First quarter (January-March 2022)
- Revenues amounted to SEK 55.2 (41.8) million, an increase of 32%, mainly through higher licensing revenues. Adjusted for currency the increase was 23%.
- EBITDA amounted to SEK -4.0 (1.9) million with an EBITDA-margin of -7% (5%), a result of initiated investments in accordance with the focused growth strategy.
- Operating profit amounted to SEK -16.6 (-9.7) million.
- Net loss for the period amounted to SEK -16.5 (-10.5) million. Earnings per share amounted to SEK -0.47 (-0.32).
- Cash flow from operating activities amounted to SEK -11.9 (-0.9) million corresponding to SEK -0.34 (-0.03) per share.
Key events during the first quarter
- The global licensing partnership with Zimmer Biomet was expanded to cover several product areas.
- A focused growth strategy and new long-term financial targets were presented.
- Clinical study with Bactiguard's endotracheal tube published – shows significant reduction in ventilator-associated pneumonia.
- Bactiguard assisted the healthcare system in Ukraine with intensive care products.
- Carin Jakobson was appointed CFO and will join Bactiguard in June.
Key events after the end of the first quarter
- Bactiguard entered into a global development agreement with Dentsply Sirona in the dental segment.
Impact of COVID-19 effects and the war in Ukraine
The World Health Organization (WHO) has now reported the lowest number of deaths in COVID-19 in two years. At the same time, global trade and economic developments are affected by shutdowns in China. Due to the unpredictable behavior of the SARS-CoV-2 virus near term developments are therefore still difficult to assess.
Bactiguard does not operate and has no suppliers in Russia or Ukraine. The war has therefore not had any significant impact on the company's operations, position or results. If the war is prolonged and the impact on the world economy is substantial, it may have a greater impact. We continue to monitor the development of both the pandemic and the war closely and continuously evaluate the operational and financial effects.
CEO comments on the first quarter
A broader and stronger licensing business strengthens our position in infection prevention
During the quarter, we took several significant steps in the implementation of our growth strategy. Through the expanded partnership with Zimmer Biomet and the new collaboration in the dental field with the leading global company Dentsply Sirona, we are broadening our scope to more product categories and application areas. At the same time, we see that sales of the BIP portfolio begin to pick up speed when healthcare and society return to a more normal situation.
Two new licensing and development collaborations
We saw an increase in license revenues from Becton, Dickinson & Company (BD) during the quarter and our new collaborations with globally leading Zimmer Biomet and Dentsply Sirona in the orthopedic and dental fields strengthen the market position for Bactiguard’s unique technology in infection prevention. It is a seal of quality that Zimmer Biomet, after two and a half years of close partnership, has chosen to expand the collaboration to include most of its product portfolio. We are also very proud of the collaboration with Dentsply Sirona, one of the world's leading dental solution providers, where we together develop dental products with Bactiguard’s coating technology. With Dentsply Sirona, we have taken the step into a new therapy area – dental – which is in line with our focused growth strategy.
Accelerated BIP-sales
During the quarter, sales of our own product portfolio began to gain momentum, driven by the increased investments we make in marketing activities and the sales organization, and healthcare in parts of the world starting to return to normal activity after the pandemic. We saw increased demand for both catheters and wound care products, especially in markets where we have our own sales forces, for example, the Nordic countries, Malaysia and India.
Outlook
The global need for infection prevention is great and here Bactiguard's technology and product offering can make an important difference. Our technology is well proven and over 40 clinical studies show that it is both safe and effective.
We see great potential in continuing to expand the licensing business both existing and new therapeutic areas. Our expanded and new collaborations with Zimmer Biomet and Dentsply Sirona have strengthened Bactiguard's market position in infection prevention and give us a broader base from which we will have the opportunity to expand our licensing business significantly over time.
There is also a great need for our own product portfolio, which we meet through investments in product development, regulatory adjustments, higher production capacity as well as an expanded go-to-market organization.
Our vision is to protect people from infections and thereby contribute to more efficient care and better patient health. With our technology, established collaborations with leading players in medical technology and a clear growth strategy, we have a good platform for strong future profitable growth. As we have previously communicated, we expect that the current rate of investment will result in accelerating growth and significantly improved future profitability.
Anders Göransson, CEO
The interim report for Bactiguard Holding AB (publ) for the period January-March 2022 is now available as a PDF at www.bactiguard.com.
This information is information that Bactiguard Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below 2022-04-27, at 08.00.
For further information, please contact:
Gabriella Björknert Caracciolo, CFO and deputy CEO, mobile: +46 72 141 62 49
Presentation of Q1
An audiocast for shareholders, investors and analysts will be held today at 11:00 CET, where CEO Anders Göransson and CFO Gabriella Björknert Caracciolo will present the interim report and answer questions. The report and a presentation for the audiocast will be available at Bactiguard’s website www.bactiguard.com
To participate in the audiocast, please use this link: www.bactiguard.com/Q1-2022
To participate only by conference call, please dial:
- SE: +46850558350
- UK: +443333009030
- US: +16467224902
Questions can be asked either in writing via the audiocast or orally if you attend the conference call.
