Interim Report 1 April – 30 June 2020

“Despite this very challenging business climate, Episurf has taken some significant and critical steps during the quarter. The number of orders for Episealer® implants exceeded the corresponding quarter previous year. This was an exceptionally strong achievement in what are the most challenging market conditions in living memory, patient recruitment in the pivotal clinical trial in the US was initiated, the first surgeries since the CE-clearance of our ankle implant Episealer® Talus were performed, the first surgery in Asia was planned, and the results from the largest European multi-center study for the Episealer® knee implant were submitted to a scientific journal for publication, reporting on strong clinical outcomes. All of this at the same time as the expenses were significantly lower compared to the second quarter last year” says Pål Ryfors, CEO Episurf Medical.

Second quarter 2020 compared to 2019, Group

• Gross order intake amounted to SEK 1.0m (1.3), a decrease of 22%. We experienced a 2% increase in orders for Episealer® implants during the quarter with 50 (49) approved orders
• Order backlog amounted to SEK 1.2m (0.7), an increase of 60%
• Group net sales decreased by 46% to SEK 0.6m (1.1), as a result of the halting of elective surgeries in Europe due to Covid-19
• Loss for the period amounted to SEK -14.4m (-18.9); the decreased costs during the quarter are primarily due to SEK 1.9m lower cost for the US and cost savings in connection with Covid-19
• Earnings per share amounted to SEK -0.08 (-0.42)

First six months 2020 compared to first six months 2019, Group

• Gross order intake amounted to SEK 2.5m (2.5) a decrease of 1%
• 21% increase in orders for Episealer® implants during the first six months with 119 (98) approved orders
• Group net sales decreased by 18% to SEK 2.1m (2.5) during the first six months
• Loss for the period amounted to SEK -32.3m (-33.5)
• Earnings per share amounted to SEK -0.24 (0.77)

Significant events during the second quarter

• Episurf Medical announced that results from Episealer Knee® multicenter study have been submitted
• Episurf Medical has received patent approvals in Europe, Korea, Japan, and Sweden
• Episurf Medical announced that the first surgery in the Asia-Pacific region has been scheduled
• Episurf Medical announced that enrolment of patients has been initiated in North America and Europe in Episurf Medical’s IDE clinical trial
• Episurf Medical conducted a rights issue and raised approximately SEK 51m before to transaction costs (as part of a larger transaction of SEK 141m)

Significant events after the second quarter

• Episurf Medical has become an approved supplier to BMI Healthcare, the largest hospital provider in the UK
• Episurf Medical has received patent approval in Europe

For more  information, please contact:

Pål Ryfors, CEO, Episurf Medical
Tel:+46 (0) 709 62 36 69
Email: pal.ryfors@episurf.com

Veronica Wallin, CFO, Episurf Medical
Tel:+46 (0) 700 37 48 95
Email: veronica.wallin@episurf.com

About Episurf Medical

Episurf Medical is endeavoring to bring people with painful joint injuries a more active, healthier life through the availability of minimally invasive and individualised treatment alternatives. Episurf Medical’s Episealer® individualised implants and Epiguide® surgical drill guides are developed for treating localised cartilage injury in joints. Episurf Medical’s μiFidelity® system enables implants to be cost-efficiently tailored to each individual’s unique injury for the optimal fit and minimal intervention. Episurf Medical’s head office is in Stockholm, Sweden. Its share (EPIS B) is listed on Nasdaq Stockholm. For more information, go to the company’s website: www.episurf.com.

This information is information that Episurf Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08.30 CEST on 17 July 2020.

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