Simris Alg

This forecast, extending out to FY2027, is based upon the following:
· Successful completion of the upcoming Rights Issue and Directed Placement
· One license agreement signed in 2024, and one in each of the following years.
· Fees being paid to Simris Biologics to reserve the use of a toxin towards a specific cancer cell target throughout the pre-clinical development phase.
· Research collaboration fees, covering two quarters in 2024, for Simris Biologics to support the drug developer by optimising Simris' payload for use in the developing ADC. These collaboration fees would increase annually, in-line with Simris Biologics supporting multiple development projects.
· Increasing amounts of Simris payload to be provided to drug developers to support their development activities, pre-clinical trials and clinical trials.
· Exclusivity fees paid to Simris to secure the right of a drug developer to exclusively use a Simris toxin towards a specific cancer cell target.
· One drug development being granted Investigational New Drug (IND) status and being cleared for use in human clinical trials and thereby triggering a milestone payment.

Simris Group AB acquired Cyano Biotech GmbH in August 2022 (renamed Simris Biologics GmbH in February 2023). Since then, significant progress has been in developing the patented scientific platform and driving it to commercialisation. The scientific progress will result in additional new patent applications and has already produced novel molecules that demonstrate greater potency towards targeted cancer cells with an even safer profile towards healthy cells.

Existing discussions with commercial partners for the potential development of new ADCs, as well as development of proprietary Payload-Linkers that could be offered to drug developers, continue to show promise, and hence the expectation that the first licensing agreement would be secured in the next 12-18 months.

In formal consultation with Alacrita Consulting, reputable advisors to the Pharma and Biotech industry, Simris has established that the indicative total value of such an agreement (based upon similar agreements announced to the market since 2018) would be ca. $150m to Simris; upfront fees were, on average, 5% of the total agreement value.

Based upon the potential within Simris’ ADC platform, its library of toxins and the status of commercial discussions, Simris would be disappointed if it were not able to sign its first license agreement, for a similar value, before the end of 2024.

Simris Group further forecasts that its subsidiary Simris Biologics will be profitable in FY 2024, even after investing in additional people and new bioreactors dedicated to the production of ADC-payloads. It is further forecast that Simris Biologics will continue to deliver a strong and growing return on investment in the following years.

Julian Read, Simris Group CEO, said "This is the first forward looking statement to be made in the history of Simris, and marks a turning point in the way we interact with our Shareholders. Management make these forecasts based upon externally verified information and communicates them with transparency whilst still maintaining commercial sensitivity. We hold ourselves accountable to deliver."

Steven Schapera, Simris Group Chairman, added "Julian was brought in to lead the transformation of this company. It's not yet one full year since we acquired Cyano Biotech and what has been achieved is remarkable. If we can properly capitalise the business through the successful completion of the upcoming Rights Issue and Directed Placement, then I have no doubt that Julian and his team will deliver in line with this forecast."