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Philogen innovating targeting PRESS RELEASE PHILOGEN S.p.A. THE BOARD OF DIRECTORS APPROVES THE POSITIVE NET FINANCIAL POSITION FOR THE THIRD QUARTER OF 2021 , AMOUNTING TO 90,905 THOUSAND EURO , AND NOTES THE PROGRESS OF THE MAIN TRIALS FOR NIDLEGY ™ AND FIBROMUN IN ACCORDANCE WITH EXPECTED TIMELINES Siena ( Italy ) , 11 November 2021 - In compliance with the disclosure commitments undertaken by the Company in the context of the recent listing process , as indicated in the Registration Document available on the Company's website ( www.philogen.com , " Investors / IPO " section ) , the Company announces that the Board of Directors of Philogen S.p.A. ( the " Company " or " Philogen " and , together with its Swiss subsidiary Philochem , the " Group " ) met today and approved the Group's net financial position as of 30 September 2021 and noted the progress of the main clinical trials for Nidlegy ™ and Fibromun . NET FINANCIAL POSITION AS OF 30 SEPTEMBER 2021 The following table sets out the Group's Net Debt as of 30 September 2021 , prepared in accordance with ESMA Guidance 32-382-1138 dated 4 March 2021 and Consob by way of Reminder Notice No. 5/21 : Figures in thousands of euros Net financial debt ( A ) Cash and cash equivalents 30 31 September 2021 30 June 2021 31 March 2021 December 2020 3 1 2 2 ( B ) Cash equivalents ( C ) Other current financial assets ( D ) Liquidity ( A + B + C ) ( E ) Current financial debt 15,852 21,505 73,637 11,956 91,974 91,736 48,776 49,984 107,829 113,242 122,414 61,943 9 15 6 15 ( F ) Current portion of non - current financial debt 2,030 ( G ) Net current financial debt ( E + F ) 2,039 ( H ) NET CURRENT FINANCIAL INDEBTEDNESS ( G - D ) ( 105,790 ) ( I ) Non - current financial debt 14,886 2,018 2,033 ( 111,209 ) 15,132 2,043 1,790 2,048 1,805 ( 120,366 ) ( 60,137 ) 15,698 15,899 ( J ) Debt instruments ( K ) Trade payables and other current payables ( L ) Non - current financial debt ( I + J + K ) ( M ) NET FINANCIAL DEBT ( H + L ) 14,886 ( 90,905 ) 15,132 ( 96,077 ) 15,698 ( 104,668 ) 15,899 ( 44,238 ) ( * ) Net financial debt is an alternative performance indicator , not identified as an accounting measure within the IFRS framework , and therefore should not be considered as an alternative measure to those provided by the Group's financial statements to assess the Group's financial position . The Group closed the third quarter of 2021 with liquidity of Euro 107,829 thousand compared to Euro 61,943 thousand on 31 December 2020 , and a positive net financial position on 30 September 2021 of Euro 90,905 thousand compared to a net financial position , also positive , of Euro 44,238 thousand on 31 December 2020 ( showing an overall percentage increase of over 100 % compared to 31 December 2020 ) . The change in the net financial position compared to December 31 , 2020 , mainly derives from the capital raised during the IPO , amounting to Euro 65,404 thousand , net of commissions paid to the consortium for the institutional placement and costs related to the issue of new shares of approximately Euro 3,635 thousand . Between the second and third quarters of 2021 , the net financial position decreased by approximately 5 % , from € 96,077 thousand on 30 June 2021 to € 90,905 thousand on 30 September 2021. In the same period , liquidity fell from € 113,242 thousand on June 30 , 2021 , to € 107,829 thousand on September 30 , 2021 , a decrease of approximately 5 % . The latter change is mainly due to ( i ) costs of ordinary operations of approximately Euro 4,966 thousand , ( ii ) investments for the construction of the new GMP plant in Rosia ( Siena ) of approximately Euro 791 thousand , ( iii ) the net positive change in the fair value of the securities portfolio of approximately Euro 247 thousand and ( iv ) cash receipts for ongoing research and development contracts of approximately Euro 97 thousand . Current and non - current financial indebtedness decreased from € 17,165 thousand on 30 June 2021 to € 16,925 thousand on 30 September 2021 , a decrease of about 2 % due to the progress of the existing amortisation plans . It should be noted that financial indebtedness is represented for approximately Euro 11,823 thousand by the notional debt inherent to the lease contracts of the buildings for the three company sites , represented according to the international accounting principles ( IFRS 16 ) . The remainder relates to the outstanding loan taken out to finance the expansion of the Rosia ( Siena ) 1