Xbrane Biopharma

Management Reports • Nov 23, 2023

Xbrane Biopharma is focusing the development portfolio and introducing a cost-savings scheme

Xbrane Biopharma AB (publ) ("Xbrane") (Nasdaq Stockholm: XBRANE) announced today that it is focusing the company's development portfolio and, consequently, the development of Xtrudane™ (biosimilar candidate to Keytruda®) has been terminated. Furthermore, a costsavings scheme is being introduced which is expected to result in around SEK 50 million in annual savings when fully implemented.

Xbrane's main aim is to achieve a positive cash flow as soon as possible and as previously announced, by no later than Q1 2025. Therefore, Xbrane's board has decided to focus the development portfolio on biosimilar candidates with established commercialization partners: Ximluci® (Lucentis® biosimilar), BIIB801 (Cimzia® biosimilar candidate), and Xdivane™ (Opdivo® biosimilar candidate) with the ambition of out-licensing the latter in the near future. Xdarzane™ (Darzalex® biosimilar candidate) is being maintained in the portfolio while the development of Xtrudane™ (Keytruda® biosimilar candidate) has been terminated.

Because of the focused development portfolio, and the in-house process development for BIIB801 and Xdivane™ is being finalized, Xbrane is implementing a cost-savings scheme expected to generate cost savings of around SEK 50 million annually when fully implemented. The savings take place in all areas and include staff reductions totaling about 40 positions, including both permanent staff and consultants. The savings are realized gradually and are expected to be fully implemented in Q3 2024.

"Our business and purpose is based on driving a change towards a sustainable healthcare system with equal opportunity for health globally. To be able to drive this long-term change, we must now focus on our short-term financial sustainability. The focus of our development portfolio and the implementation of this cost-saving scheme are unfortunately necessary measures to achieve this. I deeply regret that our team will be affected, and that valuable expertise must leave the company." says Martin Åmark, CEO of Xbrane.

Xbrane's long-term strategic ambition to become a leading biosimilar developer remains. The company has identified several development opportunities for biosimilars potential launch in 2030– 2035. It is Xbrane's plan and ambition to begin developing an expanded portfolio as soon as judged possible.

Contacts

Martin Åmark, CEO M: +46 76 309 37 77 E: martin.amark@xbrane.com

Anette Lindqvist, CFO/IR M: +46 76 325 60 90 E: anette.lindqvist@xbrane.com

About Us

Xbrane Biopharma AB develops biological drugs based on a patented platform technology that provides significantly lower production costs compared to competing systems. Xbrane has a portfolio of biosimilar candidates targeting EUR 27 billion in estimated annual peak sales of the respective reference product. The lead candidate Ximluci® is granted market authorization approval in Europe and was launched during the first quarter 2023. Xbrane's head office is in Solna, just outside Stockholm. Xbrane is listed on Nasdaq Stockholm under the ticker XBRANE. For more information, visit www.xbrane.com

This information is information that Xbrane Biopharma is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2023-11-23 11:16 CET.

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Xbrane Biopharma is focusing the development portfolio and introducing a cost-savings scheme