Scandinavian ChemoTech AB (publ) Year-End Report January – December 2021 - Executive Summary
Fourth quarter
- Net sales amounted to kSEK 10 (0)
- Profit before tax amounted to kSEK -5 430 (-2 792)
- Earnings per share amounted to SEK -0,56 (-0,46)
- Cash flow from operating activities totaled to kSEK -5 755 (-2 794)
Period 1 January - 31 December
- Net sales amounted to kSEK 49 (131)
- Profit before tax amounted to kSEK -17 743 (-11 664)
- Earnings per share amounted to SEK -2,05 (-2,37)
- Cash flow from operating activities totaled to kSEK -19 183 (-11 495)
- The order book amounted to kSEK 1 100 at the end of the period
Important events during the quarter
- Vetiqure AB signs an agreement with Evidensia Specialist Hospital Helsingborg and the results of the first TSE treatment are indicating better results than expected
- ChemoTech’s COO ends his interim assignment in the Company
- ChemoTech secures CE-marked electrodes for deep-seated tumours
- ChemoTech signs an agreement with AIIMS Jodhpur to establish a Centre of Excellence as part of India Sweden Healthcare Innovation Centre
- ChemoTech takes loans from two lenders for a maximum of mSEK 10
Important events after the end of the period
- ChemoTech attains certificate for ISO 13485
- ChemoTech’s subsidiary Vetiqure AB signs an agreement with FloridaWild Veterinary Hospital
SUMMARY
ChemoTech has in many ways changed phase during the past year by starting a major change process; organisationally, operationally and by achieving both major and minor milestones. In addition to embarking on the commercial journey in Animal Care, obtaining new patents and creating new international strategic partnerships, we achieved the long-awaited CE marking of IQwave 3.0 CE, the first Dynamic and Tumour-Specific Electroporation technology.
The result during the last quarter was lower than expected due to the pandemic which caused the deliveries of machines in the order book to be postponed. Our work to certify the quality system according to ISO 13485 for the final registration processes in various countries outside Europe has also further delayed the deliveries. The Company’s quality management system has now been certified for ISO 13485 and work on the registration processes of our product has begun.
We secured a directed issue that quickly and smoothly strengthened our cash and bank balances which was also strengthened through a new line of credit from an external financier. It is still important to secure capital in the long run. We will continue to focus on getting sales started as well as looking at different financing solutions to ensure the long-term capital requirement until the Company generates a positive cash flow.
In May, we reached the long-awaited goal of having the IQwave 3.0 CE system CE-marked, which gives us the right to sell IQwave throughout Europe and in countries where the CE-marking is recognised. Soon after the end of the period the Company attained certificate for ISO 13485.
We have received successes and attention for our TSE technology which is mainly due to the collaboration with AIIMS Jodhpur in India and the fact that ChemoTech has been invited as an industrial partner in the Indian-Swedish Innovation Centre, initiated by both countries’ Ministry of Health. ChemoTech needed this attention in order to be able to launch broadly in India. Other countries will be able to learn from the new standard protocols that AIIMS Jodhpur will be able to establish and where TSE has a great chance of playing a decisive role.
The Company’s business area Animal Care was strengthened during the year with resources in both Scandinavia and North America. A process was started to provide Vetiqure with resources to begin its commercial work. There is no doubt that Animal Care soon will face strong and significant growth in both Europe and in North America where we have begun the establishment work with important reference centres.
It is still crucial for the Company to focus on creating value for the Company’s customers and shareholders by initiating sales and to continue to create clinical data along with our partners in India and Asia for human medicine and in Sweden and North America for veterinary medicine. Although our R&D projects in deep-seated tumours, such as the pancreas, are important to pursue, we will initially look at the possibilities of starting these projects without our own funding.
We feel positive about the coming year and intensifying the planned market launch. We also hope to be able to complete the clinical trial, that has been resumed in Malaysia, which is intended to support the broad launch planned for IQwave 3.0 CE as soon as the product has been registered in Southeast Asia.
For more information, please contact:
Mohan Frick, CEO
Phone: +46 (0)10-218 93 00
Certified Adviser: Erik Penser Bank, Tel: +46 8 463 80 00, E-mail: certifiedadviser@penser.se
Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation™ (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech's shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Erik Penser Bank is the company's Certified Adviser. Read more at: www.chemotech.se.
