Annual Report
We envision a world where patients
with chronic viral infections can live a
full life again
CVR no.: 38778676
Presented and adopted at the Annual General Meeting
28 April 2023
Chair of the meeting
Contents
20
06
Management’s review
3 Our purpose – live life again
4 Synklino at a glance
5 Achievements in 2022 and 2023 key priorities
6 Letter from the Chair and CEO
Business and strategy
9 Our business model
10 Understanding Synklino
12 Interview with Fredrika Carlsson
13 CMV – the disease and target groups
14 SYN002 – a potential first CMV functional cure
16 Recent progress and the way forward for SYN002
17 Our science
19 Building a pipeline of innovative therapies
Financial statements
33 Financial statements
54 Statement by the Executive Board and the
Board of Directors on the Annual Report
55 Independent auditor’s report
57 Company information
Corporate matters
Including a new section on Environment,
Social and Governance (ESG)
Letter from the
Chair and CEO
Corporate matters
21 Financial review
22 Governance and risk management
24 ESG
30 Management team
31 Board of directors
Synklino Annual Report 2022
Advancing scientific excellence
towards valuable therapies
utilising an exclusive
international network
Our working philosophy
• Our science – focused, balanced & with high impact
• Our therapies – addressing unmet medical needs,
with clear dierentiation & attractive markets
• Our partners – ambitious, excellent & complementary
Mission
Develop transformative therapies for the elimination of the risk
for chronic viral diseases. Initially, by developing a safe and
ecacious drug for the elimination of cytomegalovirus in high-risk
immunocompromised patients and transplant recipients.
Vision
A world where patients with chronic viral
infections can live a full life again.
Our purpose
Establish a market leader position
for our products
Our ambition
Fuel a pipeline with innovative, dierentiated, and highly valu-
able drug candidates for chronic viral infections, based on our
core technology platform.
Become a preferred partner for discovery and early clinical
development in the chronic infectious diseases space.
Improving the life
of transplant patients
Our value proposition
Transplantation is intended to give patients their life
back, but an infection with cytomegalovirus (CMV)
triggered by the transplant conditioning therapy may
be devastating to patient outcomes. SYN002 is aimed
at improving the life of transplant patients and ensure
their ability to enjoy a normal life after transplantation
by eliminating the risk of CMV infection in transplant
recipients, either by treating the donor organ (ex vivo)
prior to transplantation or by treating the recipient after
transplantation (in vivo).
Live life again
Synklino Annual Report 2022
Synklino
at a glance
159
mDKK
100,000
100
years
SYN002
45 mDKK87%
21
Cash and bonds as of
December
Two-pronged product
strategy
Management’s life science
experience
Our groundbreaking CMV
drug candidate
Annual R&D spendShare of organisation with
master/Ph.D. degree or higher
Platform technology for
pipeline expansion
CMV at-risk transplant patients annually
First-in-class market
opportunity
Novel anti-viral therapies
are urgently needed
• No available curative treatments
• Chronic infections cause life-
long challenges, severe disease
and death
• Immunocompromised patients
suer the most
Synklino is a Danish biotech company developing drugs to cure chronic viral
infections with immediate focus on ground-breaking therapies against CMV,
a devastating viral infection in immunocompromised patients. Synklino’s first-
in-class drug candidate SYN002 is expected to be clinical phase-ready by
the end of 2023 and targets both lytic and latent CMV infection in transplant
patients. Thus, it aims at providing radically dierent therapeutic opportuni-
ties and a path for transplant recipients to live a full life again. Our platform
technology holds the potential for expansion into treatment of other chronic
viral infectious diseases. Synklino is a privately held company with a solid
shareholder base including renowned life science investors, such as PKA,
Vækstfonden and Eir Ventures.
Synklino Annual Report 2022
Achievements in 2022 and 2023 key priorities
Business activity
• Continue generating pre-clinical data to support Clinical Trails
Application for SYN002
• Continue pre-clinical safety and pharmacology studies to enable
GLP toxicology studies for SYN002
• Molecule selection for novel target for a chronic viral disease
• Support discovery activities in selecting novel viral targets in indica-
tions with high unmet medical need and large market potential
• Continue to nurture relationships with potential partners for Synklino’s
drug discovery programmes
• Initiate preparation for additional funding latest during 2024 as Synklino
is suciently capitalised to fund the planned activities into 2024
• Strengthen the organisation to execute the discovery platform
• Pre-clinical scientific advice meeting with the Danish Medical Agency
was conducted in July with good alignment on the pre-clinical and
CMC development strategy
• SYN002 drug product manufacturing progressing
• GLP toxicology study delayed until H1 2023 pending additional toxi-
cology studies to further clarify the profile of SYN002
• Novel target identification for discovery pipeline close to final
• Business development strategy established with clear path to value
creation. Outreach to pharmaceutical and larger biotech companies
with activities within the space of infectious diseases initiated
• Financing for accelerated pipeline advancement towards clinical
development secured by raising an additional DKK 116 million in
June 2022
• Materiality assessment of key environmental, social and governance themes • Continued anchoring of ESG themes in operations
• Critical hires for operations secured by onboarding key pharmacology
and CMC competences.
Research
and Development
Business
Development
Capital Structure
ESG
Governance and
Organisation
Key priorities 2023
Key priorities 2022 and achievements
Synklino Annual Report 2022
Letter from the Chair and CEO
We are highly motivated by our results in 2022.
During the year, Synklino progressed from being a
biotech discovery company with many aspirations
to becoming a development company with great
potential and short-term prospect for entering
human clinical trials. This is a result of our ability to
attract strong competencies in the biotech sphere,
which has enabled us to fully benefit from the
financing completed in June 2022 on top of the
capital secured in November 2021 – in total DKK
222 million. The organisation has been strength-
ened with profiled pharmacology and CMC experts,
Thomas N. Kledal
CEO & co-founder
John Haurum
Chair
In Synklino, we envision a world where patients with chronic
viral infections can live a full life again. Our contribution is to
develop transformative therapies that can meet these patients’
unmet medical needs. Initially, by developing a safe and
ecacious drug for the elimination of cytomegalovirus in high-risk
immunocompromised patients and transplant recipients.
specialised R&D consultants as well as personnel
to support finance and executive management.
We are now preparing for clinical trials with
SYN002 providing several paths to reach signifi-
cant and value creating milestones in a shorter
timeline. In addition, while CMC and preclinical
activities for SYN002 was already planned for
the year, the associated documentation, quality
management, and drug manufacturing processes
are conducted with best practice in mind.
Synklino Annual Report 2022
Thomas N. Kledal
CEO & co-founder
John Haurum
Chair
Supporting our long term ambitions, we are
also utilising our organisation to start building a
discovery platform for the screening and identifica-
tion of exclusive targets, which may fuel a pipeline
of novel and highly dierentiated clinical programs
within viral infections.
Towards the end of 2022, we unfortunately saw
some toxicology signals in certain mammals in
pilot toxicology studies with SYN002, which were
planned to guide the dosing in clinical trials. In
earlier preclinical studies in rodents and ex vivo
human organs, no toxicology signs were observed
at relevant doses. Based on these ambiguous
findings, we have not yet been able to establish
the dose and treatment regimen to enter GLP toxi-
cology studies required to proceed towards clinical
development with SYN002.
We are conducting several thorough studies to
understand the relevance of the findings in these
initial studies in the context of the planned adminis-
tration to transplant organs and transplant patients.
We are also conducting a set of comprehensive
Our strategic priorities are clear
as we have set out to establish
clinical benefit with our first-in-
class drug candidate SYN002.
As our next step, we aim to use
our core technology platform to
fuel a pipeline with innovative
drug candidates for chronic
viral infections. At the same
time, we will strive to become a
preferred partner for discovery
and early clinical development in
the chronic infectious diseases
space.
studies to further characterise the pharmacology
profile of SYN002, the potential range of doses
and suitable dosing regimen in the first clinical trial .
The conducted studies aim to secure the highest
level of safety for our patients, by ensuring we
understand the best way of using the SYN002 drug
in terms of dosing schedule, dosing levels and
other safety consideration. Our aim is, that SYN002
will be clinical-phase ready by the end of 2023.
All in all, we made strong progress in 2022, and
Synklino were not directly impacted by geopolitical
unrest and the war in Ukraine. In general, higher
inflation and interest rates have had implications
for the valuation of growth companies. The Nasdaq
biotechnology share index dropped by 11% during
2022, in September it was even down by 23%.
Considering the increased cost of capital, we are
pleased with our current cash position, which
provides strategic and financial flexibility, and it
enables us to advance our key priorities beyond
2023.
Synklino Annual Report 2022
9 Our business model
10 Understanding Synklino
12 Interview with Fredrika Carlsson
13 CMV – the disease and target groups
14 SYN002 – a potential first CMV functional cure
16 Recent progress and the way forward for SYN002
17 Our science
19 Building a pipeline of innovative therapies
Business
and strategy
Synklino Annual Report 2022
How we create value
Novel therapeutic
paradigm to cure chronic
viral infections
Proprietary platform to
identify novel therapeutic
approaches to chronic viral
infections
Building a broad and valuable
portfolio of novel and proprie-
tary drug candidates
Clear development plan
with rapid path to proof of
concept
Our business model
Value created
• First-in-class drug candidates
• Addressing high unmet medical needs
• Large market potential
• Development plan with defined path
to proof of concept
Enable patients to live
a full life again
Reduce morbidity and
improve outcomes
Fewer readmissions and
lower treatment costs
Attractive investment
opportunity
Our focus is on discovery
and early clinical
development of treatments
for well-defined patient
populations suggesting
relevant commercial
opportunities. We aim to
retain ownership of product
candidates through to
proof of concept after
which we expect to
partner with established
pharma companies for late-
stage development and
commercialisation.
Resources
• Key competencies within
early drug development
• Strong board and execu-
tive leadership
• Strong cash position and
supportive ownership
• Established relationships
with top academic centers
fuel pipeline with innovative, highly dierentiated,
and valuable drug candidates for viral infections
based on core technology platform
Our Science
Patients Clinicians Payers Investors
Our Technology
Early Clinical Dev.
Intellectual Property
Value realised
Partner with established
pharmacompanies for late-stage
development and commercialisation
Synklino Annual Report 2022
Understanding Synklino
Preclinical development
Preclinical studies are conducted to determine a safe starting dose
for first-in-human studies, and to assess the potential toxicity before
moving into clinical trials in humans. Toxicity, safety and ecacy is
investigated by using cell cultures and/or laboratory animals. In addi-
tion, a manufacturing process for the candidate drug is developed.
The drug is manufactured under GMP regulations to ensure the safety
of patients and/or healthy individuals that will receive the drug in
clinical development.
