Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Risks attributable to the Company being unable to acquire additional capital, retain or realize additional partnerships, or procure other co-financing, which could lead to a temporary suspension of development or force Saniona to conduct its activities at a slower rate than desired
• Risks related to the fact that clinical trials are comprehensive, time-consuming and costly and are associated with a high degree of uncertainty that may lead to delays and increased costs
• Risks related to Saniona being dependent on external parties in studies and drug development fulfilling their obligations and that Saniona may need to replace suppliers
• Risks related to the failure of Saniona and its partners to obtain or maintain the necessary permits to carry out pre-clinical studies and clinical trials or to obtain and maintain market approval for the sale of products
• Risks attributable to the fact that the Company’s patent does not constitute adequate commercial protection, that Saniona may infringe or be accused of infringing the rights of third parties, which may incur costs and/or loss of or limitations to Saniona’s rights
• Risks attributable to Saniona being dependent on key personnel, that Saniona’s activities may be delayed or terminated in the event of loss of key personnel or if Saniona is unable to recruit new people with relevant knowledge and expertise in the future
• Risks related to Saniona being dependent on partners to finance its projects and that, for example, there is a risk that projects will be delayed or have to be terminated if any partner chooses to suspend cooperation with Saniona
• Risks attributable to Saniona’s entitlement to royalties for successfully developed and marketed products, which means that the Company is dependent on future commercialization to generate revenues
• Risks related to the fact that tax audits and valuations may result in Saniona being subject to additional taxes or being denied tax deductions, for example in relation to transactions between Group companies and other related parties (so-called internal pricing issues), restructuring, tax deficits, residency for tax purposes, incentive schemes and VAT and other indirect tax issues

Mitigation Strategies

• Entering into partnerships for certain early projects to reduce ongoing capital needs
• Outsourcing chemical syntheses of new pharmaceutical substances to Syngene
• Supplementing internal competence with consultants and specialized CRO companies

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Environmental Metrics

ESG Focus Areas

• Sustainability
• Long-term interests

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Improved working environment through workplace assessments and analyses of sickness-related absences.

Governance Achievements

• Established a Nomination Committee with a diversity policy.
• Established three Board committees: Audit, Remuneration, and R&D.
• Adopted the COSO framework as a basis for internal control of financial reporting.

Climate Goals & Targets

Environmental Challenges

• Funding limitations leading to a voluntary pause of Phase 2b clinical trials for Tesomet.
• Deteriorating biotech market conditions.
• Closure of US operations and termination of US personnel.

Mitigation Strategies

• Actively exploring partnering opportunities to advance Tesomet.
• Refocusing on core expertise in ion channel drug discovery.
• Restructuring actions to reduce future annual operating expenses by approximately 70-75%.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte AB

Environmental Metrics

Social Achievements

• Implemented a workforce reduction of approximately 30% in March 2022 due to funding limitations.
• Closed U.S. operations in April 2022, resulting in a 70-75% reduction in annual operating expenses.

Governance Achievements

• Updated guidelines for remuneration to senior executives in 2023 to reflect the company's restructuring actions in 2022.

Climate Goals & Targets

Environmental Challenges

• Funding limitations led to the closure of the Phase 2b clinical trials of Tesomet for hypothalamic obesity (HO) and Prader-Willi syndrome (PWS).
• Challenging global developments and markets impacted the company's operations.

Mitigation Strategies

• Implemented a strategic program reprioritization and restructuring in March 2022, including workforce reduction and closure of U.S. operations.
• Renegotiated loan agreement with Formue Nord in September 2022, extending the loan maturity date and reducing operating expenses.
• Refocused efforts on partnering to secure non-dilutive funding.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Third-party Assurance: Deloitte AB

Environmental Metrics

ESG Focus Areas

• Sustainability

Climate Goals & Targets

Environmental Challenges

• Company restructuring actions in spring 2022, including workforce reductions and closure of US operations, rendering previous remuneration guidelines for US employees inapplicable.

Mitigation Strategies

• Revision of remuneration guidelines to remove provisions specifically targeted towards US employees.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Long-term interests

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities