Pharma Equity Group (“PEG” or “the Company”) published its H1 report for 2025 on the 14th of August 2025. The following are key events that we have chosen to highlight in the report:
- Strategic Shift Positions PEG as a Diversified Life Science Investment Platform
- Executive Management Change – Well Experienced CEO Joined April 1st, 2025
- Advancing RNX-011 and RNX-051 Toward Partnerships and Licensing Deals
- Receivable from Portinho S.A. Remains Valued at DKK 58m
- Strained Liquidity Position – Additional External Capital Expected
New Strategy Aimed at Driving Growth and Shareholder Returns
During Q2-25, PEG introduced a transformative investment strategy aimed at repositioning the Company as a focused investment platform within life sciences. The objective is to accelerate growth and expand the portfolio across pharmaceuticals and, notably, into Medical Devices and MedTech, areas that typically offer shorter development timelines, lower capital intensity, and more streamlined regulatory pathways compared to traditional drug development. This strategic shift represents a clear change from PEG’s historic pharma-centric model and reflects an ambition to diversify the risk-return profile while capturing value across multiple innovation cycles.
The updated strategy builds on structural changes initiated during Q1-25, including the appointment of Christian Tange as CEO. Execution of the new strategy is underpinned by a governance-led investment framework centered around a cross-functional Investment Committee (IC), which will evaluate new opportunities, oversee portfolio development, and guide capital deployment, with the aim to maximize risk-adjusted returns.
That said, successful execution remains contingent on PEG’s ability to secure external financing, which Analyst Group believes will be a critical prerequisite for unlocking the long-term value embedded in the revised investment platform. Moreover, Reponex will continue to operate as a portfolio company and remains a strategic cornerstone, with its main focus on developing RNX-051 and RNX-011, the two programs identified as having the shortest paths to market and existing partner interest. Additionally, PEG’s current focus remains on advancing the abovementioned candidates toward licensing agreements, making the new strategy more of a long-term commitment.
Executive Management Change
As communicated in the Q1-25 report comment, Christian Henrik Tange assumed the role of CEO of PEG on April 1st, 2025. He brings over 25 years of experience in financial transformation, capital raising, and strategic transactions across both listed and private companies in Europe and the US. His background includes senior roles at Karolinska Development, a Nasdaq Stockholm-listed investment company, where he served as CFO and Investment Manager, focusing on corporate strategy, funding, and M&A. With a broad international investor network and a track record of raising over DKK 500 million, we consider Tange well-positioned to lead PEG’s transition into a governance-driven investment platform. In parallel, Sebastian Bo Jakobsen was appointed CEO of PEG’s subsidiary Reponex. Having served as Manager of Scientific Development since 2022, Jakobsen brings in-depth knowledge of the pipeline assets. His role is focused on driving clinical execution and accelerating licensing dialogues, currently with the main focus centered around RNX-051 and RNX-011. Analyst Group maintains a positive view of both appointments, given their respective alignment with PEG’s updated strategy and near-term execution priorities.
Clinical Advancements and Ongoing Discussions with Potential Licensing Partners
At the start of H1-25, PEG submitted trial applications for RNX-011 in multiquadrant peritonitis, seeking approval to initiate a Phase 2 clinical trial in Q3-25, with the primary endpoint of improving 30-day survival and resolving sepsis in high-risk patients. In parallel, management aims to secure a co-development partner for a Phase 2b trial by Q4-25, with execution planned alongside the partner. If PEG secures a co-development partner, the associated study costs are expected to be covered by the partner, effectively mitigating the impact on PEG’s operating expense base. A successful Phase 2b study is expected to pave the way for an exit or licensing agreement, positioning RNX-011 as a potential near- to medium-term value inflection point in PEG’s portfolio.
Regarding RNX-051, PEG is targeting the establishment of a major international partnership to co-fund and co-develop a Phase 2b study for RNX-051, with initiation planned for Q3-25. The trial’s primary objective will be to confirm proof-of-concept in a larger patient cohort and demonstrate a statistically significant reduction in adenoma recurrence. Execution of the study alongside a strategic partner is expected to significantly de-risk both the clinical and financial profile of the program. A successful outcome from the Phase 2b trial could act as a key value inflection point, enabling an exit or licensing transaction and advancing RNX-051 toward commercialization in a large, underserved market.
