Prostatype bets on the US with an IPO

This material has been prepared for marketing purposes and is not and shall not be considered to constitute a prospectus under applicable laws and regulations. The full terms and conditions of the rights issue and further information about the company have been set out in the EU Growth Prospectus which was published and published on prostatypegenomics.com on 24 April 2023. The EU Growth Prospectus has been approved and registered by the Swedish Financial Supervisory Authority. The marketing material is not intended to replace the EU Growth Prospectus as a basis for a decision to subscribe for shares in Prostatype Genomics and does not constitute a recommendation to subscribe for shares in Prostatype Genomics. Investors intending or considering investing in Prostatype Genomics are therefore advised to read the EU Growth Prospectus.

Prostate cancer is the second most common form of cancer in men today, with approximately 1,4 one million new cases every year globally. The disease varies greatly between each patient. Some men can go their entire lives without experiencing any symptoms, while others suffer from a more malignant form of cancer that requires radical treatment.

An important part of treating every prostate cancer patient is determining how aggressive the cancer is. This is currently done using digital rectal examinations, PSA tests, and biopsies (tissue samples) taken through the rectum.

Established diagnostics insufficient

Although there are many tools available today, they are often not sufficient for a completely reliable assessment. This means that many doctors initiate radical treatment of their patients unnecessarily, simply to be on the safe side.

In other words, many patients could have avoided the severe negative side effects that the treatment can cause, such as impotence and incontinence. For a low- or intermediate-risk patient, regular monitoring would have been sufficient to monitor disease progression.

Reveals the genetic fingerprint

This situation the biotechnology company wants Prostatype Genomics change. The company has developed Prostatype, a test system that helps doctors determine how aggressive the cancer is. The test is performed on biopsies that have already been taken and targets the stem cell genes IGFBP3, F3 and VGLL3, all of which correlate with prostate cancer-specific survival. Prostatype thereby generates a genetic fingerprint for each tumor. This is then combined with other established clinical parameters for the disease.

Through an algorithm, the test provides an assessment of the aggressiveness of the cancer. With this assessment in mind, the doctor and patient can then decide which treatment is most suitable in each individual case.

Building on the breakthrough year of 2022

It is a large market that Prostatype Genomics is entering, and it is growing rapidly – ​​the prostate cancer market is expected to be worth approximately $2027 billion by XNUMX. 7,7 billion USD.

The company is in the early commercial phase and is establishing the test in Sweden, Germany, Spain, England and Italy. 2022 was a breakthrough year where sales started in earnest. In the year-end report for 2022, Prostatype Genomics reports, among other things, on the progress in Spain, where several collaborations were established with leading clinics and laboratories last year.

Currently, around 20 clinics are in the process of establishing Prostatype in their clinical routine and around 80 more clinics are conducting or planning evaluations of the test. According to the company's assessment, it will take around 150 doctors globally to routinely use the test to reach break-even.

Eyes set on the USA

However, Prostatype Genomics is not satisfied there. The company is stepping up its marketing efforts, with a strong focus on the US. In addition to significant market potential, the US market is more mature than the European one. Prognostic biomarkers for prostate cancer have been used in the US in clinical routine for more than ten years, which makes it easier to launch there.

To further shorten the initial distance, Prostatype Genomics recently recruited Steven Gaal as head of the American subsidiary. Steven has extensive experience in the cancer diagnostics industry and, according to the company, has exactly the network needed to get the venture off to a flying start. The new US manager's first task will be to initiate a collaboration with a laboratory partner. After that, sales work can begin.

Rights issue for accelerated market development

To maintain the pace of commercialization, Prostatype Genomics is now conducting a rights issue totaling approximately SEK 34,3 million. The issue is covered by subscription commitments and issue guarantees of approximately SEK 24 million, corresponding to approximately 70 percent of the total amount.

If fully subscribed, the issue will provide the company with approximately SEK 31,5 million, most of which will finance the commercial expansion in the US and Europe. The proceeds will also be used to conduct a larger validation study in the US and complementary marketing studies in Europe.

The offer in summary

Information and subscription

Subscribe via Avanza Subscribe via Nordnet