Normally, we experience a subdued demand for our products in the summer months. Despite this, our first quarter of 2023/2024 (May-July) represents one of the strongest in Integrum’s history. We start to see effect of all ongoing awareness activities in the U.S., and with a continued focus on commercial execution by our new U.S. management, we are steadily moving towards profitability.
Growth in the first quarter
Revenues amounted to SEK 20.4 million during the first quarter, which corresponds to 18.3 percent growth compared to the corresponding quarter last year (14.2 percent in local currency), and 12.5 percent growth compared to the previous quarter (11.1 percent in local currency). Operating profit is at SEK -2,925 thousand, although excluding one-off costs, we are now showing a SEK 0.5 million profit for the quarter. At the end of the quarter, liquid assets amounted to SEK 29.9 million. Together with SEK 23.2 million in secure accounts receivables, we have a stable financial position.
New U.S. president with focus on commercial execution
In June, Jeffrey Zanni was appointed President Integrum U.S., succeeding Tom Dugan. Jeffrey Zanni is a very experienced commercial orthopedic sales executive who has proven to adapt to new markets and has deep relationships with leading orthopedic surgeons. His experience, network and knowledge will take our U.S. operations to the next level and accelerate our sales process to ensure that the attention we have from patients, leading hospitals, and researchers is transformed into business. Already during Tom Dugan’s leadership, we have launched extensive awareness campaigns, strengthened the organization, and formulated a clear reimbursement strategy, all essential strategic building blocks for future growth. With these in place, we can shift our focus to commercial execution, and I am thrilled to welcome Jeffrey Zanni to lead the next phase in the company’s development.
Integrum continues to be the innovative leader
Our OPRATM Implant System is the only bone-anchored prosthesis approved by the FDA, giving us a clear first-mover advantage. While our near-term business focus is to establish bone-anchored prostheses as a global standard of care for amputees, we have a long-term commitment to continue to minimize the impact on daily life of losing a limb – and by that reinforcing our position as the innovative leader in the field.
We drive this development together with the best researchers around the globe, and progress is reported in leading scientific journals such as Science and Nature. In June, Shirley Ryan AbilityLab – a top-ranked physical medicine and rehabilitation hospital based in Chicago –received a five-year clinical research grant totaling USD 8.7 million from the National Institutes of Health (NIH), which is the largest funder of biomedical research in the world. The grant will be used to fund the first clinical program in the world combining osseointegration, targeted muscle reinnervation and pattern-recognition control, using implanted sensors. The researchers will use Integrum’s e- OPRATM Implant System in the program, showcasing the leading position of our product development. Not only will this provide us with valuable clinical insights, it is also anticipated that Integrum will receive up to USD 1.3 million during the program to support the study activities.
In July, the prestigious scientific journal Science Translational Medicine published the first case study of a person with above-elbow amputation obtaining unprecedented control of every finger in a bionic hand. The scientific paper illustrates how Integrum’s technology, combined with advanced reconstructive surgery and AI, for the first time made it possible for an above-elbow amputee patient to control every finger of a prosthetic hand as if it were his own. This is a major breakthrough and gives a clear vision of what Integrum will be able to offer in the future.
Combining short-term profitability and long-term innovation-based leverage
As a highly innovative company, we need to balance our efforts to become a solid and profitable company near-term with our ambitions to have the first-mover advantage in a highly innovative and ground-breaking industry also in the future. During this quarter, we showcase a double-digit growth, we have appointed a highly commercially experienced and well-connected leadership in the U.S., and an extensive NIH-funded research program has been launched with our next-generation implants. Altogether, I am confident that we are positioned in precisely the right place.
Mölndal, 31 August 2023
This disclosure contains information that Integrum AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 31-08-2023 08:00 CET.
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