External events in the first half of 2024 have highlighted the potential of CAN10 in hidradenitis suppurativa. CAN10, under development in autoimmune diseases, is shaping up to become a candidate with a market opportunity on par with nadunolimab. Oncology has become a somewhat less hot space in recent years, even if it is still by far the largest pharma market. Immunology has become more fashionable since Humira lost its patents and as rates of autoimmune diseases continue to rise. We therefore believe CAN10 can be developed as an attractive partnering asset. With phase I data at the end of the year, the path will be open for efficacy studies. The main track has been systemic sclerosis. However, hidradenitis suppurativa (HS) or psoriasis could also be interesting indications with blockbuster potential. Trials would be relatively quick compared to nadunolimab’s, as common endpoints are results after 12 or 16 weeks.

As previously communicated, costs decreased in Q1, to around SEK-40m. With a cash position of circa SEK140m, the company is funded for about another year, excluding the planned phase IIb study in pancreatic cancer, past the important H2 readouts in breast cancer (TRIFOUR) and CAN10's phase I study in H2 2024. Discussions are ongoing about funding of the phase IIb study in pancreatic cancer, which cannot begin before this is settled.

We have removed some cancer indications from the sum-of-the-parts, which has a slightly negative effect on the base case, while the increase in share price since our last update has a positive effect on the assumed funding dilution. These changes counterbalance leading to a restatement of our base case of SEK15.