the company's valuation and strategic direction.
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The exchange ratio in the merger heavily favors Zelluna shareholders, with Ultimovacs shareholders receiving only 19% of the new company, raising concerns among existing shareholders.
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High operational costs, including legal and consulting fees related to the business combination, have significantly influenced the company's financials.
Q & A Highlights
Q: As an Ultimovacs shareholder, I struggle to understand the rationale for valuing Zelluna shares so much higher than Ultimovacs, given that Ultimovacs is listed and Zelluna is not. A: The exchange ratio reflects the advanced stage of Zelluna's core technology, which is moving rapidly towards clinical trials. In contrast, Ultimovacs has faced negative outcomes in its UV1 Phase 2 trials, and its multi-click technology is at an earlier stage. The valuation was supported by third-party specialists and considers the complementarity between the two companies' technologies and experiences.