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Camurus

Interim / Quarterly Report Nov 8, 2016

3021_10-q_2016-11-08_49004cb8-b1fc-482a-8ec1-467f2f128115.pdf

Interim / Quarterly Report

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INTERIM REPORT 2016

TABLE OF CONTENT

  • $\overline{3}$ CEO statement
  • O3 and O1-O3 in brief $\overline{4}$
  • 5 Operational overview
  • 8 Financial overview
  • 9 Other disclosures
  • $10$ Auditors report
  • Financial statements $11$
  • 18 Key figures & definitions
  • Financial notes 19

Financial calendar

Full Year Report 2016 16 February 2017
Annual Report 2016 30 March 2017
Q1 2017 3 May 2017
Annual General Meeting
2017
3 May 2017

"All patients completed treatment in the pivotal Phase 3 opioid dependence trial and we are excited about receiving the study results. In parallel, we are preparing for submissions of marketing approval applications in Europe and the US during $2017''$

Camurus is a Swedish research-based pharmaceutical company committed to developing and commercializing innovative and differentiated medicines for the treatment of severe and chronic conditions. New drug products with best-in-class potential are conceived based on the proprietary FluidCrystal® drug delivery technologies and an extensive R&D expertise. The company's share is listed on Nasdaq Stockholm under the ticker "CAMX".

Treatment completed in opioid dependence Phase 3 trial

Good progress was made during the third quarter. All patients completed treatment in the pivotal Phase 3 opioid dependence trial and we are excited about receiving the study results. In parallel, we are preparing for submissions of marketing approval applications in Europe and the US during 2017. Another highlight during the quarter was the initiation of a new Phase 3 trial of CAM2038 for treatment of chronic pain. This is an area with an unmet need for new, effective and safe treatment solutions that have reduced risks of misuse. overdosing and diversion.

Our extensive study program on CAM2038 led to the presentation of three scientific papers at the International Society for Addiction Medicine (ISAM) meeting in Montreal, October 20-22, 2016. Professor Sharon Walsh, MD/PhD. University of Kentucky, presented new data from a pivotal Phase 2 trial showing how CAM2038 blocks subjective opioid effects of randomized hydromorphone injections and discussed the relevance of the results for clinical practice. I presented data pharmacokinetics and safety of CAM2038 from Phase 1 trials in healthy volunteers under naltrexone blockade, while study design and protocol of the ongoing Phase 3 program were presented by Assoc. Professor Michelle Lofwall. MD. Medical Director of UK College of Medicine Straus Clinic, University of Kentucky. The presentations were timely, in advance of the forthcoming topline Phase 3 results. In parallel, preparations are ongoing for submissions of marketing approval applications for CAM2038 for treatment of opioid use disorder. We have also initiated a new Phase 3 trial of CAM2038 for treatment of chronic pain and thereby taken a first step towards expanding future indication areas for the product for pain. In general, we see a

significant potential for innovative, effective and non-abusable pain treatments.

During the period, we announced positive results from a Phase 2 trial of our long-acting octreotide formulation CAM2029 for treatment of patients with neuroendocrine tumors (NET) or acromegaly. The product candidate was well tolerated and the treatment effects were comparable or better in some patients after switching from Sandostatin® LAR® to CAM2029. The results are promising and we are looking forward to Novartis initiating the Phase 3 trials in acromegaly and NET patients during 2017.

In the early pipeline, a clinical trial application has been submitted for a Phase 1 trial of three new product candidates -CAM2047, CAM2048 and CAM2058 - targeting indications of nausea and vomiting and/or postoperative pain. This study is designed to assess pharmacokinetics, pharmacodynamics and safety and will provide important insight and quidance for the further clinical development of these assets. After the period we announced the expansion of the collaboration and license agreement with Braeburn Pharmaceuticals for the further development and commercialization in North America of CAM2058, a combination product of buprenorphine and granisetron for treatment of postoperative pain, nausea and vomiting.

With regards to our ongoing early stage collaborations, we were pleased to note good progress by our partner Rhythm in relation to their development of setmelanotide for treatment of rare genetic obesity disease. In addition to the publication of promising Phase 2 data in New England Journal of Medicine, the investigational drug, setmelanotide, was during the period granted Breakthrough Therapy designation for POMS deficiency obesity and Orphan Designation for Prader-Willis Syndrome. In our collaboration of the development of a weekly semelanotide FluidCrystal®, final preparations for a first clinical study are being finalized

We have also completed the initial stage of building our own commercial organization. Key leadership roles and specialist functions are now in place and I am delighted that in a short period we have established a strong core team of internationally experienced and entrepreneurial professionals and experts. Meanwhile, our partner Braeburn Pharmaceuticals has been expanding their US commercial footprint after the recent successful market approval of Probuphine® implant by the US FDA. Together, we have built a strong foundation for the planned approvals of CAM2038 in the US and Europe during 2018.

Fredrik Tiberg, President and CEO

Q3 in brief

BUSINESS HIGHLIGHTS

  • Treatment of all patients completed in Phase 3 efficacy study of CAM2038 for treatment of opioid dependence.
  • First patient enrolled in a Phase 3 trial of CAM2038 in patients with chronic back pain.
  • Positive results received from Phase 2 study of CAM2029 in NET and acromegaly patients.
  • Clinical trial application submitted for three new drug candidates for treatment of post-operative pain and/or nausea and vomiting.

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

• Expansion of collaboration and license agreement with Braeburn Pharmaceuticals with new combination product CAM2058 for treatment of postoperative pain.

FINANCIAL SUMMARY

  • Revenues MSEK 30.5 (37.2).
  • Operating result before and after items affecting comparability MSEK-16.6 (-7.1) and MSEK-16.6 (-29.1), respectively.
  • Result after tax MSEK-13.2 (-22.7).
  • Earnings per share SEK-0.35 (-0.90), before and after dilution.
  • Cash position MSEK 518.2 (112.3).

