Good morning and welcome to Flerie's quarterly report number three in 2026. We are waiting for a few more people to join, but we will get started now. I will actually hand over to Cecilia momentarily, and we're switching around the presentation with the numbers first, and I will come back to you with some more explanations about what's happening behind the numbers. So over to you, Cecilia.
Thank you, Ted. Just the ordinary disclaimer. Starting with the financial section, and I would like to begin with a brief overview of Flerie at the end of Q3. This is an overview of the portfolio. It consists of 24 life science companies and our NAV was SEK 3.1 billion end of the quarter. Corresponds to a NAV per share of SEK 35.91. A defining feature of the Flerie portfolio is its high proportion of private companies. These account for 87% of the total portfolio value, as you can see. Therefore, through Flerie, our share companies and investment opportunities there are generally difficult to access through public markets. At the same time, you can see the portfolio is quite diversified across the different stages of development, from preclinical through to commercial phase.
Another important figure is our investment ratio. During the quarter, other investors invested more than eight times what Flerie did, and co-investing is an important part of our model. We remain, by doing so, we can remain an active and committed owner while sharing the funding requirement with other specialized and well-informed investors. Before turning to the NAV development in the quarter, I'd like to explain how the portfolio is valued, as this is quite essential to interpreting the quarterly figures correctly. We value our portfolio companies at fair value, and our principle is that valuations should be consistent, transparent and conservative. The valuation approach differs between public and private companies. For the public companies, we use the share price on the last trading day of the month.
This means that new information in the companies and changing market expectations are reflected in our reported NAV immediately. For the private companies, on the other hand, we generally base the valuations on the most recently completed funding round, and this means that we do not continuously increase values just based on our own assessment of the company's potential or progress in their projects. A valuation increase primarily occurs when it can be supported by a new transaction, such as an up round. We do, however, adjust the values downward when circumstances deteriorate, for instance, after a clinical setback or a material delay. This creates an important timing difference, so to say, that the private portfolio company may generate positive clinical data, achieve development milestones, or make significant commercial progress without this is immediately increased in Flerie's reported NAV.
The underlying progress may be substantial, but the valuation will remain unchanged until there is a pricing event. On the other hand, the negative events affect NAV more quickly, so the delays or clinical setbacks provides evidence that supports a downward adjustment. When that happens, we adjust the NAV immediately. The bottom line is that the reported NAV doesn't necessarily capture all the scientific, clinical, and commercial progress that take place within the private portfolio at a particular point in time. It's important to distinguish operational progress from when that progress is actually visible in our reported NAV. Also worth pointing out when talking about valuations, we do not increase valuations between rounds, but we can reverse a write down that we've done historically back to the original value when we see that situations have improved.
With that framework in mind, let's look at the NAV development during Q3. As the graph shows, and this is the NAV development during 2026, so from January onwards. NAV per share was relatively stable during the first part of the year but has subsequently declined. You can see a clear effect in May, and this is related to the bonus issue that we conducted in May and that was finalized in June where we issued new shares, one new share for seven existing shares, resulting in 12 million new shares in May. That's the reason for the significant decrease in NAV per share.
The second step of this transaction was that the majority shareholder returned his new shares voluntarily, and following an EGM in June, his 8.5 million shares were canceled, resulting in a total of 3.5 million new shares without, so to say, adding extra value to the company. This exercise in total reduced NAV per share by approximately SEK 1.5 per share from, say, April to June. But it also meant at the same time that almost SEK 100 million worth of value in the company was transferred from the majority shareholder to the minority shareholders. The movement during the third quarter was primarily driven by a limited number of company-specific valuation events, and this is a relevant distinction in life science investing.
Individual clinical, regulatory, and financing events can have a significant effect on the valuation of a particular company, and consequently on Flerie's reported NAV for an individual quarter. The NAV, which on the next slide shows the company specific events that explain the movements in the quarter. As you probably already read about, the main driver of the decline in our NAV during the quarter was a 230 million write-down of our stake in Empros. The write-down reflects our current assessment of the company's commercial prospects. Later on, Ted will tell us more about the market developments and the company competitive dynamics behind this decision for the write-down. Furthermore, Xspray accounted for a negative valuation movement of 35 million following the complete response letter that they received in August.
