Dignitana AB publish interim financial report for Q3, 2016
Interim Financial Report - Summary:
| Key Ratios | |||||
| Dignitana Group | Q3 2016 | Q3 2015 | Q1 – Q3 2016 | Q1 – Q3 2015 | Full year 2015 |
| Net revenues, TSEK | 2 807 | 529 | 4 900 | 4 472 | 4 749 |
| Total revenues TSEK | 2 843 | 601 | 5 001 | 5 070 | 5 801 |
| Net profit after financial items, TSEK | -7 070 | -4 183 | -20 645 | -11 306 | -16 569 |
| Cash and bank balances, TSEK | 42 342 | 29 734 | 42 342 | 29 734 | 19 042 |
| Earnings per share before and after dilution, SEK | -0,35 | -0,25 | -1,13 | -0,76 | -1,08 |
| Dignitana AB | Q3 2016 | Q3 2015 | Q1 – Q3 2016 | Q1 – Q3 2015 | Full year 2015 |
| Net revenues, TSEK | 2 387 | 529 | 4 306 | 4 472 | 4 749 |
| Total revenues TSEK | 2 423 | 601 | 4 407 | 5 070 | 5 801 |
| Net profit after financial items, TSEK | -7 121 | -4 184 | -20 750 | -11 307 | -16 570 |
| Cash and bank balances, TSEK | 42 145 | 28 896 | 42 145 | 28 896 | 18 622 |
Significant events during the period
- Monthly pay per treatment revenue increased significantly versus Q2 as a result of increased unit utilization rates at existing installations and with new installations coming online on the US market.
- Dignitana continued the buildout of its US operation during the 3rd quarter. Significant new hires were made to increase capabilities in marketing, clinical and technical support and operations and technical support. These new hires, in addition to existing staff, will enable Dignitana, Inc. to better support both existing sites and new installs.
- Negotiations with some of the leading hospital groups in the US continued and resulted in agreements and orders in the beginning of November.
- Dignitana´s European distributor, Sysmex Europe GmbH, has placed an order with deliveries in Q4, 2016 and Q1, 2017.
Significant events after the end of the period
- Dignitana announced in November that Memorial Sloan Kettering Cancer Center (MSKCC) in New York, one of the most prestigious hospitals for cancer treatment in the US, signed a contract and ordered 17 DigniCap scalp cooling systems. Unit deliveries and training are scheduled to begin in December with patients to start treatments in January, 2017.
- In November the company announced the change of CEO. New CEO of Dignitana AB is Johan Ericsson and he brings an extensive product development background to the company. For Dignitana Inc. Bill Cronin was appointed as CEO and newly hired Jim McKinney as the new COO.
Comments from Semmy Rülf, Chairman, Dignitana AB (publ)
Revenues from installations and treatments have increased by almost 200 % in Q3 compared to Q2. The number of monthly leasing fees increase as more and more systems are installed. In addition, pay per treatment fees are increasing as hospitals are increasing the number of patients treated on a monthly basis. We have now signed contracts with 53 sites across 17 states in the U.S and a total number of 76 DigniCap scalp cooling systems have been ordered. Even if it takes time to introduce a new treatment in the U.S., we are following our plans and we are very proud of what we have achieved so far.
We have been engaged in negotiations with larger hospital groups, resulting in the order from New York based hospital Memorial Sloan Kettering Cancer Center (MSKCC). This contract is one of the most important we have signed so far. The reputation MSKCC holds within the cancer treatment community will be important for us and the order will be an acknowledgement that the DigniCap system belongs at the most prestigious cancer centers in the world.
Johan Ericsson has recently been appointed CEO of Dignitana AB. Johan has 25 years of experience within global engineering in product development and will enable us to respond more quickly to our partner site’s unique needs and requirements. Johan has long experience in controlling and monitoring the whole development and supply chain of complex products and will help us develop both existing and new products in an effective way.
In order to meet the higher demands from US, we have built up the American organization by adding experienced healthcare professionals. We have been able to recruit excellent people and I am proud to say that we have two great teams (in Lund and Dallas) that will be able to efficiently and smoothly handle the increasing business.
One area where we have strengthened our resources is in marketing and promotion. We are now active on social media with daily posts on Facebook and Twitter reaching 500 to 1800 people per day. Our strategy to be featured locally in press and TV as we install is working well and media interest remains strong in patient-focused stories highlighting the success of DigniCap. At the regional and national level more than 16 television and digital media stories have featured DigniCap in the past 3 months. Visibility to patients has also increased through our support of various charitable events related to breast cancer research - with some specifically earmarking funds for DigniCap treatments such as Men for the Cure hosted by former Denver Broncos quarterback Peyton Manning.
Financial comments
- Revenues in Q3 more than doubled compared to Q1-Q2 due to systems that were placed during the first half of the year generate both the monthly leasing fees as well as an increasing number of pay per treatments.
- As of September 2015 Dignitana AB, the parent company of the Dignitana group, reports consolidated group financials, including the subsidiary Dignitana, Inc. in USA. Costs related to the subsidiary are now being paid by Dignitana, Inc. Other costs such as regulatory, quality, FDA and product development will continue to be paid by the parent company.
- Every month Dignitana, Inc. will invoice the customers a fixed rental fee for DigniCap and a pay per treatment fee based on the number of completed treatments. Since Dignitana AB continue to own the systems, part of the revenue will be transferred to the parent company.
- A transfer pricing agreement has been established between Dignitana AB and Dignitana, Inc. to determine how the result will be shared between the companies. Other external expenses in Dignitana AB include costs related to the transfer price agreement between the companies.
- Fixed tangible assets continue to increase since systems leased to customers in the US will be capitalized as assets and depreciated over five years.
The complete report will be found on our webpage http://www.dignitana.se/eng
For more information:
Semmy Rülf
Chairman of the Board, Dignitana AB (publ)
+ 46 (0)709 312730
About Dignitana AB (publ)
Dignitana is a Swedish public company, based in Lund, and manufacturer of the medical cooling device DigniCap®. Dignitana is continuously researching and developing new uses for DigniCap®. Dignitana AB is listed on the OMX Nasdaq First North stock exchange and has appointed Erik Penser Bank as Certified Adviser. For more information visit www.dignitana.com
About the scalp cooling system DigniCap®
Dignitana’s core product - DigniCap® - is a patented scalp-cooling system that offers cancer patients the ability to keep their hair during chemotherapy. DigniCap® is developed to provide continuous cooling with high efficacy, safety and acceptable patient comfort.
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