CS MEDICA A/S (” CS MEDICA” or the” Company”) hereby provides the monthly CEO letter for July to keep their shareholders and other interested parties updated about expected objectives and activities for the forthcoming month. The CEO letter covers important events of July, including status in development, and touches upon current events within the Company’s industry and field of business.

In July, we will continue focusing on finalizing all ongoing negotiations with significant distributors and initiating new distributor negotiations based on leads from our Vitafoods fair in May. Our ongoing negotiations within big pharma have now moved to the third phase, with NDA signed and the regulatory process initiated.

We are in the overall process of tailoring our go-to-market plans for each product by establishing a dual distribution strategy with an omnichannel focus. Additionally, we invest in best-in-class clinical trials, post-consumer tests, and substantial direct-to-consumer marketing for innovative engagement channels to build our CANNASEN® CBD brand and support our new partners. Our efforts and investments enable us to meet our sales forecast and carve out a leading position in its indication, despite head-to-head competition from established players.

With our new CGO/CMO, we are now in a position where we can monitor all relevant markets for early signs from stakeholders. Any deviations from an expected launch trajectory are detected and addressed promptly. We have set up a control tower to manage execution and track performance against weekly objectives that led up to our launch goals. We are in the process of setting up daily data feeds from distributors and third-party vendors so that we can swiftly shore up any areas of weakness that emerge. The control tower team holds a 15-minute stand-up huddle every morning to track progress in every function. When early data from medical engagement suggests that disease-state education isn’t as effective as expected in our key markets, we quickly step in to redesign or create material to address the country’s concerns and needs better.

During the coming months, our clinical trials within Psoriasis will be finalized in phase III. Subsequently, we expect to initiate clinical trials covering: Nasal Spray Night, Protective Nasal Gel and Pain Patch, and Invitro test for Wound gel.

Our current development and the status within our distributor negations give me great confidence in CS MEDICA’s ability to execute according to our strategy.

Significant events since the last CEO letter

• June 10, 2022, CS MEDICA announced that the final efficacy analysis in their clinical trial of CANNASEN®CBD Arthritis Gel (NGA-01) met all the trial’s primary efficacy endpoints. Data analysis indicates that CANNASEN®CBD Arthritis Gel (NGA-01) effectively reduces joint pain, swelling, stiffness, and pain during flexion of joints of participants with osteoarthritis with joint pain; knee, hip, ankle, elbow, and shoulder. The final objective analysis is based on 60 cases of osteoarthritis, as specified in the study protocol.
• June 28, 2022, CS MEDICA signed a distributor agreement with Forbe Healthcare Ltd – corresponding to an order value of DKK 37,1 million over a 3,5-year period.

• June 28, 2022, CS MEDICA announces that the Company has signed a distributor agreement with NaturaMedica. The agreement covers the territory of Slovenia and includes 4 of CS MEDICA’s medical device products under the CANNASEN brand. The order amounts to 20,700 units, corresponding to DKK 0,9 million in revenue, which will be distributed over a 3.5-year period.

New sales channels since the last CEO letter

• Launch – Apotekeren.dk – landing page
• Product releases in Denmark – CANNASEN® CBD Nasal Spray Night

Objectives and activities July

Distributor sale (CanNordic): During the coming July, we have the following expectations:

• Finalizing and signing with several Distributors, plus white label and private label agreements.
• Receipt of orders from several Distributors, plus white label and private label agreements.
• The new sales intern will optimize follow-up on the pipeline of new potential distributors and streamline processes.
• Ensure a strong launch of the long-waited CANNASEN® CBD Nasal spray Night, highly anticipated by current customers and new potential partners.

BtC channel sales (Galaxa Pharma): During the coming month, we are expecting the following CANNASEN® CBD product releases and launches:

• Product releases in Denmark
  – CANNASEN® CBD wound gel
• Launch – Dinapoteker.dk- online
  – Anti-Hair Loss Serum, Protective Nasal Gel, PSOR + ATOPIC lotion
• Launch – webapoteket.dk- online
  – Protective Nasal Gel, PSOR + ATOPIC lotion, Pain Patch
• Launch – Amazon
  – Launch of Anti-Hair Loss Serum, Nasal Spray Night, Wound gel on amazon.se
  – Launch of Brand store Amazone.de

Clinical trials: Despite the delays in our clinical trials during covid, we in  expect to have the following clinical trial finalized dureing the comming month:

Clinical trial – phase III

• Psoriasis gel versus Placebo
• Psoriasis gel & Psoriasis Caps versus Placebo gel & Placebo Caps
• Arthritis gel & Arthritis Caps versus Placebo gel & Placebo Caps

All documented and published on a minimum of two Science platforms with the help from The University of Naples Federico II, expectedly within this year. Subsequently, we expect to complete clinical trials in the field of sleep, pain, and allergy.

Technology: The preliminary test of our CIM (our Automated Test Solution) in the beta version was postponed due to a higher priority on generating sales. We expect to start our preliminary test after summer, starting with the Arthritis organization, followed by a test in cooperation with the Psoriasis organization, both in Denmark. Studies like this are incredibly important for the data they bring and the relationship building with disease organizations, medical practitioners, business administrators, and future leaders. They are a crucial part of our commercialization efforts. Hence, we are furthermore in July launching a recruitment campaign to build a solid consumer base for post-tests, testimonials and reviews, and pre-launch statements.

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I hope you enjoyed our CEO letter. We look forward to keeping you updated with our Company’s industry and field of business in future CEO letters.

For more information about CS MEDICA, please contact:
Lone Henriksen, CEO
Phone: + (45) 71 20 30 47
Email: lh@galaxapharma.com
Website: https://www.cs-medica.com/

CS MEDICA A/S is a Danish medico cannabis company founded in 2011. CS MEDICA is committed to developing, manufacturing, and commercializing over-the-counter (OTC) medical device products containing cannabinoids. The Company runs its business through the two fully-owned subsidiaries, Galaxa Pharma A/S (distributor and representative of foreign manufacturers in the Nordic, registered medical device product distributor) and CanNordic A/S (Medical device developer and seller (BtB), registered medical device product manufacturer). CS MEDICA distributes products across the European borders and is headquartered in Copenhagen, Denmark.

The company is listed on Spotlight Stock Market in Stockholm (symbol: “CSMED”). For more information about CS MEDICA cs-medica.com.

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