GLP
Good Laboratory Practice (GLP) refers to a quality standard covering
the processes and conditions under which nonclinical laboratory
studies are planned, performed, monitored, recorded, reported,
and archived. GLP ensures the quality and integrity of safety data
submitted to the relevant authorities. GLP toxicology studies are
performed to understand the onset, degree of severity, and time
length up to which a particular dose of a drug demonstrates any toxic
eects.
GMP
Good Manufacturing Practices (GMP) refers to a quality standard
ensuring that patients receive medicinal products of uncompromised
high quality. Compliance with these quality standards is imperative
during the manufacture, processing, packaging, and storage of medic-
inal products. The goal is to have safe and eective drug to provide to
patients in clinical trials and on the market.
CMC
Chemistry, manufacturing, and controls (CMC) is the set of manufac-
turing practices and product specifications that must be followed and
met to ensure continued product safety and consistency. CMC devel-
opment also covers studies to show the stability during storage and
use. A CMC manufacturing process for the active ingredient as well as
the formulated and filled product must be established before testing a
medicinal product in humans, and before filing a clinical trial applica-
tion. CMC development begins after a drug candidate is identified and
continues through all remaining stages of drug development.
Clinical trial application (CTA) and
Investigational New Drug Application (IND)
A Clinical Trial Application (CTA) in, e.g., EU and Canada or an Inves-
tigational New Drug Application (IND) in USA, is a submission to a
designated national regulatory authority for obtaining authorisation to
conduct a clinical trial in a specific country. It contains all necessary
information on a potential new drug for the health authorities to provide
clearance for testing the investigational medicinal product in human
clinical trials, including for the assessment of the benefit/risk ratio of
the study. The CTA contains information about the nonclinical studies,
CMC and the clinical protocol describing how the drug will be tested in
humans, and how safety and ecacy will be determined and monitored.
Therapeutic window
The dose range of a drug that provides safe and eective therapy
with minimal adverse eects. Generally, at low concentrations, a drug
runs the risk of being ineective, and at high concentrations, the risk
Synklino Annual Report 2022
of adverse eects is increased. Dosing regimens are designed to maintain
drug concentrations within therapeutic windows, maximising ecacy and
minimising side eects.
Ex vivo organ perfusion
Ex vivo organ treatment has been initially introduced to preserve donor
organs until transplantation into the recipient (simple storage on ice) and
has since evolved towards perfusion of the donor organ to preserve it’s
quality or to actually improve organ function and acceptability for trans-
plantation. Today, continuous perfusion of donor organs with fluids during
machine perfusion not only allows improved storage at low temperatures
with assessment of critical organ function parameters, but it also enables
improvements of organ function during normothermic (i.e. body temper-
ature) perfusion conditions with for example blood products or perfusion
solutions that contain important nutrients, cells and even therapeutics,
which are expected to improve the organs’ function and its longevity in the
recipients after transplantation. Ex vivo machine perfusion also increases
the number of transplanted organs via improvement of their function and
subsequent acceptance for transplantation and ultimately improves the
chance for a positive outcome of organ transplantation.
Functional cure
The goal of a functional cure is to reduce the level of virus in the body to
a level where it no longer constitutes a risk of reactivation and disease.
The virus is not completely eliminated by the treatment, but the remaining
levels are so low that its potential harmful activities are controlled by the
patient’s own immune surveillance system without requiring continuous
treatment with antiviral medication. In CMV it means, that a treatment
would eliminate lytic virus producing cells and reduce latent virus bearing
cells to a level that makes it impossible for latent infected cells to reacti-
vate and cause disease. This would result in active virus becoming unde-
tectable with standard virus detection assays.
Synklino Annual Report 2022
Interview with Fredrika Carlsson
What is your role at Synklino?
“My primary focus is to lead the team and run the SYN002 project
according to the development plans and to Synklino’s business
objectives. While managing the project, I take part in scientific work,
strategic discussions and present to our board of directors. We are a
young company, which gives a lot of flexibility and variation in my daily
work.”
Could you tell us about your career journey prior to joining Synklino?
“I completed my masters and PhD at Lund University. My PhD focus
was on developing antibodies against one of the surface proteins
of cytomegalovirus. I subsequently moved to California to complete
a post-doctorate at Scripps Research Institute and at the University
of Southern California. After living in the States from 2012 to 2017, I
moved back to Sweden to work at Alligator Bioscience as a senior
scientist in microbiology, project leader for two early preclinical
projects and team leader under the department of research opera-
tions with a team of seven people.”
Fredrika Carlsson is Project Director for the development
of SYN002. In this interview, she provides her insights into
working on SYN002 in Synklino.
How is it to be working on developing SYN002?
“It’s exciting and challenging. We are developing a first-in-class drug,
which means that we must move beyond of what we know, especially
when designing preclinical studies. We need to work in a cross-func-
tional manner, for everyone to put their knowledge into the project in
order to move forward.”
Can you describe your experience of working at a young
biotech firm versus a well-established biotech firm?
“I enjoy being able to work with the whole organisation. As an
emerging biotech company, everyone is dependent on one another,
from our colleagues in the lab, to the management team and the
board. That is something you wouldn’t really see at a larger company,
where you are expected to fill out a very specific role.”
How is working in Copenhagen, while living in Sweden?
In terms of work culture and flexibility.
“Living in Lund and commuting to Copenhagen works well. I work
from home two days a week and commute to the oce the other
three days. With kids and family, you have to plan a bit ahead, and that
works well with the flexible work environment at Synklino.”
“In terms of work culture, Sweden and Denmark dier to some extent,
in my opinion. Swedes have a consensus-based decision-making
process. Danes seem to have a faster process and then adjust along
the way if needed. In the end, the same goals are reached just in
dierent ways. I like to think I bring parts of the Swedish model to
Synklino, while also learning from the Danes. A more diverse work-
force is only positive, in terms of ideas, management and success.”
Synklino Annual Report 2022
CMV – the disease and target groups
Human cytomegalovirus (CMV) is a β-herpesvirus.
Like all herpesvirus, CMV establishes life-long,
latent infection and there is currently no cure
for CMV. Throughout life, CMV can repeatably
re-activate from latency and cause an active lytic
infection. Normally, a healthy person’s immune
system keeps the virus from causing illness and
most people will never know they have CMV. If the
immune system is weakened or suppressed, as is
the case in connection with solid organ, stem cell
or bone marrow transplantation, CMV is a major
cause for concern and can be fatal if not controlled.
load in immunosuppressed patients including
transplant patients lead to various CMV disease
manifestations including graft organ rejection,
and death. For transplant patients CMV results in
doubling re-hospitalisation, incurring 50% increase
in transplant costs and tripling the risk of death
post-transplantation of vital organs.
The transplantation market
Around 100,000 solid organ and stem cell trans-
plants are performed annually, and the number is
growing by 3-5 % annually.
100,000 at risk transplant patients
require CMV therapy every year.
High-risk patients are CMV-
negative recipients of solid organs
from CMV-positive individuals
(D+/R- profile) and CMV-positive
recipients of stem cell transplants
(R+) irrespective of the status of
the donor.
Solid organ transplants
1
Hematopoietic stem cell transplants
Europe
2
19,000
Europe
2
25,000
3
US
41,000
US
22,000
4
. , http://www.transplant-observatory.org for EU and US;
. United Kingdom, Germany, France, Spain, Italy;
. , https://ec.europa.eu/eurostat/web/products-eurostat-news/-/EDN--;
. , https://bloodstemcell.hrsa.gov/data/donation-and-transplantation-statistics/
Very common
human pathogen
DNA virus
of the herpesvirus
family
60% of all humans
have a life-long persistent
CMV infection
Initial
Infection
Immunosuppression
leads to virus reactiva-
tion from latency
CMV is a serious disease in
immunocompromised transplant patients
CMV lifecycle changes
CMV reactivation from latency is a major health
risk in transplant recipients due to the need for
concomitant immunosuppressive therapy.
When patients have an active infection with CMV,
the symptoms include, e.g., high fever, swollen
lymph nodes, rash, fatigue, and a sore throat.
Where patients with a normal functioning immune
system will fight o the active infection and drive it
back to latency, the immunocompromised patients
are at much higher morbidity and mortality risk.
Active infection and accumulation of a high viral
Latent
(Persistent)
Lytic
Replication
(Acute)
Latent viral load
drives risk of reactivation
Reactivation leads to
morbidity and mortality
Synklino Annual Report 2022
SYN002 eciently eliminates latently infected cells
0
20
40
60
80
100
120
Relative reactivation events
Reactivation events
■ Negative Control ■ SYN002
P=0.01
120
100
80
60
40
20
0
SYN002
eliminates
CMV latency
SYN002 – a potential first
CMV functional cure
With the limited ecacy of currently available CMV drugs, around 30%
of treated transplant patients experience clinically significant CMV
breakthrough infection. SYN002 has the potential to become a func-
tional cure for CMV, as it targets both lytic and latent CMV infection.
Currently approved standard of care antiviral treatments only target
the lytic infected cells, and have not shown any impact on the latently
infected cell reservoirs.
Synklino’s drug candidate SYN002 is expected to be highly e-
cacious and potent on the lytic infected cells, also compared with
standard of care antiviral therapeutics, and has the potential of a
first-in-class therapy in targeting both lytic and latently infected cells.
Given the compound’s unique mechanism of action, SYN002 has
the potential to eliminate the risk of CMV infection and reactivation in
immunocompromised transplant recipients.
Currently approved antiviral therapeutics have proven ecacious only
after administration for an extended period of time of 100-200 days
to suppress the active infection. The extended treatment schedules
combined with limited ecacy, increases the risk of resistance devel-
opment. SYN002 is fast acting with full ecacy within hours or days
and therefore short-term treatment with SYN002 is expected to result
in a lower risk of resistance development compared with standard of
care (SOC).
“The key feature of SYN002
is its potential to eradicate
both latent and lytic CMV.”
Christina Hjæresen,
CMC Project Director
Synklino Annual Report 2022
How we can make a dierence
SYN002 addresses all unmet medical needs related to standard of care (SOC)
Standard of care SYN
POOR
Ecacy
~30% of transplant patients develop clinically
significant CMV infection
LONG
Treatment
Dosing for a period of 100-200 days, leading to suboptimal
patient compliance
NO CURATIVE
Potential
No activity against latent virus and therefore no potential to
functionally cure CMV, since reactivation is a continuous risk.
RESISTANCE
Development
Long treatment periods without curative potential increases
the risk of resistance development
HIGH
Ecacy
Potent cell killing characteristics are expected to translate
into higher ecacy in CMV infection control
FASTER
Treatment
Treating for days/weeks instead of months,
improved compliance
CURATIVE
Potential
Targets infected cell reservoirs, prevent reactivation
LESS RESISTANCE
Development
Shorter treatment period and curative potential
reduces resistance risk
✓
X
+ +
Synklino Annual Report 2022
Recent progress and the way
forward for SYN002
SYN002 development strategy
For SYN002, we aim to follow a two-pronged development strategy.
