SenzaGen receives SEK 1m follow-on order for GARD®skin Dose-Response from one of the world’s largest cosmetics companies

SenzaGen secured another project to test ingredients in cosmetics products from one of the largest cosmetics companies in the world. The new order is valued at around SEK 1 million and is for the Company’s unique in vitro test, GARD®skin Dose-Response. The testing is performed at SenzaGen’s GLP-certified laboratory in Lund, Sweden.

In July, SenzaGen received an evaluation order for GARD®skin Dose-Response from the customer, a world leader in beauty and cosmetics. The company used this test to study the dose at which a substance in a cosmetics product does not cause an allergic reaction, and it has now chosen to evaluate more substances.

“We are very pleased that the customer is satisfied with the initial evaluation phase of GARD®skin Dose-Response and is proceeding to test more ingredients. This is a crucial project with a major customer, in particular, because the test meets needs for which businesses and researchers in the cosmetics industry have sought a solution for a long time. We look forward to continuing to supply the customer with data that can help them ensure their products do not cause allergic reactions. In the second half of the year, we have seen continued strong interest from multiple companies in diverse industries, especially in our recently launched GARD®skin Dose-Response test. Existing customers are placing follow-on orders and our customer base is growing with new customers, which is very satisfying” says Peter Nählstedt, CEO of SenzaGen.

GARD®skin Dose-Response is a test based on genomic data and machine learning that provides information on the dose at which a substance causes allergy. This makes it possible for research and development to be conducted without the use of animal testing. The test enables companies in the cosmetics, pharmaceuticals and chemicals industries to identify the highest possible quantity of a chemical that they can include in their products (“the Dose of Departure”). This serves as crucial information for prioritization and decision-making in research and development. The new test is a new application domain of GARD®skin, and it is one of the first of its kind on the market.

SenzaGen has completed the acquisition of VitroScreen S.r.l.

SenzaGen AB ("SenzaGen" or the "Company") has today completed the acquisition of VitroScreen S.r.l. The acquisition took place in accordance with the agreement SenzaGen signed for the acquisition of VitroScreen S.r.l., which was announced on 28 October 2021.

VitroScreen is a recognized CRO and leading in vitro research laboratory with two decades experience committed to alternatives to animal testing within in vitro toxicology and pre-clinical testing. The transaction is in line with SenzaGen’s previously communicated accelerated growth strategy which includes acquisitions of profitable, growing companies that complement SenzaGen’s offering.

In accordance with the terms of the acquisition announced on 28 October 2021, the consideration consists in part of 416,586 consideration shares in SenzaGen, corresponding to approximately EUR 0.6 million at a subscription price of SEK 14.71 per share. The issuance of the consideration shares will increase the Company's share capital by SEK 20,829.30.

After the acquisition and the issue of consideration shares, the number of shares in SenzaGen will be 24,064,916, taking into account the directed share issue carried out on 29 October 2021.

Contacts

Peter Nählstedt, CEO, SenzaGen AB
Email: peter.nahlstedt@senzagen.com | Tel: +46 46 275 6201

Tina Dackemark Lawesson, VP Marketing & Communications
Email: tina.lawesson@senzagen.com | Tel: +46 708-20 29 44

About us

SenzaGen aims to be a leader in non-animal toxicology testing driving the transition from animal testing to methods better suited to reflect human biology. The company has a growth strategy which involve continued commercialization of the in house developed GARD® test platform, expansion of the test portfolio with a broader range of tests and pursuing acquisition opportunities of profitable and growing companies with complementary offerings. The company´s state-of-the-art GARD® test platform combines genomic data from human cells with machine learning for a unique capability to identify and analyze whether a chemical could cause allergic reactions on the skin or in the respiratory tract. Its high informational content and a holistic view of the immunological responses contribute to high predictive accuracy and human relevance. SenzaGen has its headquarters and GLP certified laboratory in Lund, Sweden, and a subsidiary in the US. For more information, please visit: www.senzagen.com.

SenzaGen is listed on Nasdaq Stockholm First North Growth Market (ticker: SENZA), and FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se, is the company’s Certified Adviser.

