Ziccum further extends evaluation agreement with leading pharmaceutical corporation

Lund, June 3, 2022 —Ziccum AB (publ) (‘Ziccum’) has extended an ongoing pilot evaluation study agreement with a leading pharmaceutical corporation following the completion of the latest stage of the project. Ziccum will ship the dry-formulated study materials from its facilities in Lund to the corporation’s labs at the end of June, where they will be evaluated

The study is analyzing Ziccum’s drying capabilities on a major vaccine platform technology using LaminarPace TM – Ziccum’s ambient dry formulation system for vaccines and biologics. Ziccum is now in the process of packaging and labeling the dry formulated study materials and will ship them to the company’s labs at the end of June.

LaminarPace TM can gently dry liquid biologics and vaccines at room temperature with the active ingredient remaining intact. Dry-formulated thermostable vaccines could be transported with no need for refrigerated transport or storage – potentially solving a perennial challenge for the global vaccine industry. Ziccum has recently sharpened the focus of its research onto three major vaccine platforms that are the base for many existing vaccines on the market, and a wide range of new vaccines in development.

Ziccum has continued the technological development of LaminarPace TM throughout the present collaboration as it continues the system’s scale-up towards eventual GMP (Good Manufacturing Practice) status for industrial manufacture.

Ziccum CEO Ann Gidner: ”The positive and constructive commitment on both sides through this collaboration underlines how valuable the project is for all of us. At Ziccum now we are focused firmly on this kind of high-value project – projects which can generate new data, new formulations and ultimately new patents and partnerships.”

ZICCUM AB’s Anna Lönn elected to NIIMBL Technical Activities Committee

Ziccum’s Director of Development Anna Lönn has now been elected onto the Technical Activities Committee of the US National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), which will have its first meeting on May 23, 2022. NIIMBL, co-funded by the US Department of Commerce, funds and initiates a wide range of public-private research projects throughout the US.

Ziccum is one of a few European members invited to join NIIMBL, becoming a member in March 2021. NIIMBL is a public-private partnership that helps fund an ambitious range of research projects to accelerate biopharmaceutical innovation in manufacturing and supply. Members include industry, academic and government organizations within pharmaceutical manufacture and supply.

Anna Lönn, Ziccum’s Development Director has been elected to NIIMBL’s Technical Activities Committee (TAC) for the period 2022 – 2023. Anna, who joined Ziccum in September 2021 from TetraPak, has driven significant development throughout the company together with a highly skilled development team. Since September they have established the company’s expanded lab facilities and mRNA capabilities, and driven ahead its ambitious Quality by Design-led program of technological development. Fellow NIIMBL members on the TAC include representatives from noted vaccine developers, biologics companies working on viral vectors and viral vaccines, and academics from leading US universities within bioprocesses and pharmaceutics.

Ziccum Chairman Fredrik Sjövall: “The election of Anna really reflects her outstanding professionalism and expertise; she will bring fantastic qualities to fascinating work. We welcome the opportunities for networking and partnerships that TAC brings, and the possibilities for soft funding that can come through involvement with organizations like NIIMBL and CEPI (the Coalition for Epidemic Preparedness Innovation.) Our recent invitation from CEPI to submit an application for their soft-funded project on innovation in thermostable vaccines, plus our ongoing work with NIIMBL, are all good examples of the awareness and interest in the industry around our technology. We look forward to making a valuable contribution.”

READ MORE

  • Read more about NIIMBL here.
  • Read more about LaminarPace here.

Ziccum AB changes its external communications language to English

The Board of Ziccum AB has decided to officially change the company’s language to English for all external market communications as from Friday May 6 2022. Key factors in the decision are that Ziccum has an extensive network of international stakeholders and operates in the intrinsically global market of vaccines.

On April 28, 2022 the Board of Ziccum AB decided to officially adopt English as its external communications language. From May 6, 2022 all investor-facing information such as Press Releases and Financial Reports, will be in English.