We seek to treat organs prior to transplantation, i.e. ex vivo. Using this
unique administration of SYN002 to organs outside the body, we aim
for removing latent infection and hence eliminate the risk of later viral
reactivation in the patient receiving the organ. All current standard of
care options are administered in vivo after the transplantation procedure
and only addressing active (lytic) CMV infection. But at this stage, the
infection has already aected the receiving patient. The unique oppor-
tunity to treat organs with SYN002 prior to transplantation and with that
remove the risk of infection is a highly dierentiating factor for SYN002.
In addition, SYN002 is considered a candidate for future standard of
care in post-transplant prophylaxis of CMV reactivation based on its
first-in-class potential to eradicate latently infected cells in the patient,
i.e. in vivo treatment. This will address the risk to the patient posed by
the patient’s own latent infection with CMV combined with the needed
immunosuppression therapy following transplantation.
Our current focus is on preclinical development of SYN002 to prepare
for a Clinical Trial Application. This includes studies to determine the
therapeutic window, pharmacology studies, GLP toxicology studies
and establishment of a manufacturing process as well as manufac-
turing the drug product.
Pharmacology studies
Experimental preclinical ex vivo treatment of organs using SYN002
has proven a clinically relevant ability to significantly reduce latent
CMV infection in lungs. We are continuously conducting ex vivo
studies in dierent organs, exploring the relevant dosing regimen,
ecacy, and potential toxicological eects.
Additional preclinical proof of concept studies have been conducted
in relevant disease models in animals, as well as pharmacokinetics /
pharmacodynamics studies to support clarification of the best dosing
schedule. Assays have been developed that allow us to monitor
SYN002 in various species and dierent perfusion fluids, which is
essential for complete understanding of the interaction between the
drug and the treated organ or person and hence the eect, safety,
and future dose setting.
In vitro studies with SYN002 have shown ecacy on both lytic and
latent infection, as well as on CMV isolates otherwise known to be
resistant to current available treatments.
Toxicology studies
We have conducted toxicology studies in animals to explore the
safety profile of SYN002. Dierent species show dierent results.
We have observed some toxicology signals in certain mammals in
pilot toxicology studies with SYN002, which were planned to guide
the dosing in clinical trials. In earlier preclinical studies in rodents, no
toxicology signs were observed at relevant doses.
We successfully treated human lungs ex vivo with SYN002 with no
observations of toxicological eects with respect to the tissue and
the lung function. This is now being investigated in other organ types
as well. With this data at hand, we are looking closely at the pharma-
cological and toxicological translation between the human ex vivo
studies and all the ecacy and safety data from our animal studies.
Based on these ambiguous findings, we have not yet been able to
establish the appropriate dose and treatment regimen to enter GLP
toxicology studies required to proceed towards clinical development
with SYN002. We are conducting a set of comprehensive studies to
further characterise the pharmacology profile of SYN002, the poten-
tial range of doses and suitable dosing regimen in the first clinical trial.
CMC activities
Process development activities are ongoing at our contract manufac-
turing organisation and GMP manufacture of drug for clinical trials is
planned.
Synklino Annual Report 2022
Our science
SYN002 can identify and selectively bind to US28, a
protein exclusively expressed on CMV-infected cells
and involved in the regulation of viral latency and reacti-
vation. SYN002 is internalised into infected cells, which
are then killed.
By eciently taking away latently infected cells after
just 6 hours of ex vivo therapy in living human lungs,
SYN002 holds the potential to eliminate the risk for
CMV infection in solid organ transplant patients.
Patent protection
SYN002 is protected at least until 2040, and we own
the IP protecting SYN002. We have a granted US
patent, an active patent application covering compo-
sition of matter of central improvements of the tech-
nology, and we have an active application covering the
use of the drug candidate in organ perfusion systems
broadly.
“A drug that hits the lytic and latent
virus would be extremely exciting if it
wipes out CMV and also prevents late
reactivation.”
Key opinion leader
US28 is a novel CMV-specific target
Chemokine
Leveraging the active function of US28
to gain access to CMV infected cells
US28
• Membrane protein encoded by CMV
• Exclusively expressed on CMV infected cells
• Expressed during both lytic and latent phase
• Continuously internalising
• Acts as a chemokine scavenger
Synklino Annual Report 2022
Our science
Competitive landscape
• The two major standard of care drugs for CMV treatment are small
molecules. These are associated with drug-drug interactions,
resistance development as well as prolonged treatment and
compliance challenges. They have no curative potential, and
do not protect against reactivation and late onset CMV upon
completed treatment.
• Small molecule inhibitors in pipeline are considered as potential
supplements or alternatives to current standard of care but suers
the same shortcomings.
• Antibody (combination) treatment is designed to block viral entry
preventing spread of the virus and are considered as potential
supplements or alternatives to standard of care. Previous anti-
body-based drugs did not provide sucient ecacy and had
limited market penetration.
• Given their mechanism of action, vaccines would be challenging
to position in immunosuppressed or immune impaired patients, as
ecacy will be dependent on a functional immune system.
• Cellular based immunotherapies are considered non-competitive
compared to alternative therapeutic modalities due to the financial,
logistics and manufacturing requirements necessary to bring these
therapies to patients.
Unique mode of action targeting
both lytic and latent infection
Docking
Patented drug
candidate SYN002
Docking of SYN002
to CMV infected cells
Uptake of SYN002 and
intracellular activation
CMV infected cells
killed by SYN002
Activator
Toxin
SYN002
US28
CMV
Selective
uptake
Activation
Synklino Annual Report 2022
Building a pipeline of
innovative therapies
Synklino is based on a discovery platform for
identification of novel viral targets and holds
the potential to support a pipeline of novel and
dierentiated preclinical and clinical programs.
The current scope is within indications with no
approved therapeutics or inadequate treatment
options, especially within chronic viral infections
where persistent presence of the virus as seen with
latency constitutes a medical challenge. Our focus
is on discovery and early clinical development of
treatments for well-defined patient populations and
with relevant commercial opportunities. We aim to
retain ownership of product candidates through
to clinical proof of concept after which we expect
to partner with established pharma companies for
late-stage development and commercialisation.
Platform and research
Synklino’s innovative bioinformatic platform allows
for fast identification of relevant viral targets.
Combined with our unique scout technology,
we can quickly screen and confirm compatibility
between the mode of action (MoA) of Synklino’s
technology and the drug targets. This approach
reduces the time and resources required to
advance a potential drug target from discovery to
a new drug in development. Additionally, it brings
new targets into Synklino’s discovery that would
otherwise be dicult to single out using more tradi-
tional target screening approaches.
Our key strategic priorities
1
3
2
Establish clinical proof-of-concept
(clinical phase I) for SYN002
Become a preferred partner for
discovery and early clinical devel-
opment in the chronic infectious
diseases space
Build a pipeline of innovative, dieren-
tiated, and highly valuable drug candi-
dates against chronic viral infections
based on our technology platform
Our discovery
platform
Aim
• Utilise our platform for accelerated identification of relevant targets
applicable for Synklino’s technology
• Maturing lead candidates into clinical development in collaboration
with industry partners
• Develop therapies capable of eliminating the cellular reservoirs of
chronic viral infections
Target identification focus area
• Viruses within transplantation
• Chronic viral infections
Lead generation
• Extended use of contract research organisations for lead generation
and selection
• Partner with scientific and clinical experts in given disease indications
Lead selection
• Target and virus specific in vitro and in vivo models in collaboration
with international partners
Synklino Annual Report 2022
Financial review
Income statement
The Company recognised operating expenses of DKK 60.3 million
(DKK 11.7 million) for the full year 2022. Operating expenses comprise
sta costs of DKK 17.5 million (DKK 5.0 million) and other external
expenses, primarily covering research and preclinical development
costs, of DKK 42.4 million (DKK 6.7 million). The cost increase was due
to the progression in preclinical activities and CMC activities and new
hires.
The operating loss (EBIT) for the full year 2022 was DKK 60.3
million (DKK 11.7 million). Net financial items amounted to DKK -2.8
million (DKK -1.0 million), deriving mainly from change in fair value on
embedded derivatives and interest on financial liabilities measured at
amortised cost.
The company recognised a tax credit for 2022 of DKK 5.5 million
(DKK 1.9 million). The tax credit has a positive eect on liquidity in
2023 in accordance with the R&D tax incentive, adopted by the
Danish Parliament.
The net loss for the full year 2022 was DKK 57.5 million (DKK 10.8
million), which is in line with the company’s plans and expectations.
Cash flow
Operating cash flow for the full year 2022 was an outflow of DKK 49.4
million (outflow of DKK 12.5 million). Total net cash flow for the full year
2022 was an outflow of DKK 41.9 million (inflow of DKK 87.8 million).
The operational cash flow is mainly explained by the loss for the year.
The total cash flow is further explained by an inflow from finance
activities through the issue of shares of DKK 108.9 million (2021: DKK
100.4 million) which is partly oset by a cash outflow to investments in
bonds DKK 100 million.
Investment in Danish mortgage bonds of DKK 100 million is performed
to mitigate risk of fluctuation in interest rates and maturity of bonds
corresponds to planed use of cash i.e., maturity is primarily April 2023
and secondary April 2024.
With the current cash position, Synklino is suciently capitalised to
fund the planned activities into 2024. The Company forecasts that
additional funding will be needed during 2024 to further advance its
lead compound SYN002 and move into a clinical stage company.
Financial position
Total assets were DKK 171.7 million (DKK 104.7 million) as of 31
December 2022. Cash and cash equivalents amounted to DKK 58.7
million (DKK 100.5 million), and bonds amounted to DKK 100.2 million
(DKK 0.0 million). Tax receivables amounted to DKK 5.5 million (DKK
1.9 million) and other receivables and prepayments amounted to
DKK 4.8 million (DKK 2.3 million) primarily related to VAT refund and
prepayments on R&D activities.
Capital resources amounted in total to DKK 158.9 million (DKK 100.5
million) consisting of cash and cash equivalents amounting to DKK
58.7 million (DKK 100.5 million) and bonds amounting to DKK 100.2
million (DKK 0.0 million).
The equity ratio was 85% (2021: 85%) as of 31 December 2022, and
equity was DKK 145.7 million (DKK 88.8 million).
Events after the balance sheet date
No events have occurred since the balance sheet date, which could
materially aect Synklino’s financial position.
