Eurocine Vaccines AB (“Eurocine Vaccines”) hereby publishes the interim report for July 2020 to March 2021. Below is a summary of the report. The full report is available on the Eurocine Vaccines website (https://www.eurocine-vaccines.com/) and as an attachment.

Eurocine Vaccines – Q3 2020-2021 ENG 2021-05-27

2021-01-01– 2021-03-31 (third quarter)

• Result after tax during the period amounted to SEK -4,6 million (SEK -2 million)
• Revenues during the period amounted to TSEK 75 ( TSEK 8)
• Earnings per share during the period SEK -0.582 (SEK -0.006)*

2020-07-01– 2021-03-31 (9 month period)

• Result after tax during the period amounted to SEK -12,2 million (SEK -6,7 million)
• Revenues during the period amounted to TSEK 457 (TSEK 8)
• Earnings per share during the period amounted to SEK -1.544 (SEK -0.03)*

* During the third quarter of the fiscal year (first quarter of 2021), the company completed a reversed split in the ratio 1:100, which reduced the number of shares from 789,541,300 to 7,895,413. On the 31 March 2020, the number of shares amounted to 511,092,893.

CEO Hans Arwidsson comments

”We have now ended the first quarter of 2021 and the third quarter of our broken financial year, where our continued expansion of the portfolio was in focus.

An important milestone during the quarter was the initiation of our process development together with Biovan. Eurocine Vaccines has carried out knowledge transfer and preparations for the development of the manufacturing process for the active protein needed in the toxicological and clinical studies with the chlamydia vaccine candidate. After creating the research cell bank for the upcoming work, we were able to begin the extensive work of developing a quality-assured manufacturing process with thorough documentation, something the team has done professionally and well.

At the beginning of the year, we were also able to upgrade to appropriate premises with beneficial access to both own and common laboratories, as well as instruments to evaluate new vaccine candidates more quickly – important steps to simplify and assure the quality of our evaluation, selection and development of vaccine candidates.

As usual, we have also had regular contact with vaccine experts around the world, something we value highly as it strengthens our presence in the market. This quarter, we participated in the annual JP Morgan Health Care Conference, where investors meet pharmaceutical companies. We participated, processed, and maintained valuable contacts, and were invited to present our company and Endocine™ for top names in Big Pharma. In addition to the operational work, we have undergone some changes in the company’s infrastructure. The website has been redesigned, with the goal to offer a platform that supports communication with investors and partners and more clearly reflects our strategies and our work.

Another important milestone during the quarter was that we confirmed a good immunological effect in our preclinical study with a production-adapted chlamydia vaccine. By optimizing the vaccine candidate, we can focus the immune response so that the antibodies formed bind to relevant parts of the chlamydia bacterium to an even greater extent than before. This is probably of great importance for how effective the vaccine is, something we will investigate further in future studies. The results are an important step in the development of the chlamydia vaccine candidate on the way to the first clinical study. To build value in the project, we are now developing a manufacturing method that is suitable for manufacturing on an industrial scale, a work that is currently underway.

As we are now reporting the period, we have decided on a rights issue of units to finance most of the preparatory activities before the start of the first clinical study on the vaccine candidate against chlamydia. In addition, the capitalization, which can initially provide approx. SEK 31.6 million, will finance intensified business development, partly with the aim of preparing potential partners for the chlamydia vaccine candidate and partly for the identification and evaluation of additional vaccine candidates.

Finally, I would like to extend a warm thank you to our shareholders, to my competent colleagues, and to the Board.”

Highlights during the period

Eurocine Vaccines entered into an agreement with Spixia Biotechnology on the development and commercialization of chlamydia vaccines

The agreement follows the terms communicated in May 2020, which gives Eurocine Vaccines the exclusive rights to develop, manufacture and commercialize chlamydia vaccine candidates based on vaccine antigens developed by Spixia Biotechnology.

Eurocine Vaccines brought forward the development of commercial manufacturing method and updated the time plan

In connection with the procurement of a contract manufacturer for the active protein in the chlamydia vaccine candidate, Eurocine Vaccines decided to develop a manufacturing method that is suitable for the manufacture of vaccines on an industrial scale already at this stage. In connection with the decision, the Company has updated the time plan.