Microbiotica, on the other hand, developed in the opposite direction. A funding round where we also exercised warrants resulted in an increase of fair value of SEK 27 million. The remaining net movement related mainly to other changes in the portfolio. The private companies, AnaCardio and Vitara, for instance, both closed funding rounds in September with slightly lower valuations. In addition to that, there were also share price fluctuations, obviously, for the listed companies. Taken together, these developments illustrate the valuation approach I described on the previous slides, and the changes are triggered by company specific events that provide new evidence for our valuation assessments. I will conclude the financial section by looking at how the portfolio and the quarter's movements are distributed between our two operating segments. We divide the portfolio into two segments, product development and commercial growth.
Product development includes companies in early and mid-stage biotech and pharma companies, advancing products or technologies toward clinical proof of concept and ultimately marketing approval. Commercial growth segment, there we have companies that are already selling products or services and are working toward a sustainable profitability. The total change in portfolio value in the quarter was SEK -249 million, and this is divided into the PD segment that had SEK -221 million and SEK 28 million in the CG segment. In the PD segment and the SEK 221 million, we find the companies that I just talked about, Empros, Xspray, Microbiotica, AnaCardio, and Vitara. In the CG segment, we see a negative share price development for our listed company, Nanologica. Also, shortly about a little short section on investments.
In Q3, we made follow-on investments in our portfolio of SEK 127 million, of which SEK 109 million in the PD segment and SEK 18 million in CG. The investment ratio was particularly strong in the product development segment, as you can see, where other investors contributed SEK 9.2 for every SEK invested by Flerie. In CG, the corresponding ratio was 150. This external capital is strategically important. I know that Ted will talk about this as well. Product development in life science is capital intensive, and the ability to syndicate financing allows the portfolio companies to continue progressing without us or Flerie carrying the full funding requirement. That concludes the financial overview. I will hand over to Ted, who will take us beyond the numbers and discuss the more important developments across the portfolio.
Thank you, Cecilia. Let's look at beyond the numbers and go to the next slide. This is an overview of our portfolio. You've seen this slide before, and the big change here really is the movement forward by our PD companies. In general, they are really meeting their clinical milestones, their development milestones in various ways. If you look at this over the year, quite a few companies have moved from preclinical to phase I and even to phase II. The biggest change there, before I go into some detail on 10 companies, is that Empros Pharma will disappear from this slide from now on. That is, of course, because we have valued it down to zero. Egetis Therapeutics more positively will also disappear because we successfully sold our holdings in Egetis, the remainder of it, in the beginning of this month.
We are actually very happy about Egetis disappearing. That is the part of our model. We are, of course, very disappointed of Empros coming off this slide. Let's go on to the next slide and I will tell you a bit more about that. Take the bull by the horns, Empros. Let's talk about it for a moment. It was a phase II company, or is actually, the company, of course, exists, but we have decided to write it down to zero because, well, it is a very competitive space, and we will get into some detail about how it has changed on the following slide. But before that, let's talk about some of the positive developments. Mendus is continuing with their CML study.
That is a study going on in Bergen, and it is a very well thought out and designed study in collaboration with several key opinion leaders who also have big influence on pharmaceutical companies. I think the company has actually designed that study extremely well, and I am very happy with the Chief Medical Officer, Tarek, and his design of that study. He is a key opinion leader in himself, actually, in the CML space. Well done, Mendus team, on designing that, and let's hope that we are able to communicate those results in more detail as they come out later in the year or beginning of next year. Prokarium also will be able to share a lot of clinical data at the beginning of next year in Q1 2027.