SenzaGen completes a directed share issue of SEK 30 million

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

The Board of Directors of SenzaGen AB (“SenzaGen” or the “Company”) has, with support of authorization from the annual general meeting on 5 May 2021, resolved on a directed share issue of 2,290,694 shares to several qualified Swedish investors, including The Fourth Swedish National Pension Fund (the “Directed Issue”). The Directed Issue has been carried out at a subscription price of SEK 13.10 per share, determined through an accelerated bookbuilding procedure conducted by Vator Securities AB. The proceeds will mainly be used to finance the acquisition of VitroScreen S.r.l. the (“Acquisition”) as well as to finance the Company's operations in accordance with the Company's communicated strategy.

Due to great interest, the Board of Directors has decided to increase the capital raise and SenzaGen will receive SEK 30 million before transaction-related costs following the accelerated bookbuilding process. The Directed Issue was directed to several qualified Swedish investors, including The Fourth Swedish National Pension Fund, and has been resolved upon with support of authorization from the annual general meeting on 5 May 2021 and has been carried out at a subscription price of SEK 13.10 per new share, corresponding to a discount of 11.9 percent in relation to the 15-day volume weighted average price of the Company’s shares on Nasdaq First North Growth Market up until and including 28 October 2021. The subscription price has been determined through an accelerated bookbuilding procedure conducted by Vator Securities AB, why it is the Board of Directors assessment that the subscription price reflects current market conditions and demand.

The proceeds from the Directed Issue will mainly be used to finance the cash portion of the purchase price of the Acquisition as well as to finance the Company's operations in accordance with the Company's communicated strategy. The reasons for the deviation from the shareholders' preferential rights are to raise capital in a time and cost efficient manner as well as to diversify the ownership of the Company.

In connection with the Directed Issue, Board of Directors and senior executives who own shares in the Company have entered into lock-up commitments of 180 days calculated from the completion of the Directed Issue containing customary terms and exemptions under the discretion of Vator Securities AB. The sellers in the Acquisition have also undertaken not to dispose of the newly issued shares received as consideration in the Acquisition for a period of 24 months after the closing date of the Acquisition, subject to certain customary exceptions. For further information regarding the Acquisition, please refer to the separate press release entitled "SenzaGen enters into agreement to acquire 100 percent of the shares in VitroScreen" which was published 28 October 2021.

Through the Directed Issue the number of shares in the Company will increase by 2,290,694 from 21,357,636 to 23,648,330 and the share capital will increase by SEK 114,534.70 from SEK 1,067,881.80 to SEK 1,182,416.50. The dilution for existing shareholders amounts to approximately 9.7 percent.

Advisors

Vator Securities AB is sole bookrunner and Eversheds Sutherland Advokatbyrå AB is legal advisor to SenzaGen in connection with the Directed Issue.

Contacts

Peter Nählstedt, CEO, SenzaGen AB
Email: peter.nahlstedt@senzagen.com | Tel: +46 46 275 6201

Tina Dackemark Lawesson, VP Marketing & Communications
Email: tina.lawesson@senzagen.com | Tel: +46 708-20 29 44

About us

SenzaGen aims to be a leader in non-animal toxicology testing driving the transition from animal testing to methods better suited to reflect human biology. The company has a growth strategy which involve continued commercialization of the in house developed GARD® test platform, expansion of the test portfolio with a broader range of tests and pursuing acquisition opportunities of profitable and growing companies with complementary offerings. The company´s state-of-the-art GARD® test platform combines genomic data from human cells with machine learning for a unique capability to identify and analyze whether a chemical could cause allergic reactions on the skin or in the respiratory tract. Its high informational content and a holistic view of the immunological responses contribute to high predictive accuracy and human relevance. SenzaGen has its headquarters and GLP certified laboratory in Lund, Sweden, and a subsidiary in the US. For more information, please visit: www.senzagen.com.

SenzaGen is listed on Nasdaq Stockholm First North Growth Market (ticker: SENZA), and FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se, is the company’s Certified Adviser.

