Nanologica AB has updated its strategy focusing on accelerating commercial growth, broadening the offering, and increasing focus on North America and Europe. To lead the next phase of development, the Board of Directors has appointed Mark Quick as CEO of the Group. Current CEO Andreas Bhagwani will continue as General Manager of Nanologica's purification and separation business with a primary focus on driving commercial expansion. The Board also intends to resolve to carry out a rights issue of appx. SEK 110.5 million to support the execution of the strategy and accelerate the path to profitability.
Earlier this year, Nanologica appointed a strengthened Board and commenced a thorough review of the business strategy. Following this review, the Board now provides this update to the strategy and outlines a number of changes.
Clear commercial progress, approaching inflection point
While Nanologica has yet to achieve a full commercial breakthrough, the company has established a strong foundation in the growing peptide purification market. Nanologica is now a qualified supplier to several pharmaceutical manufacturing customers and has strengthened its position as a specialist in purification technologies. With stable production, a broader product portfolio and a more structured commercial organization, the Board believes the conditions for sustained growth are stronger than before.
Increased focus on North America and Europe
Nanologica's initial commercialization efforts focused on China, providing valuable market experience and an initial customer base. With silica production now stable, the company will increasingly direct its commercial efforts toward North America and Europe, where profitability potential is greater. China will remain a significant market, particularly through customers serving US and European pharmaceutical markets.
Syntagon delivering according to plan
Nanologica's subsidiary Syntagon continues to perform in line with its growth plan. A strengthened sales organization has increased business development activity and expanded engagement with new and existing customers and commercial growth will continue. The company also benefits from the pharmaceutical industry's growing focus on local and European manufacturing, supporting demand for Syntagon's established CDMO capabilities.
Broadening the Group’s offering
Nanologica is expanding beyond its traditional silica-based purification products with complementary solutions addressing a broader range of purification and separation needs. In parallel, Syntagon is extending its service offering to create additional revenue streams by leveraging existing expertise, infrastructure and installed capacity.
Leadership for the next stage of growth
To execute the updated strategy, the Board has appointed Mark Quick as CEO of the Group. Mark, who is also a member of Nanologica's Board of Directors, brings extensive experience in commercialization, international expansion, pharmaceutical manufacturing and M&A, including senior leadership roles at Recipharm, and currently serves as Partner at Flerie AB. Mark Quick will assume the role as CEO once the Swedish Companies Registration Office (Bolagsverket) has granted an exemption from the residency requirement applicable to a CEO under the Swedish Companies Act. Andreas Bhagwani will remain CEO until that exemption has been obtained.
"Nanologica has a unique opportunity ahead. The foundations are in place, and our focus will be on executing our growth plans and delivering results. I look forward to working with the team to realize the Group’s full potential", says Mark Quick, incoming CEO.
Andreas Bhagwani will remain CEO until the exemption referred to above has been obtained and will thereafter continue within the Group as General Manager of Nanologica's purification and separation business, with responsibility for accelerating commercial growth.
"Mark taking on the CEO role is an important step for the Group. His commercial judgement and extensive CDMO experience will be valuable in the company’s next phase. I look forward to focusing fully on the purification and separation business, where I believe I can contribute most to Nanologica’s success”, Andreas Bhagwani comments.
As part of the new leadership, Axel Elner will join as Group CFO in mid-November.
Rights issue to support growth
As a result of the Board’s review, it has been determined that additional capital is required to fully execute the updated strategy to reach profitability. The Board therefore intends to resolve to carry out a rights issue of appx. SEK 110.5 million, for which several existing shareholders have indicated their support. In addition, Sterling Pharma Solutions, as a key business partner to the company, intends to invest in the issue. Further details will be communicated separately. The company remains committed to disciplined cost control and a clear focus on sales growth, cash flow and profitability.
Positioned for the next phase
The Board believes Nanologica is now entering a new phase, supported by stable operations, a strengthened organization, a broader offering and improving commercial momentum. The support of existing and new shareholders in the intended rights issue demonstrates continued confidence in the strategy and the company's long-term prospects.
“We are entering a period where execution will be critical. Mark Quick has demonstrated an ability to convert potential into business results and is the right leader for this next phase. Combined with Andreas Bhagwani’s focus on commercialization and the support of our owners, we believe the Group is well positioned to achieve profitability and create long-term value”, says Thomas Eldered, Chairman of the Board.