$Q1 - Q3$ in brief

BUSINESS HIGHLIGHTS

  • Treatment of all patients completed in Phase 3 efficacy study of CAM2038 for treatment of opioid dependence.
  • First patients enrolled in a Phase 3 trial of CAM2038 in patients with chronic back pain.
  • Positive results from Phase 2 trial of CAM2029 in NFT and acromegaly patients.
  • Positive Phase 2 trial results from opioid challenge study of CAM2038.
  • Start of Phase 2 trial of CAM2038 in patients with chronic pain.
  • Positive results from Phase 2 trial of CAM2032 in prostate cancer patients.
  • Completion of Phase 1 trial of CAM4071 in healthy volunteers.
  • License agreement signed with Rhythm Inc. for Iong-acting FluidCrystal® setmelanotide under development for rare genetic obesity disorders.

FINANCIAL SUMMARY

  • $\bullet$ Revenues MSEK 76.6 (118.5).
  • Operating result before and after items affecting comparability MSEK-67.3 (-25.6) and MSEK-67.3 (-163.7) respectively.
  • $\bullet$ Result after tax MSEK -53.2 (-127.7).
  • Earnings per share SEK-1,43 (-5.07), before and after dilution
  • Cash position MSEK 518.2 (112.3).

Our development pipeline

Product development pipeline

Camurus is a research-based pharmaceutical company with a focus on the development and commercialization of new and innovative pharmaceuticals for serious and chronic conditions. where there are clear medical needs and the potential to significantly improve treatment. For the development of new drug candidates Camurus utilizes its own proprietary formulation technology, for example, the long-acting injection depot FluidCrystal®. New proprietary medicines with improved properties and treatment outcomes are developed by combining the company's patented drug delivery technologies with active ingredients with documented safety and efficacy profiles. These are developed with significantly lower cost and risk, compared with the development of completely new pharmaceuticals. Camurus' development pipeline contains product candidates for treatment of cancer and the side effects of cancer treatment. endocrine diseases, pain and addiction, see figure. A summary and status update on the different projects is given below.

PRODUCT PRECLINICAL PARTNERS PHASE 1/2 PHASE 3 REGISTRATION CAM2038 a1w $Camulus$ Opioid dependence CAM2038 a4w SCAMURUS Opioid dependence SCAMURUS CAM2038 a1w Chronic pain CAM2038 a4w SCAMURUS $rac{a}{a}$ Chronic pain CAM2029 UNOVARTIS NFT CAM2029 UNOVARTIS Acromegaly CAM2032 CAMURUS Prostate cancer CAM4071 U NOVARTIS Undisclosed indication CAM2047 SCAMURUS* CINV $S_{\text{CAMURUS}^}$ CAM2048 Postoperative pain SCAMURUS CAM2058 Postoperative pain & PONV OPE IEW* NET-Neuroendocrine tumors

CAM2038 - opioid dependence

CAM2038 includes subcutaneous weekly and monthly depots of

buprenorphine, developed by Camurus and its partner Braeburn Pharmaceuticals for treatment

CINV - Chemotherapy induced nausea PONV-Postoperative nausea and vomiting

of opioid dependence. CAM2038, granted FastTrack status by US FDA, is developed to address a serious condition and key

shortcomings of currently available medications, including limited patient compliance with frequent relapses and problems of misuse, abuse and diversion of current daily medications. To date, the CAM2038 products have been evaluated in four Phase 1/2 clinical trials. Good safety profiles as well as pharmacokinetic and pharmacodynamic properties suitable for weekly and monthly dosing have been documented in the clinical trials. Three more trials, including two Phase 3 studies, are currently ongoing.

STATUS O3

During May we announced positive results from a pivotal Phase 2 opioid challenge trial. The results show that treatment with CAM2038 effectively blocks subjective opioid effects of injected hydromorphone, which means that CAM2038 can protect patients from relapse to abuse of heroin and prescription opioids. In the ongoing pivotal Phase 3 efficacy trial of CAM2038 all patients have now completed treatment. Top level data from this randomized, double-blind, double-dummy, activecontrolled, 24-week efficacy trial is due during November. In parallel, the long-term safety Phase 3 trial of CAM2038 is also under completion with the last patients last visit meeting scheduled end of Q1 2017. Furthermore, a Phase 2 study evaluating pharmacokinetics during repeated dosing of CAM2038 is ongoing (see chronic pain section). These studies are part of the registration program, which has been discussed and alianed with both European and US regulatory authorities.

CAM2038 - chronic pain

CAM2038 weekly and monthly depots are also being developed for treatment of chronic pain, with the purpose of providing round-the-clock pain relief, while decreasing the risks of respiratory depression and fatal overdoses associated with full $\mu$ -opioid agonists, such as morphine, oxycodone and fentanyl. The properties of CAM2038 conform to the quidelines and recommendations for treatments of chronic pain, i.e. the combination of stable efficacious analgesia with a reduced risk of misuse, abuse and illicit diversion.

STATUS O3

In the ongoing Phase 2 trial of CAM2038 in patients with chronic pain, pharmacokinetics and safety after repeated dosing of the CAM2038 weekly and monthly products are being evaluated. After the period, the trial has been expanded with one further dose group in order to evaluate equilibrium kinetics and effect on pain in a higher dose. The results from the first dose group are expected in the fourth quarter 2016 and data from the new dose group is expected after year end 2016. Furthermore, a Phase 3 pivotal trial for CAM2038 for treatment of chronic lower back pain has been initiated.

CAM2029 - acromegaly and neuroendocrine tumors (NET)

CAM2029 is a subcutaneous monthly depot of octreotide under development for the treatment of patients with acromegaly or neuroendocrine tumors (NET). CAM2029 is being developed by Novartis as a potential treatment alternative to the current market leading product Sandostatin® LAR®, with global sales of USD 1.63 billion in 2015. CAM2029 is administered as a ready-touse subcutaneous injection, whereas Sandostatin® LAR® has to be prepared from a powder in a process consisting of six steps before being injected intramuscularly by a healthcare professional. CAM2029 has in clinical trials demonstrated about a 500 percent higher bioavailability of octreotide compared with Sandostatin® LAR®, which gives potential for improved treatment effects in patients who do not respond satisfactorily to current treatments

STATUS O3

Camurus and Novartis announced positive Phase 2 trial results regarding pharmacokinetics, safety and maintenance of disease control in patients with acromegaly and NET previously treated with Sandostatin® LAR®. The disease control was evaluated by the control of carcinoid symptoms in NET patients and plasma levels of insulin growth factor-1 (IGF-1) and growth hormone (GH) in acromegaly patients. Results will be presented in a future

publication. In parallel, Novartis is completing the preparations of Phase 3 trials of CAM2029, planned to start 2017.

