Q2 INTERRIM REPORT JANUARY – JUNE 2016 NICOCCINO HOLDING AB (publ)
Nicoccino Holding Development
SECOND QUARTER SUMMARY APRIL – JUNE 2016
Net sales for the second quarter amounted to 53 TSEK (397 TSEK).
Net income amounted to -4.9 MSEK (-7.4 MSEK) or -0.35 SEK per share (-0.56 SEK).
Cash flow from operating activities amounted to 1.2 MSEK (-7.4 MSEK) or 0.08 SEK per share (-0.56 SEK).
Liquid assets amounted to 28.1 MSEK (50.0 MSEK) by the end of the period.
The Company continues its strategy of achieving a drug classification of the nicotine film and is focused to find a suitable partner to help support this work.
In June, a campaign was conducted online where the Company sold out products with short shelf life. The customers answered well to the campaign and a majority of the stock was sold out.
PERIOD SUMMARY JANUARY – JUNE 2016
Net sales amounted to 235 TSEK (522 TSEK).
Net income amounted to -13.9 MSEK (-16.2 MSEK) or -1.01 SEK per share (-1.33 SEK).
Cash flow from operating activities amounted to -8.1 MSEK (-15.2 MSEK) or -0.59 SEK per share (-1.25 SEK).
EVENTS AFTER THE END OF THE REPORTING PERIOD
No significant events after the end of the period.
Comments from CEO
The Company’s focus
In line with our strategy, we continue the journey towards a drug classification of Nicoccino™ and focus our resources towards this goal. As mentioned in previous report, the company has undergone an organizational change this spring by having closed down the London office, and this change proceeds in the form of reduced costs for the company. This allows us greater opportunities to make active choices instead of forced decisions.
The physical sales instore were closed down during the first quarter this year, however the online sales is still ongoing. We will continue with the online sales as long as we have goods in stock and it is my assessment that we will cover the consumer needs throughout the year.
Sales during the second quarter was dominated by a campaign where products with short shelf life were sold out. It was a successful campaign and almost the entire stock where completed. It is encouraging to see such a strong interest among existing users.
Production and Development
During the spring, the Company was in contact with several producers having GMP standard. We are in close contact with manufacturers both in Europe and US, however most important is to continue with a producer having significant experience in producing pharmaceuticals and especially products with our characteristics. We are hopeful to start producing nicotine strips according to pharmaceutical standards later this year, and then move into the clinical study.
Our plan is to initiate the clinical study during the first quarter of 2017 and until then put all resources in producing nicotine strips according to pharmaceutical standards. The preparations for a clinical study are numerous and contain massive documentation and technical work where equipment test runs and laboratory work are performed. When completed, we produce a clinical batch for which the study is based on.
The purpose of classifying the nicotine strip as a drug is obvious, to increase shareholder value and to add value into the company.
A drug classification will create a clear regulatory resident, making the product more attractive for other global players active in the field of future smoking cessation products
About Nicoccino and our product
ABOUT THE COMPANY
Nicoccino has developed an innovative and patented nicotine product that after completion of a clinical study will be classified as a medicine for smoking cessation (Nicotine Replacement Therapy – NRT). With a clear classification, regulatory uncertainty will be reduced and new markets will open up that would otherwise not be accessible. Sales to consumers will be managed indirectly through a license model with international partners who are more financially equipped to reach out globally.
In 2014/2015 a commercial test launch was conducted in the UK where Nicoccino™ was sold as a consumer product online, and in retail. This introduction confirmed that the concept works and that there is a great potential for this new type of nicotine product.
In early 2016 a new strategy was formed with an increased focus on creating a product platform that can be used by partners who wish to establish themselves in the market of Nicotine Replacement Therapy (NRT) or want to expand their existing product portfolio. This new strategy has resulted in the prioritization of achieving a drugs classification for when entering partnerships.
Nicoccino has its office located in Täby, outside of Stockholm. The company’s shares are listed on Nasdaq Stockholm First North since June 2014 and can be found under the abbreviation NICO.
Remium Nordic AB is the Nicoccino’s certified adviser.
Nicoccino has developed a patented, innovative and discrete strip that through its unique delivery method instantly provides the user with nicotine without the detrimental side effects of smoking.
The product is designed to offer smokers an attractive alternative when they want to quit smoking. After a pharmaceutical approval, the product will be sold as a smoking cessation drug (Nicotine Replacement Therapy – NRT).
Once the strip is placed under the lip and onto the gum, it delivers a quick and potent nicotine effect. Within a couple of minutes the nicotine has been expended and the film dissolves without leaving any residue in your mouth.
The platform is formulated in Sweden and is the result of over ten years of research and development.
The strip itself is leaf thin and alginate based, about half the size of a stamp. Each dose contains 1 mg of medically classified nicotine, an alginate base (extracted from brown seaweed), as well as natural flavorings and aromas. All additional substances are medically approved.
The information Nicoccino Holding AB (publ) releases is provided according to financial regulations for the stock market and/or the law for trade with financial instruments. The information is prepared to be published on 26th Aug 2016, 08:00am. The report has to be communicated in Swedish and English. If differences between the versions exist, the Swedish version is pertained.
Nicoccino has developed a patented, innovative and discrete strip that through its unique delivery method instantly provides the user with nicotine without the detrimental side effects of smoking. The product is designed to offer smokers an attractive alternative when they want to quit smoking. After a pharmaceutical approval, the product will be sold as a smoking cessation drug (Nicotine Replacement Therapy – NRT).
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