Ziccum has long had an extensive network of international stakeholders and operates in the intrinsically global market of vaccines. Commercially and scientifically Ziccum collaborates with a wide range of organizations beyond Sweden and identifies key opportunities in global collaborations and partnerships.

ZICCUM AB (publ) Interim report Q1 2022

INTERIM REPORT Q1 2022: 1 JANUARY – 31 MARCH 2022

To read the digital Report click here: https://reports-en.ziccum.com/interim-report-q1-2022/

Q1 2022

  • The result for the quarter amounted to -6,285 kSEK (-4, 416 kSEK)
  • Cash flow for the quarter amounted to 31,961 kSEK (-4, 818 kSEK)
  • Cash and cash equivalents at the end of the quarter amounted to 44, 234 kSEK (28,802 kSEK)
SUMMARY FINANCIAL HIGHLIGHTS kSEK Jan-March 2022 Jan-March 2021 Jan-Dec 2021
Net revenue                    –                    –                    –  
Operating result             (6,340)           (4,387)         (21,117)
Result             (6,285)           (4,416)         (21,136)
Balance sheet total            58,295          35,715          39,591
Cash flow            31,961           (4,818)         (21,347)
Cashy and cash equivalents            44,234          28,802          12,273
Equity ratio % 0.88 0.90 0.75
Data per share SEK
Number of shares at end of period     13,806,142      9,606,200      11,006,056
Result per share before and after dilution* -0.46              -0.46    -2.17
Cash flow per share 2.41              -0.50    -2.19
Equity per sharee 3.73                3.33    2.70
* Dilution effects is not calculated when the result is negative

Significant events during Q1 (Jan-March)
At the Extraordinary General Meeting held on January 18, in addition to approving the Board's proposal, it was decided to increase the limit on the number of shares and the size of the share capital in the Articles of Association, to enable the issue of the remaining 933,362 units in the private placement.

On January 18, an additional 2,800,086 shares and 1,866,724 warrants were registered, and all shares and warrants in the private placement are thus registered.

The last payments from the directed share issue were received by the company in January and February 2022, a total of 40 mSEK was added to the company after deduction of issue costs.

Ziccum announced on February 7 that it has become a member of the United Nations Global Compact, the world's largest corporate sustainability initiative.

On February 22, it was announced that Göran Conradson was terminated from his position as CEO. The company's CFO, Frida Hjelmberg, will be acting CEO for the time being.

On March 3, the Board released an update on strategy, goals and priorities. The company's strategy for entering into commercial agreements with industrial players has been and is clearly defined. It is based on four key priority activities:

  1. Drive an active business development agenda that proactively prepares for collaboration with existing and potential partners. This is partly to offer the opportunity to evaluate specific projects in combination with Ziccum's technology, and partly to understand the requirements placed on the technology before a decision on a license agreement can be made.
  2. Generate laboratory data that manifests and confirms the technology's capacity to dry different types of vaccines, so-called proof of concept.
  3. Develop the company's technology to adapt its functionality, capacity and quality to the licensees' required specifications.
  4. Develop conceptual plans for how Ziccum's drying technology can be adapted to the commercial scale and integrated into a commercial production environment.

With a new CEO, the Board's goal is to increase the pace of, above all, business development work – with the goal of entering into more industrial collaborations in order to evaluate LaminarPace and advance our existing collaborations into negotiations on commercial terms and license agreements.

On March 28, it was announced that Ann Gidner is appointed as new CFO for Ziccum, she takes office on May 9.

Significant events after the reporting period
The new CEO, Ann Gidner, has bought 15,000 shares in Ziccum. In addition, the Board members Andreas Pettersson also bought 20,000 shares and Kristian Kierkegaard 10,000 shares in the Company.

CEO Statement

This will be my final statement as acting CEO before our new CEO Ann Gidner assumes her new role on May 9. I am pleased that I will return to focusing fully on my CFO role having overseen a productive Quarter of renewed focus that I believe will serve as a basis for strong business development.

