LETTER FROM THE CEO

 

Dear shareholder, Dear reader,

During the quarter, the company has continued its final preparations for filing the application to list Nuevolution’s shares on Nasdaq Stockholm’s Main Market. We maintain our guidance for filing the application before 30 June 20181.

As previously communicated, most recently in the interim report for October – December 2017, we are in several discussions with pharmaceutical companies exploring different types of deals; including potential program out-licensing, R&D/platform collaboration. We can now update this guidance and confirm on-going partnership discussions including late stage negotiations of financial terms and other terms. The
financial terms under discussion are size wise similar to the financial terms of the partnership agreements that Nuevolution has acheived during recent years. Nuevolution cannot, however, guarantee that such terms will be achieved in a final agreement for potential signing, and cannot guarantee that a final agreement for partnership will be reached and executed.

We maintain our guidance on potential realization of a further partnership during the coming six months1.

For our two most mature internal programs, the RORγt and bromodomain BET-BD1 inhibitor programs, we have almost completed all internal and expensive R&D work required to prepare these programs for potential IND-enabling studies (regulatory animal toxicology studies). In the RORγt program, we successfully completed the investigation for potential use of our RORγt inhibitor for treatment of inflammatory bowel disease (IBD), by obtaining positive data from the important adoptive T-cell transfer IBD model. In the BET-BD1 program, we are in the internal process of finalization and we expect to nominate a first program candidate during the second quarter of 2018. In our collaboration with Almirall, Nuevolution has now successfully completed its work, and Almirall will be taking over all responsibilities and governance completing any remaining work in the program towards clinic development. Nuevolution R&D will therefore now have its main focus to complete work in the two fast-track programs partnered with Amgen, and in maturing multiple new exciting projects from early discovery programs to develop future business opportunities.

This near term Early Discovery focus seeks to create even further value for the company and its shareholders through the identification and development of proprietary compounds from application of the company’s unique technology. The screening (“panning”) technique offers Nuevolution access to the screening of its in-house compound libraries of billions to trillions of molecules – a capacity very far from reachable by conventional techniques. Read more about our approach in this quarterly report. This technique very successfully produced our RORγt candidate leading to the major agreement with Almirall. Soon we expect to be at a similar development stage with our bromodomain BET BD1 selective inhibitor program, and in January 2018, and once again, our proprietary technology delivered attractive molecules to one of our partners Janssen, triggering a license fee payment.

Post end of the quarter, the company noted that Fredrik Arp unfortunately would not be available for re-election at the forthcoming annual general meeting on 28 May 2018, and he has therefore for practical reasons stepped down already now.

As a final comment from the CEO, I would like to reiterate that we maintain our guidance on all goals (corporate, business and R&D), and I would like to thank our shareholders for the support to the company. We hope to see you at the AGM on 28 May, 2018.

Stockholm, 8 May 2018

Alex Haahr Gouliaev
Chief Executive Officer

1For the avoidance of doubt, this information represents a forwardlooking statement, which is associated with significant risk and realization of the announced goal may fail.