Summary of Interim Report January - September 2020, Dicot AB

Third Quarter 2020

• Net sales amounts to KSEK 0 (75)
• Earnings for the period amounts to KSEK -3 629 (-3 183).
• Earnings per share -0.10 (-0.41) SEK

January - September 2020

• Net sales amounts to KSEK 0 (75)
• Earnings for the period amounts to KSEK -13 353 (-9 866).
• Earnings per share -0.57 (-1.27) SEK

Statement from the CEO

We continue the work of further developing our drug candidate. In September, the report from the first study together with Pelvipharm was presented. The results show that our drug candidate Libiguin® gives a significant and dose-dependent effect on erection compared to placebo at all measured parameters in Pelvipharm's established animal model. In other words, very promising results. The work is now continuing, and several studies will be carried out during the year.

The French company Pelvipharm has since the 90s worked with 170 different projects in the field of sexual dysfunction. They have several animal models with which we can jointly build a preclinical platform to establish treatment times and doses for our drug candidate. Dicot's primary indication is erectile dysfunction, and our second indication is premature ejaculation. The mapping of the mechanism of action is ongoing in parallel via the various studies that are being carried out and results will come in different stages in the future.

During the autumn, another collaboration with Dicot's partner in South Africa, Parceval Ltd, was initiated. The Bio-Innovation Africa * project aims to ensure sustainable and long-term delivery of raw materials for Dicot's drug candidate. Bio-Innovation Africa, funded by the German Federal Ministry of Economic Cooperation and Development, will promote sustainable and mutually beneficial business contacts between Europe and Africa. This is done by following high ethical, social, and environmental standards in the use of African natural resources.

Dicot uses plant parts from trees as a raw material in the drug candidate Libiguin®. In collaboration with Bio-Innovation Africa, Dicot will be assisted in mapping the distribution area of trees in South Africa. The collaboration also provides an opportunity to evaluate a relocation of the extraction process for the raw material to South Africa to get closer to the source of the raw material. All this will promote the possibility of conserving biodiversity, ensuring a sustainable supply of raw materials, and creating new jobs in South Africa in accordance with the objectives of Agenda 2030. The project will run until mid-2022.

I want to thank our shareholders for their trust and patience. Together with Pelvipharm, we are now building the foundation for the preclinical studies and ensuring our supply of material throughout the chain - from raw material to pharmaceutical substance. The goal is to reach clinical studies with a solid foundation and a successful development.

*within Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)