Good morning, everyone, and welcome to Flerie's Q4 2024 Report Presentation. For those of you who potentially can see these rather annoying captions being run at the bottom, please just ignore them as we're actually running this in English. We are here with several different people in the audience, and that's why we're running this in English. So, apologies for the combination Swedish-English captions. We're, of course, talking about Flerie, our investment company located here in Stockholm and active all over the world. We've just come back from the J.P. Morgan Healthcare Conference, excited for 2025, but now reporting our last quarter of 2024. The usual disclaimer: I hope you've all read this in detail. And let me just remind for the new shareholders and new people in the audience of who we are. We are a biotech and pharma investment company.
We invest long term, and therefore we're also often called an evergreen investor. We're investing off our own balance sheet into 29 portfolio companies, and we have mostly private companies, 73% in fact, out of our net asset value of almost SEK 4.2 billion. We were founded in 2011, and we got listed on the NASDAQ Stockholm main market in June 2024, so just half a year listed. We have a very diversified portfolio, and that's the reason we got listed and made it possible for other shareholders to invest in us is because we indeed provide this risk diversification across different stages in the sort of pharmaceutical and biotech development area. As you can see here, most of our companies, 16 in fact, are in later clinical stages or in fact even in commercial stage. We're run by a specialized team.
All of us have worked in biotech and pharma for a very long time, several decades, most of us. We're experts in life science, and we're supported by specialist advisors all around the world, 100- 150 or so advisors that work with us in the core team. We have operational experience, meaning that we like to build companies, and we have built companies through to exit, several of us, so we have a proven track record in both product development and commercialization, and last but not least, Flerie prides itself in its network of syndicating investors, so co-investors that invest with us into our portfolio companies, and this last quarter of 2024 is a perfect example where we really leveraged our network or actually saw the fruits of our labor of that leverage by having a lot of investment into our companies in addition to our own investment.
What really sets us apart as a company is our active board engagement, product roadmap and platform expansion work, our peer-to-peer network, and the collaborations and synergies that we pursue with partners all around the world. We are an active investor, as I said, and by being listed, we provide market access to these difficult-to-assess companies based on very innovative sciences. I like to say we provide liquidity to otherwise illiquid assets, and I think that's quite unique. There are very few investment companies, especially evergreen investment companies like us, that are available to public markets investors where they gain access to otherwise private companies, mostly private, that are just very difficult to access. Not only that, difficult to assess because of the specialist knowledge required to understand their product development and even their early commercial launch activities. Let's get into the Q4 report.
There really has been progress in the portfolio. We've attracted new investors because of that progress, and to just put a number to it, around four times as much committed capital by co-investors into our portfolio compared to our commitments, so really a very strong leverage, or in Swedish we like to say, vi har en riktigt bra hävstång, so our current Net Asset Value and firepower, SEK 4.2 billion of Net Asset Value, that's SEK 53.77 per share, so we're trading just shy of 15% higher. Sorry, the Net Asset Value is just shy of 15% higher than our share price at the moment. We do have very healthy cash and cash equivalents of SEK 865 million. That equates to 20% of our NAV, and as mentioned before, and just reminding everyone, our ideal deployment rate is about 10% of NAV per annum.
So roughly about two years of run rate. The cash portion actually represents SEK 11.08 per share out of the SEK 53.77. That means that, you know, the slightly frustrating rebate that we still have, share price versus NAV, is in fact even more rebated if you count the fact that our cash should really be valued at cash. I really do hope, and I believe from talking to shareholders and potential investors, that they believe in our active ownership and active investment way of working, and therefore we are able to deploy that cash in a smart way. And again, this last quarter has been a good example of how we've precisely because of that been able to attract many new investors into our companies. So let's talk a little bit about those new investors coming in.
We catalyzed significant investments in AnaCardio, Chromafora, and we also attracted investment into Nanologica These are just three out of many. In total, if you read at the bottom of the slide, the syndicating co-investors committed SEK 737 million alongside our SEK 170 million. Not all of that was deployed during the last quarter, so the numbers are slightly different from in the report. If you're counting the committed capital within the quarter and shortly after the quarter, you know, we're really talking about a ratio of more than four to one. Going to a little bit of detail in AnaCardio, which is our heart disease company. This is really about improving the pumping function, or more specifically the ejection fraction. To put it in simple terms, the heart in many people fails. It's one of the biggest killers in the world.