During the Quarter myself, together with Development Director Anna Lönn, an engaged Chairman and proactive Board member have worked intensively on reviewing the company’s business development and strategic focus. On March 3 we released an updated reappraisal of our strategic goals reaffirming the importance of licensing rights in our business model, and our commitment to generating further proof-of-concept data, and in particular mRNA / LNP data.

In the week leading up to this Q1 Report we shared with our investors additional details on our strategic and operational initiatives, and how they constitute a strong base for future growth. These focus areas are:

1. A STRENGTHENED FOCUS ON THREE VACCINE PLATFORMS
During 2022 – 2023 Ziccum will focus on three key vaccine platforms: the Viral Vector platform using Adenovirus, the subunit vaccine (adjuvanted) platform and the mRNA/LNP vaccine platform. mRNA/LNP is an area we value very high. The global trend and market dynamics in this specific field is also very strong. Read more HERE.

2. EXPANDED TOOLS, LAB FACILITIES AND mRNA/LNP CAPABILITIES
Strategic investments include a new cell lab that will enable in vitro studies of key biological properties and deliver specific advantages in the development of mRNA/LNP. We have also completed the investment and installation of the microfluidics system, ‘Ignite’ NanoAssemblr, that will enable us to generate our own mRNA/LNP materials at R&D scale. Read more HERE.

3. TARGETED TECHNOLOGY DEVELOPMENTS
To underpin Ziccum’s new strategic focus, key technology development programs have been selected for the company’s flagship drying system (LaminarPace or LAPA) as it progresses towards eventual GMP manufacturing status. Some are ongoing, some have been recently completed. These technology development programs include for instance a new powder collector solution, introduction of nitrogen (N2) as drying gas, nebulizer and membrane development.

These key priority areas and a committed and engaged organization will lead the way in LaminarPace’s development towards commercial partnerships and eventual GMP industrial manufacturing. Read more HERE.

In conclusion – ‘renewed focus’ is the key term that I want to emphasis. I believe that with the new more focused strategies and targets developed in this Quarter, and with the imminent arrival of our reputable CEO Ann Gidner, we are now in a strong position to move decisively forwards towards creating new partnerships and value for ourselves, our clients and our investors.

Lund, April 28, 2022,
Frida Hjelmberg,
Acting-CEO,
CFO,
Ziccum AB

ZICCUM AB: key targeted technology developments underpin new strategic focus

Select key technology developments will underpin Ziccum’s new strategic focus of generating further data in three vaccine platforms, including mRNA/LNP, so strengthening its position as an attractive industrial partner. The key technology developments will run in parallel with Ziccum’s streamlined project program. Chairman Fredrik Sjövall: “These projects will enable and drive forward business development and strengthen the company’s offering and data to industrial partners.”

Ziccum is now focusing on a targeted program of technology development, in parallel with a streamlined project program targeting three key vaccine platforms. The strategy will focus and drive forward business development and significantly strengthen the company’s offering to industrial partners. It will also serve as a foundation for generating new patents – not least in the area of mRNA.

Chairman Fredrik Sjövall: “Our early collaborations and discussions with external parties provided strong guidance on where we should put our focus in terms of technological development in order to increase the probability of entering commercial agreements. For example, we needed to have an industrial conceptual design for LaminarPace (LAPA), so we did that with our Fill and Finish blueprint with KeyPlants. These new targeted developments are also built on key learnings from external collaborations.”

Driven by QbD

As it progresses towards its ultimate long-term goal of establishing LaminarPace (LAPA) as an integrated part of the industrial production of vaccines, Ziccum works using a highly focused Quality by Design (QbD) approach. QbD is a systematic risk-based methodology, recognized and encouraged in pharmaceutical manufacture by the FDA, that identifies potential risks and variables in all aspects of product manufacture and development.

The current LAPA system is the fourth generation in development, with several key improvements having been implemented – from critical components and material selection and design (for example Teflon tubing replacing silicon and Nitrogen replacing air to further reduce moisture), to advanced sensor arrays inside the system to map and monitor the flow of the drying procedure itself, to software and control optimization and sealed glovebox collection to ensure the safety of the operator and the product.

Key priority areas in LAPA’s development towards eventual GMP industrial manufacturing status include continuing to explore ways to optimize production capacity, reproducibility, reliability, cleanability and sterilization. The current focus areas all impact on these metrics.

KEY TECHNOLOGY DEVELOPMENTS UNDERWAY – AND RECENTLY COMPLETED

New powder collector: Ziccum has now installed a new sealed, contained collection unit that enables the inhouse study of a wider range of test substances. The new unit increases safety, reduces humidity and enables quicker, more efficient collection of drier formulations.

New nitrogen usage: Ziccum has now introduced Nitrogen gas (N2) into the drying column to replace air. N2 is a highly efficient remover of moisture. The first nitrogen-based generation of LAPA is installed and has performed well in tests.

New nebulizer: LAPA has been used throughout its history to dry small amounts of test substance in a lab setting. The system’s nebulizer feature is a key component in optimizing the system’s capacity, reproducibility and reliability. Ziccum has carried out a first phase in optimizing the nebulization step and is now collaborating with a specialist engineering partner in a second evaluation stage. These external collaborations and partnerships are expected to continue in LAPA’s ongoing development. The current stage of nebulizer development is estimated to be completed by H2 2023.

New membrane: The central membrane in LAPA’s drying column is a critical component. Intensive work is currently underway in optimizing the membrane for future GMP compatibility – examining its porosity, mounting and materials for industrial setting. This current development stage will be completed by H2 2023.

Fredrik Sjövall: “LAPA is a highly innovative system with unique capabilities. The projects we are now focusing on are crucial steps towards reaching the industrial production environment – increasing the value of our technology, and therefore the opportunities for it to enter into commercial agreements. The projects will be run in parallel with our evaluation programs together with external partners, and our internal mRNA / LNP work, and will form the basis for new patent applications – both for ourselves and our customers.”

ZICCUM AB expands lab facilities and mRNA/LNP capabilities with strategic investments

Ziccum AB has significantly expanded its lab facilities and capabilities, particularly in the area of mRNA/LNP. Strategic investments include a new cell lab and a system for manufacturing and evaluating dry formulations of mRNA/LNP materials. Chairman Fredrik Sjövall: “This will make us more independent in pursuing our own mRNA studies and intellectual property, and it will enlarge the range of data we can deliver to the industry.”

In April 2022 Ziccum AB expanded into larger office and lab facilities at its base in Lund. The expansion includes the recruitment of a new Project Manager and two new Development Engineers, and key investments focused around mRNA/LNP – one of the three key vaccine platforms Ziccum is now targeting as part of its more focused strategy on projects and platforms.

Strengthening Ziccum’s inhouse mRNA/LNP capabilities

As Ziccum stated in its 3 March 2022 update, generating data on dry-formulated mRNA/LNP materials is a key strategic priority for the company. Covid-19 has highlighted the efficacy and high potential of mRNA/LNP as a vaccine platform enormously and both research and demand in the field is intensive.

In December 2021 Ziccum installed a microfluidics system, ‘Ignite’ NanoAssemblr, that will enable the company to generate its own mRNA/LNP materials at R&D scale. The Ignite system is now fully installed and operational.

In parallel, a new cell lab that enables in vitro studies of key biological properties is being set up. As well as offering specific advantages in the current development of mRNA/LNP, in the longer term the new cell lab also gives Ziccum the possibility of generating relevant biological data on other platforms and substances in future programs. Work on the new cell lab began in December 2021 and it is now being installed in full in the company’s new premises. It is estimated that the new cell lab will be fully operational in Q2 2022, generating its first data in Q3 2022.

Chairman Fredrik Sjövall: “These strategic investments will make us more independent and competitive in the high-potential field of mRNA/LNP. They will enable us to pursue our own mRNA/LNP studies and they will strengthen our proprietary offerings around mRNA/LNP – serving as a robust platform for creating new patents in this exciting area.”

