Year‑end report 2010
Favourable sales growth in the US for NIOX MINO. Total capital of SEK 268 million raised in 2010
January – December 2010
- Net sales fell by 14% to SEK 84.7m (98.8); adjusted for currency impact net sales fell by 7%
- Sales of NIOX MINO® refill tests rose by 10%
- The loss after tax amounted to SEK 85.8m (85.1), corresponding to a loss per share before dilution of SEK 1.2 (1.3)
- Total of net SEK 268 million was raised from new and existing investors in 2010
October – December 2010
- Net sales fell by 17% to SEK 21.6m (25.9); adjusted for currency impact net sales fell by 9%
- Sales of NIOX MINO® refill tests fell by 3%
- The loss after tax amounted to SEK 23.4m (17.0), corresponding to a loss per share before dilution of SEK 0.2 (0.3).
- In December, a pre‑paid order amounting to SEK 6.4m and mainly involving refill tests was received from a pharmaceutical company in the US – the sum will be recognised as revenue in connection with delivery in 2011.
- At the Extraordinary General Meeting on 21 October, Scott Beardsley was elected as a new board member and Lars Gatenbeck resigned from the Board.
Significant events after the end of the period
- In the suit being brought by Medisoft SA in Germany, which is seeking to have three of Aerocrine’s patents declared invalid, a ruling was issued regarding one of these patents. Aerocrine’s patent was upheld with certain changes to two of the patent requirements, meaning that all three patents remain valid in Aerocrine’s suit against Medisoft.
AEROCRINE IN BRIEF
| 1 October – 31 December | 1 January – 31 December | |||
| SEK million | 2010 | 2009 | 2010 | 2009 |
| Net sales | 21,6 | 25.9 | 84.7 | 98.8 |
| Gross profit/loss | 12.7 | 17.1 | 57.5 | 69.0 |
| Gross margin% | 59 % | 66% | 68 % | 70% |
| Operating profit/loss | ‑21.1 | ‑17.8 | ‑85.0 | ‑84.0 |
| Profit/loss after tax | ‑23.4 | ‑17.0 | ‑85.8 | ‑85.1 |
| Cash flow, current operations | ‑13.1 | ‑10.1 | ‑74.0 | ‑65.7 |
| Total cash flow | 75.3 | ‑11.7 | 230.3 | ‑68.5 |
Comment by the CEO
“With the continued support of the strengthened group of owners and the completed share issues, Aerocrine has begun making investments aimed at securing reimbursement for airway inflammation tests from private health insurance companies together with strengthening its commercial organisation in the US. The increase in sales of NIOX MINO and refill tests in the US is favourable and can be expected to increase with positive decisions on cost reimbursement from major health insurance companies. Over the past months, payment for inflammation testing by private payers following physicians’ requests has increased in the US. New clinical guidelines regarding inflammation testing in the US are expected to be published by the American Thoracic Society during the first half of 2011. Finally, the clinical study that Aerocrine carried out with Kaiser Permanente, a major US health insurance company, reported positive results which have been published.
The Company’s results in Europe during the year were weak. This is attributable in part to unfavourable currency exchange trends, the weak economic situation in several parts of Europe motivating cost cuts in healthcare, but also in part due to the activities of competitors. Aerocrine is vigorously pursuing patent processes in Europe against companies marketing competing products without licensing Aerocrine’s patents.
The new generation NIOX MINO was successfully launched in Europe and the US while the cooperation with Panasonic to develop the next generation of products for both clinical and home use by patients is progressing,” says Aerocrine’s CEO, Paul de Potocki.
For further information, please contact:
Paul de Potocki., CEO Michael Colérus, CFO
Tel: +46 (0)8‑629 07 80 www.aerocrine.se +46 (0)8‑629 07 85
About Aerocrine Aerocrine AB is a medical technology company focused on the improved management and care of patients with inflammatory airway diseases. As the pioneer and leader in the technology to monitor and manage airway inflammation, Aerocrine markets NIOX® Flex and NIOX MINO®. Both products enable fast and reliable management of airway inflammation and may therefore play a critical role in more effective diagnosis, treatment and follow-up of patients with inflammatory airway diseases such as asthma. Aerocrine is based in Sweden with subsidiaries in the US, Germany and the UK. Aerocrine shares were listed on the Stockholm Stock Exchange on 15 June 2007. Aerocrine discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 08:00 a.m. on February the 24th 2011.
This is an in-house translation.