The reason it fails is because, you know, in old age, it stops functioning as well. People who have heart failure or before heart failure, they will maybe be pumping about four out of the usual five to six liters of blood around the body. Actually, what AnaCardio has shown is that with their drug, they're able to restore from four liters up to almost the full amount of five to six liters of blood being pumped. It is not only preventing the further degradation of the heart, which is what all the current drugs are doing, but it's actually improving the heart pumping function, which is truly a tremendous achievement.
They have completed their phase 1 study, now entering in their Phase 2 study with the help of our new investors, Nova Holdings, Pureos Bioventures, and Sound Bioventures, who were also followed by ourselves and some of our other co-investors. So we're really proud of AnaCardio and looking forward to the future there with this company. Secondly, Chromafora, our clean tech investment, it's actually our only clean tech investment. We're very proud of them having both achieved and developed further their pilot plants both in Sweden and in Belgium. And because of their success in removing what's called PFAS, it's one of these forever chemicals from the environment, they have actually attracted EUR 22.5 million of commitment from the European Investment Bank. And we're very excited now to be able to expand that further. Just one more thing about Chromafora. So PFAS is actually an amazing chemical.
It does the trick. It's been part of, for example, fire extinguishers and used in many different industrial processes, and it is really doing its job well. The problem is that it is so well designed that it just does not degrade, so when it comes into the environment, it is difficult to remove, and when it accumulates in the food chain and so on, it really needs to be removed, and no one else in the world has been able to remove PFAS to the extent that Chromafora is, and they're really in a league of their own, and they've now been recognized. Nanologica, which is our sort of tools company in the purification space, so they have, for example, a technology that's used very widely in purifying insulin.
It's actually, as the name suggests, a nanoporous silica that they've developed and can control the pore size of the silica very well. You can just see the innovative nature of our companies in just these three examples. And again, there we put in SEK 46 million and attracted SEK 99 million total into Nanologica during the quarter. Some other value changes during the quarter. So the result of AnaCardio was a value change of positive SEK 7.7 million. That's because AnaCardio is, you know, we have 29 companies in the portfolio. We are well diversified. Not any company of ours is a very large part of the portfolio. That's the beauty about Flerie. So even though it was a great achievement by AnaCardio itself, the increase was SEK 7.7 million so far in our portfolio.
We do see that the great increase will come from AnaCardio after their Phase II efficacy results and maybe even before when we can get further partnerships in this company. That represents 2.2% of total NAV, AnaCardio. Toleranzia is one of our listed companies. They went up by SEK 14.5 million. I think, again, that's because the market is understanding that Toleranzia for a long time has been undervalued and I think, frankly, is still being undervalued. 3.3% of total NAV. Xintela is unfortunately the one who's mostly contributed to the decline of our net asset value during the quarter. As you've read from our report, minus 2.5% result for us in the quarter overall, and that is about SEK 66 million. Cecilia, our CFO, will talk more about that in detail in the coming slides. But Cecilia is really responsible for SEK 61.7 million negative development out of that.
Again, Xintela is a listed company, and I think this is an example again of when there is not a lot happening in the company in the sense of they're in a clinical trial and they're waiting for the results to come out. Some, of course, investors who are not used to this long-term thinking that you need to have in this space get a little bit tired of not seeing new results. I would like to encourage anyone investing in this space to invest in someone like Flerie, where there's a lot going on in different companies. So we're actually having a good news flow all the time. Any individual biotech company will always have times of maybe six to 12 months where there's very little news flow, especially if they're in a long-term clinical study like Xintela in leg ulcers and also osteoarthritis.
So these studies do take time. So a little bit more detail on AnaCardio. It was also accepted into the EIC Scaling Club. This is a community for the 120 most promising deep tech scale-ups in Europe. So it's a very prestigious club to be included in. And it shows the recognition that AnaCardio is getting not only in Sweden but across Europe and in the world. They've actually completed the first part of their Phase 1b/2a study in HFrEF, which is, we'll not go into all of those details right now. They closed, as I said, SEK 205 million with Nova Holdings, Pureos Bioventures, and Sound Bioventures, followed by us and others. And I've already talked about their lead program.