Synklino Annual Report 2022
Financial review
Governance and risk management
Synklino A/S is a Danish, limited liability, privately owned company
headquartered in Copenhagen, Denmark. We aim to maintain a
well-balanced division of responsibility between the Board of Direc-
tors and Management and act with transparency towards investors,
employees, and society. The Board of Directors has established an
Audit Committee and a Remuneration and Nomination Committee,
which work according to procedures established by the Board of
Directors. The Board of Directors will establish additional specific
board working groups when appropriate to assist the Board of Direc-
tors in discharging its duties.
Risk management
Various risk factors may have an adverse impact on Synklino’s opera-
tions and therefore our results and financial position. Our strategy for
risk management is to act proactively to limit undesirable impact on
our result and financial position, to the extent possible.
Continuous evaluation of Synklino’s risk profile, mitigating options and
contingency plans facilitates a proactive risk management process,
including identification and handling of risks. Key risks are first
identified through a bottom-up process including description of the
risks and mitigating actions taken to reduce either the likelihood of
occurrence or the potential impact. Management team members are
assigned risk owners with responsibility for monitoring and mitigating
each of the risks.
Financing needs
Synklino has reported significant losses since we began operations
and for the financial year 2022, we reported a loss of 63.0 MDKK
(2021: DKK 12.7 million) before tax. Synklino’s research and devel-
opment eorts require significant investments, and we are thus
dependent on our ability to raise capital in the future to finance our
planned activities. Any delays in clinical trials or product development
could negatively aect the cash flow. There is a risk that we will be
unable to raise additional capital or other financing. This may lead to a
temporary halt or otherwise have impact on the clinical development
activities or result in Synklino operating at a slower rate than desired,
which may aect the company’s operations.
Synklino mitigates financing risks by ensuring solid financial planning,
prioritisation, and by keeping spending and investment at appropriate
levels to maximise liquidity runway. We also strive to have strong
relations with existing and potential investors as well as other players
in the financial market.
Manufacturing of the drug product
Synklino is manufacturing the drug product SYN002, including
process, analytical and formulation development in close collabora-
tion with the contract development and manufacturing organisation
Northway Biotech. Manufacturing of a biopharmaceutical drug product
is associated with risks of delay and/or increase in costs or even
failure to manufacture the product.
Preclinical development
Synklino is conducting regulatory preclinical development activities
as a preparation for entering clinical trials. Preclinical activities and the
derived dosing and safety data are associated with risks of delay and/
or increase in costs or even failure to meet planned targets.
Mitigation of the preclinical development risks is based on multiple
measures. Synklino seeks to engage highly qualified scientific sta,
consultants, and clinical research organisations (CRO). Synklino main-
tains close dialogue with relevant authorities to secure optimal path to
approval of trial applications and compliance with GLP regulations etc.
Synklino’s quality management system also supports compliance with
standards, rules and regulations.
IT security
Synklino is a data-driven business depending on secure IT systems.
Disruption or compromise of IT security due to cyberattacks and
cyber fraud could aect all parts of Synklino’s operations. Failure to
adequately protect the IT infrastructure and key systems against the
risk of security incidents could potentially impact critical business
processes.
Synklino mitigates IT security risks with appropriate protection from
viruses and malware, and sensitive data is subject to restricted use.
Synklino works with an external IT service provider on IT operations
and cyber security. Synklino has implemented adequate data backup
procedures including o-site data backup.
Synklino Annual Report 2022
Governance and risk management
Key individuals and employees
Synklino is a young organisation with limited human resources. The
success of Synklino depends on the ability to attract and retain
qualified sta or key employees both nationally and internationally.
Failure to do so could have a material adverse eect on our business
processes.
Synklino mitigates risks by building a stronger organisation with more
overlapping competencies. We also strive for a good working environ-
ment and employment conditions that reflects market conditions.
Registration and licensing
Synklino has not yet received approval for any product candidate for
commercial sale and, as a result, the company has not yet generated
any revenue. To be able to market and sell pharmaceutical drugs,
authorisation must be obtained, and registration must take place at
the appropriate agency in their respective markets, such as the Food
and Drug Administration (FDA) in the U.S. and the European Medi-
cines Agency (EMA) in Europe. In the event Synklino, directly or via
collaborative partners, fails to obtain or maintain the requisite permits,
approvals and registrations from the governmental authorities, there is
a risk that the company’s ability to generate revenue will be inhibited.
There is also a risk that applicable rules and regulations, and the
interpretation of applicable rules and regulations, may change and
these changes may be material. There is a risk that this will aect the
company’s prerequisites for meeting regulatory requirements.
Patents and other intellectual property rights
Synklino has applied for patents on the drug candidate SYN002 in
Europe, USA, Canada and a number of other countries. Since patents
and intellectual property rights have a limited-service life, there is a
risk, that the existing and/or future patent portfolio and other intellec-
tual property rights held by the company may not provide adequate
commercial protection. Third parties could also challenge the validity
of key patents for Synklino. Any invalidation of key patents would
be detrimental to Synklino’s ability to develop and commercialise
SYN002. In order to develop and commercialise SYN002, Synklino
may have to in-license further patents and intellectual property rights
from third parties. Any license would come at a cost for Synklino and
could negatively impact the business case for SYN002.
Synklino works closely with external patent counsels to minimise the
risk of patent infringement against Synklino and to prepare for any
potential patent infringement claims as well as defence.
Additional financial risks
Please see note 15 for additional financial risks.
Synklino Annual Report 2022
Environment, Social and Governance (ESG)
As a company Synklino has the potential to positively
impact many people’s lives. At least 100,000 at-risk
transplant patients in Europe and the US require
anti-CMV therapy every year. Our primary goal is
to enable those patients to live life again with less
discomfort after having had an organ transplanta
-
tion – through innovation and advancement of our
pipeline. This can only be obtained if our employees
are engaged, well-educated, and diverse. As such,
we have a strong intrinsic focus on creating common
value for patients, employees, and society.
Materiality assessment
In 2022, we conducted a double materiality assess-
ment to guide our future ESG policies, eorts, and
goals. Based on stakeholder interviews, review of
soft and hard laws and standards as well as peer
analysis, we identified and ranked ESG themes
based on their importance to our business and
stakeholders.
The assessment concluded, that the 16 ESG themes
in 5 clusters as presented in the matrix were of
specific relevance to Synklino:
Patient outcomes and ethics
Business ethics
Human rights and people
Climate and environment
Corporate and financial governance
In the following sections, we describe our policies,
ambitions, eorts, and goals within each of the
five areas. They reflect that Synklino is a young,
small company with high ambitions that has just
embarked on its ESG journey.
Impact on business strategy
Importance to stakeholders
High
High
Low
Low
Precautionary
environmental
approach
Energy
management
Accounting and
taxation
Leadership
compensation
Animal wellfare
Bribery and
corruption
Financial risk
management
Health and
safety
Diversity
Data privacy and security
Engaging with patients
advocacy groups
Supply chain
management
Employee
recruitment,
development
and retention
Ensuring good health
and well-being
Innovation for
patient needs
Safety of patients
and trial conduct
Transportation
Synklino materiality matrix
Synklino Annual Report 2022
Through innovation we address unmet medical
needs thereby allowing patients to live life again.
Our medicines may eventually make a critical dier-
ence in the lives of people, while our technology
has enabled us to lay the long-term foundation
for addressing other diseases with unmet medical
needs.
The number of organ transplants is growing,
while waiting lists are growing faster, stressing the
importance of making every transplant count. The
potential impact on patients’ lives and healthcare
systems is substantial. With SYN002, we aim to
reduce morbidity and improve outcomes and
secure fewer readmissions as well as lower treat-
ment costs.
Patient outcomes and ethics were identified as top
priorities in our materiality assessment, specifically
patient safety, trial conduct, innovation, and patient
outcomes. Initiating GxP activities in 2023 will drive
a need for a more robust quality management
system to ensure transparency, safety, quality, and
compliance throughout our value chain. This is
especially important for the selection, oversight and
management of CROs and manufacturing partners.
The fundamental principles for conducting high-
quality clinical trials will be:
• Patient safety and needs are at the center of our
business, also when engaging CROs and CMOs.
• We will communicate ecacy and adverse
eects transparently and honestly.
• We will ensure that GxP standards are
observed.
• In the long term, we expect to engage with rele-
vant patient organisations to raise awareness
and align drug development to patient needs
and outcomes.
Patient outcomes and ethics
Synklino contributes to healthy lives and may
allow patients to live life again.
Our goals for 2023
1
Establish a quality management system
(QMS) to ensure transparency, quality,
safety, and compliance, including systematic
documentation and training of employees.
2
Introduce a procedure for vendor selection
and oversight to ensure our business part-
ners adhere to ESG standards.
Synklino Annual Report 2022
We strive to operate according to the highest
ethical standards and safeguard our business
against corruption and noncompliance. This
includes the protection of personal or sensitive
information that individuals and/or organisations
submit to us or that are collected in trials. We have
adopted practices that safeguard the privacy of
patient information and protect data from unin-
tended use.
We aim for having systems and policies in place
to ensure that we and our business partners act
responsibly and comply with all relevant laws,
regulations, and codes of conduct including bribery
& corruption, data ethics, and animal welfare.
Our policies and systems will also include
suppliers, ensuring they conduct business ethically
and responsibly in areas such as environmental
management, occupational health & safety,
freedom of association as well as forced labour
and child labour.
In 2022, we updated our employee handbook to
address the exchange of gifts, as well as conflicts
of interest and bribery. All policies pertaining to
compliance, governance, the environment, and
human rights are outlined in our CSR policy.
Business ethics
Synklino aims at contributing to a business environment with high
ethical standards along with refraining from bribery and corruption.
Our goals for 2023
1
Create GDPR, trade secrets and confiden-
tiality policies that include implementation
guidelines and sta training.
2
Introduce an intellectual property and patent
rights training program for our research and
development sta.
Synklino Annual Report 2022
Our business is to discover, develop and deliver
new medicines, which requires long-term invest-
ments in our employees whose commitment is a
foundation for our success. We aim at engaging
the best and brightest minds, fostering a diverse
and inclusive workplace, while developing and
rewarding our employees. We value diversity and
believe diverse teams arrive at better solutions that
ultimately benefit patients and our company. That
is why we are committed to providing equal oppor-
tunities for all employees. This includes recruiting,
hiring, training, and promoting without regard to
race, colour, gender expression, religion, age,
sexual orientation, national origin, or disability.
We will continue to work for gender diversity of
employees at all levels of the organisation and
provide equal opportunities for women and men at
all levels, as well as ensuring equal pay.
In November 2022, we expanded our standard
maternity leave policy and implemented an
updated parental leave policy granting both
parents a minimum of nine weeks of paid parental
leave within the first year after becoming parents.
We want parents to celebrate parenthood, while
helping them with their transition back to work. We
want both parents to have the same opportunity to
pursue a career, and to bond and spend time with
their children, without bias in opportunities due to
gender.