Finally, while PEG had previously highlighted RNX-041 as a focus area, the promising outlook for RNX-051 and RNX-011 has led to all resources being allocated toward advancing these two candidates toward lucrative agreements. Nevertheless, RNX-041 still holds significant potential but is currently on hold.
Receivable from Portinho S.A.
At the end of H1-25, the receivable from Portinho S.A. remained valued at DKK 58m on the balance sheet, consistent with end of December 2024. As noted in earlier reports, PEG filed a summons with the Maritime and Commercial High Court in Q2-24 against Portinho S.A. to recover approx. EUR 9.6m plus interest. PEG stated in the Q4-24 report that a decision in this case is not expected in 2025. However, the work to recover the receivable has been further intensified since 31 December 2024. Additionally, arbitration proceedings against Interpatium, the real estate developer on Madeira Island, are ongoing before the Danish Institute of Arbitration (DIA) concerning the sale of shares in Portinho. The receivable amount as per the end of H1-25, including agreed interest, amounts to EUR 11.5m, corresponding to DKK 88.8m.
Solid Cost Control
During H1-25, the Company’s operating costs totaled approx. DKK -8.6m (-11,8), a decrease of 27% compared to H1-24. Breaking down the OPEX more in detail, R&D costs have decreased by 38% Y-Y, while the administrative costs have witnessed a Y-Y decrease of 21%. The sharp drop in R&D spending is primarily due to a higher cost base in H1-24, when PEG conducted a Phase II clinical proof-of-concept trial for RNX-051, leading to significantly lower related expenditures in the first half of 2025. Nevertheless, we view PEG’s continued cost discipline as positive. Looking ahead, we anticipate a moderately higher OPEX base, driven by the ramp-up in clinical activities for RNX-051 and RNX-011. PEG maintains the Company’s guidance for the full year 2025, with DKK 11m in revenue and an expected EBT loss in the range of DKK 4-7m (excl. potential gains/losses related to the Portinho receivable).
Strained Liquidity Position
The Company’s cash balance at the end of June 2025 amounted to approx. DKK 0.7m, a decrease of DKK 3.5m compared to approx. DKK 4.2m at the end of Q4-24. PEG has shown an operational burn rate of approx. DKK -11.8m (-11.7) during H1-25, equivalent to approx. DKK -2.0m/month.
PEG’s liquidity is highly strained, with a cash balance of only DKK 0.7m at the end of H1-25 despite raising approx. DKK 6.8m in convertible loans during the period. At the start of H2-25, the Company secured an additional DKK 5.8m through new convertible loans; however, these proceeds are earmarked for the repayment of DKK 4.8m in existing convertible debt and a DKK 1.0m utilized credit facility, resulting in no material net cash inflow. Analyst Group therefore considers it likely that PEG will seek additional capital in the near term to reinforce the Company’s liquidity position.
In summary, PEG’s H1-25 represents a period of strategic transformation, clinical advancement, and continued financial pressure in terms of liquidity. The Company is repositioning itself as a diversified life science investment platform, expanding beyond pharmaceuticals into Medical Devices and MedTech. This strategic shift is underpinned by the appointment of an experienced CEO and the implementation of a governance-driven investment framework. The primary operational focus remains on advancing RNX-011 and RNX-051 toward Phase 2b trials in parallel with active licensing discussions, where the signing of agreements would represent significant value-creating triggers.
Cost discipline has been maintained, with operating expenses down 27% Y-Y in H1-25. Nevertheless, liquidity remains constrained, with a cash position of only DKK 0.7m at the end of June and early H2 financing fully allocated to debt repayment. With commercial revenue not expected until late 2025 and a sustained operational burn rate, Analyst Group considers additional capital raising in the near term to be highly likely.
We will return with an updated equity research report of PEG.
