Bioservo is evaluating potential Strategic Alternatives to accelerate commercialization

Bioservo Technologies (BIOS), a world-leading company in providing sophisticated soft muscle strengthening systems for people in need of extra strength and endurance, today announces that its Board of Directors is evaluating potential strategic alternatives to accelerate commercialization and enhance shareholder value.

The Board has established a Special Committee composed of Management team members and members of the Board to evaluate a broad range of potential options, including the sale of part or all of the company, recapitalization, or other partnership opportunities, among other potential alternatives. To assist with this process, Bioservo has engaged Ferghana Partners, an experienced financial advisor operating in the life science sector.

According to independent sources, the Life Science segment of the soft exoskeleton systems market in which Bioservo operates is projected to grow rapidly. The overall exoskeleton market is expected to grow at a compound annual growth rate of 48%. An in-depth market analysis by Bioservo shows an addressable user population for Carbonhand, i.e. those who are expected to benefit from the Carbonhand strength-enhancing glove, of almost 5 million patients in the US and 4.5 million patients in selected markets in Europe. 

For the European market, Carbonhand received MDR (Medical Device Regulation) approval in late 2022 and is already available in eight countries, where it is starting to generate sales. In the US, Carbonhand is registered as a 510(k) exempt product and the commercial go-to-market strategy focuses initially on the Veterans Health Administration (VA), due to VA being a strong reference within the healthcare sector in the US for further commercial expansion as well as established reimbursement for VA patients. 

VA is one of the largest coordinated healthcare systems in the US having 9 million individuals enrolled with full reimbursement of healthcare costs, and almost 250,000 addressable patients that would benefit from using Carbonhand. A team of dedicated Sales Agents with long experience in providing medical devices through VA hospitals is being trained; Veterans Health Supply Solutions (VHSS) is contracted to act as a wholesale distributor to the VA, and Carbonhand will be listed on relevant product catalogs within the coming months.

The market potential for Carbonhand, Bioservo’s cutting-edge grip-strengthening device, is substantial, and Bioservo is looking to partner with well-qualified companies possessing the necessary resources, both operational and financial, alongside its own more limited resources, to fully exploit this market opportunity.

“Bioservo’s Board and management team are committed to maximizing value and determined that an evaluation of strategic alternatives is the best way to advance that goal,” says Anders Lundmark, Chair of the Board. “The market potential for Bioservo is extraordinary, Independent Market Research confirms nearly $500 million in peak sales in lead indications for Carbonhand in the US alone. The Board believes that this process will help ensure the best path forward to unlock value for all Bioservo’s stakeholders.”

There can be no assurance that the review process will result in any transaction or any other strategic change or outcome, or as to the timing of any of the foregoing. The company does not expect to comment further on this strategic review unless and until the Board has approved a specific course of action or until it determines that further disclosure is appropriate or required by law.

For more information, please contact,
Petter Bäckgren, CEO, Bioservo Technologies AB
Phone: +468 21 17 10
petter.backgren@bioservo.com

Mikael Wester, Marketing Director, Bioservo Technologies AB
Phone: +468 21 17 10
mikael.wester@bioservo.com

This information is information that Bioservo 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 above, on 12 October 2023 at 8:30 CEST.

About Bioservo Technologies
Bioservo Technologies AB (publ) is a world-leading company in wearable muscle-strengthening systems for people in need of extra strength and endurance. All our innovative products and systems are designed to keep people strong, healthy, and efficient. The company has a unique global position within soft exoskeleton technology for the hand, both for industrial applications to improve the health of workers and to improve the quality of life for people with reduced muscle strength. Bioservo Technologies was founded in 2006 in collaboration between researchers at the Royal Institute of Technology and a doctor at Karolinska University Hospital. Bioservo Technologies is a Swedish public limited company with headquarters in Stockholm.

FNCA Sweden AB is the company’s Certified Adviser on Nasdaq First North.
For more information, please visit www.bioservo.com