They will actually have their database lock already in December, but we will need to be able to have some time to essentially analyze that data from the database lock. We are, of course, talking to a lot of different parties, both in the parallel track of the next funding round or potential partnerships in Prokarium, as we are doing in many companies, and it is an exciting space in the bladder cancer field. Lipum has received a major EU grant, which has been communicated, and also recently received Vinnova funding to develop biomarkers for their upcoming study. They have designed this, they have chosen their clinical CRO and are moving ahead with their preparations for phase II. As you know, Lipum is one of the three companies that we have taken private and are actually a full 100% owner of. Excuse me.
Symcel, our commercial growth company, has a partnership with Johnson & Johnson and also other collaborations with several different companies and are continuing to deepen that despite J&J actually canceling one of their major programs that would have used Symcel's device. Actually, we were worried about that, but now we are very happy because Johnson & Johnson essentially came back and said, "No, we want to deepen that collaboration even further," despite that cancellation of that one program. Overall, that is a real feather in the hat of Symcel and the team. Xintela, a phase II company where Thomas Eldered is the new chairperson and really shaping a new strategy for Xintela, so keep your eyes peeled for that. AnaCardio, phase II. It has raised over EUR 62.5 million. That is an incredibly successful round led by Novo Holdings and the Ljungström family.
I've written about that in the CEO statement and happy to answer any more questions about it. Very exciting, actually. Even though it's a small down round, like Cecilia said, we think that this is a major inflection point that they will be able to reach with this funding. I actually couldn't have asked for a better outcome, actually. Xspray, as you know, has received a complete response letter. Cecilia also mentioned it. A little bit of detail here, the contract manufacturing organization, their site in Italy, their issue has actually been sorted, and they say that they are ready for the inspection by the FDA. That has been publicly communicated, so I'm not sharing anything that isn't already publicly available. I want to highlight that this issue was never to do with Xspray.
It was in a different building even to where Xspray's product is being manufactured. In parallel, Xspray is able to address all the issues that FDA has thrown at them. It really is a matter of getting that site assessed by the FDA, and then hopefully they will be able to move on to become a commercial company. Atrogi. We'll speak a lot about Atrogi on the next two slides, actually. I'll just say that it's a positive readout showing strong improvement in muscle function. That's our second metabolic company. We'll talk a little bit about Empros and Atrogi on the next two slides. NorthX is another commercial growth company that is showing more and more business momentum. It has been a challenging period for obvious reasons, perhaps, to those who are in our field.
A lot of the smaller biotechs that are development companies, which is really the focus of NorthX's customer base, well, they have been struggling to gain financing in the last few years, but that is changing now, and naturally, that means NorthX is getting more orders and filling their order book. Last but not least, I would say I'm proud of the NorthX team for having changed over the years from being very dependent on one or two customers to really having a spread of customers now. I think it's a solid company that we can look forward to becoming profitable in the not too distant future. Next slide, please. Let's deep dive a little bit in obesity. This is the big disappointment of this quarter, but also we have some positives. The disappointment is that we had to shut down Empros. Why is that?
Because it's a fast-moving, consolidated market where a lot of things are happening. On the positive side, you can see the capital's going, and there is a lot of capital to some very exciting deals. I'll just tell you that Hanmi is a Korean company that was bought by Roche for a total deal value of $2.3 billion. They got $190 million up front. That's a significant upfront payment for a company that has preclinical data where the phase I is underway, but they have not received the phase I data yet. That really shows the kind of deals that can be done, and you can see four more from 2023 to 2025 below that have total deal values of between $1.9 billion and $10 billion. It's quite an incredible space. It has shifted a great deal, and let's deep dive to that.
GLP-1 therapies, as they are called, that is these blockbuster ones from Eli Lilly and Novo, they have really become a standard of care now. There are not only people who have severe obesity or severe overweight that are taking them. It has almost become a kind of consumer drug that actually commands medical type pricing. So, it is incredible. Long-term treatment of obesity is still an unsolved problem, however. Actually, we can see that because gastric bypass, that is actually when you remove a part of the intestines and the stomach, for example, that is actually rising. In other words, the obese part of it or the people who continue to have problems still have to go to this terrible intervention of a gastric bypass. So, those who are in the field realize that it is quality of weight loss, i.e. preservation of muscles while reducing fat that is the important issue.
