Validated commercial scale production

Solid cost control and new cash injection in place

Near-term estimate revisions driven by Nordvacc revamp

Busy preparing for the EMA application in late Feb ’20e
Intervacc completed commercial scale production of the antigens (drug substance) for several million doses of Strangvac. On 25 November Intervacc announced that, together with partners 3P Biopharmaceuticals and LIOF-Pharma (prev. Praxis Pharmaceuticals), it completed the manufacturing process for Strangvac with the previously produced antigens. 60,000 vaccine doses have been manufactured and released, which are also expected to be sold if Strangvac receives market approval. The documentation on these two commercial batches is part of the dossier that will be submitted to the European Medicines Agency (EMA). Manufacturing the vaccine on a commercial scale marks an important milestone towards a potentially approved vaccine. The company maintains its recently announced ambition to submit its EMA filing in late February 2020, with potential approval in late ’20 to early ’21.

SEK 62m directed share issue – a runway for market launch
We are encouraged by the favourable terms of the SEK 62m directed share issue in Q3’19. The quarterly cash burn was SEK -11.4m, and the ending cash position SEK 63.1m. This should leave Intervacc funded into 2021, when we expect to see revenue streams from Strangvac sales. Q3 sales came in at SEK 2m, -81% y-o-y, and a gross margin of 33.2% (9.8%), due to the communicated restructuring of the distributor product portfolio (Nordvacc). Reported EBIT was SEK -6.2m (-6.2m), which we believe reflects good cost control given the ongoing commercial ramp-up.

Slight near term revisions, long-term estimates intact
Sales came in below our expectations driven by the aggressive de-stocking efforts in the Nordvacc subsidiary, however, gross margins improved substantially. This leads us to make slight negative top-line revisions and minor positive EBIT revisions to our
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