CAM2032 - prostate cancer

CAM2032 is a subcutaneous depot product that is being developed by Camurus for treatment of prostate cancer. Other possible indications include precocious puberty and endometriosis. The product is based on the active ingredient leuprolide, belonging to the class of gonadotropin releasing hormone analogs. CAM2032 is as the first product in its class developed for easy subcutaneous injection by patients themselves, in the form of a small volume injection with a duration of one month.

STATUS Q3

The positive results from the completed Phase 2 study of CAM2032 in patients with advanced metastatic prostate cancer announced in June, are being compiled for a planned publication. In parallel, discussions on potential partnerships are ongoing.

CAM4071

CAM4071 is a product candidate in clinical development under the option, collaboration and licensing agreement with Novartis. The product is a long-acting formulation of an undisclosed peptide based on the FluidCrystal® Injection depot.

STATUS O3

A Phase 1 trial of pharmacokinetics and pharmacodynamics has been completed and is being reported.

New product candidates

Several new product candidates are being evaluated in pharmaceutical and preclinical studies, supported by initial market research. The development includes formulation optimization with respect to release performance, stability and pharmacological properties, per predefined target product profiles.

STATUS O3

During the period, we have completed supporting toxicology studies for two product candidates. GMP manufacturing of investigational drug products of CAM2047, CAM2048, and CAM2058 is completed in preparations for a Phase 1 clinical trial that was initiated after the end of the period. These drug candidates are based on Camurus' FluidCrystal® injection depot and are being developed for treatment of chemotherapy induced nausea and vomiting (CAM2047), pain (CAM2048) and combined treatment of postoperative pain and nausea and vomiting (CAM2058). Results from the first clinical study are expected during the first quarter 2017.

Pre-clinical project collaborations

Camurus is also involved in several collaboration projects with international pharmaceutical companies, where new product candidates based on Camurus' formulation technology and the partner company's patented active ingredient are evaluated. These collaborations often involve formulation development and assessments with respects to pre-specified technical and market related objectives. The time frame of these feasibility studies is typically 6-12 months. After successful evaluations, product development can continue under a license agreement, with opportunities for future development and commercial milestone payments as well as royalty on future sales.

STATUS O3

Several project collaborations are ongoing with international pharmaceutical companies, based on Camurus' FluidCrystal® technologies and the partners' proprietary drug substance. These projects target different indications such as cancer, obesity, diabetes and viral infection. Early this year, a license agreement was signed with the Boston-based biotech company Rhythm, regarding the use of Camurus FluidCrystal® injection depot for developing a once-weekly formulation of setmelanotide (RM-493), a novel melanocortin-4 receptoragonist (MC4R) for treatment of genetic obesity. GMPmanufacturing is ongoing for the start of a clinical Phase 1 trial in 2017

Medical device - episil®

episil* is a medical device for treatment of inflammatory and painful conditions in the oral cavity. The product provides effective pain relief and works by spreading and adhering to the oral mucosa as a thin bioadhesive film, which acts as a longacting protective barrier that reduces pain and protection of sore and inflamed mucosal surfaces, such as caused by oral mucositis, a common and serious side effect of cancer treatment, episif transforms into a protective layer of gel in contact with the buccal membrane, offering effective pain relief for up to 8 hours.

STATUS O3

Camurus partner Solasia Pharma continues its market registration process for episil® in China and Japan. A new distribution and license agreement for episil® in the US was signed with Princeton based R-Pharm US in April and the product was launched in September.

Financial overview

REVENUES

Revenues during the third quarter amounted to MSEK 30.5 (37.2), generated from license agreements, project activities and product sales. License and milestone payments vary between quarters as potential new agreements may be entered and development milestones may be achieved.

OPERATING RESULT

Marketing, business development and distribution costs during the third quarter, were MSEK 5.8 (5.3).

Administrative expenses amounted to MSEK 4.4 (0.9). The difference compared to the same period last year is mainly related to a retroactive reallocation between administrative expenses, marketing and distribution costs and research and development (R&D) costs.

R&D costs were MSEK 36.7 (38.3), including depreciation and amortization of tangible and intangible assets.

Other operating incomes/expenses mainly consist of currency exchange gains in operational activities of a total of MSEK 0.3 (0.3).

The operating result for the third quarter, before and after items affecting comparability was MSEK-16.6 (-7.1) and MSEK-16.6 (-29.1).

FINANCIAL ITEMS AND TAX

Financial items for the period was MSEK-0.4 (-0.0). Tax for the quarter was MSEK 3.7 (6.4). The difference compared to the previous year is mainly attributable to deferred tax for losses during the quarter.

RESULT FOR THE PERIOD

The result for the period was MSEK-13.2 (-22.7), corresponding to earnings per share of SEK-0,35 (-0.90) before and after dilution.

CASH FLOW AND INVESTMENTS

Cash flow from operating activities, before change in working capital amounted to MSEK-15.9 (-9,5).

Change in working capital was MSEK-14.1 (-14.5).

Cash flow from investing activities was MSEK-1.6 (0.0), and from finance activities to MSEK 0.9 (0.0) in relation to issuance of warrants.

CASH

The Company's cash position at the end of the quarter was MSEK 518.2 (112.3). The change relates mainly to proceeds from the listing of Camurus' shares on Nasdag, Stockholm in 2015.

There were no outstanding loans as of September 30, 2016, and no loans have been taken up since.

