Prostatype Genomics AB announced that during 2022 and 2023, Prostatype Genomics has introduced Prostatype®?, the company's prognostic gene test for prostate cancer, in European pilot markets and in Taiwan in parallel with a mapping of the market in the USA. Based on these experiences, the company can now specify the strategy moving forward which means: that the company continues to invest in attractive entry countries within Europe; that the company expands the business in Asia with Taiwan as a springboard; that the company implements a quick and cost-effective establishment in the American market. This will be achieved at the same time as an efficiency program is implemented, which means that running costs are reduced by approximately 30% (approximately SEK 9 million on an annual basis) without affecting sales and continued research.

Prostatype Genomics has two main strategic areas of activity: commercial establishment and strengthening of Prostatype®?'s scientific basis in the form of external studies. Over the past two years, the company has systematically worked to map and evaluate various markets and approaches from a commercial perspective on site in various countries in order to identify whether the following criteria are met or can be met in the near future: Clinical acceptance of genetic testing in prostate cancer and confirmed clinical benefit; Market acceptance via clinics evaluating and starting to use Prostatype®? on a smaller scale.

It is difficult to predict how a patient's prostate cancer should best be treated with conventional methods. The company have been able to establish that the clinical need for accurate biomarkers in diagnosed prostate cancer is very clear regardless of European country. The company has managed to achieve a high trial rate in clinics with strong results and the doctors are positive, which has shown that Prostatype®?

fulfils a large and clear clinical need. Prostatype®? will be launched on the American market as a so-called LDT product (Laboratory Developed Test).

The company thereby avoid a long, costly and uncertain FDA process. The company do not differ from American companies that provide similar products but use the same established approach. Furthermore, do not establish own laboratory in the USA but work with a "lab-in-lab" solution where the company uses an already existing infrastructure of a partner who holds the necessary permits and a so-called CLIA license.

This ensures high flexibility for extensive sales in the US in a cost-effective manner. The US market for product is estimated to be worth approximately 600 MUSD annually. With a completed study in the USA, goal is for the product to achieve the attractiveness required to be able to switch up the business after Fourth Quarter 2024 via partnerships with major players in the industry on a global or regional basis either in the form of part ownership or commercial collaboration.

This work has already started. As already mentioned, the company, based on the experiences gained during 2022 and 2023, has introduced an efficiency program. This program will lead to an annual reduction of current costs corresponding to SEK 9 million or approximately 30% of the total cost.

The board's and management's joint assessment is that this can be implemented without the overall strategy or pace being affected, as resources are instead concentrated on the markets where the company see immediate potential. Work on continuous product development can continue at an unchanged level. Streamlining further frees up the resources needed for the company's primary focus, which is the American market.