The previous version incorrectly stated that net sales decreased by 47.4 percent but it increased by 47.4 percent, this has now been corrected. The figures are unchanged compared to previous releases.
FOURTH Quarter FEB 1st – APR 30th (2021/22)
▪ Net sales amounted to TSEK 18,323 (12,429), corresponding to a increase of 47.4% percent compared to same period prior year
▪ Operating profit (EBIT) totaled TSEK -468 (-3,088)
▪ Net profit amounted to TSEK 3,273 (-2,192)
▪ Cashflow from operating activities amounted to TSEK -5,498 (-1,001). Cash and cash equivalents at the end of the period amounted to TSEK 75,319 (7,658)
▪ Earnings per share amounted to SEK 0.18 (-0.14)
Significant events during the quarter
▪ During the quarter, four new centers, two of which are in the US, performed their first OPRATM Implant System surgeries.
▪ As society reopened in the wake of COVID, several major training sessions for surgeons from different hospitals were conducted, which is an important element in increasing the availability of treatment.
▪ There is an increased presence in Germany as Medizinische Hochschule in Hannover recently started offering the OPRATM Implant System.
▪ The company is continuing to expand and develop the organization. During the period, the company welcomed nine new employees: seven at Integrum AB and two at Integrum Inc.
▪ Work on the transition to certification according to MDR continues, albeit at a lower intensity and with reduced expenses. During the period, costs of SEK 12.6 million were capitalized as intangible assets. The costs refer to external costs as well as time spent internally.
▪ After the end of the period, the board appointed Rickard Brånemark as the company’s new CEO. In connection with this, Rickard Brånemark resigned as Chair of the Board. Bengt Sjöholm was subsequently appointed Chair of the Board.
The period May 1st 2021 – APR 30TH 2022
▪ Net sales amounted TSEK 55,725 (43,094), an increase with 29.3% compared to same period prior year
▪ Operating profit amounted to TSEK 1,039 (-1,822)
▪ Net profit amounted to TSEK 21,272 (-2,149)
▪ Cashflow from operating activities amounted to TSEK -20,393 (-5,078)
▪ Earnings per share amounted to 1.19 SEK (-0.14)
Significant events in the period
▪ A directed issue was performed in mid-June and the company received a total of SEK 121 million before issue expenses. A number of Swedish and international institutional investors have been added with this issue, including Didner & Gerge Fonder, Stena Finans, Vasastaden Holding and Consensus Fonder.
▪ During the period, 11 new hospitals started treating patients. A total of more than 40 hospitals now offers the OPRATM Implant System.
▪ Integrum has been selected as a strategic partner for the US Dept of Veterans Affairs (VA). This a strategic and long-term partnership for our work in establishing the OPRATM Implant System as a standard treatment for veterans.
▪ Costs of SEK 29.2 million have been capitalized as intangible assets and refer to expenditure for activities related to the ongoing transition from certification according to MDD (the former European Medical Device Directive) to the more comprehensive MDR (Medical Device Regulation).
When I co-founded Integrum with my father 24 years ago, I did so with a clear vision: to change the market for arm and leg prosthetics in the same way that the global market for dental implants had changed. We knew that it had taken almost two decades to establish osseointegrated dental implants. We now know that the time needed to establish bone-anchored arm and leg prostheses will be the same as when dental implants were introduced, and once the transition happens the potential is enormous. A couple of years ago, I chose to leave the position of CEO at Integrum to devote my full attention to establishing the company and our products in the US. After many operations and meetings, the foundation was laid, and as of last autumn, under the leadership of Tom Dugan, a detailed plan is in place for a major expansion in the US market. Integrum as a company is facing its most expansive phase to date. At the end of May, I left my role as Chair of the Board to lead the operational work as CEO once again. This is a role that I’m taking on with great enthusiasm and optimism, and the entrepreneur in me is longing to roll up his sleeves and, together with all of my dedicated colleagues, take Integrum to the next level.
The market conditions for this are good. During the final quarter of Integrum’s 2021/22 financial year, the pandemic began to loosen its grip on the healthcare sector. Although we remain prepared for further knock-on effects from the pandemic, we can state that the work we’ve done during the pandemic is beginning to pay off. We can report our highest-ever sales figures. We’ve conducted several successful training sessions with surgeons in both the US and Europe, and we’ve established ourselves in several new hospitals.
During the quarter, sales amounted to SEK 18.3 million, which is an increase of 47% compared with the same period in the previous year. Total sales during the financial year amounted to SEK 55.7 million, which is 29% more than in the previous year.
Integrum has an ambitious growth strategy that is mainly driven by our investments in the US. We’ve invested in various initiatives during the year, all of which aim to establish our OPRATM Implant System as a standard of care in the US. Although the pandemic has made efforts more difficult at times, now that the restrictions have eased we’ve been able to conduct two major OPRATM forums, where we bring together patients, orthopaedic engineers, and surgeons from different hospitals to inform them about the possibilities of using the OPRATM Implant System. We’ve also conducted a major training session whereby we trained 16 new orthopaedic surgeons from four hospitals. Each such training session has a ripple effect, as more orthopaedic surgeons become certified and can independently perform implant operations, which increases the availability of treatment. As availability increases, awareness of the OPRATM Implant System will also increase among prosthetists, patients, and surgeons.
Co-operation with the US Department of Veterans Affairs (VA) is developing well and our sights are set on the long-term goal that all amputees within the VA who are medically suitable should be offered treatment with the OPRATM Implant System. During the quarter, we also strengthened important elements of our infrastructure in the US. Agreements have been signed with both Millstone Medical and SkyBridge Resource Center to the handle logistics, distribution, warehousing, and payment systems. We are therefore well-prepared to scale up as demand for our products increases.
Also in Europe, during the quarter we saw the pandemic starting to loosen its grip on the healthcare sector. In Germany, our most important European market, the hospital at the Medizinische Hochschule in Hannover recently started offering the OPRATM Implant System. BG Klinikum in Duisburg also now offers the OPRATM Implant System, and three successful surgeries have been performed on patients whose thumbs had been amputated.
As more people use our products, the demand will increase for effective follow-up with the healthcare sector, to researchers and to our users. We also want to expand our indications and bring new products to market. In April, we welcomed Dr. Karin Ganlöv as the new Chief Medical Officer with medical responsibility for both the products we have on the market and future products. Karin has extensive experience both as a surgeon and from the medical technology industry. She is already a great asset to the company.
It takes persistent effort to establish a new, advanced, and disruptive treatment. Consequently, every new hospital that starts offering our implant system, every training session for new surgeons, and every interaction with potential patients is important. As we sum up the 2021/22 financial year, we can see that our combined efforts have established a hotbed for growth in the US, and the final quarter shows that activity in hospitals in both the US and Europe is now increasing. We look forward to continuing to change the mindset among our users, prosthetists, and surgeons around the world as to what quality of life is possible after an amputation.
This disclosure contains information that Integrum AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 10-06-2022 08:48 CET.
For more information please contact:
Rickard Brånemark, CEO. Phone: +46 70 846 10 61, E-mail: firstname.lastname@example.org
Dennis Baecklund, CFO. Phone: +46 72 556 68 69, E-mail: email@example.com
Erik Penser Bank is Certified Adviser and can be reached at +46 (0) 8-463 8000.