ZICCUM AB sharpens focus on three key vaccine platforms

In a strategic sharpening of its focus Ziccum AB is targeting three key vaccine planforms in its research and development work through 2022 and 2023 – driven by input from external collaborations and new internal technology capabilities. Ziccum Chairman Fredrik Sjövall: “a reviewed strategy based on these key, high-potential platforms bring a new focus to our work and value creation.”

With new CEO Ann Gidner beginning her role on May 9 and the company expanded into larger premises in April, Ziccum is now focusing on three key vaccine platforms in parallel with a streamlined project program.

Chairman Fredrik Sjövall: “This strategy will focus and drive forward business development and significantly strengthen the company’s offering to industrial partners. It will also serve as a foundation for generating new patents – not least in the area of mRNA/LNP (Liquid Nanoparticles).”

GENERATING NEW ROBUST DATA: A TOP PRIORITY
Ziccum has achieved positive preliminary data in tests with individual materials across several different vaccine platforms, as reported in December. Now however the company is focusing on gathering further data from a select target group of three key platforms:

Viral Vector platform using Adenovirus. Four major Covid-19 vaccines already use adenovirus vaccine vectors as a platform. The platform enables efficient gene transduction and research is ongoing in a wide range of indications, including in major projects in Sweden and the Nordics. Ziccum has worked extensively with adenovirus and in January 2019 submitted a patent application for a temperature-stable, dry formulation of Adenovirus.

Subunit vaccine (adjuvanted) platform: This platform is also being used in major Covid-19 vaccine candidates. Instead of using the whole pathogen, protein-based adjuvant vaccines use a defined protein antigen from the pathogen which can be recognized by the body’s immune system to provoke an immune response. Protein-based vaccines have been successfully developed over recent decades to treat diseases from diphtheria to tetanus. Ziccum is working on this platform in in collaboration with a major research institute in vaccination in the Nordic region.

mRNA/LNP vaccine platform: Generating data on dry-formulated mRNA/LNP materials is a key strategic priority for Ziccum, as stated in the 3 March 2022 update. Covid-19 has highlighted the efficacy of mRNA/LNP as a vaccine platform enormously. Ziccum is now expanding its in-house capabilities and has recently made major investments in new facilities and pecialized equipment for manufacturing and evaluating dry formulations of mRNA/LNP materials – investments which will be covered in an upcoming Press Release.

Chairman Fredrik Sjövall: “These investments will make us more independent in pursuing our own mRNA/LNP studies and intellectual property. Focusing in on select high-value projects with prestigious partners, plus our own in-house work on mRNA/LNP, will increase the value and range of data we can deliver to the industry. After years of working with diverse substances across a large number of platforms it brings new focus and impetus to our work and value creation.”

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ZICCUM AB appoints Ann Gidner as new CEO – ‘outstanding record in business development and leadership speaks for itself’, Chairman

Ann Gidner takes office as new CEO of Ziccum AB on May 9, 2022. Ann has extensive CEO and Business Development experience, driving growth in a wide range of early-stage life science companies. In a global career spanning 25+ years she has held senior positions in the US and Europe, including experience in outlicensing drug delivery technology.

With a strong global profile and powerful experience of building up and turning around life science startups, Ann will begin her role as new CEO for Ziccum on May 9. Ann combines long-running experience in designing and implementing new business models with a passion for creating new partnerships and achieving steep, sustainable growth.

Most recently Ann Gidner was CEO for SelectImmune Pharma AB (publ). She has served in CEO positions for AcuCort AB (publ) and Monocl AB and is currently a Director of the board at IcoNovo AB (publ). Ann has also held senior management roles in Life Science corporations across Europe, and in the US. In a 4-yr role as Director of Business Development for drug delivery technology company Albumedix A/S (formerly Novozymes Biopharma), she successfully established a pipeline and network of new partnerships and projects from the company’s headquarters in Copenhagen.

Ann has an MBA from Lund University and a MSc in Bioprocessing Engineering from Lund University and the elite ENSIGC (Ecole Nationale Supérieure d'Ingénieurs de Génie Chimique in Toulouse, France). She is a multilinguistic who is fluent in three languages.