EOUITY

Consolidated equity as of September 30, 2016, was MSEK 591.5 (103.1). The change is mainly related to issued proceeds from the listing of the Company's shares on Nasdaq Stockholm in 2015.

ACQUISITIONS

No acquisitions or divestments have occurred during in the period.

CAMURUS' SHARE

Camurus' share is listed on Nasdag Stockholm since the December 3, 2015. At the end of the period, the total number of shares in the company was 37,281,486 (25,208,560).

In accordance with a decision by a Shareholder's General Meeting in May 2016, an incentive program (TO2016 / 2019) under which a maximum of 550,000 warrants can be issued, was introduced. The dilution of a full utilization of the program corresponds to 1.5% of the share capital and voting rights. The number of warrants that have been issued are 550,000 and which give the right to subscribe for an equal number of shares during the period May 15, 2019 - December 15, 2019. As per September 30, 2016, 383 100 warrants had been subscribed for with an increase in equity of MSEK 0.9 during the third quarter. The total impact on earnings during the period was negative MSEK 0.7 after tax, including stay-on bonuses in the program.

PARENT COMPANY

Revenues for the quarter amounted to MSEK 30.5 (37.2) and the result after tax was MSEK-12.8 (-22.3).

On September 30, 2016, equity in the Parent Company amounted to MSEK 574.4 (72.9). The difference compared with the year-earlier period is mainly attributed to issued proceeds from the stock market listing of the company's share.

Total assets at the end of the period was MSEK 635.0 (197.5) of which MSEK 518.2 (112.3) were cash and cash equivalents.

Other disclosures

PERSONNEL

At the end of the period, Camurus had 58 (48) employees, of whom 42 (35) were within research and development. The full time equivalent employees (FTEs) during the quarter was 49 (49).

SIGNIFICANT RISKS AND UNCERTAINTIES

The company management makes estimates and assumptions about the future. Such estimates can deviate considerably from the actual outcome, since they are based on various assumptions and experiences.

The estimates and assumptions that may lead to the risk of significant adjustments to reported amounts for assets and liabilities relate mainly to measurement and allocation of revenues and costs in connection with licensing agreements and deferred tax receivables

Risks in ongoing development projects comprise technical and manufacturing related risks (including products failing to meet set specifications post manufacturing), safety and effectrelated risks that can arise in clinical trials, regulatory risks relating to non-approval or delays of clinical trial applications and market approvals, and commercial risks relating to the sale of proprietary and competing products and their development on the market, as well as IP risks relating to approval of patent applications and patent protection. In addition, there are risks relating to the development, strategy and management decisions of Camurus' partners.

Camurus pursues operations and its business on the international market and the Company is therefore exposed to currency risks, since revenues and costs arise in different currencies, mainly SEK, EUR and USD.

The Board of Directors has not changed its outlook on future

developments in relation to their outlook published in the interim report for the second quarter 2016.

AUDIT

This report has been reviewed in summary by the company's auditors.

ANNUAL GENERAL MEETING 2017

Camurus Annual General Meeting 2017 will be held on Wednesday 3 May, at 17.00 CET, at Elite Hotel Ideon, Scheelevägen 27, Ideon Science Park, 223 63 Lund.

FURTHER INFORMATION

For further information, please contact: Fredrik Tiberg, Chief Executive Officer Rein Piir, VP Investor Relations Tel.: +46 46 286 46 92, e-mail: [email protected].

Lund. November 7, 2016 Camurus AB Board of Directors

REPORT OF REVIEW OF INTERIM FINANCIAL INFORMATION

INTRODUCTION

We have reviewed the condensed interim financial information (interim report) of Camurus AB (publ) as of 30 September 2016 and the nine-month period then ended. The board of directors and the CEO are responsible for the preparation and presentation of the interim financial information in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements ISRE 2410, Review of Interim Report Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, ISA, and other generally accepted auditing standards in Sweden. The procedures performed in a Teview do not enable us to obtain assurance that we would

become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act, regarding the Group, and with the Swedish Annual Accounts Act, regarding the Parent Company.

Lund, November 7th, 2016 PricewaterhouseCoopers

Ola Bjärehäll

Authorized Public Accountant Auditor in charge

Financial statement

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

KSEK Note 2016 2015 2016 2015 2015
Jul-Sep Jul-Sep Jan - Sep Jan – Sep Jan - Dec
Net sales 3 30,531 37,232 76,611 118,459 154,799
Cost of goods sold $-546$ $-131$ $-911$ $-132$ $-237$
Gross profit 29,985 37,101 75,699 118,327 154,562
Marketing and distribution costs $-5,762$ $-5,255$ $-15,353$ $-12,425$ $-19,411$
Administrative expenses $-4,392$ $-925$ $-13,919$ $-18,712$ $-11,934$
Research and development costs $-36,702$ $-38,263$ $-113,059$ $-111,940$ $-153,080$
Other operating income 294 267 43 41 57
Other operating expenses $\Omega$ $-728$ $-904$ $-658$
Operating result before items affecting comparability 7 $-16,577$ -7,074 $-67,316$ $-25,613$ -30,464
Items affecting comparability attributable to public listing costs $\overline{0}$ 0 $\overline{0}$ 0 $-33,970$
Items affecting comparability attributable to Share bonus program $\circ$ $-22,075$ $\overline{0}$ $-138,075$ $-139,671$
Operating result 6 $-16,577$ -29,149 $-67,316$ $-163,688$ $-204,104$
Finance income 8
Finance expenses $-366$ $-4$ $-874$ $-21$ $-166$
Net financial items $-365$ $-3$ $-866$ $-20$ -164
Result before tax $-16,942$ -29,152 $-68,182$ $-163,708$ $-204,268$
Income tax 9 3,727 6,414 15,000 36,016 44,727
Result for the period $-13,215$ -22,739 $-53,185$ -127,692 -159,542

Total comprehensive income is the same as the result for the period, as the consolidated group contains no items that are recognized under other comprehensive income. Total comprehensive income is attributable to parent company shareholders

SEK 2016 2015 2016 2015 2015
Jul-Sep Jul-Sep Jan - Sep Jan – Sep Jan - Dec
Earnings per share before dilution, SEK $-0.35$ -0.90 $-1.43$ -5.07 $-6.02$
Earnings per share after dilution, SEK $-0.35$ -0.90 $-1.43$ -5.07 -6.02

EARNINGS PER SHARE, based on earnings attributable to parent company shareholders for the period (in SEK per share)

Since 2013, Camurus had a long-term share based incentive program in place, aimed at employees and Board members and in connection with the listing of the company's share on 3 December 2015 the programme was completed. The impact on previous year's results amounted MSEK 108.9 after tax, with a corresponding increase in equity of MSEK 108.8 and a social security fee liability of MSEK 30.8. For further information please see Note 7. Earnings per share 2015 was effected by -4.32 SEK per share before and after dilution.