We will safeguard our employees’ health and
well-being and strive to prevent all accidents. We
do not tolerate retaliation or retribution against
anyone who reports a concern or participates in
an investigation in good faith. In 2022, we had no
work-related accidents.
Human rights and people
Synklino strives for gender diversity at all levels of the organisation.
Synklino is committed to promoting a safe and healthy work environment,
as well as respecting human rights and labour standards.
Our goal for 2023
1
Develop a formal occupational health and
safety policy that addresses physical and
mental well-being at the workplace, along
with guidelines and training to implement
such policies.
As of year-end 2022, women accounted for 63% of
our workforce, 40% of management positions are held
by women, and 25% of our board of directors. We
acknowledge that women are well represented within
the organisation but recognise implementing a more
thorough diversity initiative is needed to ensure gender
diversity in leadership positions.
Synklino Annual Report 2022
As a company committed to improving human
health, we recognise our responsibility in having a
positive impact on the planet’s health as well. In the
long term, investing in environmental sustainability
will allow us to be more ecient and resilient,
resulting in reduced operating costs.
Due to our business model many activities are
outsourced, including drug manufacturing and
clinical trial execution, thus Synklino’s direct impact
on the environment and climate is minimal.
Nonetheless, action is needed by all to limit the
impact of climate change. We will strive to limit
our greenhouse gas (GHG) emissions, and we will
encourage our business partners to do the same.
Synklino has currently no scope 1 GHG emissions.
Following a relocation in September 2022, our
scope 2 and 3 GHG emissions data are not su-
ciently reliable to provide a true and fair view of our
climate impact, and we therefore plan to include
GHG emissions data in our annual report for 2023.
We will take on a precautionary approach to
environmental protection and thus limit our
resource consumption, and waste generation
where possible. Examples are energy and water
consumption, waste sorting and disposal, and
chemical use.
Climate and environment
Synklino aims at continuously reducing our impact on the environment,
while openly communicating our progress.
Synklino’s climate impact is limited but we nonetheless will act to
further reduce our impact where possible.
Our goal for 2023
1
Create a framework to collect and monitor
GHG emissions data throughout our value
chain.
Synklino Annual Report 2022
The responsibility and oversight for Synklino’s ESG initiatives are
anchored with the management team, with input and oversight from
our Board of Directors.
Management oversees the ESG strategy by establishing goals
and driving actions in their respective functions. Synklino’s CFO is
currently responsible for overseeing the implementation of ESG
policies, while ensuring activities are aligned and communicated to
stakeholders both internally and externally, along with data consolida-
tion and reporting practices.
Please refer to the risk and governance section for additional insights
into our financial, governance and risk management processes.
The following tables present consolidated figures on social and
governance indicators.
ESG governance Gender diversity
Unit 2022 2021
Total headcount number
Gender split, total headcount % f / m / /
Gender split, management % f / m / /
Governance
Unit 2022 2021
CEO pay ratio times . .
Gender split, Board of Directors % f / m / /
Workforce age
Unit 2022 2021
- years % . .
- years % . .
- years % . .
- years % . .
Academic or educational degrees
Unit 2022 2021
Ph.D. number
M.Sc. number
Professional degree number
Total number
Reporting principles
Gender diversity
Gender split expresses the ratio of women to men calculated at
year-end.
Workforce age
Age split is presented in 10-year increments based on total head-
counts and year-end age.
CEO pay ratio
The CEO pay ratio is the ratio of the CEO’s expensed total remuner-
ation in a calendar year compared to the expensed average total
remuneration for all employees in the company.
Total headcount
Number of full-time employees and closely associated consultants
calculated at year-end.
Academic and educational degrees
Academic and educational achievements are based on the Danish
Qualifications Framework (DQF) reference levels. If a person had
more than one degree, the highest achieved academic or educational
level according to DQF was given priority.
Synklino Annual Report 2022
Management team
Thomas N. Kledal
Ph.D., MBA
Chief Executive Ocer and co-founder
Jette Wagtberg Sen
Ph.D.
Chief Operating Ocer
Carit Jacques Andersen
M.Sc. BA
Chief Financial Ocer
Romain Lalandes
PharmD, M.Sc.
Head of Business Development
Josefin-Beate Holz
M.D.
Chief Medical Ocer
Co-founded Synklino in . + years in life
science and biotech. Previous Head of Virology
and Life Science Engineering at DTU, CEO at
Inagen, senior scientist and group leader posi-
tions at the National University Hospital and at
Risoe, DTU and post doc at Stanford University.
Danish nationality.
Joined Synklino in . + years
experienced within drug development,
operations and CMC. Former Senior
Director at Symphogen A/S.
Danish nationality.
Joined Synklino in as consultant. +
years of drug development experience in the
pharmaceutical industry. Executive managerial
positions in international pharmaceutical
and biotech companies. Medical Advisor for
European Commission.
German nationality.
Joined Synklino in . + years of pharma-
ceutical and biotech experience as a financial
leader with several CFO positions. Experienced
taking companies public on the Nordic stock
exchanges and managing listed companies.
Danish nationality.
Joined Synklino in . + years of expe-
rience in Business Development & Strategy
in private and listed biotech companies.
Consultant for several biotech companies and
VC firms in Europe.
French nationality.
Synklino Annual Report 2022
Management team
Board of directors
Thomas Feldthus
M. Sc., MBA, HD(A)
Board member, independent
First elected to the Board in ,
Danish nationality
Profile and special competencies
Entrepreneur with extensive strategic
financial and general management experi-
ence within the life science industry. CEO
and co-founder of Saniona. Co-founder
of Scandion Oncology, Initiator Pharma,
Symphogen, and Ataxion. Previous roles
include CFO of Saniona, CFO of Symphogen
and Investment Associate at Novo A/S.
Current positions
Saniona (CEO), Rehaler (C), ResoTher Pharma
(B), Fertilizer Invest (CEO).
Morten Schrøder
B.Sc. Business Administration
Board member, independent
First elected to the Board in ,
Danish nationality
Profile and special competencies
An experienced investor, business angel
and board member in a range of mainly life
science and medtech companies.
Current positions
Holdingselskabet J.S.R af .. (C),
VICH-M (C), Winther Schrøder Holding
ApS (CEO), MS Invest (CEO).
John Haurum
M.D., D. Phil
Chair of the Board, independent
First elected to the Board in ,
Danish nationality
Profile and special competencies
Previously CEO of F-star, VP Research
at ImClone Systems (a wholly-owned Eli
Lilly subsidiary), CSO and co-founder of
Symphogen.
Current positions
ADCendo (C), AgomAb (C), CatalYm (C),
Neophore (B), Solid Therapeutics (C),
Storm (B).
Mette Rosenkilde
Ph.D., M.D
Board member and co-founder,
independent
Magnus Persson
M.D., Ph.D., Associate Professor
Board member, Independent
First elected to the Board in ,
Danish nationality
Profile and special competencies
+ years of research within molecular and
translational pharmacology at Copenhagen
University Faculty of Health and Medicinal
Sciences, co-founder of several biotech
companies.
Current positions
Bainan Biotech (C), Women in LifeScience
Denmark (B). Professor in Translational
Pharmacology, University of Copenhagen.
First elected to the Board in ,
Swedish nationality
Profile and special competencies
+ years of international experience from
leadership in Life Science innovation, devel-
opment and financing. Has built investment
funds in Sweden and abroad with a focus on
medical projects, particularly as Partner at
HealthCap in Sweden from inception and later
as Managing Partner in San Francisco based
The Column Group.
Current positions
Eir ventures Partners AB (C), Eir Ventures
I AB (C), Attgeno AB (C), Initiator Pharma
AS (C), Strike Pharma AB (B), One-Carbon
Therapeutics AB (C).
(C) = Chair of the Board; (B) = Board member; (CEO) = Chief Executive Ocer
Synklino Annual Report 2022
Board of directors
Mads Lacoppidan
M.Sc. in Marketing and Economics
Board member, Independent
Mads Aage Laustsen
Board member, independent
Christine Flarup Møller-Jensen
M.Sc. in Chemical Engineering
Board member, Independent
First elected to the Board in ,
Danish nationality
Profile and special competencies
Specialised in medtech companies. An expe-
rienced Digital Health Investor leading some
of the Nordics largest capital rounds (amongst
other in Corti and Dawn Health).
Current positions
Partner at Danmarks Eksport- og Investerings-
fond Reform, Dawn Health A/S (B), Corti ApS
(B), Reform Group Holding (B), KUBO Robotics
ApS (B), and NewBanking ApS (B).
First elected to the Board in ,
Danish nationality
Profile and special competencies
+ years’ experience in biologics develop-
ment and manufacturing. Co-founder and
former CEO of CMC Biologics (now AGC
Biologics), former CMO of Symphogen and
co-founder of Bactolife.
Current positions
Mr Bioinvest (CEO), Nanoform Finland Oyj
(B), VenomAid Diagnostics ApS (B), Filippa
Invest (B)
First elected to the Board in ,
Danish nationality
Profile and special competencies
End-to-end understanding of the biotech and
medtech value chain and broad knowledge
of pharmaceutical and business ethics regu-
lations. Member of DTU Advisory board and
subsequently Board of Representatives from
to .