Important information

Release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions according to law and people in those jurisdictions, in which this press release has been announced or distributed, should inform themselves of and follow such legal restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in SenzaGen in any jurisdiction.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended. The information in this press release may not be announced, published or distributed to Australia, Hong Kong, Japan, Canada, New Zeeland, Singapore, South Afrika, the United States the United States, or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” (within the meaning of the United Kingdom version of the EU Prospectus Regulation (2017/1129/ EU) which is part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018) who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (ii) high net worth entities etc. falling within Article 49(2)(a) to (d) of the Order; or (iii) such other persons to whom such investment or investment activity may lawfully be made available under the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Forward-looking statements

This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market’s rule book for issuers.

SenzaGen intends to carry out a directed share issue

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, HONG KONG, JAPAN, CANADA, NEW ZEALAND, SWITZERLAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE SUCH RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL OR WOULD REQUIRE REGISTRATION OR ANY OTHER MEASURES.

SenzaGen AB (“SenzaGen” or the “Company”) hereby announces its intent to carry out a directed share issue of approximately SEK 20 million through an accelerated bookbuilding procedure (the “Directed Issue”). SenzaGen has mandated Vator Securities AB to evaluate the possibility to carry out the Directed Issue. The purpose of the Directed Issue is mainly to finance the acquisition of VitroScreen S.r.l. (the “Acquisition”).

SenzaGen has mandated Vator Securities AB to evaluate the possibility to carry out the Directed Issue. The subscription price for the shares in the Directed Issue will be determined through an accelerated bookbuilding procedure, which will be initiated after the publication of this press release and close before trading commences on Nasdaq First North Growth Market on 29 October 2021. The bookbuilding procedure may, if the Company or Vator Securities AB so decides, be shortened or extended and may at any time be terminated.

The Company intends to use the proceeds from the Directed Issue mainly to finance the cash portion of the purchase price of the Acquisition. For further information regarding the financing of the Acquisition, please refer to the separate press release titled "SenzaGen enters into agreement to acquire 100 percent of the shares in VitroScreen" that was issued earlier today.

The reasons for the deviation from the shareholders' preferential rights are to raise capital in a time and cost efficient manner as well as to diversify the ownership of the Company.

The Directed Issue requires a decision from the Company’s Board of Directors and the Board of Directors may decide to cancel the bookbuilding procedure and refrain from proceeding with the Directed Issue or carry out the Directed Issue on other terms than those set out above.

In connection with the Directed Issue, Board of Directors and senior executives who own shares in the Company have entered into lock-up commitments of 180 days calculated from the completion of the Directed Issue, containing customary terms and exemptions under the discretion of Vator Securities AB. The sellers in the Acquisition have also undertaken not to dispose of the newly issued shares received as consideration in the Acquisition for a period of 24 months after the closing date of the Acquisition, subject to certain customary exceptions. For further information regarding the Acquisition, please refer to the separate press release titled "SenzaGen enters into agreement to acquire 100 percent of the shares in VitroScreen" which was published today.

Advisors

Vator Securities AB is sole bookrunner and Eversheds Sutherland Advokatbyrå AB is legal advisor to SenzaGen in connection with the Directed Issue.

Contacts

Peter Nählstedt, CEO, SenzaGen AB
Email: peter.nahlstedt@senzagen.com | Tel: +46 46 275 6201

Tina Dackemark Lawesson, VP Marketing & Communications
Email: tina.lawesson@senzagen.com | Tel: +46 708-20 29 44

About us

SenzaGen aims to be a leader in non-animal toxicology testing driving the transition from animal testing to methods better suited to reflect human biology. The company has a growth strategy which involve continued commercialization of the in house developed GARD® test platform, expansion of the test portfolio with a broader range of tests and pursuing acquisition opportunities of profitable and growing companies with complementary offerings. The company´s state-of-the-art GARD® test platform combines genomic data from human cells with machine learning for a unique capability to identify and analyze whether a chemical could cause allergic reactions on the skin or in the respiratory tract. Its high informational content and a holistic view of the immunological responses contribute to high predictive accuracy and human relevance. SenzaGen has its headquarters and GLP certified laboratory in Lund, Sweden, and a subsidiary in the US. For more information, please visit: www.senzagen.com.

SenzaGen is listed on Nasdaq Stockholm First North Growth Market (ticker: SENZA), and FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se, is the company’s Certified Adviser.

Important information

Release, announcement or distribution of this press release may, in certain jurisdictions, be subject to restrictions according to law and people in those jurisdictions, in which this press release has been announced or distributed, should inform themselves of and follow such legal restrictions. This press release does not constitute an offer, or a solicitation of any offer, to buy or subscribe for any securities in SenzaGen in any jurisdiction.

This press release does not constitute or form part of an offer or solicitation to purchase or subscribe for securities in the United States. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the US Securities Act of 1933, as amended. The information in this press release may not be announced, published or distributed to Australia, Hong Kong, Japan, Canada, New Zeeland, Singapore, South Afrika, the United States the United States, or in any other jurisdiction where the announcement, publication or distribution of the information would not comply with applicable laws and regulations.

In the United Kingdom, this document and any other materials in relation to the securities described herein is only being distributed to, and is only directed at, and any investment or investment activity to which this document relates is available only to, and will be engaged in only with, “qualified investors” (within the meaning of the United Kingdom version of the EU Prospectus Regulation (2017/1129/ EU) which is part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018) who are (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”); (ii) high net worth entities etc. falling within Article 49(2)(a) to (d) of the Order; or (iii) such other persons to whom such investment or investment activity may lawfully be made available under the Order (all such persons together being referred to as “relevant persons”). In the United Kingdom, any investment or investment activity to which this communication relates is available only to, and will be engaged in only with, relevant persons. Persons who are not relevant persons should not take any action on the basis of this press release and should not act or rely on it.

Forward-looking statements

This press release contains forward-looking statements that reflect the Company’s intentions, beliefs, or current expectations about and targets for the Company’s future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim” or “might”, or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market’s rule book for issuers.

SenzaGen enters into agreement to acquire 100 percent of the shares in VitroScreen

SenzaGen AB (“SenzaGen” or the “Company”) has entered into an agreement to acquire 100 percent of the shares in the Italy-based company VitroScreen S.r.l. (“VitroScreen”).

VitroScreen is a recognized CRO and leading in vitro research laboratory with two decades experience committed to alternatives to animal testing within in vitro toxicology and pre-clinical testing. VitroScreen was founded in 2001 and currently has 11 employees. In 2020 VitroScreen generated revenues of approximately EUR 1.6 million. During H1 2021 the company’s revenues increased 18 percent, compared to H1 2020, reaching approximately EUR 0.96 million. Through the acquisition SenzaGen will increase its total H1 2021 revenues by approximately 190 percent.

The transaction in brief

  • The transaction is in line with SenzaGen’s previously communicated accelerated growth strategy which includes acquisitions of profitable, growing companies that complement SenzaGen’s offering.
  • The acquisition of a CRO with a strong reputation and a unique services portfolio for in vitro toxicology and pre-clinical models on human 3D reconstructed tissues is expected to strengthen SenzaGen’s position through expansion into the pre-clinical efficacy testing, expansion of the current regulatory test offering, cross-sales and consolidation of tests to specific labs, strengthening operating efficiency.
  • The initial consideration for 100 percent of the shares in VitroScreen amounts to EUR 2.6 million, equivalent to approximately SEK 25.9 million, paid at the closing of the transaction. EUR 2.0 million of the initial consideration is to be paid in cash and EUR 0.6 million is to be paid in SenzaGen shares (the “Consideration Shares”). In addition to the initial consideration, the sellers of VitroScreen may be entitled to earn-out payments of up to EUR 1.4 million. The earn-out payments will be paid during 2022-2024 upon achieving certain financial targets.
  • The Consideration Shares are under lock-up for 24 months following the closing of the transaction.
  • Completion of the transaction is subject to customary conditions and closing is expected to take place in the beginning of November 2021.

