ContextVision’s third quarter sees a recovery in sales and market entry in digital pathology is on track
STOCKHOLM – Oct 22, 2020 – ContextVision, a medical technology software company specializing in image processing, image analysis and decision support tools for digital pathology, today reports its third quarter.
“We are making progress according to plan in digital pathology, and with several completed installations we can now proceed with extended studies in the clinical workflow. The pandemic situation continues to keep business somewhat unpredictable. However, sales in our medical imaging business have increased compared to the second quarter, allowing us to be cautiously optimistic, and our total YTD sales growth as of Sep 30th is greater than that of the same period in 2019. While we see minor short-term effects on sales, and travel restrictions slowing down new business, our strategy is to continue developing the company brick by brick while keeping our financials under control. What is most important is that these effects are temporary; the present situation only emphasizes the need for efficient digital solutions within healthcare,” says Fredrik Palm, CEO of ContextVision.
Digital Pathology
INIFY® Prostate Screening, the company’s first decision support tool for prostate cancer diagnosis, was granted CE -mark status in June, which means that it is now available for clinical use within EU. The predicting engine in the software is built on deep learning algorithms, offering superior accuracy on a pixel level. The product will allow pathologists to focus their time on specimens with suspicious cancer and minimize time spent on benign tissue.
Several installations at key reference centers have been completed in the third quarter, in order to broaden use and perform extended studies in the clinical workflow. Advanced discussions are in progress with additional pathology laboratories in the digital forefront. In parallel, we continue our R&D activities, with this next-generation product for prostate cancer, as well as other cancer types that are known to cause the heaviest burden on the pathology labs around the world.
Medical Imaging
Several new agreements, as well as a regional extension with an existing strategic customer, have been signed during the quarter. One contract includes Rivent®, our latest product for 2D ultrasound released in May this year. These achievements have been successfully carried out solely via remote communication.
Sales in Q3 ended at 22 MSEK, which is on par with sales in Q3 2019 after adjusting for currency effects, and a 9% increase compared to this year’s previous quarter. EBITDA was 4.9 MSEK, and the operating result ended at 1.2 MSEK. X-ray business continues on positive path, growing by 18% compared to the corresponding quarter 2019, while 2D ultrasound remains at a slightly lower level due to other acute priorities among hospitals and clinics.
Sales for the first nine months of the fiscal year grew 6% compared to the same period in 2019, and ended at 71.2 MSEK, with an EBITDA of 22.5 MSEK.
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About ContextVision
ContextVision is a medical technology software company specialized in image analysis and artificial intelligence. As the global market leader within image enhancement, we are a trusted partner to leading manufacturers of ultrasound, X-ray and MRI equipment around the world.
Our expertise is to develop powerful software products, based on proprietary technology and artificial intelligence for image-based applications. Our cutting-edge technology helps clinicians accurately interpret medical images, a crucial foundation for better diagnosis and treatment.
ContextVision is now entering the fast-growing digital pathology market. We are re-investing significantly in our product portfolio of decision support tools and we are dedicated to becoming a leading resource for pathologists to radically develop cancer diagnosis and improve patient care.
The company, established in 1983, is based in Sweden with local representation in the U.S., Japan, China and Korea. ContextVision is listed on the Oslo Stock Exchange under the ticker COV.
For further information, please contact ContextVision’s CEO, Fredrik Palm, at +46 76 870 25 43 or visit www.contextvision.com.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act