I just want to say that because we have 17% ownership in this company, even though it's a small change in this quarter, when AnaCardio has its real development later on with a partnership, then this could be a real game changer for us and for AnaCardio. We've only been invested in AnaCardio since 2022. So it's relatively early days still in the long-term cycle of investment in AnaCardio. Toleranzia, we also invested just a little before AnaCardio, 2021. They filed their CTA, their clinical trial application, as it's called, for their main program called TOL2. This is actually all of their focus is on this main program. And it's for Myasthenia gravis, which is an orphan indication. They had successful warrants that brought in SEK 37 million into the company. So they're financed through for the next preparations for the upcoming clinical trial.
They're also doing large-scale manufacturing and working partly with NorthX Biologics, our other company in the CDMO space. Charlotte Fribert has done this kind of thing before. She's sold the company before. She's well able to deliver on this with a very lean team. We're proud to see that actually Toleranzia is already now, even before we've done any partnership in this company, is actually valued at SEK 127 million. Sorry, where we've invested SEK 127 million and is still valued at SEK 103 million. We own 66% of Toleranzia. Xintela is the company that unfortunately has lost in value during the quarter, but they are financed through their TO3 warrants that brought in SEK 29 million into the company. They've reported that their patients from all three dose levels of XSTEM in osteoarthritis have now completed their 18-month follow-up and they're preparing for the interim analyses.
So as I said, we're looking forward to those analyses coming out. It's an allogeneic stem cell therapy. They're based out of Lund. They have their own small manufacturing facility for that. So it's a very high-tech area of development. Some further key developments in the private portfolio. I mentioned Chromafora with a EUR 22.5 million financing, where PFAS is being removed from the environment. The proceeds of these EUR 22.5 million will be used to support the development and commercialization of this technology. They have several pilot plants working already, and more of them will be expanded. And Microbiotica, which I haven't spoken about yet, is a live bacterial therapeutic for both ulcerative colitis and also melanoma patients. So they have two studies, and they entered the clinic for both of them recently during the last quarter. So it's a very exciting time for Microbiotica.
They have their spin-out out of the Wellcome Sanger Institute in the U.K., where they've done a very systematic approach to microbiome studies. So they really are standing out in this space where there's unfortunately a lot of people who think they can solve the microbiome problem with just a single one or two bugs. Microbiotica has done a very systematic analysis and has a consortium of seven specifically chosen bugs who they can now manufacture at a very controlled way for these two studies. So excited actually for Microbiotica to eventually get their clinical data from these two studies, one of which, by the way, is run with Cancer Research U.K., a very prestigious organization in the U.K. So, over to Cecilia Schéele.
Thank you, Ted. So I'm going to speak to you about our financial development in the quarter. Being an investment company, the financial development, of course, is very much triggered on our portfolio valuation. So before we head into the numbers, I would like to revisit our valuation methodology and to speak a bit about how and when we adjust the valuations of the companies. So as Ted already mentioned, we do have investments both in public companies and private companies. At year-end, the public companies constituted 27% of the portfolio, and we had then 73% of the portfolio were private companies. So the listed companies are valued at the latest share price. And normally you would expect, of course, the valuation to fluctuate from day to day or month to month. The private companies are valued based on the latest financing round.
And we never, so between financing rounds, you would expect their valuation to stay still. The only event that would trigger an appreciation that is a higher valuation would be a financing round to a higher valuation that is up round, and on the opposite, a down round or a financing round to a lower valuation would, of course, force us to reduce the valuation, but there are also cases that when we adjust the valuation between the financing rounds, and that could, for instance, be due to the companies experiencing delays or have trial setbacks, then we need to reduce the valuations and we do that, and since we have, from our active ownership model, we have board seats in every company except one, we do have good and timely information on the company's progress and issues, so we can adjust the valuation down very, very soon.
When the companies eventually manage to turn the progress or to turn the development and are back on track, we reverse the previously made write down, but never beyond the value of the latest financing round. We do reverse this, but we never increase the valuation. With our basis for valuation as a backdrop, let's look at the numbers and the development in the quarter. Thank you. As Ted mentioned already, our NAV net asset value at the end of the year was SEK 4.198 billion as compared to SEK 4.262 billion at the end of September. That's an increase, or it's a decrease by SEK 68 million or equivalent to 1.5%. Our NAV per share was SEK 53.77 compared to SEK 54.59 end of September. I will come back shortly to describe the bits and pieces that are behind that decrease.