Current positions
Senior Vice President at Novo Nordisk
Board of directors
(C) = Chair of the Board; (B) = Board member; (CEO) = Chief Executive Ocer
Synklino Annual Report 2022
Financial
statements
34 Income statement
34 Statement of comprehensive Income
35 Balance sheet
36 Statement of changes in equity
37 Cash flow statement
38 Notes
54 Statement by Executive Board
and the Board of Directors on the
Annual Report
55 Independent auditor’s report
57 Company information
Synklino Annual Report 2022
Financial statements
Income statement Statement of comprehensive income
T.DKK Notes 2022 2021
Employee costs 4, 5, 22
Depreciation of property, plant and equipment and right of use assets 10, 13
Other external expenses 5
Operating profit/loss
Financial income 6
Financial expenses 7
Profit/loss before tax
Income tax 8, 11
Profit/loss for the year
T.DKK Notes 2022 2021
Profit/loss for the year (57,549 ) (10,822 )
Total comprehensive income for the period (57,549 ) (10,822 )
34
Synklino Annual Report 2022
Income statement
(17,467 ) (4,953 )
(362 )
(42,421 )
(14 )
(6,741 )
(60,250 ) (11,708 )
(3,057 ) (975 )
(63,049 ) (12,683 )
(57,549 ) (10,822 )
Balance sheet
Assets Liabilities
T.DKK Notes
31 December
2022
31 December
2021
Property, plant and equipment 10 1,076 25
Right of use asset 13 1,086 0
Deposit 346 0
Total non-current assets 2,508 25
Income tax receivables 8 5,500 1,861
Prepayments 3,200 230
Other receivables 1,611 2,046
Bonds 9 100,235 0
Cash and cash equivalents 58,658 100,539
Total current assets 169,204 104,676
Total assets 171,712 104,701
T.DKK Notes
31 December
2022
31 December
2021
Share capital 14 680 400
Reserves 145,066 88,443
Total equity 145,746 88,843
Borrowings 12, 15 15,816 13,309
Lease liability 13, 15 452 0
Total non-current liabilities 16,268 13,309
Lease liability 13, 15 645 0
Trade payables 15 7,925 1,350
Other payables 15 1,128 1,199
Total current liabilities 9,698 2,549
Total liabilities 25,966 15,858
Total equity and liabilities 171,712 104,701
35
Synklino Annual Report 2022
Balance sheet
Statement of changes in equity
T.DKK Notes
Share
capital Reserves
Total
equity
Equity at 1 January 2022 400 88,443 88,843
Total comprehensive income (57,549 ) (57,549 )
Cash contribution 14 280 115,251 115,531
Cost directly related to cash contribution (6,618 ) (6,618 )
Share-based payments 22 5,539 5,539
Equity at 31 December 2022 680 145,066 145,746
Equity at 1 January 2021 59 (12,559 ) (12,500 )
Total comprehensive income 0 (10,822 ) (10,822 )
Conversion of B-shares to A-shares 2 0 2
Debt conversion 12, 14 22 11,750 11,772
Cash contribution 14 195 106,267 106,462
Cost directly related to cash contribution 0 (6,071 ) (6,071 )
Issue of bonus shares 122 (122 ) 0
Equity at 31 December 2021 400 88,443 88,843
36
Synklino Annual Report 2022
Statement of changes in equity
Cash flow statement
T.DKK Notes 2022 2021
Profit/loss for the year (57,549 ) (10,822 )
Changes in net working capital 21 3,622 (2,060 )
Adjustments 21 2,699 (1,106 )
Income taxes received 1,861 1,438
Net cash flow from operating activities (49,367 ) (12,550 )
Purchase of property, plant and equipment 10 (1,196 ) (36 )
Purchase of bonds 9 (100,000 ) 0
Net cash flow from investing activities (101,196 ) (36 )
Proceeds from share issues, net 14 108,913 100,394
Installments on lease liabilities (231 ) 0
Cash flow from financing activities 108,682 100,394
Net cash flow for the year (41,881 ) 87,808
Cash and cash equivalents, beginning of the year 100,539 12,731
Cash and cash equivalents at end of the year 58,658 100,539
37
Synklino Annual Report 2022
Cash flow statement
Notes
39 1 Accounting policies
42 2 Significant accounting estimates
and judgements
43 3 Primary activities
43 4 Employee costs
44 5 Research and development cost
44 6 Financial income
44 7 Financial expenses
44 8 Tax on profit for the year
45 9 Bonds
45 10 Property, plant and equipment
46 11 Deferred tax
46 12 Borrowings
48 13 Leases
48 14 Share capital
49 15 Financial risk management
50 16 Liquidity and capital management
50 17 Commitments and contingent liabilities
51 18 Fee to auditors appointed at the
general meeting
51 19 Related parties
52 20 Events after the balance sheet date
52 21 Cash flow specifications
52 22 Share-based payments
Page Note Page Note
Synklino Annual Report 2022
Notes contents
Notes
Note – Accounting policies
The annual report has been prepared under the historical cost convention, except for certain financial instruments that are
measured at fair value.
Foreign currency translation
Functional and presentation currency
Items included in the Financial Statements are measured using the currency of the primary economic environment in which
the Company operates (‘the functional currency’). The Company’s functional currency is DKK. The presentation currency is
also DKK and amounts are presented in thousands DKK (T.DKK), except when otherwise stated.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are generally recognised
in the income statement.
Employee costs
Employee costs comprise salaries and wages, including holiday pay and pensions and other costs for social security, etc.
for the Company’s employees.
Other external expenses
Other external expenses consist of cost to consultants, advisors and oce related expenses etc.
Reseach and development cost
Research and development expenses include wages and salaries, external research and development expenses,
expenses relating to obtaining and maintaining patents etc.
The research and development activities are comprised of clinical-enabling activities for product candidates. In line with industry
practice, internal and subcontracted development costs are expensed as they are incurred. Due to significant regulatory
uncertainties and other uncertainties inherent in the development of new products, development expenses do not qualify for
capitalisation as intangible assets until marketing approval by a regulatory authority is obtained or considered highly probable.
Financial income and expenses
Financial income and expenses are recognised in the income statements at the amounts that relate to the financial year.
Net financials include interest income and expenses, changes of fair value of embedded derivatives etc.
Income tax
The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary dierences and to unused tax losses.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regula-
tion is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid
to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary dierences arising between the tax bases
of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those tempo-
rary dierences and losses.
Current and deferred tax is recognised in the income statement, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or
directly in equity, respectively.
Researchand developmenttax credit related to the tax value of certain research and development expenses are
considerd part of income taxes.
Share-based payments
Share-based payments are provided to the participants of the Company’s warrant program. Information relating to this plan
is set out in note .
Synklino Annual Report 2022
Note
Notes
The employee costs of the warrants granted under the program is recognised in the income statement with a corresponding
increase in equity. The total amount to be expensed is determined by reference to the fair value of the warrants granted.
The total cost is recognised over the vesting period, which is the period over which all of the specified vesting conditions
are to be satisfied.
The warrants vest in portions (or tranches), which results in the recognition of a higher proportion of the costs in the early
years of the overall program.
Because all unvested warrants will become fully vested upon the occurrence of an exit event (IPO excluded in the defi-
nition), the Company revises its estimate of the length of the expected vesting period until the actual outcome is known.
Upon a change in estimate, the Company adjusts the recognised share-based payment cost on a cumulative basis in the
period in which the estimate is revised.
Property, plant and equipment
Property, plant and equipment is measured at historical cost less accumulated depreciation. The cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can
be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to the income statement during the reporting period in which they
are incurred.
Depreciations are calculated using the straight-line method, net of their residual values over their estimated useful lives, as
follows:
Other plant, fixtures and equipment - years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
income statement as other operating income/expenses.
Leases
Leases include oce and laboratory facilities.
Right-of-use assets
Right-of-use assets are initially measured at cost, which comprises the initial amount of the liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to
dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives.
Subsequently, the right-of-use asset is depreciated using the straight-line method from the commencement date to the end
of the lease term. Depreciation is recognised in profit or loss. Right-of-use assets are presented as part of property, plant
and equipment.
Lease liabilities
Lease liabilities are recognised at the present value of future payments in accordance with the lease agreements and
include the present value of future payments relating to reasonably certain extensions. Interest on the lease liabilities is
calculated using Synklino’s incremental borrowing rate and recognised under financial income or financial expenses. The
lease liabilities are reduced by any instalments paid to the lessor.
Synklino uses the same incremental borrowing rate for lease agreements with similar characteristics.
Changes to lease agreements after initial recognition are accounted for either as a modification to an existing agreement,
a separate agreement or a partial disposal depending on the nature of the change. Changes will result in changes to both
the lease liability and the right-of-use asset.
Short-term leases and leases of low-value assets
Short-term leases are recognised on a straight-line basis as an expense in profit or loss under the line item Other external
expenses. Short-term leases are leases with a lease term of months or less. The Company has no leases of low-value assets.
Cash flows
In the statement of cash flows, cash payments for the principal portion of the lease liabilities and related cash payments
for the interest portion are classified within the financing activities. For short-term leases or leases of low-value assets, the
lease payments are classified within the operating activities.
Note – Accounting policies (continued)
Synklino Annual Report 2022
Notes
Impairment of non-current assets
Non-current assets are tested for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount
exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets
(cash-generating units). Non-financial assets that suered an impairment are reviewed for possible reversal of the impair-
ment at the end of each reporting period.
Prepayments
Prepayments recognised as an asset comprise prepaid expenses regarding subsequent financial reporting years.
Other receivables
Other receivables consist of VAT etc. and are recognised initially at fair value and subsequently measured at amortised
cost using the eective interest method, less loss allowance.
Bonds
Bonds consist of Danish listed mortgages bonds. Bonds are measured at amortised cost using the eective interest
method as the contractual cashflows are solely principal and interest and the objective of the Company’s business model is
achieved by collecting contractual cash flows.
Cash and cash equivalents
Cash and cash equivalents comprises cash and bank balances.
Equity
Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.
Share premium
Premium on issue of shares are recognised as part of reserves.
Note – Accounting policies (continued)
Borrowings
Loan agreements under which the company does not have an unconditional right to avoid repayment in cash or where the
Company has an obligation to deliver a variable number of its own equity instruments are classified as financial liabilities.
Financial liabilities are initially measured at fair value which is generally equal to the proceeds obtained. Non closely
related embedded derivatives are separated from the host liability contract and measured at fair value through the income
statement. The dierence between the fair value of the financial liability and the initial fair value of the non closely related
embedded derivatives is considered the initial carrying amount of the liability host contract. Transaction costs are allocated
proportionately between the non closely related embedded derivatives and the host liability. The dierence between the
initial amount allocated to the liability host contract less transaction costs and the principal is amortised under the eective
interest method as part of interest expense over the term of the loan.
The Company has loans with the following non closely related embedded derivatives: conversion discount subject
to certain events occurring and exit payement depending on either the return obtained by the equity investors or the
proceeds raised. See further details in the note for Borrowings.
Fair value of the embedded derivatives is determined based on option pricing models and assessment of the likelihood of
an event qualifying for conversion at a discount or an exit taking place.
Other financial liabilities
Other financial liabilities, including trade and other payables, are on initial recognition measured at fair value. The liabilities
are subsequently measured at amortised cost.
Cash flow statement
The cash flow statement shows the Company’s cash flows for the year broken down by operating, investing and financing
activities, changes for the year in cash and cash equivalents as well as the Company’s cash and cash equivalents at the
beginning and end of the year.
Cash flows from operating activities are calculated as the net profit/loss for the year adjusted for changes in working capital
and non-cash operating items such as depreciation, changes in fair value of embedded derivatives etc. Working capital
comprises current assets less short-term debt excluding items included in cash and cash equivalents.
Synklino Annual Report 2022
Notes
Borrowings
The borrowings issued by the Company comprise certain non closely related embedded derivatives which are measured
at fair value. None of the significant inputs applied are observable and consequently represent level measurements in
the fair value hierarchy.
The assumptions to which the fair value of the embedded derivatives is most sensitive to is stated in note .
Reasonably possible alternative assumptions could have resulted in significantly dierent fair values.
Warrants
Warrants are valued at fair value at grant date which subsequently is recognised as cost in the income statement with a
corresponding increase in equity. The fair value measurement is based on a Black-Scholes option pricing model and the
significant inputs applied in the model are not observable, herunder the share price of Synklino.