Background and rationale

VitroScreen is based in Milan, Italy. The company has a history of profitable growth due to strong scientific expertise in in vitro science, endless commitment to R&D and loyal support and trust from customers. VitroScreen was founded in 2001 by Marisa Meloni, PharmaD, PhD, with academic and industry background and a visionary idea to provide the industry with the best in vitro testing strategy in order to replace animal testing with sound in vitro data. VitroScreen provides non-animal testing and pre-clinical research services organized in the following business units:

  • GLP certified facility for in vitro toxicology, including regulatory testing.
  • Pre-clinical in vitro testing service unit for safety and efficacy testing on human 3D tissue models for pharmaceutical, cosmetic, chemical and nutritional industries.
  • In vitro Innovation Center with the VitroScreen ORA™ platform for the production of human organoids and spheroids and the microbiome research.
  • In vitro Consulting unit providing advice on regulatory in vitro toxicology strategies.

SenzaGen aims to be a leader in non-animal toxicology testing, driving the transition from animal testing to methods better suited to reflect human biology. The company has a growth strategy which involve continued commercialization of the in house developed GARD® test platform, expansion of the test portfolio with a broader range of tests and pursuing acquisition opportunities of profitable and growing companies with complementary offerings.

The transaction is in line with SenzaGen’s accelerated growth strategy and the rationale behind the acquisition of VitroScreen is the company’s broad regulatory test portfolio, innovative platform, and expertise within the team. VitroScreen’s complementary product offering results in an expanded addressable market, cross selling opportunities and opportunity for the combined entity to address larger clients than previously through joint offerings. Furthermore, the addition of operationally and strategically important team members enables acceleration of innovative projects. Dr Marisa Meloni will be part of the group management team and of the scientific advisory committee that will drive the Group’s research and strategic projects. Furthermore, she will be appointed CEO of VitroScreen and become a shareholder of SenzaGen.

“By combining VitroScreen and SenzaGen we are delivering on the vision of replacing animal testing by providing best-in-class in vitro technology. SenzaGen’s and VitroScreen’s revolutionary technologies and broad regulatory test portfolios offer market-leading in vitro methods towards a broad market and customer base. The transaction enables cross sales, expansion of the addressable market and expansion of our regulatory test portfolio and platform as well as improved financial stability. I look forward to continuous rapid growth and execution on our communicated strategy which focus on organic and acquisition-driven growth”, comments Peter Nählstedt, CEO of SenzaGen.

“Since 2001 VitroScreen, by staying true to its core values of excellence, innovation and quality has been one of key players in the introduction and acceptance of in vitro pre-clinical studies in life sciences. VitroScreen and SenzaGen share the same vision of the future of in vitro science. The time has come for the next step on the path to business expansion and development, where VitroScreen and SenzaGen, joining forces, enables reach to a wider market and customer base through high-performance, efficiency and sustainability”, comments Dr Marisa Meloni, founder of VitroScreen.

Payment

The price for 100 percent of the shares in VitroScreen consists of an initial consideration of EUR 2.6 million that is paid on closing and earn-outs of up to EUR 1.4 million, with certain requirements. The initial consideration consists of EUR 2.0 million in cash and EUR 0.6 million in Consideration Shares. In addition to the initial consideration, the sellers of VitroScreen may be entitled to earn-out payments that will be paid during 2022-2024 upon achieving certain financial targets.

Issue of Consideration Shares

As part of the up-front payment, the board of directors of SenzaGen will resolve to issue the Consideration Shares at the completion of the transaction pursuant to the authorization granted by the annual general meeting on 5 May 2021. The subscription price for the shares, to be paid with contribution in kind, has been determined to SEK 14,71 per share corresponding to the volume-weighted average price of SenzaGen’s shares on Nasdaq First North Growth Market during 7 – 26 October 2021. The Consideration Shares are under lock-up for 24 months following the closing of the acquisition.

The Consideration Shares represent 2 percent of the total number of shares and votes outstanding in SenzaGen. By issuing the Consideration Shares, the number of shares and votes increase by 416,586. The share capital increases by SEK 20,829.30.

Closing of the transaction

Closing of the transaction are subject to customary conditions and closing is expected to take place in the beginning of November 2021.

