Doubled sales also during the second quarter

Q2         

  • Net sales reached SEK 13.9 (6.4) million.
  • Result after tax came in at SEK -11.7 (-15.7) million.
  • Earnings per share, basic and diluted, were SEK ‑0.08 (-0.11).
  • Cash and cash equivalents were SEK 30.9 (40.8) million.

       Significant events in Q2

  • Enzymatica more than doubled its sales during the second quarter, driven mainly by strong orders for the German, Austrian and Belgian markets, as well as a replenishment order from Hong Kong & Macau.

  • ColdZyme® received the highest class of CE marking, which means that the product may be sold as class III device in accordance with MDD (Medical Device Directive) within the EU until May 2024.

  • Enzymatica’s patent for the cod enzyme, one of the key components in ColdZyme, was approved for Europe and expires in 2035. Patent applications are also pending for other global markets.

  • Enzymatica and STADA expanded their agreement for the cold product ViruProtect® (ColdZyme) to be valid for an additional 19 countries in Europe. With the expanded agreement, STADA expects to place orders for about SEK 20 million for 2020. The launch of ViruProtect is expected to occur in the fall of 2020.

  • A British study initiated by researchers in which endurance athletes used ColdZyme® showed significantly shorter duration of colds and milder cold symptoms with upper respiratory tract infections compared with endurance athletes in the untreated group.

  • Fredrik Lindberg stepped down as CEO, but will continue as a Board Member for Enzymatica. Bengt Baron took over as Executive Chairman of the Board and Therese Filmersson, CFO, as acting CEO until a new CEO has been recruited.

H1

  • Net sales reached SEK 40.7 (19.7) million.
  • Result after tax came in at SEK -11.0 (-27.9) million.
  • Earnings per share, basic and diluted, were SEK -0.08 (‑0.20).

Significant events after the quarter

  • The corona pandemic has resulted in an increase of demand on ColdZyme for the first half of 2020. Social distancing, and increased focus on hygiene, could result in milder common colds for the fortcoming season. Enzymatica’s contract manufacturers continue to deliver according to committed production plans – so far without disruptions. Also Enzymatica has not experienced any issues so far in collecting accounts receivables. However, the uncertainty created by the corona pandemic overall makes any prediction regarding demand, logistics and production more uncertain.
     
  • Because of the coronavirus pandemic, Enzymatica’s subsidiary Zymetech’s agreement with the German company Maren Cosmetics was renegotiated. In June 2019 Zymetech and Maren signed an agreement under which Zymetech would deliver an enzyme formulation based on Enzymatica’s barrier technology for Maren’s skin care products for a total estimated order value of SEK 120 million over three years. Because of covid-19, Maren was forced to lower its level of ambition for sales. Given the uncertainty in the market, it is difficult to assess the impact over the next few years, but clearly the agreement will generate substantially lower sales than indicated in earlier estimates.                        

Financial ratios

(SEK THOUSAND) Q2
2020
Q2
2019
H1
2020
H1
2019
Full year
2019
Net sales 13.9 6.4 40.7 19.7 61.3
Gross margin, % 58 63 71 70 73
Operating profit/loss -11.9 -15.6 -11.7 -27.5 -41.7
Cash flow from operating activities -1.3 -12.3 -5.8 -27.8 -37.6
Average number of employees 18 20 18 20 19

       
From the chairman: Many important milestones for Enzymatica in Q2

During the second quarter Enzymatica doubled its sales – driven mainly by new orders from our partner STADA. Enzymatica achieved several important milestones during the quarter. Our cold product ColdZyme received class III approval, which is the highest classification for medical devices within the EU. We also received approval for our patent for ColdZyme in Europe, which expires in 2035. During the quarter our international expansion continued through an expanded agreement with STADA for sales of ColdZyme on an additional 19 markets – mainly in Eastern Europe. Finally, we presented the results of a British study initiated by researchers, which showed that endurance athletes who used ColdZyme experienced significantly shorter duration of colds and milder cold symptoms.