Reasonable alternative assumptions could have resulted in significantly dierent values. See further details in note .
Significant accounting judgements
Key accounting judgements are made when applying accounting policies. Key accounting judgements are the judgements
made by the Company that can have a significant impact on the amounts recognised in the financial statements.
Development costs
As the company is involved in developing a new drug it incur significant research and development costs. There is no
definitive starting point for capitalising such internal development costs. Management must use its judgement, based on
the facts and circumstances of each project. The release of a new drug is strictly controlled by legislation and has to pass a
number of clinical trials before it can obtain a marketing approval. As the company has not received regulatory authority for
final approval of the drug it is management’s judgement that the company has not yet finally proved technical feasibility of
the product and therefore development costs are not capitalised.
Note – Accounting policies (continued)
Cash flows from investing activities comprise cash flows from acquisitions and disposals of property, plant and equipment
and bonds.
Cash flows from financing activities comprise cash flows from the raising and repayment of long term debt as well as
payments to and from shareholders.
New and amended standards adopted by the Company
The Company has adopted standards and interpretations eective as of January . The amendments did not have any
impact on the amounts recognised in prior periods and are not expected to significantly aect the current or future periods.
New standards and interpretations not yet adopted
Certain new accounting standards, amendments to accounting standards and interpretations have been published that are
not mandatory for December reporting periods and have not been early adopted by Synklino. These standards,
amendments or interpretations are not expected to have a material impact on the entity in the current or future reporting
periods and on foreseeable future transactions.
Note – Significant accounting estimates and judgements
The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the
actual results. Management also needs to exercise judgement in applying the Companys’s accounting policies.
The judgements, estimates and the related assumptions made are based on historical experience and other factors that
Management considers to be reliable, but which by their very nature are associated with uncertainty and unpredictability.
These assumptions may prove incomplete or incorrect, and unexpected events or circumstances may arise. The most
significant judgements and estimates, including the assumptions, for the individual items are described below.
Significant accounting estimates
Significant accounting estimates are expectations of the future based on assumptions, that to the extent possible are
supported by historical trends or reasonable expectations. The assumptions may change to adapt to market conditions and
changes in economic factors etc. The Company believes that the estimates are the most likely outcome of future events.
Synklino Annual Report 2022
Note
Notes
Note – Primary activities
The activities of Synklino are focused on research and development to develop groundbreaking therapies for treatment of
patients with chronic viral infections. Synklino’s first-in-class drug candidate SYN specifically targets cytomegalovirus
infection in transplantation patients and aims to change the current antiviral treatment paradigm by providing radically
dierent therapeutic opportunities and a path for transplant recipients to live a full life again. SYN is currently in the
preclinical phase of development where activities are focused on preclinical studies and manufacturing of SYN drug
product.
Note – Employee costs
T.DKK 2022 2021
Wages and salaries , ,
Share-based payment ,
Other social security costs
Other employee cost
Total , ,
Average number of employees
Key Management Compensation
Key Management consists of the Executive Board, Other Management and the Board of Directors. The compensation paid
or payables to Key Management for employee services is:
T.DKK 2022 2021
Executive Board:
Wages and salaries , ,
Share-based payments ,
Total , ,
Other Management:
Wages and salaries* , ,
Share-based payments ,
Total , ,
Board of Directors:
Board fee
Share-based payments ,
Total ,
Total compensation of key management personnel , ,
* Other Management includes consultants providing similar services as Key Management members.
Fees for such consultants are discloused as other external costs.
Synklino Annual Report 2022
Note -
Notes
Note – Research and development cost
T.DKK 2022 2021
Research and development cost recognised under
other external expenses and employee cost , ,
Note – Financial income
T.DKK 2022 2021
Foreign exchange rate gains
Interest on bonds measured at amortised cost
Note – Financial expenses
T.DKK 2022 2021
Changes in fair value of embedded derivatives , (,)
Interest on financial liabilities measured at amortised cost ,
Foreign exchange rate loss
Other financial expenses
,
Note – Tax on profit for the year
T.DKK 2022 2021
Current tax
Current tax:
Current tax on profits for the year (,) (,)
(,) (,)
T.DKK 2022 2021
Calculated .% tax on loss for the year before income tax (,) (,)
Tax eects of:
Research and development tax credit (,) (,)
Permarnent differences between tax and accounting purposes
Temporary differences between tax and accounting purposes ()
Tax losses carried forward, not capitalised (,) (,)
(,) (,)
Effective tax rate % %
Researchand developmenttax credit relates to the tax value of certain research and development expenses incurred by
Synklino A/S that are receivable according to the Danish tax legislation.
The tax value of loss carry-forward is not recognised as a deferred tax asset as the use of the tax loss carry-forward is
highly uncertain.
Synklino Annual Report 2022
Note -
Notes
Note – Property, plant and equipment
T.DKK It hardware
Laboratory
equiptment
Office
fixtures Total
Cost:
At January
Additions ,
At December ,
Accumulated depreciation
At January
Depreciation for the year
At December
Carrying amount December ,
T.DKK It hardware
Laboratory
equiptment
Office
fixtures Total
Cost:
At January
Additions
At December
Accumulated depreciation
At January
Depreciation for the year
At December
Carrying amount December
Note – Bonds
T.DKK 2022 2021
Cost January
Additions ,
Interest
Cost December ,
Fair value December ,
Potential adjustments in fair value of bonds at a given balance sheet date are not expected to have a negative impact on
the company’s cash position since the bonds are expected to be held to maturity.
Synklino Annual Report 2022
Note Note
Notes
Note – Deferred tax
At December , the Company had tax loss carry-forwards in Denmark of T.DKK , (: T.DKK ,)
for income tax purposes, all of which can be carried forward indifinitely according to the Danish Corporate Income Tax
Act. The tax loss carry-forward is not recognised as a deferred tax asset as the use of the tax loss carry-forward is highly
uncertain.
Note – Borrowings
T.DKK 2022 2021
Borrowings January , ,
Interest recognised as financial expense ,
Converted to equity (,)
Fair value adjustment of embedded derivative recognised as financial expense* , (,)
Borrowings at December , ,
* The conversion of loan (cf. below) in resultated in a gain on the host contract which have character of a transfer to embedded
derivatives and therefore have been netted in fair value ajustment of embedded derivatives.
The calculated value of embedded derivatives included in borrowings amount to T.DKK , (: T.DKK ,)
In loan , and was converted to equity, see further details in note .
Significant loan terms related to Loan
• Tranche I was issued in July and tranche II was issued in February and with a total principal amount of T.DKK ,.
• Maturity months after the issuance of tranche II.
• Interest coupon . % p.a. accruing over the term of the loan.
• Loan currency DKK.
• Lender conversion option if a capital increase in excess of million EUR (qualified investment) takes place before maturity.
The conversion will include the full loan amount, but the lender receives shares corresponding to / of the loan amount.
The conversion price corresponds to the average share price for the investors participating in the qualified investment.
The lender will at the same time be entiled to an exit payment of two times (x) the loan if the shareholders exit proceeds
exceeds million EUR and / of the loan if the shareholders exit proceeds does not exceed million EUR.
• Lender conversion option if a qualified investment does not take place before maturity of the loan. The conversion will
include the full loan amount, but the lender receives shares corresponding to / of the loan amount. The conversion
price corresponds to the market price of the company to be determined by the company and the lender. The lender will
at the same time be entitled to an exit payment of two times (x) the loan if the shareholders exit proceeds exceeds
million EUR and / of the loan if the shareholders exit proceeds does not exceed million EUR.
• An exit is defined as one or more events which of lender is dermined altogether or seperately to entail that materialy all
of the value of the Company is realiased in consideration of cash, herunder an IPO.
Synklino Annual Report 2022
Note Note
Notes
Significant loan terms related to Loans and
• Issued in September and with a principal amount of T.DKK , of each of the loans.
• Maturity months after the issuance.
• Interest coupon .-. % p.a. accruing over the term of the loans.
• Loan currency DKK.
• Lender conversion option if a capital increase in excess of million DKK (qualified investment) takes place before
maturity. The conversion price corresponds to the lower of the average share price for the investors participating in the
qualified investment less pct. (conversion price ) or a value maximum of million DKK divided by the fully diluted
share capital before the qualified investment (conversion price ).
• Lenders conversion option if an exit takes place before maturity. The conversion price will be conversion price . As an
alternative to conversion if an exit takes place the lender has the right to repayment of times the principal.
• Lender conversion option at maturity date. The conversion price corresponds to the minimum of conversion price and
the share price at the latest capital increase of at least , DKK.
Significant loan terms related to Loan
• Issued in December and with a principal amount of T.DKK ,.
• Maturity January (with quarterly annuity payments starting from January ).
• Interest coupon is % plus CIBOR p.a. accruing over the term of the loan.
• Loan currency DKK.
• Embedded bonus payment to lender of million DKK if a Founder’s or Investor’s (the equity investor in connection with
the loan agreement) shares in Synklino are sold for a proceeds per share, which is more than four times (x) as high as
the share price in connection with the Investor’s original equity investment.
Note – Borrowings (continued)
2022 2021
Significant assumptions related to the valuation of the embedded derivatives
Probability of exit proceeds exceeding million EUR (Loan )* % %
Probability of no exit due to failure in reaching phase in the
development activites (Loan )** % N/A
Discount rate (Loan )*** % %
Sensitivity to changes in fair value of the embedded derivative in T.DKK
Increase in probability of exit proceeds exceeds million EUR
with % points (Loan )
Increase in probability of no exit due to failure in reaching phase in
development activities with % points (Loan ) () N/A
Increase in discount rate with % points (Loan ) () N/A
* For calculation purpose it is assumed that exit will take place in or through an IPO.
** The failure rate is in accordance with the rates for infection deseases from the report “Clinical Development Success Rate -”
prepared by Biotechnology Innovation Organization, Biomedtracker and Amplion.
*** Discount rate in accordance with survey of median rate for large biotech companies referenced in the article “Valuing Pharmaceuical
Assets: When to Use NPV vs rNPV” from Alacrita Biotech Consultancy Company.
Synklino Annual Report 2022
Notes
Note – Leases
The statement of profit or loss shows the following amounts relating to leases:
T.DKK 2022 2021
Expense relating to short-term leases (included in other operating expenses)
Depreciation of right-of-use assets, buildings
Interest expenses relating to lease liabilities
Total
T.DKK 2022 2021
Additions ,
Cost December ,
Depreciation for the year
Depreciation December
Carrying amount at December ,
The total cash outflow from recognised lease agreements amounted to T.DKK (T.DKK in ) and includes
repayment of lease liabilities, interest and payments relating to short term leases.
The maturity analysis of lease liabilities is provided in the table ”Maturity analysis” in note Financial risk management.
