Prostatype Genomics AB (“Prostatype Genomics” or “The Company”) is the result of over 10 years of investigative research in the genomics of prostate cancer. The company was founded in 2007 as a spin-off from Cancer Center Karolinska (Karolinska Institutet, Stockholm, Sweden). The purpose of the spin-off was to transfer the research results to clinical reality. The result of this was the development of the today CE-marked and market-ready product Prostatype® Test System. Prostatype®'s unique system identifies the genetic fingerprint of prostate cancer by measuring information from the genes of the cancer stem cells in the tissue sample (biopsy) already obtained in connection with the patient's diagnosis. By combining the genetic fingerprint with other information from the diagnosis, a so-called P-score is calculated. P-score provides a measure of how aggressive (or non-aggressive) the cancer is, which facilitates the choice of optimal treatment for the patient. The Company is now preparing an issue of units (shares and attached free warrants) for a total of approximately SEK 80 million prior to the planned listing on Nasdaq First North Growth Market during Q3 / Q4 2020. To finance the Company's activities during the capitalization and listing process, Prostatype Genomics has during the summer 2020 completed a bridge financing of approximately SEK 11.6 million, intended to be set off against shares in the planned issue. Prostatype Genomics has subsequently hired Fondkommission as financial advisor in the capitalization and the planned listing. Markets & Corporate Law Nordic AB acts as legal advisor.
Motives for issue and listing
In 2019, Prostaype Genomics went from being a company in the development phase to being in a phase of sales and commercialization, with Sweden as the initial market. The company's core product Prostatype® Test System is CE marked and sales have been initiated on a smaller scale in the Swedish market. Prostate type Genomics genetic testing makes it possible, with the help of AI (artificial intelligence) technology, to better prognostate prostate cancer and categorize the patient's condition into different types of risk. In this way, the Company can reduce the risk of overtreatment or undertreatment, which is common and in many cases leads to major problems for the patient. The focus is now on intensifying the work of introducing the Prostatype® Test System internationally in selected European markets as well as in the USA. To enable the Company's commercialization and expansion plan, Prostatype Genomics needs to secure additional competencies in sales and marketing to support distributors. A natural part of the work of launching the Prostatype® Test System on the market is the conduct of validation studies. These studies will be carried out in connection with the product being launched in the markets where it is deemed necessary from a market perspective. Validation studies have already been carried out in Sweden and Germany and are ongoing in Taiwan. The company can therefore begin the international market expansion and maintain momentum during the period leading to the issue.
Prostatype Genomics CEO Fredrik Persson comments:
"We are at a crucial moment in the history of Prostatype Genomics. The company is on its way to a listing to be able to accelerate growth and continued expansion. We have prepared for this for a long time and are ready to take on the requirements that follow from being listed on a public trading venue. We are also ready from a development and business perspective; With our unique Prostatype® Test System, we can contribute to a radical change in the choice of treatment strategy for prostate cancer, the second most common form of cancer among men, affecting about 1.3 million men a year. With such a strong product at the bottom, which can change the living conditions of millions of people, and which is also scalable and ready for market launch, we see great potential to grow in our segment. For an already pressured healthcare due to the effects of the corona virus, Prostatype also fills a great need in helping patients and healthcare to better determine which patients need, and do not need, undergo radical treatment. The annual addressable market for Prostatype Genomics is estimated at approximately 9 billion SEK.
In addition, we see a growth rate of between 6-8 percent per year. With the planned issue and listing on Nasdaq First North Growth Market, we can implement our strategy towards international expansion in selected markets and at the same time strengthen our sales and business development organization. We look forward to welcoming new investors to the company and are very optimistic about our common future
Planned capitalization and listing
The work prior to the planned listing is in full swing and more information about the offer, the terms and the Company will be presented in the prospectus that will be published before the planned issue, which is planned to be implemented during Q3 / Q4 2020.
For more information about the planned issue and listing, please contact:
Later Fund Commission
Phone: +46 (0) 40 615 14 10
For more information on Prostatype Genomics, please contact:
Fredrik Persson, CEO
Phone: +46 (0) 73 049 77 01