Contacts

Peter Nählstedt, CEO, SenzaGen AB
Email: peter.nahlstedt@senzagen.com | Tel: +46 46 275 6201

Tina Dackemark Lawesson, VP Marketing & Communications
Email: tina.lawesson@senzagen.com | Tel: +46 708-20 29 44

About us

SenzaGen aims to be a leader in non-animal toxicology testing driving the transition from animal testing to methods better suited to reflect human biology. The company has a growth strategy which involve continued commercialization of the in house developed GARD® test platform, expansion of the test portfolio with a broader range of tests and pursuing acquisition opportunities of profitable and growing companies with complementary offerings. The company´s state-of-the-art GARD® test platform combines genomic data from human cells with machine learning for a unique capability to identify and analyze whether a chemical could cause allergic reactions on the skin or in the respiratory tract. Its high informational content and a holistic view of the immunological responses contribute to high predictive accuracy and human relevance. SenzaGen has its headquarters and GLP certified laboratory in Lund, Sweden, and a subsidiary in the US. For more information, please visit: www.senzagen.com.

SenzaGen is listed on Nasdaq Stockholm First North Growth Market (ticker: SENZA), and FNCA Sweden AB, +46(0)8-528 00 399, info@fnca.se, is the company’s Certified Adviser.

SenzaGen presents accelerated growth strategy and invitation to Capital Markets Day

In line with the announcement on 18 August 2021, SenzaGen’s board of directors has adopted an accelerated growth strategy that includes pursuing an active acquisition strategy targeting profitable and growing companies that complement SenzaGen’s current activities. The growth strategy will be presented in more detail at a capital markets day event on 5 October. The Company aims to be a leader in non-animal toxicology testing, a growing market internationally estimated to be worth more than USD 6 billion annually. The board worked with the new CEO to review the Company's business plan and has adopted the accelerated growth strategy, which puts increased focus on organic and acquisition-driven growth. As a result, our previous financial target of reaching profitability in 2022 will be cancelled.

New CEO and accelerated growth strategy
To create new opportunities and momentum for faster sales growth, SenzaGen’s strategy was updated with a focus on acquisition strategy, which the Company communicated at the time of Peter Nählstedt’s appointment as the new CEO on 19 August 2021. SenzaGen’s primary focus in the coming years will be on marketing investments, commercialization of a broader range of tests, and further expansion by acquiring profitable companies. The Company aims to be a leader in non-animal toxicology testing, a growing market estimated to be worth more than USD 6 billion annually. The updated growth strategy puts increased focus on organic and acquisition-driven growth.

The updated strategy, to be presented on Capital Markets Day, can be summarized as follows:

  • Continued commercialization of the GARD platform in Europe, North America and parts of Asia.
  • Expansion of the Company’s test portfolio by adding high-tech in vitro tests to support customers in cosmetics, chemicals, pharmaceuticals and medical devices with a broader range of tests.
  • Evaluation of acquisition opportunities with a focus on companies that are profitable, growing and complement SenzaGen’s offering.

“We have established an attractive position in the non-animal toxicology testing market. The European Parliament recently adopted a new resolution calling on the member states to accelerate the transition to non-animal testing, which is already underway in several industries and markets. SenzaGen will lead the way in helping companies transition from animal testing to methods better suited to reflect human biology. We will now focus on accelerating growth by combining organic growth with acquisition activities. I very much look forward to leading the implementation of this updated strategy, which will significantly increase the Company's growth," says Peter Nählstedt, CEO of SenzaGen.

Peter Nählstedt commands broad experience from both organic and acquisition-driven growth. His most recent operational role was CEO of Probi AB, in which Peter led the company to increase revenue from approximately SEK 100 to 600 million between 2014 and 2018 by combining organic international growth with acquisition activities. His past experience includes leadership positions at Trelleborg AB and GE Healthcare in Sweden and the US. He was elected to SenzaGen’s board of directors in 2018 and has worked on the Company’s commercial and strategic development in an operational capacity since then.