Note – Share capital
2022 2021
DKK
Number of
shares
Nominal
value
Number of
shares
Nominal
value
The share capital comprises
A shares ,, , ,, ,
Share capital (fully paid) ,, , ,, ,
All shares have nominal value of DKK ..
: The share capital has been increased through a cash contribution of DKK , at a share price of DKK . per
share of DKK . corressponding to T.DKK ,. Costs directly related to cash contribution amount to T.DKK ,.
: The share capital has been increased with DKK , as part of conversion of B-shares to A-shares. The share capital
has furthermore been increased through a debt conversion of DKK , and DKK ,, at a share price of DKK .
per share of DKK . and DKK . per share of DKK . respectively, corresponding to an increase in equity of T.DKK
,. Further the share capital has been increased through a cash contribution of DKK , at a share price of DKK
. per share of DKK . corressponding to T.DKK ,. Finaly the share capital has been increase with DKK ,
by issue of bonus shares. Costs directly related to cash contribution amount to T.DKK ,.
DKK 2022 2021
Changes in share capital
Opening balance , ,
Conversion of B-shares to A-shares ,
Debt conversion ,
Cash contribution , ,
Issue of bonus shares ,
Closing balance , ,
Synklino Annual Report 2022
Note Note
Notes
Note – Financial risk management
The Company is exposed to a variety of financial risks from its operations.
These risks are monitored through a financial forecast that gives management the forward visibility into cash flow expecta-
tions relative to obligations. The company primarily have currency exposures in EUR and DKK and borrowings with floating
interest rates. The Company has not entered into any derivative financial instruments to hedge its exposure from changes
in financial risk or interest rate risk.
There has been no change in the Group’s financial risk management policies compared to last year.
Interest rate risk
As the Company’s bonds have a fixed interest rate, the interest income is not aected by changes in the market interest
rates. Instead the fair value of the bonds is aected.
As the Company’s borrowings (loan ) has a variable interest linked to CIBOR and hence the interest expense is aected
by the development in the market interest rate. For details related to borrowings, see note .
Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a balance sheet exposure will fluctuate because of
changes in foreign exchange rates. As the Company only has significant exposures in DKK and EUR management consider
the risk of changes in foreign currency as insignificant.
Credit risk
Credit risk arises from cash and cash equivalents with banks and investments in bonds in mortgages institutions.
To mitigate this risk, it is the Company’s policy only to use banks and mortgages institutions of high quality. To assess the
credit risk of these banks and mortgages institutions, the company monitors their credit rating made by external credit
rating agencies.
Liquidity risk
Management maintains sucient cash and the availability of funding through an adequate amount of committed credit
facilities to meet obligations when due. Management continuously monitors the company’s liquidity reserve on the basis
of expected cash flows. For further details on the Company’s current liquidity position see note : Liquidity and capital
management.
Market risks related to embedded derivatives are disclosed in note : Borrowings.
Maturity analysis.
The tables below illustrates the terms to maturity of financial assets and liabilities disclosed by category.
The amounts disclosed in the table are the contractual undiscounted cash flows (including interest payments).
T.DKK
Less than
1 year
Between 1
and 3 year
More than
3 years Total
As at December
Financial assets at amortised cost
Cash and cash equivalents , ,
Bonds , , ,
Other receivables , ,
, , ,
Financial liabilities at amortised cost*
Borrowings , ,
Lease liability ,
Trade payables , ,
Other payables , ,
, ,
* Borrowings include the potential payments related to embedded derivatives.
Synklino Annual Report 2022
Note
Notes
T.DKK
Less than
1 year
Between 1
and 3 year
More than
3 years Total
As at December
Financial assets at amortised cost
Cash and cash equivalents , ,
Other receivables , ,
, ,
Financial liabilities at amortised cost
Borrowings* , ,
Trade payables , ,
Other payables , ,
, ,
* Borrowings include the potential payments related to embedded derivatives.
Measurement and fair value hierarchy.
As borrowings have a variable interest rate the fair value approximates the carrying amount. For embedded derivatives
included in borrowings none of the significant inputs applied in calculating the fair value are observable and consequently
represent level measurements in the fair value hierarchy, see note . The fair value of bonds is based on listed prices
(level ), see note . Due to the short term nature of the Company’s other financial instruments, the fair value approximates
the carrying amount.
Note – Financial risk management (continued) Note – Liquidity and capital management
The Company is up to the present financed through a combination of equity and debt with embedded derivatives related
to exit payment. The exit payment depends on either the return obtained by the equity investors or the proceeds raised.
Based on the capital increase performed in November and June , the Company is suciently capitalised to
fund the planned activities into .
The Company expects that additional funding will be needed at the latest in to fund the company’s operation
and further develop its lead compound SYN. The additional financing may be raised in relation to a public listing
(IPO), through a private placement to new or existing shareholders, or through non-dilutive funding from collaboration
agreements.
Note – Commitments and contingent liabilities
Contingent liabilities
None
Commitments
The Company has one lease contract in relation to oce facilities. The future lease payments for the non-cancellable
lease period are T. DKK . (: T.DKK). The lease contract can be terminated with months notice however with
earliest termination with eect August , .
Synklino Annual Report 2022
Note Note Note
Notes
Note – Fee to auditors appointed at the general meeting
T.DKK 2022 2021
Statutory audit
Other assurance services
Tax consultancy
Other services
The fee for other service performed by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab
comprises assistance with accounting and other advisory services.
Note – Related parties
The Company does not have any shareholders with a controlling interest.
Transactions with board and key management personnel
Information about the Board of Directors and Key Management’s remuneration including warrants has been disclosed in
note and note respectively.
: In Other Management subscriped , shares at an average price of DKK . corresponding to a total
purchase price of T.DKK as part of the capital contribution cf. note .
: In members of the Board of Directors subscriped ,, shares at a price of DKK , corresponding to a
total purchase price of T.DKK , and further a subscription of , shares at a price of DKK . corresponding to
a total purchase price of T.DKK and the Executive board purchased subsequently , shares at an average price of
DKK . corresponing to a total purchase price of T.DKK as part of the capital contribution cf. note .
2022 2021
Executive board, number of shares in the Company ,, ,,
Other Management, number of shares in the Company , ,
Board of directors, number of shares in the Company ,, ,,
The following transactions were carried throug with related parties:
2022 2021
Subscriptions of shares from significant shareholders in DKK ,, ,,
Synklino Annual Report 2022
Note Note
Notes
Note – Events after the balance sheet date
No significant events have occurred between the reporting date and the publication of this annual report, which have not
already been included and adequately disclosed in the annual report, and which materially aect the assessment of the
Company’s results of operations or financial position.
Note – Cash flow specifications
T.DKK 2022 2021
Changes to net working capital
Decrease/(increase) in other receivables/deposit (,)
Decrease/(increase) in prepayments (,) ()
(Decrease)/increase in trade payables , ()
(Decrease)/increase in other liabilities () ()
, (,)
T.DKK 2022 2021
Adjustments
Income tax (,) (,)
Depreciations of tangible assets and right-of-use assets
Share-based payment ,
Changes in fair value of embedded derivatives , (,)
Interest on financial liabilities measured at amortised cost ,
Interest on bonds measured at amortised cost ()
Interest on lease liabilities measured at amortised cost
, (,)
Note – Share-based payments
Warrant program
At the extraordinary general meeting September , the board of directors was authorised to pass a resolution on
the issuance of warrants corresponding to nominally DKK ,..
The established warrant program is designed to provide long-term incentives for participants (including management,
board members and full-time employees) to deliver long-term shareholder returns. Further, the program is to be instru-
mental to retaining the participants in the Company.
A warrant entails the right to subscribe for one ordinary share of nominal DKK ..
Under the program, participants are granted warrants which vest proportionally over three years. For board members,
the warrants vest in equally large portions on dates specified by the board. For all other participants, the warrants vest
proportionally each month over the three years (i.e. / per month).
Vesting of the warrants is conditional on the participants’ ongoing employment with the Company. If a participant ceases
employment prior to two years of employment, all vested and non-vested warrants will lapse and become null.
Upon the occurrence of an exit event (IPO excluded in the definition), all unvested warrants will become fully vested.
The participants have the right to exercise vested warrants twice a year. However, the participant cannot exercise less than
one third of the total number of granted warrants at a time and may first exercise months after the grant date.
All warrants were granted on March . Warrants have been granted to Management, Board members and external
consultants providing similar services as key Management members.
The total warrant expense recognised in was T.DKK , (: T.DKK ) .
Synklino Annual Report 2022
Note Note
Notes
Fair value measurement
The fair value at grant date is determined using a Black-Scholes Model calculation that takes into account the share price
at grant date, the exercise price, the risk free interest rate for the term of the warrants, the expected volatility and the
expected maturity.
The model inputs for the warrants granted during the year ended included the following:
Share price at grant date DKK .
Exercise price DKK . for ,, of the granted warrants, and DKK .
for , of the granted warrants.
Risk free interest rate .%
Expected volatility .%
Expected maturity . years
The expected price volatility is based on an analysis of the historical volatility of peer-group companies and factors specific
to the Company.
The share price is determined by reference to a financing round in November . Management has assessed that
no significant developments in the Company took place between November and March that could have
impacted the value of the Company significantly.
Note – Share-based payments (continued)
Set out below are summaries of warrants granted under the program:
Management Board members
Full-time
employees
Total number
of warrants
Warrants as at January - - - -
Granted ,, , , ,,
Lapsed (,) (,)
Warrants as at December ,, , , ,,
Weighted-
average
exercise
prices
Weighted-
average
fair value
per warrant
granted
Weighted-
average years
to maturity
for warrants
outstanding
Range of exercise prices for
warrants outstanding
Low high
Warrants as at January
Granted . .
Lapsed .
Warrants as at December . . . .
Synklino Annual Report 2022
Executive Board
Board of Directors
Synklino Annual Report 2022
Statement by the Board of Directors
Independent auditor’s report
Synklino Annual Report 2022
Independent auditors report
CVR No
mne mne
Synklino Annual Report 2022
Company
Central Business Registration No: 38 77 86 76
Registered in Copenhagen
Executive Board
Thomas Nitschke Kledal
Board of Directors
John Sørensen Haurum (chairman)
Christine Flarup Møller-Jensen
Gunnar Magnus Severus Modée Persson
Mads Aage Lausten
Mads Lacoppidan
Mette Marie Rosenkilde
Morten Schrøder
Thomas Feldthus
Financial year
1 January - 31 December
Auditors
Company information
Synklino Annual Report 2022
Company information
Design and production: Noted
Frederiksborggade 1, second floor to the right
1360 Copenhagen K
Denmark
Central Business Registration No: 38 77 86 76
VAT No: 38 77 86 76
Financial year
1 January - 31 December
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Strandvejen 44
2900 Hellerup