Enzymatica’s sales during the second quarter totaled SEK 13.9 million, compared with SEK 6.4 million during the corresponding period in 2019. The increase is mainly attributable to orders from STADA for Germany, Austria and Belgium, as well as replenishment orders from Hong Kong & Macau. During the first quarter sales surged on the Swedish, Danish and British markets as people stocked up on ColdZyme because of the covid-19 pandemic. Because of the hoarding during Q1, as well as the changing behavior of consumers regarding hygiene and social distancing, the entire cold segment dropped during the second quarter on these markets, and ColdZyme sales were no exception.

In April ColdZyme was recertified under the EU Medical Device Directive (MDD) and thus received the highest class of CE marking, which means that the product may be sold as class III within the EU until May 2024. After a thorough review of the documentation for ColdZyme and Enzymatica’s processes, the approval is a clear stamp of quality and further strengthens our reputation internationally.

In May the European Patent Office granted our patent for the cod enzyme, which is one of the key components in ColdZyme. The new patent will extend protection for ColdZyme and other Enzymatica products based on the same technology platform on the European market for an additional 15 years. This represents a considerable strengthening of Enzymatica’s patent portfolio and is a significant milestone for the continued commercialization of the company’s key products.

In late May we expanded the agreement with STADA for the ViruProtect® (ColdZyme) cold spray for an additional 19 markets in Europe, mainly in Eastern Europe, but also a few countries in Western Europe. The agreement shows that STADA has strong confidence in both Enzymatica and ColdZyme.

After the end of the quarter, we published the results from a British study at the University of Kent in which endurance athletes used ColdZyme. It shows a significant reduction in the duration of colds and milder cold symptoms with upper respiratory tract infections compared with endurance athletes in the untreated group. These strong results confirm the findings from earlier studies and strengthen the documentation for our cold spray.

As we previously announced, Fredrik Lindberg has now stepped down as CEO of Enzymatica. Fredrik made a strong contribution to the positive developments at Enzymatica over the past few years and we are extremely pleased that he will continue to be involved with the company by serving on the Board of Directors. Until we find a replacement, Therese Filmersson, Enzymatica’s CFO, will serve as acting CEO and I will serve as a Executive Chairman of the Board, while Claus Egstrand continues as Chief Operating Officer. These changes in management mainly entail “business as usual.” We have a well-functioning organization that delivers excellent results, as exemplified by what we have achieved during the first half of 2020. To fuel our international expansion, we are continuously strengthening the organization. We recently recruited two people who focus on product administration and product documentation, and we are now reviewing the need for additional new hires in other areas.

The coronavirus pandemic has made consumers much more aware of the importance of protecting themselves and staying healthy, which has led to increased demand for ColdZyme. However, we must keep in mind that COVID-19 entails social distancing and an increased focus on hygiene, which could result in milder colds in the next season. At the same time we are continuing our international expansion and we are no longer dependent on one large distributor. Enzymatica has agreements with several large international life science companies for some of the largest markets in the world: Japan, China and Europe.

Based on yet another active quarter, as well as a growing portfolio of markets, I have great belief for a continued positive performance for Enzymatica even if our sales growth will be uneven during this expansionary phase and today’s uncertain times.

Bengt Baron, Executive Chairman of the Board

For questions about this report, please contact:
Bengt Baron, Executive Chairman of the Board, Enzymatica AB

Tel: +46 (0)708-59 30 09 | Email: bengt.baron@outlook.com

Therese Filmersson, CFO, acting CEO, Enzymatica AB
Tel: +46 (0)708-40 72 24 | Email: therese.filmersson@enzymatica.com

Publication
This information is information that Enzymatica 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, at 8:30 a.m. CET on Thursday, July 16, 2020.

Street address
Enzymatica AB (publ) Corporate identity no.: 556719-9244

Mailing address: Ideon Science Park, 223 70 LUND
Street address: Scheelevägen 19, Ideon, Lund
Tel: +46 (0)46-286 31 00 | info@enzymatica.se | www.enzymatica.se

Enzymatica is listed on the Nasdaq First North Growth Market. The Company is traded under the ticker symbol ENZY and ISIN code SE0003943620.
Enzymatica’s certified adviser is Erik Penser Bank. Tel: +46 (0)8‑463 83 00

Email: certifiedadviser@penser.se

Tags:

Subscribe

Documents & Links