CONSOLIDATED BALANCE SHEET

KSEK Note 30-09-2016 30-09-2015 31-12-2015 KSEK Note 30-09-2016 30-09-2015 31-12-2015
ASSETS
Fixed assets
EQUITY
Intangible assets Equity attributable to parent company
shareholder
Capitalized development expenditure 19,262 21,344 20,823 Share capital 932 630 932
Other contributed capital 630,316 58,634 626,181
Tangible assets Retained earnings, including result for the
Equipment 7,371 6,566 6,634 period $-39,738$ 43,801 13,444
Financial assets Total equity 4, 10 591,510 103,065 640,557
Long-term receivables Group companies $\circ$ $\overline{0}$ $\circ$
Deferred tax receivables 9 54,317 27,478 39,317 LIABILITIES
Total fixed assets 80,950 55,388 66,775
Long-term liabilities
Current assets Deferred tax liability $\overline{0}$ $\mathbf 0$ $\circ$
Total long-term liabilities $\Omega$ $\Omega$ $\mathbf 0$
Inventories
Finished goods and goods for resale 3,957 2,570 3,241 Short-term liabilities
Liabilities to Group companies $\Omega$ 2 $\Omega$
Current receivables Trade payables 7,832 14,177 31,832
Receivables from Group companies $\sqrt{0}$ $\overline{0}$ 207 Income taxes $\circ$ 8,936 9,917
Trade receivables 17,408 27,792 8,917 Other liabilities 1,933 1,292 88,088
Other receivables 3,669 2,149 5,500
Prepayments and accrued income 24,740 9,516 15,613 Accrued expenses and deferred income 47,698 82,290 45,954
Cash and cash equivalents 518,248 112,347 716,096 Total short-term liabilities 57,462 106,697 175,791
TOTAL EQUITY AND LIABILITIES 648,972 209,762 816,349
Total current assets 568,022 154,374 749,574
TOTAL ASSETS 648,972 209,762 816,349

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Other
contributed
Retained
earnings,
including
result for the
Total
KSEK Note Share capital capital period equity
Opening balance 1 January 2015 630 58,634 64,193 123,457
Result for the period and comprehensive income $-127.692$ $-127,692$
Transaction with shareholders
Share bonus program for personnel and Board members 107,300 107,300
Closing balance 30 September 2015 630 58,634 43,801 103,065
Opening balance 1 January 2015 630 58,634 64,193 123,457
Result for the period and comprehensive income $-159,542$ $-159,542$
Transactions with shareholders
Share bonus program for personnel and Board members 47 108.793 108,840
Direct share issue to principal owner 11 23,879 23,890
Direct share issue, public listing 244 554,756 555,000
Issuance cost, net after deferred tax $-11,088$ $-11,088$
Closing balance 31 December 2015 932 626,181 13,444 640,557
Opening balance 1 January 2016 932 626,181 13,444 640,557
Result for the period and comprehensive income $-53,182$ $-53,182$
Transactions with shareholders
Warrants issued 4,135 4,135
Closing balance 30 September 2016 4,10 932 630,316 $-39,738$ 591,510