Eurocine Vaccines selected Biovian as the contract developer for the chlamydia vaccine candidate

Eurocine Vaccines announced that the Company has selected Biovian Oy, Turku, Finland, (“Biovian”) as the contract developer for the Company’s vaccine candidate against chlamydia. Biovian, an internationally recognized contract developer and manufacturer with a GMP facility, will develop an industrial manufacturing method and manufacture study products for Eurocine Vaccines´ future studies, such as toxicological and clinical studies.

Eurocine Vaccines signed an evaluation agreement to evaluate Endocine™ in the veterinary field

The agreement was signed with a prominent regional veterinary company. The agreement, which is a so-called MTA (Material Transfer Agreement), runs for two years and the evaluation will be carried out on one or two animal species. Eurocine Vaccines provides Endocine™ while the counterparty bears all other costs for the evaluation.

Eurocine Vaccines has started a vaccine project with researchers at Örebro University who have been granted funding by The Knowledge Foundation in Sweden

Eurocine Vaccines has started a project that includes studies on e.g. TBE, other flaviviruses, and HIV, as well as tests in combination with substances that enhance the effect of vaccines, so-called adjuvants. The project is led by Magnus Johansson, professor of biomedicine, and has been granted approx. SEK 14 million by the Knowledge Foundation’s Synergy Program.

Formue Nord sold its shareholding in the company

Formue Nord’s sold previous holding of 9.71 percent of the votes and capital in Eurocine Vaccines, which was received as a result of their guarantee commitment in connection with the warrant exercise in June 2020.

The Annual General Meeting on 15 December resolved to merge shares in Eurocine Vaccines

The Annual General Meeting of Eurocine Vaccines AB resolved in accordance with the proposed resolutions, to implement a reversed split of shares 1:100, i.e. one hundred (100) shares to be merged into one (1) new share. The Board of Directors decided on 5 January, with the support of the Annual General Meeting’s authorization, that the record date would be 11 January 2021. The reversed split means that the number of shares was reduced from 789,541,300 shares to 7,895,413 shares. Simultaneously, each share’s quota value increased from SEK 0.0025 to SEK 0.25.

Eurocine Vaccines confirmed good immunological effect in the preclinical study with production-adapted chlamydia vaccine

The study confirmed that an adapted version of the vaccine, designed to meet the regulatory requirements of a finished product, is highly immunogenic and focuses the immune response to the parts of the chlamydia bacterium to which protective antibodies bind. The good immunological effect of the tested vaccine surpasses, by a good margin, what in previous studies has provided protection in preclinical models.

Eurocine Vaccines initiated process development for the vaccine candidate against chlamydia

The knowledge transfer and preparations have been carried out for the development of the manufacturing process for the active protein needed in the toxicological and clinical studies with the company’s chlamydia vaccine candidate, and process development has begun.

Other events

During the period, the business has moved to more appropriate premises within Campus Solna,  “A Working Lab Innomedicum” where a life science hub is created in the meeting between offices, laboratories, meeting rooms, and event spaces. The website has also been updated for better communication with investors and partners. The company participated in JP Morgan’s annual “Health Care Conference”, where investors meet pharmaceutical companies. This year, this was held virtually with 2,355 participating companies and almost ten thousand partner meetings. Eurocine Vaccines participated virtually to maintain important relationships, position the company’s portfolio and, above all, present both the current focus in chlamydia vaccine and the adjuvant Endocine™, to important opinion leaders within Big Pharma. This year, Eurocine Vaccines has so far participated in three additional virtual partnering conferences.

Highlights after the period

Eurocine Vaccines announced that the company’s adjuvant technology Endocine™ is being evaluated with a vaccine candidate against COVID-19

An evaluation agreement, a so-called Material Transfer Agreement, has been signed between Eurocine Vaccines and an innovative, North American, small public company for the evaluation of Endocine™ together with a vaccine candidate against COVID-19. Studies in one or two animal species will be carried out to study both efficacy and safety.

Eurocine Vaccines decided on a rights issue

The Board of Eurocine Vaccines has, with the support of authorization from the Annual General Meeting, decided on the implementation of a rights issue of units, which initially can provide a maximum of approximately SEK 31.6 million before issuing costs. Through the rights issue of units, free warrants of series TO 4 will be issued, which can provide a maximum of SEK 19.7 million before issuing costs.