Long-term improved physical function is pivotal because the issue is, if you are losing weight, you may be very happy at the moment. You may even not even notice that you are losing some muscle, but over time you will lose muscle. I am nearing my late 40s, and I can already tell that I am losing muscle mass. So, if I was on GLP-1s, I would be losing even more muscle mass and essentially be aging more quickly. So, there will be people who will be in serious problems later in life when they have lost a lot of muscle mass, and that will be noticeable first when they really come off the GLP-1s. They will then increase in fat mass again. They will start to take GLP-1s again to reduce that fat, and they will lose even more muscle.
The specialists in this field, including you can go online and see interviews with people from Novo and Eli Lilly saying the same thing. They are really looking for ways to spare muscle loss while still reducing fat. That is the differentiator that everybody is looking for. Let us move to the next slide and show why we think. This is really a summary of why Empros had to be written down, because Empros was squarely in the weight loss category. There was nothing that showed that this could not be technically and scientifically could not be a drug. In fact, it did have a weight loss. It was combinable with other treatments because it had a unique mechanism action. But when we spoke to partners, and we did indeed turn every stone, all globally, we spoke to many different partners.
Even they would acknowledge that there is a potential for this drug. But just in the light of the GLP-1s and that the consumer base paying for GLP-1s despite also losing muscle mass at this point, there just is not a commercial space, and you just cannot compete with the GLP-1s at this point in time. So, it is a timing issue, and we just couldn't afford to pay for the phase III ourselves. That would not have been the smart move to make. Instead, we know we can place our money in better places where we can develop drugs that are interesting for partnering straight away. Atrogi is an example of. So, ATR-258 targets exactly where the market has started to pay up, namely preserving physical function and muscle mass and not just focusing on weight loss alone.
The recent data, which actually essentially very simply put is fat down, muscle up, but also function up, is positioning Atrogi for this next wave of obesity partnering. That is where we, as active owners, want to place our money. We want to place our investment and our shareholders' investments in the right spaces where we can do partnering and show value both medium-term and long-term. Next slide, please. Before we go to Q&A, I just want to again reiterate that we have had an incredible leverage. 8.1 x more money was invested by others into our portfolio than we did. Actually, this quarter was quite an average quarter in terms of deployment, SEK 127 million. It is not like we invested a lot less than usual. That 8.1x is real. There were over SEK 1 billion invested in Q3 into our companies.
That is an incredible achievement by our companies, first and foremost, and the help from our board members to introduce them to the right investors. At the bottom, you can see a slightly different way of looking at that. 10% of the funding into our PD segment from Flerie, 90% from other investors, and in commercial growth, 40/60. I am actually really proud of this. I think it is an incredible achievement and not one that one should take lightly, especially if you compare with some other investment companies. Next slide, please. We focus from here, of course, on continuing to support the portfolio towards the next milestones. You saw some of them today on the slide that are actually having clinical readouts, and I will show that on the next slide as well. We will complete the Biosergen merger.
That is actually the October 23rd that that will be registered with Bolagsverket, the Swedish company's house. We will be complete with a third of these take-private mergers that we have done. I think it is incredible to say that we are really the specialists in the Nordics to take companies from the public markets when they no longer are suitable to be there. We have done that in a very efficient way, actually. Biosergen is a phase II-ready asset in the antifungal space, and we essentially were able to pick that up for a very small amount paid in shares, and then actually received SEK 30 million of cash that Biosergen had or will receive when it is all completed. Meaning that we essentially have been able to get a phase II-ready asset for a net of SEK 10 million. That is an incredible achievement.