SenzaGen continues to enjoy strong commercial growth and has achieved key successes in 2021 despite a challenging market situation during the pandemic. The Company’s innovative GARD® technology was evaluated by an independent group of international experts. The evaluation, which was delayed as a result of the pandemic, led to the EURL ECVAM Scientific Advisory Committee (ESAC) recommending that the OECD issue test guideline status for GARD skin. The Company’s laboratory operations were broadened by adding more non-animal tests. The Company’s customer base, which consists of major international companies, grew during the year with both new customers and more loyal returning customers.

Capital Markets Day on 5 October at 10:00 AM
SenzaGen invites media and investors to a virtual capital markets day on Tuesday, 5 October at 10:00 AM where CEO Peter Nählstedt will present the Company’s updated strategy. The web conference will be held in Swedish starting with a presentation followed by a Q&A session. After the live broadcast, the web conference will be available on the Company’s website.

To participate in the web conference, please follow this link: https://youtu.be/s35MMNbbYPE

Questions may be submitted by 1 October to the following email address IR@senzagen.com.

SenzaGen receives SEK 0.7m order for GARD®skin from one of the world’s largest pharmaceuticals companies

SenzaGen has been selected to test substances from a leading global pharmaceuticals company. Valued at SEK 0.7 million, the project involves testing using SenzaGen’s non-animal skin sensitization test, GARD®skin. The testing will be performed at SenzaGen’s GLP-certified laboratory in Lund, Sweden.

The pharmaceuticals company, which is one of the largest in the world, has global operations with a uniquely wide range of treatment areas. With GARD®skin, the company aims to determine whether new development candidates can cause allergic reactions on the skin.

“We are delighted that one of the largest pharmaceutical companies in the world has chosen to partner with SenzaGen and has decided to test substances with GARD®skin, which once again validates the value of GARD®skin internationally. Our test method provides them with fast and reliable results, making it possible to ensure that their substances cannot cause skin allergies already during the development phase. This project serves as further proof that our innovative technology is highly interesting to leading companies in the pharmaceuticals industry. With this new key order, we are continuing to expand our customer base, adding another world leader to our ranks,” says Peter Nählstedt, CEO of SenzaGen.

SenzaGen’s GARD® test platform is designed for companies looking to improve their testing strategy and enhance the accuracy of their test results while avoiding animal testing.

SenzaGen’s 2021 Half-Year Report: Positive ESAC opinion on GARD®skin and expanded range of tests open up new commercial opportunities

Message from the CEO
“SenzaGen continues to enjoy strong commercial growth and achieved key successes as a company in the first six months of the year. Our innovative GARD® technology was validated by an independent group of international experts in the summer, making it the first genomic based test to achieve stand-alone status for identifying skin allergens. We broadened our lab operations in line with our strategy by adding more non-animal tests. This creates new opportunities for accelerated sales growth. I would like to thank my predecessor Axel Sjöblad for his excellent work as CEO that made these successes possible, thus creating a stable platform for continuing growth. We will further expand our lab operations in non-animal skin toxicology as soon as this fall, both by launching more tests and by pursuing supplementary mergers and acquisitions, which is a key part of our growth strategy.”

Peter Nählstedt, CEO

Half year 1 January–30 June

  • Net sales totaled SEK 5,015 (3,830) thousand.
  • The operating loss was SEK -13,995 (-12,929) thousand.
  • Earnings per share were SEK -0.65 (-0.60).
  • Cash and cash equivalents at 30 June amounted to SEK 75,571 (101,536) thousand.

Significant events during the first half year

  • Lab operations were broadened within in vitro skin toxicology.
  • SenzaGen received an SEK 0.6 million GARD® order from a new European customer in the chemicals industry.
  • Collaboration with RIFM on the safe use of fragrances with GARD®skin Dose-Response was expanded with an SEK 1.2 million grant.
  • The global collaboration agreement with Charles River Laboratories was renewed and expanded.

Significant events after the end of the period

  • Peter Nählstedt was appointed CEO.
  • A very positive opinion on GARD®skin from ESAC experts paves the way for OECD validation.
  • An SEK 0.65 million order for GARD®skin Dose-Response was secured from one of the world’s largest cosmetics companies.
  • An SEK 0.65 million order for skin allergy and irritation tests was received from a global consumer products company.