CONSOLIDATED STATEMENT OF CASH FLOW

KSEK
Note
2016
Jul-Sep
2015
Jul-Sep
2016
Jan-Sep
2015
Jan-Sep
2015
Jan - Dec
Operating activities
Operating profit/loss before financial items $-16,577$ $-29,149$ $-67,316$ $-163,688$ $-204,104$
Adjustments for non-cash items 8
993
19,886 2,679 109,888 112,345
Interest received $\Omega$ 8
Interest paid $-365$ $-4$ $-874$ $-21$ $-166$
Income taxes paid $\Omega$ $-212$ $-9,917$ $-664$ 317
$-15,949$ $-9,478$ $-75,420$ $-54,484$ $-91,606$
Increase/decrease in inventories $-808$ $-870$ $-716$ $-1,868$ $-2,539$
Increase/decrease in trade receivables $-6,661$ $-16,381$ $-8,491$ $-21,673$ $-2,800$
Increase/decrease in other current receivables $-7,626$ $-491$ $-7,090$ 1,143 $-8,511$
Increase/decrease in trade payables 261 1,821 $-24,000$ 4,239 21,893
Increase/decrease in other current operating liabilities 775 1,427 $-84,411$ 27,448 77,906
Cash flow from changes in working capital $-14,059$ $-14,494$ $-124,708$ 9,289 85,949
Cash flow from operating activities $-30,008$ $-23,972$ $-200,128$ $-45,195$ $-5,657$
Investing activities
Acquisition of intangible assets $\mathbf 0$ $\theta$ 0 $-355$ $-355$
Acquisition of tangible assets $-1,616$ $-363$ $-1,855$ $-473$ $-984$
Divestment/amortization of other financial assets $\mathbf{0}$ 406 0 406 406
Increase/decrease in current financial investments 0 $\mathbf{0}$ 0 157,908 157,908
Cash flow from investing activities $-1,616$ 43 $-1,855$ 157,486 156,975
Financing activities
Increase/decrease in current financial liabilities 0 $\circ$ $\mathbf 0$ $\circ$ $\Omega$
New share issue $\theta$ 0 $\Omega$ $\Omega$ 564,722
Warrants issued 889 0 4,135 $\circ$ $\Omega$
Cash flow from financing activities 889 $\Omega$ 4,135 $\Omega$ 564,722
Net cash flow for the period $-30,735$ $-23,929$ $-197,848$ 112,291 716,040
Cash and cash equivalents at beginning of period 548,983 136,276 716,096 56 56
Exchange rate differences in cash equivalents 0 0 0 $\Omega$ $\Omega$
Cash and cash equivalents at the end of period 518,248 112,347 518,248 112,347 716,096
KSEK Note 2016
Jul-Sep
2015
Jul-Sep
2016
Jan - Sep
2015
Jan – Sep
2015
Jan - Dec
Net sales 30,531 37,232 76,611 118,459 154,799
Cost of goods sold $-546$ $-131$ $-911$ $-132$ $-237$
Gross profit 29,985 37,101 75,699 118,327 154,562
Marketing and distribution costs $-5,762$ $-5,255$ $-15,353$ $-12,425$ $-19,411$
Administrative expenses $-4,392$ $-925$ $-13,919$ $-18,712$ $-11,934$
Research and development costs $-36,182$ $-37,741$ $-111,497$ $-110,731$ $-151,354$
Other operating income 294 267 43 41 57
Other operating expenses $\Omega$ $\Omega$ $-728$ $-904$ $-658$
Operating result before items affecting comparability 7 $-16,057$ $-6,553$ $-65,754$ $-24,404$ $-28,738$
Items affecting comparability attributable to public listing costs 7 $\circ$ $\Omega$ 0 $\bigcap$ $-33,970$
Items affecting comparability attributable to Share bonus program 7 $\Omega$ $-22,075$ 0 $-138,075$ $-139,671$
Operating result $-16,057$ $-28,628$ $-65,754$ $-162,479$ $-202,379$
Result from interests in Group companies $\theta$ $\theta$ $\Omega$ $\Omega$ 0
Interest income and similar items 8
Interest expense and similar items $-366$ -4 $-874$ $-21$ $-166$
Result after financial items $-16,422$ $-28,631$ $-66,620$ $-162,499$ $-202,543$
Appropriations $\circ$ $\overline{0}$ 0 $\circ$ 15,096
Result before tax $-16,422$ $-28,631$ $-66,620$ $-162,499$ $-187,447$
Tax on profit for the period 9 3,613 6,299 14,656 35,750 41,026
Result for the period $-12,809$ $-22,332$ $-51,964$ $-126,749$ $-146,421$

Total comprehensive income is the same as profit/loss for the period, as the parent company contains no items that are recognized under other comprehensive income.

BALANCE SHEET - PARENT COMPANY

KSEK Note 30-09-2016 30-09-2015 31-12-2015
ASSETS
Fixed assets
Tangible fixed assets
Equipment 7,371 6,566 6,634
Financial fixed assets
Interest in Group companies 573 573 573
Deferred tax assets 9 59,047 35,988 44,391
Total fixed assets 66,991 43,127 51,598
Current assets
Inventories
Finished goods and goods for resale 3,957 2,570 3,242
Current receivables
Receivables from parent company $\Omega$ $\Omega$ 207
Trade receivables 17,408 27,792 8,917
Other receivables 3,669 2,150 5,500
Prepayments and accrued income 24,742 9,516 15,613
Total current receivables 45,820 39,458 30,237
Cash and bank deposits 518,248 112,347 716,096
Total current assets 568,024 154,375 749,575
TOTAL ASSETS 635,015 197,502 801,173
KSEK
Note
30-09-2016 30-09-2015 31-12-2015
EQUITY AND LIABILITIES
Restricted equity
Restricted equity (37 281 486 shares) 932
630
932
Statutory reserve 11,327 11,327 11,327
Total restricted equity 12,259 11,957 12,259
Unrestricted equity
Retained earnings 17,746 162,673 164,167
Share premium reserve 596,699 25,017 592,565
Result for the period $-51,964$ $-126,749$ $-146,421$
Total unrestricted equity 562,482 60,941 610,311
TOTAL EQUITY 574,741 72,898 622,570
LIABILITIES
Untaxed reserves
Depreciation/amortization in excess of plan 2,239 1,825 2,239
Tax allocation reserve 15,510
0
0
Total untaxed reserves 2,239 17,335 2,239
Long-term liabilities
Liability to subsidiaries 573
573
573
Total long-term liabilities 573
573
573
Short-term liabilities
Liabilities to Group companies $\overline{2}$
0
0
Trade payables 7,832 14,177 31,832
Current tax liability 8,936
0
9,917
Other liabilities 1,933 1,292 88,088
Accrued expenses and deferred income 47,698 82,290 45,954
Total short-term liabilities 57,462 106,697 175,791
TOTAL EQUITY AND LIABILITIES 635,015 197,502 801173

CAMURUS INTERIM REPORT THIRD QUARTER 2016 $\:$ $\,$ $\,$ $\,$ $\,$ $\,$ $\,$ $\,$ $\,$

Key figures

MSEK 2016
Jul-Sep
2015
Jul-Sep
2016
Jan - Sep
2015
Jan – Sep
2015
Jan - Dec
DEFINIT
Net revenue 30.5 37.2 76.6 118.5 154.8 Equity ratio,
Operating result before items affecting
comparability
$-16.6$ $-7.1$ $-67.3$ $-25.6$ $-30.5$ Average nur
before dilut
Operating result $-16.6$ $-29.1$ $-67.3$ $-163.7$ $-204.1$
Result for the period $-13.2$ $-22.7$ $-53.2$ $-127.7$ $-159.5$ Average nur
Cash flow from operating activities $-30.0$ $-24.0$ $-200.1$ $-45.2$ $-5.7$ after dilutior
Cash and cash equivalents 518.2 112.3 518.2 112.3 716.1 Earnings pe
Equity 591.5 103.1 591.5 103.1 640.6 dilution, SEK
Equity ratio in Group, percent 91% 49% 91% 49% 78% Earnings pe
Total assets 649.0 209.8 649.0 209.8 816.3 dilution, SEK
Weighted average number of shares, before
dilution
37,281,486 25,208,560 37,281,486 25,208,560 26,497,361 Equity per s
Weighted average number of shares, after
dilution*)
37,618,063 25,677,878 37,432,224 25,364,999 37,281,486 dilution
Earnings per share before dilution, SEK $-0.35$ $-0.90$ $-1.43$ $-5.07$ $-6.02$ Equity per s
Earnings per share after dilution, SEK*) $-0.35$ $-0.90$ $-1.43$ $-5.07$ $-6.02$
Equity per share before dilution, SEK 15.87 4.09 15.87 4.09 25.41 R&D cost as
Equity per share after dilution, SEK*) 15.70 4.01 15.70 4.01 17.18 operating e:
Number of employees at end of period 58 48 58 48 48
Number of employees in R&D at end of period 42 35 42 35 35
R&D costs as a percentage of operating
expenses
78% 86% 79% 78% 83%

TIONS

Weighted average number of shares before
adjustment for dilution effect of net shares
Weighted average number of shares adjustment
for the dilution effect of new shares
Result divided by the weighted average number
of shares outstanding before dilution
Result divided by the weighted average number
of shares outstanding after dilution
Equity divided by the weighted number of shares
at the period before dilution
Equity divided by the weighted number of shares
at the end of the period after dilution
Research and development costs divided by
operating expenses, excluding items affecting
comparability (marketing and distribution costs,
administrative expenses and research and
development costs).

*) The dilution effect is calculated according to IAS 33.

Notes

Note 1 General information

Camurus AB, Corp. ID no. 556667-9105 is the parent company of the Camurus Group. Up until 7 October 2015, Camurus AB's registered offices were in Malmö, Sweden. The company is now based in Lund. Sweden, at Ideon Science Park, 223 70 Lund.

Camurus AB Group's interim report for the third quarter 2016 was approved for publication in accordance with a decision from the Board on 7 November 2016.

All amounts are stated in SEK thousand (KSEK), unless otherwise indicated. Figures in brackets refer to the year-earlier period.

Note 2 Summary of key accounting policies

The consolidated financial statements for the Camurus AB Group ('Camurus') have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, as well as the Swedish Financial Reporting Board's Recommendation RFR 1 Supplementary Accounting Rules for Groups, and the Swedish Annual Accounts Act.

This interim report has been drawn up in accordance with IAS 34, Interim Financial Reporting, the Swedish Annual Accounts Act and RFR 1 Supplementary Accounting Rules for Groups.

The parent company statements have been prepared in accordance with the Annual Accounts Act and recommendation RFR 2 Accounting for legal entities from the Swedish Financial Reporting Board. The application of RFR 2 means that the parent company in the interim report for the legal entity shall apply all EU-approved IFRS standards and statements as far as possible within the framework of the Annual Accounts Act, the Pension

Obligations Vesting Act (Tryggandelagen) and taking into consideration the relationship between accounting and taxation. The parent company's accounting policies are the same as for the Group, unless otherwise stated in Note 2.2.

The most important accounting policies that are applied in the preparation of these consolidated financial statements are detailed below

2.1 BASIS OF PREPARATION OF REPORTS

2.1.1 Changes to accounting policies and disclosures New or revised IFRS standards that have come into force have not had any material impact on the Group.

2.2 PARENT COMPANY'S ACCOUNTING POLICIES

The parent company applies accounting policies that differ from those of the Group in the cases stated below.

Internally generated intangible assets

All expenses that relate to the development of internally generated intangible assets are recognized as expenses as they arise.

Interests in subsidiaries

Interests in subsidiaries are reported at cost, less any impairment losses. The cost includes acquisition-related expenses and any additional considerations.

When there is an indication that interests in subsidiaries have decreased in value, a calculation is made of the recoverable amount. If this amount is lower than the reported amount, an impairment is carried out. Impairment losses are recognized under the item "Result from interests in Group companies".

Group contributions

Group contributions paid by the parent company to subsidiaries and Group contributions received from subsidiaries by the parent company are recognized as appropriations.

Financial instruments

IAS 39 is not applied in the parent company and financial instruments are measured at cost

Share-based payment

Until 3 December 2015, the group had a share-based compensation plan where the regulation should be made in shares and where the company received services from employees as consideration for the Group's own equity instruments (shares). The fair value of the service, which eligible employees to the allocation of shares, was expensed and the total amount to be expensed was based on the fair value of the shares granted.

At each reporting period Camurus assessed its estimates of the number of shares expected to vest based on the non-market vesting conditions and service conditions. Any deviation from the original estimates as the review gave rise to, were recognized in the income statement and corresponding adjustments made to equity

When bonus shares were exercised, the Company issued new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (quota value) and other capital contributions. The social security contributions which arose on the allocation of the shares was regarded as an integral part of the award, and the cost was treated as a cash-settled share-based payment.

Note 3 Segment information

Company management have established that the Group as a whole constitutes one segment based on the information managed by the CEO, in consultation with the Board, and which is used as a basis for allocating resources and evaluating results.

Group-wide information

To follow is a breakdown of revenues from all products and services.

KSEK 2016
Jul - Sep
2015
Jul - Sep
2016
Jan - Sep
2015
Jan - Sep
2015
Jan - Dec
Sales of development related goods and services 11,913 15,825 46.746 67,986 93,845
Milestone payments 17,220 21.050 19.518 42.700 52,850
Licensing revenues 80 180 8,425 7.193 7,238
Other 1.318 177 1.922 580 866
Total 30,531 37,232 76,611 118,459 154,799

Revenues from external customers is allocated by country, based on where the customers are located.

KSEK 2016
Jul - Sep
2015
Jul - Sep
2016
Jan - Sep
2015
Jan - Sep
2015
Jan - Dec
Europe 5,697 26.544 20.792 95.761 108,067
(of which Sweden) (770) (196) (3,661) (1,906) (2,275)
North America 24,491 10.666 52,998 15.639 39,635
Other geographical areas 343 21 2,821 7,058 7,097
Totalt 30,351 37,232 76,611 118,459 154,799

Revenue during the quarter of approximately MSEK 26.6 (26.5) relates to one single external customer. All fixed assets are located in Sweden.

