Financials 
The net result for the quarter came in at SEK –24.4 (-26.6) million, with no revenues and operating expenses of SEK 27.5 (24.8) million. Cash flow for the period amounted to SEK -25.8 (-22.5) million, which gave a cash balance of SEK 212 million at the end of the quarter (including short-term investments of SEK 77.4 million). However, we estimate the current cash position to be somewhere between SEK 350-370 million when adding the SEK 185 million from the directed share issue carried out in July.
As highlighted in an earlier research note, we were somewhat surprised to see a capital raise already at this stage (given the already solid balance sheet). However, we generally like biotech’s that raise capital from a position of strength – not weakness. Importantly, we estimate that the current cash position will be sufficient to fund operations until readout from the phase II trial in IPF, expected early 2022.
FPI Covid-19 
During the second quarter, Vicore has included the first patient in its <a href="https://clinicaltrials.gov/ct2/show/NCT04452435?term=c21&amp;draw=2&amp;rank=1" target="_blank">phase II Covid-19 trial</a>. The ATTRACT-trial will recruit 100 patients to investigate the safety and efficacy of VP01 (C21) in hospitalised patients who do not require mechanical ventilation. We expect to see a readout from the study during before year-end, which will be a major catalyst for the stock, we judge.
Progress with IPF phase II trial 
Vicore got its CTA for phase II in IPF patients approved in the UK during the quarter and expects to initiate the trial late Q3. This trial is an open-label trial, investigating the treatment effect of VP01 in ~60 patients over a period of six months. Given encouraging outcome, we believe this trial will provide a rationale for the continued development of VP01 in IPF in a larger, pivotal setting.
VP01 in the IPF indication constitutes the largest NPV in our SOTP-model (SEK 32 per share), and we argue that investors should monitor this trial as it, in our view, will be a major value driver and is likely to improve investor sentiment as progress is shown.