Prostatype Genomics presents Quarterly report for the third quarter of 2021. The Report is available on the Company's home page.
Quarter 3 (1 July – 30 September 2021 compared with 1 July – 30 September 2020) summarized
- Net sales amounted to 426 (556) TSEK.
- Net revenue amounted to 0 (15) TSEK.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to -3 613 (-3 555) TSEK.
- Cash flow from current operations in the quarter amounted -3 831 (-3 782).
- Total cash flow for the period amounted to 18 888 (-4 181) TSEK.
- Earnings per share amounted to -0,25 (-0,4) SEK.
Year to date (1 January – 30 September 2021 compared with prior financial year 1 July 2019 – December 2020) summarized
- Net sales amounted to 1 787 (4 637) TSEK.
- Net revenue amounted to 10 (684) TSEK.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) amounted to -9 748 (-15 765) TSEK.
- Cash flow from current operations in the quarter amounted -10 697 (-14 712) TSEK.
- Total cash flow for the period amounted to 10 684 (13 170) TSEK.
- Earnings per share amounted to -0,65 ( -1,32) SEK.
Significant events during the third quarter
Strengthened market organization
During the quarter, the company strengthened its marketing organization with Ulrika Flock, who took on the role of Sales & Marketing Manager, and Nicklas Rosendal is the company's new Communications Director.
In August, Prostatype Genomics signed a collaboration agreement with Proteomedix AG ("Proteomedix"), a Zurich-based science-driven company with an approved prostate cancer product. The agreement covers cooperation regarding both marketing and R&D.
Directed new share issue
In August, the company carried out a directed new share issue that provided the company with approximately SEK 24.7 million. The capital is intended to finance activities carried out within the framework of the collaboration with Proteomedix AG, as well as accelerated market entry into priority European markets.
New distributors in Spain and Portugal
In August 2021, Prostatype Genomics entered into an agreement with Eligen Diagnostica and BioPortugal Lda. as the company's distributors in Spain and Portugal. These companies are leading distributors of advanced healthcare solutions in Spain and Portugal and will market and distribute Prostatype®. The agreement runs until 2024.
New collaboration in the UK, Cambridge Clinical Laboratories
In August, the Company announced that it had entered into a collaboration agreement with the leading British laboratory company Cambridge Clinical Laboratories ("CCL"). CCL will not only offer Prostatype® in its own laboratories but also promote its use in other urological laboratories around the UK and Ireland.
Study at the Academic Hospital
In August, the Company released the preliminary results from the clinical study that has been conducted at the University Hospital in Uppsala under the leadership of Associate Professor Michael Häggman. The study was conducted to show whether results from the use of Prostatype® before decisions on treatment of patients with prostate cancer correspond to the actual aggressiveness of the tumour, as well as the correlation in P-score between index tumour and other cancer areas in the prostate. For both issues, the study indicates correlation with high statistical significance.
Events after the balance day
Extended Lock-up period
In connection with the IPO of Prostatype Genomics, board members as well as management and other shareholders entered into lock-up agreements. These agreements expired on November 3, 2021, which is 12 months after the first day of trading in Prostatype Genomics’ shares and warrants on the Nasdaq First North Growth Market.
Both the board and management have now, based on the original agreements expiring soon, entered into extended lock-up agreements. The parties that have entered into the agreements are Creathor Venture Fund III (SCS) SICAR, Creathor Venture Fund III Parallel (SCS) SICAR, the board members Håkan Englund, Michael Häggman, Anders Lundberg, CEO Fredrik Persson and CFO Michael af Winklerfelt. These shareholders together own approximately 30 percent of the total shares in the Company.
Market entry Italy
In Italy, Prostatype Genomics has established operations by contracting Maurizio Ballerini (MD) as Senior Director of Market Development Italia for the company. Ballerini is a medical doctor and has, among other things. worked for medical technology companies such as Abbott Diagnostics and Randox with successful results as responsible for sales of PCA3 tests (tests to determine the risk of developing prostate cancer).
