Scandinavian ChemoTech Implements Management Changes to Reduce Costs and Boost Revenues
Scandinavian ChemoTech AB, in line with the structural changes for the group published on December 30, 2024, has decided to implement measures aimed at achieving financial sustainability. As part of this strategy, the Company will conclude its collaboration with Medical Director Dr. Suhail Sayeed Mufti.
This decision follows a thorough evaluation of the Company’s priorities and resources, ensuring an optimized focus on revenue growth within the Animal Care business. By reallocating resources to areas with the highest potential for growth, Scandinavian ChemoTech aims to enhance its ability to deliver innovative solutions and strengthen its market position.
Commitment to Clinical Research Remains Unchanged
After establishing several Centres of Excellence and forming clinical collaborations with some of our most frequent TSE users, this decision will not impact our ability to achieve our clinical and commercial targets for 2025 within our Animal Care operations.
ChemoTech’s commitment to the ongoing investigator-initiated trial at AIIMS Jodhpur in India will remain unchanged.
Clear Path to Financial Targets
With a continuous growth in the revenues from the Animal Care business area quarter by quarter, ChemoTech, alongside with ongoing cost reductions, is now getting closer to achieving positive cash flow and future profitability. This milestone represents a critical step in the Company’s journey to deliver value to its shareholders.
Realigning Priorities for Sustainable Growth
Considering the Company’s size, burn rate, and the potential to achieve financial stability through operations, it is more practical to concentrate efforts on a single business segment in the short term (2025). This approach will help to maximize impact, enhance efficiency, and drive sustainable revenue growth.
"The synergies between Human Care and Animal Care are currently less apparent at their current stages. I believe a shift in resource allocation is essential in our current situation, where achieving success in Animal Care must take priority to meet our financial targets and ensure sustainable growth and shareholder value”, said Mohan Frick, CEO and Co-Founder of Scandinavian ChemoTech
"The Company has achieved remarkable results with limited resources, in a short timeframe compared to similar enterprises in this industry. We have treated hundreds of human patients in India and Southeast Asia with TSE, including exploratory treatments in Ukraine for pancreas with good results. But even if Human and Animal are billion-dollar markets for us, we have to prioritize revenue and resource optimization right now. I would like to thank Suhail Mufti for his work, knowledge and engagement with the Company over the years” - says Rolf Ehrnström, Clinical representative of the Board of Directors at Scandinavian ChemoTech
For further information please contact:
Mohan Frick, CEO
Phone: +46 (0)10-218 93 00
E-mail: ir@chemotech.se
Certified Adviser: Redeye AB
As of January 9th, 2025, we have discontinued translating our press releases into Swedish.
Certain information will still be published in Swedish due to current regulations.
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 Redeye AB is the company's Certified Adviser. Read more at: www.chemotech.se.