Bactiguard changes strategy for Russia and India
Bactiguard has terminated the distribution agreement for Russia and evaluates an alternative sales strategy for India. In connection with the above, the company has decided to make reservations in the interim results for the first quarter of 2015 for doubtful receivables, with a negative effect on results of approximately MSEK 24.
During the first quarter of 2015, Bactiguard has reviewed and evaluated market conditions in Russia. Given the economic/political developments in the country, Bactiguard has decided to focus its marketing and sales efforts on other growth markets with greater potential.
Consequently, Bactiguard has used its right to terminate the agreement with its Russian distributor. No product deliveries have been made to Russia so far and there are no outstanding commitments to deliver any products.
India remains an important growth market for Bactiguard. The cooperation with Cadila Pharmaceuticals Ltd which was initiated in 2012 has, however, not provided the regulatory and market related benefits expected at the time.
Therefore, Bactiguard is evaluating an alternative sales strategy, which paves the way for market launch and initiation of sales in 2015, as planned. Preparations for the launch and clinical studies are well under way.
As a result of the above changes in strategy, Bactiguard has decided to make reservations in the interim results for the first quarter of 2015 for doubtful receivables, with a negative effect on results of approximately MSEK 24. The reason being that the counterparties’ willingness to pay is deemed questionable. The reservations have no effect on the company’s cash position.
This is information that Bactiguard Holding AB (publ) is required to publish in compliance with the Swedish Securities Market Act and/or the Financial Instruments Trading Act. The information was submitted for publication on 1 April 2015, at 08.00.
For further information, please contact:
Cecilia Edström, Acting Director of Sales, Marketing and Communications
cecilia.edstrom@bactiguard.com
mobile: 46 722 262 328
About Bactiguard
Bactiguard is a Swedish medtech company with a mission of preventing healthcare associated infections, reducing the use of antibiotics and saving lives by developing and supplying infection prevention solutions for the healthcare industry. The company’s patented coating prevents healthcare associated infections by reducing bacterial adhesion and growth on medical devices. Bactiguard®-coated urinary catheters are market leading in the US and Japan, and in recent years the company has developed its own product portfolio of catheters for the urinary and respiratory tract and the blood stream. Bactiguard is currently in a strong expansion phase, focused on new markets in the Europe, Middle East, Asia, Latin America and Southern Africa. The company has market presence in some 50 countries and has about 60 employees. Its headquarters is located in Stockholm and production facilities in Sweden and Malaysia. Bactiguard is listed on Nasdaq Stockholm. Read more about Bactiguard at www.bactiguard.com