Market entry Germany
In Germany, Prostatype Genomics has established operations by contracting Karlheinz Dewald as Director of Market Development Germany for the company. Dewald has many years of experience from commercial roles in leading companies in areas such as biotechnology, oncology, and urology. Most recently, Dewald led the implementation of a new molecular biomarker for oncological diagnostics and treatment monitoring in Germany, Switzerland, and Austria.
Several of my recent quarterly reflections have included hopes that the restrictions due to the corona pandemic will end and give healthcare the opportunity to start working on the care debt that has been built up, and which affects many cancer patients who must wait for treatment. It is obvious that Prostatype Genomic was negatively affected by the pandemic, with delayed launches of Prostatype® in our target markets. A concrete and very positive sign that conditions are about to change is that important medical congresses have recently opened for physical meetings, and now we hope that this development will continue. Having the opportunity to meet treating physicians and discuss how we can help them make the right decision is extremely satisfying and a very important step in establishing ourselves internationally. Following the pandemic, healthcare is also looking for more potent and specific tools to streamline the work of managing the care queues that have emerged, including in prostate cancer. Prostatype® is an excellent tool in that situation and several countries, including Germany and France, are accelerating the work of introducing modern biomarkers for more effective diagnostics and prognosis, including in the field of prostate cancer.
At the time of writing, Prostatype Genomics has participated in several Swedish and international meetings, and even more are planned for the coming months. Two of the international congresses we have attended have taken place in Italy and Germany and we are already seeing the effect of having local sales organizations in place. During the fourth quarter, the company will participate in congresses in the UK and Germany together with our new partners Cambridge Clinical Labs and our German colleague Karlheinz Dewald.
In connection with the listing on Nasdaq First North Market last year, we announced our ambition to initiate an international market presence. Despite the above challenges during the year, we realized this by establishing ourselves in five new markets. Behind the market establishments is an extensive strategic and tactical work to find an optimal approach. Each market needs to be approached according to its unique conditions, which is why we have chosen different establishment strategies in different markets. This has resulted in Prostatype Genomics, in addition to the Nordic domestic market, thus far having a market presence in Germany, Italy, the United Kingdom, Spain and Portugal. We intend to focus on these markets during the near future to ensure that the required resources are fully available before continuing our geographical expansion further.
The work of launching a product such as Prostatype® is not unique but follows a model that is most easily described through the image below.
We are today in steps 2 through 4, where we have a strong operational focus on the private healthcare market. We have also initiated the work with reimbursement (compensation from national authorities), but that is a relatively lengthy process. The private healthcare market is large and usually faster at adopting news, which is why we focus on this segment. I will return regarding how the work with the private market is progressing and what progress we have made in terms of reimbursement.
In Sweden, Prostatype Genomics has strengthened its market organization. During the autumn, Ulrika Flock took on the role of Sales & Marketing Manager and will work to build up the Nordic market. Nicklas Rosendal is our new Communications Director and will accelerate our work to build patient interest via social media and collaborations with Swedish and international patient organizations.
Prostatype Genomics has great potential to contribute to better individualized prognosis, the right treatment, and large savings for healthcare. In order to take advantage of this potential, we carried out a directed new share issue during the quarter, which provided the company with approximately SEK 24.7 million.
We have thereby strengthened our financial position and been able to accelerate our European presence, conduct international validation studies and can bring forward further market entries, e.g., with the help of our partner the Swiss company Proteomedix.
In collaboration with Proteomedix, we have also taken the step into the multiomics segment in terms of research, where we are currently studying the possibilities of combining two modern biomarkers into what can develop into a very interesting opportunity. When our initial pilot studies are completed, I will of course return with what further steps we take in this work.
The corona pandemic has had a negative impact on our results during the third quarter and we and we are obviously not satisfied. But as mentioned above, we care currently seeing that healthcare and its decision-makers are reopening to meetings and discussions, which gives us better opportunities to accelerate the work of commercializing Prostatype®.
I would also like to take this opportunity to thank all of you shareholders for your ongoing support and your continued conviction that Prostatype Genomics has something unique to offer patients with prostate cancer.
CEO, Prostatype Genomics AB
Solna 18 November
This disclosure contains information that Prostatype Genomics 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 18-11-2021 08:00 CET.