If we look at the value of the portfolio, it was 3.072 at the end of the quarter. Beginning of the quarter, it was 2.993. So that's an increase by SEK 78 million. And as you can see from the chart on the right-hand side of this slide, the increase is mainly related to the new investments or follow-on investments that we've made into our portfolio, SEK 159 million. We had a negative fair value change in the quarter, SEK 74 million negative, 75, rounded up correctly. And we've also divested part of our holdings in a listed company, Egetis, that brought us SEK 7 million in cash in the quarter. Again, this is the only portfolio company where we do not have a board seat. And our share of the company is 1.5% at the end of the year.
If we go to the next slide, we can look at the segments more in detail. So we structure our portfolio into three segments. We have product development, commercial growth, and limited partnerships. The product development segment is the largest one. End of the year, it constituted 76% of our total portfolio value. The segment had a fair value end of the quarter of SEK 2.394 billion. That's an increase by SEK 40 million in the quarter. The change in fair value in the segment, however, was negative SEK 65 million. And as we already touched upon, the larger changes came from the listed companies Xintela and Xspray that decreased by SEK 62 million and SEK 52 million respectively, while we had a positive share price development for Toleranzia that increased SEK 14 million.
We also talked already quite a bit about AnaCardio, but they closed the round they announced it, now in January. I got three main investors in. The round was SEK 205 million, and it was to an increased valuation. And since we signed the investment agreement in December, we applied the higher valuation already in Q4, leading to a fair value increase of SEK 8 million for AnaCardio. Investments in shares in the segment were SEK 110 million in the quarter. Commercial growth is our second largest segment at the end of the quarter. It constituted 21% of the total portfolio. The fair value increased to SEK 587 million. That's an increase by SEK 40 million. It's also, of course, it is due to investments. We have invested SEK 46 million in the company Nanologica in the quarter and also SEK 5 million in Simsen.
The fair value development was negative SEK 10 million. It was also related to Nanologica, the listed company that had a share price development of -SEK 15 million, while we, on the other hand, had an increase in the value for A3P Biomedical that reflected the share price in external transactions during the quarter. Then we have limited partnerships. It's the smaller segment. It constitutes 3% of the total fair value, and it's characterized by long-term commitments. So I'm not going to say so much about that, but if you have questions, I'm happy to take those later. So that was that about the financial performance. If we go to the next slide, we can look at, or just remind everyone a bit about our redemption scheme.
So Flerie provides a redemption program or annual liquidity program that allows up to 5% of all shares to be redeemed annually at a value of NAV per share. The first conversion period will be this year in connection with the Q2 report. And in the years that follow after, we will have the conversion period in connection with the Q1 report instead. Some shareholders have agreed not to utilize this right. The majority shareholder will not utilize it for several years. And also the investors that participated in the indirect share issue in July or June last year are exempt from participating this first year. So you will be able to redeem your shares at NAV per share, which is a really good opportunity as it looks now. Again, NAV per share was SEK 53.77 at the end of the year.
And on the same day, the share price was SEK 46.95. So the NAV per share increased or exceeded the share price by almost 15% that day. There are two main reasons why we put this program in place, and the first one is liquidity. The scheme or the redemption scheme provides a good liquidity option. It might happen that investors, even though they have invested with a long-term perspective, might need to realize liquidity from time to time, so the redemption scheme provides an annual and recurring liquidity option. The second reason is to align the share price to the reported NAV per share.
Flerie, as we have talked a bit about or a lot about, is an active investor, so we'll help to build the portfolio companies using our expertise and network and to support the market in understanding the extra value, the added value that Flerie brings in addition to just the invested capital. The redemption scheme should help to align the NAV per share and the share price. If you want to read more and to know more of the details and how the process for redemption would go about, you can do that on our website. We have a special site for this on flerie.com, so with that, I hand over to Ted.