Ziccum AB CEO Fredrik Sjövall: “We could not be happier in welcoming Ann to Ziccum. Her keen mind and outstanding leadership record speaks for itself. Her strategic insights and business development acumen will profoundly help us power new partnerships, patents and product development. The company is changing and moving forward – Ann will be pivotal to that. It will be truly exciting to have her onboard.”

Ann Gidner: “Ziccum AB offers a unique technology to serve the world far better with vaccinations, overcoming a number of financial and practical hurdles. Of course the Covid pandemic has emphazised how valuable this is to mankind. I am grateful and excited to contribute to this, joining a high caliber team to create the necessary outreach, both for company success and for global health.”

ZICCUM AB (publ) Annual Report 2021

ANNUAL REPORT 1 JANUARY – 31 DECEMBER 2021. To read the digital Report in full (in Swedish) click here: https://reports.ziccum.com/arsredovisning-2021

1 JANUARY – 31 DECEMBER 2021

  • The result for the year amounted to SEK -21,136 thousand (-17,289 thousand)
  • Cash flow for the year amounted to SEK -21,347 thousand (-31,556 thousand)
  • Cash and cash equivalents at the end of the year amounted to SEK 12,273 thousand (SEK 33,620 thousand)
SUMMARY FINANCIAL DATA kSEK Jan-dec 2021 Jan-dec 2020
Net revenue
Operating result (21,117) (17,235)
Result (21,136) (17,289)
Balance sheet total 39,591 39,640
Cash flow (21,347) 31,556
Cash and cash equivalents 12,273 33,620
Equity ratio % 0.75 0.92
Data per share SEK
Number of shares at end of year 11,006,056 9,606,200
Result per share before and after dilution* -2.17 -2.06
Cash flow per share -2.19 3.75
Equity per share 2.70 3.79
* Dilution effect is not calculated when the result is negative

CEO STATEMENT
A renewed focus on partnerships that will change and improve the vaccines of the future

Ziccum is developing a technology that has the pioneering potential to improve the production and distribution of biological drugs. This technology makes it possible to gently dry biological material into a stable powder that is thermostable and so resistant to temperature changes. Driven by today’s rapid and growing understanding of just how much humanity depends on effective and economically sustainable vaccination, Ziccum’s development focus is firmly on vaccines against COVID-19.

Ziccum is developing a stepwise process step towards a new production method for biological drugs and vaccines. The company's business model is based on entering into strategic collaborations and licensing agreements to industrialize and commercialize this technology. In order to become an attractive partner to large companies, solid data that verifies the technology's potential and capacity are an absolute prerequisite. A central part of Ziccum's business model is to enter into early evaluation agreements with large companies and offer potential partners the opportunity to evaluate LaminarPace in specific development projects. In order to further strengthen the offer to potential partners, it is also a stated goal to describe in detail what is required to take today's small-scale experimental activities up to an industrial scale and quality.

The COVID pandemic has clearly illustrated for both the vaccine industry and the countries of the world the enormous value and advantages that vaccines in powder form would deliver, both for transportation and storage. Ziccum has generated data that support its technology's ability to gently dry liquid biological material into powder. Following months in strict conditions and temperatures up to 40 ° C this dried material has demonstrated that it retains its structure and stability.

During 2021, the COVID pandemic limited the possibilities of entering into new collaboration agreements, but offered the opportunity to instead generate more verifying data and take several important steps towards conceptually describing an industrial version of Ziccum's technology. This has created better conditions for clarifying Ziccum's offering and a new focus is now underway on increasing the pace of our business development work.

Thanks to a successfully completed new share issue at the end of 2021, Ziccum also has a strong financial position, creating good conditions for reaching important milestones with our existing cash.

Lund, March 24, 2022
Frida Hjelmberg
Acting CEO

To read the digital Report in full (in Swedish) click here: https://reports.ziccum.com/arsredovisning-2021/

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