Inhalation Sciences AB (publ) releases Q1 Report 2022
(Stockholm, Sweden, 23 May 2022) Inhalation Sciences AB announces that its first quarter interim report for January 1 – March 31, 2022 is now available on the company’s website. To read the whole report (in Swedish), visit: http://inhalation.se/investors/finansiella-rapporter/
Summary of the interim report
During the first quarter, ISAB had sales of SEK 2.8 million with revenue of just over SEK 2 million at the end of the period. Although sales are lower than in the same period last year, we also have a large order backlog of over SEK 8 million (SEK 200,000 during the same period last year). A contributing factor to our large order backlog is delays in deliveries from various subcontractors due to the pandemic and our ambition is to ship most of these in the coming months.
The FDA has approved that ISAB may proceed with the application that was submitted earlier this year. A final statement is to be expected in the autumn 2022 and given that it is positive, it could open up great opportunities for ISAB as a company in the form of a FDA-recommended method for dissolution technology in in vitro studies.
First quarter (Jan-Mar) 2022
Net sales SEK 2,059,000 (2,838)
Operating profit SEK -3,376 thousand (-3,564)
Earnings per share before and after dilution SEK -0.30 (-0.40)
Order backlog ** at the end of the period SEK 8,350,000 (200)
** Orders are signed customer contracts for both products and services that have not yet been invoiced to customers, where work is still ongoing, and delivery has not yet been made to the customer.
Selected financial data in summary
| 2022Jan-Mar | 2021Jan-Mar | 2021Jan-Dec | 2020Jan-Dec | |
| Net sales kSEK | 2,059 | 2,838 | 9,422 | 10,37 |
| Operating profit kSEK | -3,376 | -3,564 | -16,571 | -8,741 |
| Profit after tax kSEK | -3,402 | -3,451 | -16,609 | 9,875 |
| Balance sheet, total kSEK | 22,334 | 14,272 | 26,112 | 18,488 |
| Cash flow for period, kSEK | -4,378 | -4,104 | 6,348 | 3,249 |
| Cash flow for period, per share (SEK) | -0.39 | -0.47 | 0.63 | 0.38 |
| Cash and cash equivalents kSEK | 9,997 | 3,943 | 14,395 | 8,047 |
| Earnings per share before dilution kSEK | -0.30 | -0.40 | -1.46 | 1.14 |
| Earnings per share after dilution kSEK | -0.30 | -0.40 | -1.46 | 1.14 |
| Equity, kSEK | 16,276 | 7,023 | 19,678 | 10,475 |
| Equity per share (SEK) | 1.43 | 1.81 | 1.73 | 1.21 |
| Equity ratio, % | 72.88% | 49.2% | 75.36% | 56.66% |
| R&D costs / operating costs, % | 42.68% | 35.0% | 45.59% | 43.91% |
| Number of shares | 11 375 734 | 8 635 180 | 11 375 734 | 8 635 180 |
Significant events during the first quarter (Jan-Mar) 2022
• On January 18, the company announced that it had sent an application for a study (white paper) to the FDA (US Food and Drug Administration.) This applies to DissolvIt, and getting it approved as a recommended dissolution method for inhalation studies.
• On February 14, the company announced that it is upgrading its quality management system (QMS) and expects to have the job completed by the end of June 2022.
• On February 18, ISAB announced a new IRS order from a leading customer in nanotechnology, with a total value of SEK 584,000.
• On March 14, the company announced a new order from RISE (The Research Institute of Sweden) for a new Nebulizer, with a total value of EUR 23,500.
• On March 18, ISAB announced a new IRS order from a Swiss generic company, with a total value of EUR 74,000.
Significant events after the reporting period
• On April 1, the company announced an order from a returning customer in nanotechnology, with a value of SEK 491,000.
• On April 11, the company announced new distribution agreements in strategic markets such as the UK, China and Hong Kong.
• On May 5, ISAB announced positive feedback from the FDA regarding the submitted application for DissolvIt and that additional documentation must be submitted within 30 days.
• On May 6, ISAB's Annual General Meeting was held by postal ballot, where all proposals were approved.
| Multi-year overview | |||||||
| Tkr | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Net sales | 9,422 | 10,137 | 8,949 | 5,441 | 8,022 | 7,216 | 8,086 |
| Profit after net financial items | -16,609 | 9,875 | -4,345 | -11,883 | -6,358 | -5,365 | -2,854 |
| Balance sheet total | 26,112 | 18,488 | 23,198 | 19,653 | 23,313 | 10,427 | 9,191 |
| Equity ratio, %, | 75 | 57 | 22 | 55 | 68 | 40 | 26 |
| Average no. o0f employees | 9 | 8 | 7 | 6 | 5 | 5 | 5 |
Company events
At the Annual General Meeting on May 6, 2022, Board members Per Gerde, Sonja Gerde and Klaus Gottwald, Mårten Winge and Daniel Spasic were re-elected. Daniel Spasic was elected Chairman of the Board.
CEO statement
After a couple of years of the pandemic, we see a cautious return to "normal" and we hope that it continues in the same direction, given the current world situation. Being able to travel and meet customers physically has an enormous effect and gives us a unique opportunity to orientate, educate and market our services and our technology to them and what opportunities it can offer their research. The RDD (Respiratory Drug Delivery) meeting in early May in Orlando, USA was very successful, and it demonstrated a pent-up need among customers and the industry as a whole to want to meet and discuss inhalation research.
During the first quarter, ISAB had sales of SEK 2.8 million with revenue of just over SEK 2 million at the end of the period. Although sales are lower than in the same period last year, we also have a large order backlog of SEK 8 million (SEK 200,000 during the same period last year). A contributing factor to this order backlog is delays in deliveries from various subcontractors due to the pandemic, and our ambition is to settle most of this backlog in the coming months. In addition, we see a continued increase in the number of inquiries regarding our IRS services, which we process together with existing and new customers.
The discussion with the FDA for our study application is very important to us. A final statement is to be expected in the autumn 2022 and given that it is positive, it could open up very great opportunities for ISAB as a company in the form of an FDA-recommended method for dissolution technology in in vitro studies.
I would like to take this opportunity to thank ISAB's organization for their fantastic work so far this year and we look forward to continued progress together for the rest of 2022.
Huddinge 23 May 2022
Manoush Masarrat
VD
To read full report (in Swedish) go HERE.
Tags: