In this interim report, the aXichem group is presented, which consists of aXichem AB (publ), Incendia Pharma AB and aXichem AS (Norway). Amounts in brackets refer to the corresponding period of the previous year.
aXichem’s development 2025-01-01 – 2025-03-31
Turnover and results
The group's net sales amounted to SEK 3,387 thousand (SEK 808 thousand).
Operating profit amounted to SEK -5,876 thousand (SEK -4,500 thousand).
The group's profit after tax amounted to SEK -5,876 thousand (SEK -5,313 thousand).
Financial net SEK 0 thousand (SEK -813 thousand).
Cash flow and financial position
The group's cash and cash equivalents on March 31, 2025 amounted to SEK 9,653 thousand (SEK 467 thousand).
The equity ratio amounted to 87% (88%).
Investments
Investments in intangible, tangible or financial fixed assets have been made so far this year with SEK 1,746 thousand (SEK 683 thousand).
Depreciation
Depreciation of intangible and tangible fixed assets has been done so far this year with SEK 1,143 thousand (SEK 996 thousand).
Stock data
Profit as of March 31, 2025 corresponds after tax to a profit per share of SEK -0.10 (SEK -0.25).
Equity per share at the end of the period amounted to SEK 1.19 (SEK 1.63).
Significant events during the period
Significant events after the end of the reporting period
CEO’s statement
It is pleasing to start the year with a strong first quarter in terms of sales. Net sales amount to 3,387 thousand SEK and come from sales of aXivite in Europe and the USA. The operating profit for the first quarter of 2025 amounts to -5,876. Operating expenses for the quarter amount to SEK -9,313 thousand, of which SEK -2,966 thousand pertain to costs in connection with regulatory work and development costs when scaling up production.
Excellent development for aXivite
The positive signals around aXivite that we saw during the latter part of last year have continued during the first quarter of this year. Most revenues come from Europe, led by Uriach and Pharmafoods, but we also see growing demand in the USA where our distributor SEE Nutrition is delivering increasing volumes of aXivite to both new and existing customers.
One of the reasons we have succeeded in establishing aXivite as a new innovative dietary supplement ingredient is the interesting data we can show from studies in the growing market area of sports and exercise. The study “Effects of different doses of phenylcapsaicin on strength training performance, muscle damage, protein breakdown, metabolic response and estimation of perceived exertion and recovery: A randomized, triple-blind, placebo-controlled, crossover study.” was published in 2023 in the Journal of the International Society of Sports Nutrition (JISSN). The study, sponsored by aXichem, in collaboration with the Spanish companies LIFEPro Nutrition and Indiex Sport Nutrition, was conducted at the University of Pablo Olavide - High Performance Center (CIRFED), and showed that phenylcapsaicin reduces perceived fatigue and allows athletes to train harder with maintained intensity, which makes more repetitions possible before exhaustion. The data also shows that phenylcapsaicin reduces muscle damage after exercise. During the period, we were able to follow up on these exciting data with new preliminary results from a recent randomized, placebo-controlled, crossover study, which mapped the effects of aXivite® on high-intensity CrossFit performance and recovery. Preliminary data confirm that aXivite® significantly improves strength, endurance and recovery, which strengthens the product's commercial potential and gives us additional muscle in the marketing process. The study was conducted, like the previous study, by Dr. Pablo Jiménez Martínez and his team in Spain. The plan is for the study to be published in its entirety in a scientific journal, most likely in the coming months. It will be exciting to see the final analysis and report of the study.
Milestone for aXiphen in Brazil
The introduction of aXiphen as an additive in poultry feed on the Brazilian market continues. In February, aXichem received an order from Chr. Olesen, who is our distributor for aXiphen in Brazil, worth approximately SEK 7 million. The order will be delivered on a call-off basis in 2025 and the first call-off, worth approximately SEK 1.5 million, was received after the end of the period, in May. We see this as an important milestone for the company. It confirms that the initial tests with aXiphen, which were carried out at one of Brazil's larger poultry meat producers, have turned out very well. The producer has a history of problems with salmonella in its stables, but after tests with aXiphen in the feed, all stables were salmonella-free. This gives us excellent conditions for continued market development in Brazil.
Assured quality: order – production – delivery
As we note growing demand and increased dialogue with customers and suppliers, I have decided to appoint Erik Lager as Chief Operating Officer (COO). Erik has been Chief Technology Officer (CTO) at aXichem since 2019. He has a good overview of the company's operations and has built up the well-functioning logistics process that we have today. As aXichem now enters a growth phase, it is therefore natural that Erik's role and responsibilities are further clarified. The overall coordination of product adaptations, which takes place within the framework of our customer collaborations, will also be part of Erik's responsibilities as Chief Operating Officer
Supplements to the Feed Additive application in the EU
In February, we announced that we had conducted a total of three efficacy studies with aXiphen within the framework of the supplements we will submit for the application for Feed Additive approval in the EU. Two studies show significant data regarding positive effect as a salmonella inhibitor, but one study did not give the results we desired. Since EFSA requires three studies with significant positive data for a complete application, an additional study is now being conducted. Since no clear errors in the study design or implementation were identified, we decided not to change the study design. The deviating results are instead assessed to be due to other factors, such as natural, random variations that are common in this type of study and that can affect the outcome. Our opinion is that the variation is within the framework of what is expected, but not within the framework of what the situation requires. The repeated study is ongoing and this is the last part of the supplementary work before we are ready for submission to EFSA. As before, we will keep the market informed of any major changes in the process and when submission to EFSA will take place.
Shareholders are welcome to the Annual General Meeting on June 18, 2025
I hope that as many as possible have the opportunity to attend aXichem's Annual General Meeting to be held on June 18, 2025, at 10 AM at our premises at Södergatan 26 in Malmö. The majority of the board and team will be present, and we look forward to this opportunity to meet you all. The notice and annual report will be issued as usual via press release and will, together with the documentation needed for the meeting, be available on our website.
Torsten Helsing, CEO
About aXichem AB (publ)
aXichem's business concept is to develop, patent and market nature-analog industrial compounds. aXichem's product is a natural analog substance called phenylcapsaicin, which is a synthetically produced and patented capsaicin. As phenylcapsaicin is synthetically produced and has several advantages compared to natural capsaicin, such as controllable quality and production process.
The product has benefits that makes it commercially interesting in several application areas, for example as ingredient in animal feed, as ingredient in dietary supplements, as a bio-enhancer and as a bio-repellent in marine applications. aXichem is currently marketing the product under different brands in two prioritized areas: aXivite® for dietary supplements and aXiphen® for poultry feed. aXiphen® has shown properties as a growth promoter and anti-salmonella additive in studies made in commercial poultry production settings. In the market segment for sports nutrition products aXivite® is today included in several products for weight control, improved metabolism, and gut health.
aXichem aims to become a global supplier of industrial natural analogue chemicals to players in the chemical industry who manufacture products containing aXichem's raw materials. The company’s share is listed on NASDAQ First North since 2013.
Future prospects
aXichem continues its work on the commercialization of phenylcapsaicin under the brands aXiphen®, as an additive in poultry feed and pig feed with the potential to prevent salmonella, and aXivite®, as a health-promoting ingredient in dietary supplements.
In the dietary supplements business area, the company has had approval for the marketing and sale of phenylcapsaicin under GRAS food in the USA since 2018 and approval under Novel Food for marketing and sale in the EU since 2019. The company is actively working on the sale of aXivite in both markets and expects a gradual increase in sales in the areas of intestinal health, exercise and weight control. aXivite as a bioavailability enhancer showed increased sales in 2024 through a consumer product from the Spanish pharmaceutical company Uriach.
In the animal feed business area, the company received its first Feed Additive approval in December 2023. Phenylcapsaicin is thus approved in Brazil for marketing and sale as an additive in poultry feed and pig feed. Launch took place in 2024 in collaboration with the distributor Chr. Olesen's team in Brazil, which resulted in an order of SEK 7 million after the end of the year, in February 2025.
In early 2022, aXichem applied for Feed Additive approval in the EU for phenylcapsaicin as an additive in chicken feed. The company was asked at the end of 2023 to supplement certain data in the application. During 2024, aXichem has conducted the majority of the studies required to fill the data gaps in the application. As soon as the supplements are ready to be submitted, they will be filed.
Applications for market approval for the use of phenylcapsaicin in animal feed in the USA and India are prepared. However, the company has chosen to prioritize the establishment in Brazil and approval in the EU for aXiphen, respectively, and continued commercialization in the USA and EU for aXivite.
The company estimates that in the coming years it will see a gradual increase in order intake in both animal feed and dietary supplements.
Financing
On February 1, 2024, it was announced that the company's board of directors, subject to the approval of the general meeting, had decided to carry out an issue of shares and warrants (“Units”), with preferential rights for existing shareholders, of approximately SEK 40.3 million before issue costs (the “Preference Issue”). The board further decided to raise a new convertible loan from Formue Nord Fokus A/S of approximately SEK 5.3 million, which partially replaced the existing convertible loan. The outcome of the preference issue, which was subscribed to at 70 percent, was announced on March 26, 2024. Through the preference issue, aXichem received approximately SEK 28.2 million before issue costs.
During the period October 1–7, the exercise of series TO1A warrants was carried out at a price of SEK 0.95. In addition, a directed new issue of 946,437 A shares was carried out to investors who had provided a so-called top guarantee in connection with the exercise period for the TO1A series subscription options. This meant that the company was provided with MSEK 17,9 before transaction costs and that the number of shares increased by 18,809,290, from 40,305,615 to 59,114,905, and that the share capital increased by a further SEK 3,761,858, from SEK 8,061,123 to SEK 11,822,981. In connection with the exercise of the subscription options, aXichem repaid the convertible loan to Formue Nord Fokus A/S in full. In March 2025, the company announced that it had taken out a credit facility of SEK five million with support from the European Investment Fund (EIF).
Incentive program – Employee stock options
At the annual general meeting on May 31, 2022, it was decided on an option program of series 2022/2026 for employees and key persons in the company comprising 400,000 options with the right to subscribe for 400,000 A shares. As of the balance sheet date, 270,000 options were allocated to staff and key persons, of which 101,250 were vested.
The employee options are earned over 4 years, with a quarter each year, provided that the participant is employed by or otherwise engaged in the company on the grant date. The staff options are awarded free of charge. Earned employee options can be exercised during a three-year period, however no earlier than three years after the respective grant date. Each employee option gives the right to subscribe for 1 A share at a subscription price that corresponds to 140 percent of the volume-weighted average price for the company's A share during the five trading days immediately preceding the day on which the employee options are awarded. The subscription price and the number of A shares to which each employee option entitles may be subject to recalculation as a result of a bonus issue, split, issues or similar measures. In order to enable the delivery of shares according to the incentive program, it was also decided to issue a maximum of 400,000 warrants.
Ownership structure
For information about the company's owners, see the company's website www.axichem.com under https://www.axichem.com/investor-relations/#investor-structure
For information on insider trading, see the Financial Supervisory Authority's register.
Certified Adviser
Västra Hamnen Corporate Finance is aXichem’s Certified Adviser.
Significant risks and uncertainties
Regulatory issues are considered to be the single largest risk for the company. The effects of Covid-19 still have some impact on the company’s operations in Asia. The changed security situation in Europe and the tragic development in Ukraine do not currently affect aXichem’s operations, but we are following the development closely in order to be able to manage any possible effects.
Review
This interim report has not been reviewed by the company’s auditor.
Financial calendar
Year End Report 2024 2025-02-27
Q1 Report, Jan – March 2025 2025-05-22
Annual Report 2024 2025-05-28
Annual General Meeting 2025-06-18
Q2 Report, Jan – June 2025 2025-08-28
Q3 Report, Jan – Sept 2025 2025-11-28
Year End Report 2025 2026-02-26
The Board of Directors and the CEO assures that the interim report provides a fair overview of the company’s operations, position and results, and describes the significant risks and uncertainties that the company faces.
Lund, 22 May 2025
The Board of Directors of aXichem AB (publ)
The information was submitted, through the care of the contact person below, for publication on 22 May 2025, at 08:30 AM CET.
The report is published on the company's website under Investor Relations. Direct link to the report: https://www.axichem.com/investor-relations/#financial-reports
Company Contact
Torsten Helsing, CEO
T. +46 70 686 33 55, E. torsten.helsing@axichem.se