Interim Report January - September 2011

New positive ATS (US) guideline recommends measuring airway inflammation in asthma management. Board appoints new CEO.

January – September 2011

• Net sales grew by 2% to SEK 64.4m (63.1). Adjusted for currency fluctuations, net sales rose by 11%
• The number of NIOX MINO® refill tests sold has increased by a total of 15% and for clinical use in the US by 156%
• The loss after tax amounted to SEK 88.0m (62.3), corresponding to a loss per share before dilution of SEK 0.9 (0.9)

July – September 2011

• Net sales grew by 8% to SEK 22.6m (21.0). Adjusted for currency fluctuations, sales grew by 14%
• The number of NIOX MINO® refill tests sold grew by a total of 21%, and for clinical use in the US, sales rose by 102%
• The loss after tax amounted to SEK 31.8m (15.0), corresponding to a loss per share before dilution of SEK 0.3 (0.2)
• The American Thoracic Society has released an official clinical practice guideline that provides strong recommendations to measure FENO in patients with asthma.
• The board of Aerocrine AB appointed Scott Myers as new CEO.
• Clinical study published in the Lancet showing reduced exacerbations in pregnant women using a FENO-based treatment algorithm.
• The Allergy & Asthma Specialists, P.C. has adopted Aerocrine’s FENO technology for airway inflammation measurement as part of its clinical standardization on a system-wide basis. Allergy & Asthma Specialists, P.C. is the largest group practice in the Philadelphia region specializing in allergic disease, asthma and immunology.
• Morten Gunvad was appointed Vice President of Commercial Operations Europe and Asia.

Significant events after the period

• Summons to an extra general meeting to be held on November 16, was published in October

AEROCRINE IN BRIEF

Comment by the CEO

Two major events have created a positive momentum for Aerocrine in the period, the publication of the new ATS guidelines and also in September, the peer-reviewed article in the Lancet by Dr.s Gibson, Powell et al. These are both very important milestones for the use of the NIOX MINO and FENO as a tool for inflammation control. The fact that ATS now recommends the broad use of inflammation monitoring in the US and the publication of additional peer-reviewed articles are important prerequisites both for a more widespread use of our products and for a broader reimbursement of the test by private health insurance providers and managed care organizations. Based on the positive momentum, we will now further increase our investments in the US to expand our sales and clinical organizations and activities towards achieving broader reimbursement. The guidelines by themselves are not enough to achieve the necessary sales growth, but are relevant as private payers consider changing their reimbursement policies. It will still require hard work to make the major payers realize the important impact our products can make on improving patient care and cost effectiveness of existing and new therapies for asthma.

There are challenges outside the US as well with the lack of guidelines and reimbursement in Europe but with the recruitment of Morten Gunvad we have strengthened our commercial leadership outside the US. 

As the new CEO, I have been focusing my team on reviewing our commercial efforts. Based on the new guidelines that work is now more about execution in our key markets. I feel fortunate to be able to join Aerocrine at such a pivotal time with all the positive momentum and continue to build Aerocrine for future success," says Aerocrine's CEO, Scott Myers.

For further information, please contact:

Scott Myers, CEO                                                                                                                Michael Colérus, CFO

Tel: +46 8 6290780                                      www.aerocrine.se                                            +46 8 6290785