Not only was it a good value, it is especially good value because the antifungal space is almost empty of competition. It is a really unmet medical need. More and more people are coming down with fungal infections, not only in the sort of emerging markets, but also in the West, in Europe and the U.S. There is very little that is out there that can compete. I can just tell you the European Union, for example, has several programs to support this, and there are very few companies out there that can compete for that kind of non-dilutive funding. Actually, in the U.S., you can get a priority review voucher as well for this antifungal space if you position it correctly, which of course we will do.
Talking about positioning correctly, the way you know to position it correctly is to keep building the business development relationships, listening and talking to the pharma companies, finding out what it is that they're looking for. Same as I just explained for the metabolic space. We're doing that in all spaces where our companies are involved. I, for example, am traveling to Switzerland quite soon and speaking to several parties there. My team and I will be at Jefferies in London. Jefferies is basically the London Life Sciences Week, as it's starting to become known, and that's a bit like the JP Morgan week in San Francisco. You meet a lot of different partners there. We in the team will keep building those relationships in order to both guide our companies, like in number one, but also then be able to make exits or great up rounds.
With that, I will move to the last slide and just highlight a few important milestones coming up. I've already mentioned Biosergen, the merger. Registration is expected October 23rd, as I said. Moving down to Xspray, we think the resubmission will happen quite soon, and they'll get a new PDUFA date. That's in H2 this year, so we're hoping to get that before Christmas or New Year's. Symcel, the commercial launch of their caloTrace sterility platform is also still happening this year. Egetis Therapeutics has their commercial launch, but as mentioned, we have sold the remainder of our holding. AnaCardio will start their Phase IIb trial also still this year, so moving ahead very fast after that EUR 62.5 million financi ng. CAR Medical is expecting full top-line data in the first half of 2027. That's an exciting company, also in the oncology space.
Microbiotica will start their Phase II trial in H1 2027, based on their excellent data that hasn't been communicated, but we know this is very exciting. Prokarium clinical efficacy data report I've mentioned is coming in H1 2027, but the database lock is already in December, actually. Again, moving very well according to plan. Let's go to Q&A.
Yes, and welcome to today's Q&A session. My name is Paula, and I will be your moderator today. If you have any questions, then please click on the raise your hand icon on the toolbar. I will then activate your microphone when it is your turn to speak. Do we have any questions? Please also remember to unmute yourself before asking your question.
Maybe while we wait for the first question, I can take a question from the analysts at DNB Carnegie, some of whom could not join us today. I will read out their question. They were interested in Atrogi, of course, for obvious reasons because of their press release, and really interested about essentially both the safety of the study and also if there are any possibilities to see the data between the fat and lean mass of that company. I can answer, because I've now received information that the company is willing to share at this point, that the tremors are very mild and transient. There are some tremors in the heart in a very few subjects, but actually barely noticeable for those subjects. The investigator of the study is very happy with that.
Of course, we're monitoring that potential side effect, but very happy that it's very mild and transient. Also, the investigator, Morten, he has run 50 trials with classic agonists, and he's never seen the combination of muscle gain and fat loss. Actually, the placebo effect is very low in Morten's hands in this functional assessment. The profile is unique. Compared to many previous trials, the effect size is very similar. The effect size to resistance training in terms of body composition and the record functional gain in Morten's experience, beating out resistance training plus classic beta agonist. Overall, this is really positioned to be a best in class in this situation. Of course, we will support the company to get the value for that eventually. Let's see if we've had any other questions. I realize we're running over time as well. Do we have a question?
No additional questions thus far. Ted, would you like to share a few concluding remarks?
Since we're close to finish here timing-wise, I just want to say, obviously, we're working hard in the team, to show the value growth, the NAV growth. I know we have not shown that yet, but I just want to remind everyone the last few years have been an excellent time to invest. A slightly less good time to sell. I think that's really changing in the market now. As you saw in one of the articles from Affärsvärlden, Flerie is actually a company that is very well-positioned to have a lot of growth in the future, and I hope that people will read that article and join us.
Thank you very much.
Thank you.
Thank you all for joining in. If you have any further question, please contact us at ir@flerie.com. Thank you.