ExpreS2ion Biotech Holding AB reported a narrowed second-quarter loss as clinical progress on its lead HER2-targeted cancer immunotherapy offset rising research costs.
The Stockholm-based biotech posted a net loss of 9.7 million Swedish kronor for Q2 2026, a 3% improvement from 10 million SEK in the same period a year earlier. Operating loss widened 2% to 12 million SEK, while operating income jumped 238% to 11.5 million SEK, driven by a 407% surge in grant income to 9.5 million SEK.
Research and development spending surged 483% year-over-year to 11.4 million SEK, pushing total operating expenses up 56% to 23.5 million SEK. Personnel costs rose 14% to 8.1 million SEK, while other external costs declined 30% to 3.1 million SEK. Operating cash flow remained negative at 12.5 million SEK for the quarter.
Cash and equivalents stood at 34.4 million SEK following a rights issue that generated 32.4 million SEK, including a guarantor set-off component. The company’s share price closed at $1.40, near the bottom of its 52-week range of $1.22 to $24.75, with a market capitalization of $3.52 million.
Clinical progress centered on ES2B-C001, the company’s first-in-class HER2-targeted active immunotherapy for advanced HER2-positive or HER2-low breast cancer. In the ongoing Phase I dose-escalation trial, drug-specific antibody responses were observed in 12 of 13 evaluable patients, with titers increasing across successive visits and remaining elevated at follow-up. No safety concerns were identified.
The 50 and 150 microgram dose cohorts have completed dosing, while the 450 microgram cohort is progressing. A full Phase I readout is targeted for the end of 2026, including translational analysis of immune correlates and preliminary efficacy signals. Phase II initiation has been pushed back to the second half of 2027, delayed by one quarter from prior plans.
CEO Bent Frandsen highlighted the trial’s progress and platform validation, stating that financing completed in the quarter supports execution toward key milestones. CFO Keith Alexander noted that a significant portion of the grant income increase related to VICI-Disease CMC, which is fully grant-funded and offset in income.
ExpreS2ion also outlined ongoing programs, including 11 Phase I and II malaria trials led by the University of Oxford, with a Phase IIb study expected to read out in 2026. The Nipah vaccine program remains fully grant-funded through Phase I, with IND-enabling work and GMP manufacturing underway. MucoVax is approximately 67% grant-funded, with animal testing ongoing.
The company’s warrants (TO13) are exercisable from August 20 to September 2, with a subscription period from September 7 to 21 at a floor price of 1.6 SEK.