Note 4 Earnings per share a) Before dilution

Earnings per share before dilution is calculated by dividing the result attributable to shareholders of the parent company by a weighted average number of ordinary shares outstanding during the period. During the period, no shares held as treasury shares by the parent company have been repurchased.

KSEK 2016
Jul - Sep
2015
Jul - Sep
2016
Jan - Sep
2015
Jan - Sep
2015
Jan - Dec
Result attributable to parent company shareholders $-13.215$ $-22.739$ $-53.182$ $-127.692$ $-159.542$
Total $-13.215$ $-22.739$ $-53.182$ -127.692 $-159.542$
Weighted average number of ordinary shares outstanding
(thousands)
37,281 25,209 37,281 25,209 26,497

b) After dilution

In order to calculate earnings per share, the number of existing ordinary shares is adjusted for the dilutive effect of the weighted average number of outstanding ordinary shares. The parent company has one category of ordinary shares with anticipated dilution effect in the form of warrants. For warrants, a calculation is made of the number of shares that could have been purchased at fair value (calculated as the average market price for the year for the parent company's shares), at an amount corresponding to the monetary value of the subscription rights linked to outstanding warrants. The number of shares calculated as above is compared to the number of shares that would have been issued assuming the warrants are exercised.

KSEK 2016
Jul – Sep
2015
Jul – Sep
2016
Jan - Sep
2015
Jan - Sep
2015
Jan - Dec
Result attributable to parent company shareholders $-13.215$ $-22.739$ $-53.182$ -127.692 $-159,542$
Total $-13,215$ $-22,739$ $-53,182$ $-127.692$ $-159,542$
Weighted average number of ordinary shares outstanding
(thousands)
37,281 25,209 37,281 25,209 26,497
Adjustments:
warrants (thousands)
$\sim$
337 ٠ 151 1,047
share issues (thousands)
$\sim$
$\overline{\phantom{a}}$ 469 $\qquad \qquad -$ 156 9,737
Weighted average number of ordinary shares in calculation of
earnings per share after dilution (thousands)
37,618 25,678 37,432 25,365 37,281

Note 5 Financial instruments - Fair value of financial assets and liability measured at amortized cost

All of the Group's financial instruments that are measured at amortized cost are short-term and expire within one year. The fair value of these instruments is deemed to correspond to their reported amounts, since discounting effects are minimal.

Carrying amount, KSEK 30-09-2016 30-09-2015 31-12-2015
Loans and receivables
Trade receivables 17,408 27,792 8,917
Receivables from Group companies 207
Other receivables
Cash and cash equivalents 518,248 112,347 716,096
Total 535,656 140,139 725,220
Other liabilities
Other financial liabilities
Liabilities to Group companies
Trade payables 7,832 14,177 31,641
Other current liabilities 191 191 191
Total 8,023 14,368 31,832

Not 6 Related party transactions

Investor relations services have been acquired from Piir & Partners AB, whose representative is a member of the management team. Pricing is done in accordance with allocation of costs in relation to utilization rate and on market terms.

At the end of the period the company had a debt to Piir & Partner AB regarding these services that amounted to MSEK 0.3 (0.1). There were no other receivables or liabilities.

Not 7 Items affecting comparability

Up and until third quarter this year, no items affecting comparability have arisen.

The costs charged to the previous year's results relate to listing expenses, in connection with preparations of the public listing of the company's shares on Nasdaq, Stockholm, and to the share bonus program, implemented in 2013 and fulfilled December 3, 2015 when Camurus' shares were listed on the stock exchange.

Following below is the consolidated income statement as it would have looked had the listing expenses and the cost for the share bonus program not been separated out.

2016 2015 2016 2015 2015
KSEK Note Jul - Sep Jul - Sep Jan – Sep Jan – Sep Jan - Dec
Revenues 3 30,531 37,232 76,611 118,459 154,799
Cost of goods sold $-546$ $-131$ $-911$ $-132$ $-237$
Gross profit 29,985 37,101 75,699 118,327 154,562
Marketing and distribution costs $-5,762$ $-4,701$ $-15,353$ $-23,471$ $-31,338$
Administrative expenses $-4,392$ 7,862 $-13,919$ $-43,565$ $-74,790$
Research and development costs $-36,702$ $-69,679$ $-113,059$ $-214,116$ $-251,937$
Other operating income 294 267 43 41 57
Other operating expenses 0 0 $-728$ $-904$ $-658$
Operating result 6 $-16,577$ $-29,149$ $-67,316$ -163,688 $-204,104$
Finance income 8 2
Finance expenses $-366$ $-4$ $-874$ $-21$ $-166$
Net financial items $-365$ -3 $-866$ $-20$ $-164$
Result before tax $-16,942$ $-29,152$ $-68,182$ $-163,708$ $-204,268$
Income tax 9 3,727 6,414 15,000 36,016 44,727
Result for the period $-13,215$ $-22,739$ $-53,182$ -127,692 -159,542

Note 8 Other non-cash items

Adjustment for non-cash items:

KSEK 2016
Jul - Sep
2015
Jul - Sep
2016
Jan – Sep
2015
Jan – Sep
2015
Jan - Dec
Depreciation 993 886 2,679 2,588 3,552
Costs of share bonus program $\Omega$ 19.000 107.300 108,793
Total 993 19,886 2,679 109,888 112,345

Note 9 Deferred tax

Tax for the quarter amounted to MSEK 3.7 (6.4), primarily attributable to the negative result.

Note 10 Equity

The change in equity for the quarter is mainly attributable to the loss.

This information is information that Camurus AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the chief executive officer, 07.00 AM CET on 8 November 2016.

CAMURUS AB Ideon Science Park, SE-223 70 Lund, Sweden
Phone: +46 286 57 30 Fax: +46 286 57 39 E-mail: [email protected]

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