Pharma Equity Group – Strategic update and adjustment of expectations

Core Viewpoint - Pharma Equity Group A/S has provided a strategic update indicating a significant adjustment in revenue and earnings expectations for the financial year 2025, shifting from an expected revenue of approximately DKK 11 million to no revenue, and increasing the pre-tax loss expectation from DKK 4-7 million to DKK 18-20 million, reflecting a strategic decision to prioritize long-term value creation over short-term gains [2][3]. Revenue and Earnings Expectations - The company has revised its revenue expectations for the financial year 2025 to zero, a significant change from the previously communicated expectation of DKK 11 million [2]. - The pre-tax loss expectation for the financial year 2025 has been adjusted to a range of DKK 18 to 20 million, up from the earlier estimate of DKK 4 to 7 million [3]. Strategic Decisions - The adjustments in revenue and earnings do not indicate a decline in the quality or potential of the underlying assets but are a result of a strategic choice to focus on long-term value creation rather than short-term agreements [3]. - The company has updated its Expected Credit Loss (ECL) model, which reflects a more conservative accounting practice but does not impact liquidity or strategic options for commercializing pipeline projects [4]. Pipeline Projects RNX-051 - Pharma Equity Group is engaged in advanced discussions with potential industrial partners regarding RNX-051, aiming to conclude these discussions in the first half of 2026 [5]. - The company has identified and addressed regulatory and operational barriers for international clinical studies with RNX-051, confirming that no material obstacles remain [8]. - The clinical study protocols for RNX-051 are in sub-final draft form and are expected to meet the requirements of potential licensing partners [7][9]. RNX-011 - Significant progress has been made in the development of RNX-011, with a clear strategy established for its continued advancement [11]. - The clinical study protocol for RNX-011 has been approved but will undergo targeted adjustments to enhance its design in line with partner expectations [12]. - Encouraging results have been previously demonstrated for RNX-011, and the company is focused on ensuring the study design supports its attractiveness for future licensing discussions [13]. Overall Strategy - The Board of Directors and Executive Management believe that the decision to forego short-term revenue is the most responsible approach for shareholder value creation [15]. - The company maintains a solid strategic foundation with a focus on maximizing long-term value through partnerships and licensing agreements [18].