Q2 2026 Alligator Bioscience AB Earnings Call Transcript
Key Points
- Alligator Bioscience AB (STU:7AL0) has a financial interest in HLX22, a promising HER2-targeting antibody for gastric cancer, with a royalty stake of up to 1.75% of net sales, which could generate annual income of SEK150 million to SEK450 million without any development costs.
- HLX22 has shown strong clinical efficacy, including an 80% reduction in the risk of disease progression in a Phase II study for gastric cancer, with follow-up data beyond 39 months indicating continued progression-free survival benefits.
- The global Phase III study for HLX22 in first-line HER2-positive gastric cancer has completed patient dosing across all regions, with top-line data expected in the second half of 2027, and a potential launch in 2029.
- The company has secured a rights issue of up to SEK225 million, which, if fully subscribed, is expected to fund operations until HLX22 commercialization, ensuring the preservation of its key value driver.
- Management is actively reducing the cost base by winding down operations and seeking to divest mitazalimab and other assets, which could provide additional upside while minimizing ongoing expenses.
- Alligator Bioscience AB (STU:7AL0) has discontinued independent development of mitazalimab due to the emergence of KRAS inhibitors, which are expected to become the new standard of care in pancreatic cancer, eroding the commercial rationale for its chemo combination.
- The company faces significant financial constraints, with only SEK16.6 million in cash at the end of June 2026, necessitating a bridge loan and a dilutive rights issue to continue operations.
- The rights issue is highly dilutive, with 5 unit rights per share, each unit including 2 new shares, potentially issuing up to 6 billion new shares, which could significantly dilute existing shareholders.
- The timeline for HLX22 royalty revenue is distant, with first royalties not expected until 2030, leaving the company dependent on the success of the rights issue and external factors for survival.
- The company has not made provisions for wind-down costs of mitazalimab, which will be incurred in Q3 and Q4 2026, potentially impacting cash flow and adding financial uncertainty.
Welcome to Alligator Biosciences interim report call for the Second Quarter of 2026. My name is Greta Hoog. I am the IR and Communications Manager at Alligator and I will be introducing today's call. With me today is our CEO, Soren Bregenholt, and our CFO, Johan Gileus. They will walk you through the latest developments at the company, after which they will be happy to answer any questions you may have.
You may either submit these questions in the Q&A function of this chat or you may e-mail them to IR at alligatorbioscience.com.
As you know, Alligator Bioscience as a publicly listed company. And I would like to note that today's presentation may include forward-looking statements. Please refer to the disclaimer on this side and to the next slide for the whole presentation.
And with this, I would like to turn the call over to you, Soren.
Thank you, Greta. And once again, welcome
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