The phase I trial was concluded with a good safety profile, with only minor irritations at the injection site, as expected from a subcutaneous injection. This means Lipisense could potentially be developed for larger indications. Furthermore, target engagement was demonstrated through the reduction of ANGPTL4 by up to 24% in the multiple ascending dose groups. Lipigon now focuses on preparing an application to the Swedish medical authority to start the phase IIa trial, which could treat the first patient in Q4 this year.

The deal with Leaderna is worth up to USD91m plus royalties. The upfront payment was USD1.5m. Our forecast of further milestone payments in 2023-2024 is USD3m based on historical comparisons, though there obviously is a high level of uncertainty as to the exact potential amounts. The rights issue brought in around SEK23m net. TO2 could provide additional cash in Q4 this year and TO3 could bring in more money next year. This puts Lipigon in a good financial position compared to its peers.

We make minor changes to our forecasts and assumptions and restate our base case of SEK2.9; the main change is a slight increase in the number of fully diluted shares.