Conference call
SenzaGen is pleased to invite press and investors to a conference call on Thursday, August 19 at 10:30 CEST where CEO Peter Nählstedt will comment on SenzaGen’s 2021 half-year results. The conference call, which will be held in English, will begin with a presentation of the report followed by a Q&A session.

Phone number for the conference
To participate in the conference call, use the dial-in numbers below.

SE: +46850558358
FR: +33170750721
DE: +4969222239166
CH: +41225805976
NE: +31107129163
UK: +443333009260

Weblink
https://tv.streamfabriken.com/senzagen-q2-2021

SenzaGen appoints Peter Nählstedt as new CEO

The Board of Directors at SenzaGen has appointed Peter Nählstedt Chief Executive Officer. Peter Nählstedt takes on his new role on August 19, succeeding Axel Sjöblad, who wishes to resign as CEO in order to take on a new position outside the company. Over the last few years SenzaGen has made major progress in marketing and sales. With focus on a growth strategy, including acquisitions of profitable and growing companies, Peter Nählstedt will drive the company into a new phase. Peter recently held the position as CEO of Probi and has been a board member of SenzaGen since 2018, working on its commercial development.

Peter Nählstedt has extensive experience in developing global growth companies in Life Science. He was appointed to SenzaGens board of directors in 2018 and also held operational roles within the company including commercial development. He has in recent years lead several international growth projects in Life Sciences as a consultant and a board professional. His most recent operative assignment was as CEO of Probi AB. During his time as CEO of Probi from 2014 to 2018, the company increased its revenues from 103 to 612 MSEK by combining organic international growth with acquisition activities. Prior to working for Probi, Peter has held leading positions at Trelleborg AB and GE Healthcare in Sweden and US. He holds an MSc in Chemical Engineering and a BSc in Business Administration from Lund University.

“We are delighted to welcome Peter Nählstedt as CEO during this strategic growth phase with a novel focus on broadening our test portfolio with acquisitions. Peter has a proven international and commercial track record in the Life Science sector including both organic and Mergers & Acquisitions experience. He has the necessary skills and vision to make a seamless transition of leadership and drive the commercial growth of the company” says Carl Borrebaeck, Chairman of SenzaGen.

“SenzaGen has already developed and commercialized a revolutionary in vitro test with the GARD platform. By acquiring profitable and growing companies with complementary products and services, we have an opportunity to become a global leader in in vitro toxicology and safety assessment. As I have been working with the company for a few years, I am well-acquainted with SenzaGen´s great team and services – I am now very much looking forward to leading the Company into the next phase in which we will continue to commercialize the GARD® platform, add more tests to our portfolio and actively seek acquisition opportunities,” says Peter Nählstedt.” 

During Axel Sjöblad’s two years as CEO, SenzaGen has developed as a commercial company with a new structure, a broader customer offering, a substantially larger customer base and a positive statement from ESAC setting the company up for the next growth phase.

“Axel Sjöblad has done a great job and the company has rapidly evolved commercially and increased its sales significantly since he joined in 2019. With the recent positive ESAC opinion, we reached an important milestone and will now embark on an accelerated growth strategy”, says Carl Borrebaeck, Chairman of SenzaGen.

For more information, please contact:
Carl Borrebaeck, Chairman of the board, SenzaGen AB
Email: carl.borrebaeck@immun.lth.se | Mobile: +46 708 218330

Tina Dackemark Lawesson, VP Marketing & Communications
Email: tina.lawesson@senzagen.com | Mobile: +46 708-20 29 44

Invitation to SenzaGen’s 2021 half year report conference call on Aug 19 at 10.30 CET

SenzaGen is pleased to invite press and investors to a conference call on Thursday August 19 at 10.30 CEST where CEO Axel Sjöblad comments SenzaGen’s 2021 half year results. The conference call, which will be held in English, will begin with a presentation of the report followed by a Q&A session.

Phone number for the conference
To participate in the conference call, use the dial-in numbers below.

SE: +46850558358
FR: +33170750721
DE: +4969222239166
CH: +41225805976
NE: +31107129163
UK: +443333009260

Weblink
https://tv.streamfabriken.com/senzagen-q2-2021