Well, thank you very much. I realize we're short on time, so I think what we will do is we'll just go right into the Q&A to give a chance to anyone to ask questions, so while you're thinking about your question, I'll just leave it on this slide and tell you that, of course, we do have a very broad portfolio. The reason we like to speak for maybe a little bit too long in these presentations is because we have so much going on in our portfolio, and it's difficult to sort of condense that into just one report presentation. But happy to answer any questions. Please raise your hand, and my colleague, Paula, who's our operations and IR manager, will let you unmute your microphone and allow you to ask a question.
First question here from Johan Fogelberg. I will activate your microphone. Please, Johan. And you also have to unmute yourself.
Okay, here we go. Thank you so much. I missed the first part of the introduction, so sorry for asking a stupid question. But again, we saw some negative reactions in Xspray Pharma, and I noticed that you strongly positioned there. Can you elaborate a bit on how you see the long-term value in Xspray and what do you expect going forward?
Thank you, Johan. And definitely, there are no stupid questions. There are only stupid AIs, apparently, that cannot tell whether we're speaking English or Swedish. So you're in safe hands. No, let's talk about Xspray. So Xspray actually had that second delay, which is very unfortunate, of course. And I think that's why the market has reacted the way they did in Xspray. For us, it does not change our view of the company. We still believe that they will get their approval this year to take Dasynoc or their version of Dasatinib to the market in the U.S. to get their approval from the FDA. They've actually recently also had positive news about their second program, Nilotinib, which is not that far behind. So we're actually excited about this company.
And even though there is a delay of a few months, it doesn't change the overall picture. That's why we purchased another SEK 5 million worth of shares over the market and strengthened our ownership in the company. Does that answer your question?
Yeah, thank you.
Thank you.
Question comes from Arvid Nikander. I will activate your microphone. Now you can unmute yourself.
Yes, thank you. Thanks for taking my question and congratulations on all the progress made during the quarter. So I had a question on Sixera Pharma, which I guess is a company I haven't spoken much about. There's not too much information available, but judging by the somewhat outdated protocol summary on clinical trials, it seems like this company should be approaching a readout in a not too distant future. So I just wanted to get some extra color on this. What are your expectations ahead of this readout? It seems like it could provide a proof of concept of sorts. If you could just talk a little bit about this, that would be helpful. Thanks.
Thank you, Arvid, and congratulations back. I know you're on paternity leave there, so I hope everything is going well on the home front. Thanks. Sixera is indeed not spoken much about. It usually flies under the radar for most people, so extra happy to answer questions. For those who have no idea about what Sixera is doing, it's actually an ultra-rare disease company working on Netherton's syndrome, which, as it's obviously, it's an ultra-rare disease, a skin disease where actually the patients, their skin essentially sloughs off. They have to have sort of baths in oil and stuff multiple times per day.
It's a very difficult disease, and I think, as you point out, Arvid, once they have the end of their phase one, which they're in right now, they have had to extend that a little bit because they have been taking a little bit longer to recruit patients. It is a rare disease, an ultra-rare even, so it is tricky to get these patients. They have to travel quite far to the clinic. And as you can appreciate, they're having a quite difficult lifestyle as it is. But I think Maarten de Château, who's the CEO there and the real driver behind this, has done a fantastic job at hopefully bringing that study to a close within the next short little while. So once that does read out, you're right, it will show basically a proof of concept for this type of technology that could indeed be applied to different
skin disease areas. And we are talking to, and I don't want to go into these details at this point, but we are talking to other parties who are very interested in expanding Sixera's technology into other disease areas. So not only will we get proof of concept and hopefully a value inflection for Netherton's syndrome, but actually Sixera will be able to be more widely applied as well.
Thank you very much. That's very helpful. I'll jump back into the queue.
Thanks.
Thank you, Arvid. And I am afraid we are running out of time, but you're more than welcome to contact us after the webcast. And just some final words from Ted.
Yep. So, I just want to flag up that we now have voices from our expert network available on our web page. We're still doing some tweaks to also bring you more in the future. Hopefully, we'll be bringing these Flerie Insights expert interviews every few months. We'll bring you a new one. We're starting with these four experts. Very happy to actually have interviewed Tim Opler quite recently from Stifel Financial Corp, but also Lars Lund, who is working in the space that AnaCardio is in. So if you were excited about our news about AnaCardio, maybe listen to at least Lars Lund's video on our web page and stay tuned for more.
Thank you very much for attending, and please send any other questions to us on our IR email, for example.