Inhalation Sciences Sweden AB (publ) releases Interim Report Q3, January 1- September 30, 2020
(Stockholm, Sweden, November 26, 2020) During the third quarter 2020, Inhalation Sciences repositioned its CRO business under a new brand name – ‘Inhalation Research Services’, or IRS, offering precise, predictive early-stage research data. ISAB installed its first DissolvIt® module in the laboratory of an international company in Switzerland. ISAB has initiated the recruitment process for a Director of Sales to strengthen its commercial organization, as well as a Regulatory and Quality manager to strengthen the team and support the planned clinical trial of PreciseInhale. The company's Board held its annual strategy meeting and agreed on ISAB's strategic plan and priorities during 2021 and 2022.
Due to the current circumstances regarding COVID-19, ISAB has initiated short-term work for employees and consultants with a 40% reduction in working hours. This should not affect the company's operations and commitments and is seen as a short-term solution until the situation stabilizes.
Jul-Sep 2020
- Net sales 0 KSEK (1 713)
- Operating profit -3 002 KSEK (-2 747)
- Earnings per share before dilution SEK -0.35 (-0.36)
- Earnings per share after dilution SEK -0.35 (-0.36)
Jan-Sep 2020
- Net sales 8,261 KSEK (5,113)
- Operating profit -4,484 KSEK (-5 903)
- Earnings per share before dilution SEK 1.64 (-0.22)
- Earnings per share after dilution SEK 1.63 (-0.22)
Significant events during the third quarter (Jul-Sep)
- ISAB announced on August 20 that the company is repositioning its CRO operations under a new brand name, ‘Inhalation Research Services’, or IRS, which offers precise, predictive early-stage research data.
- On 28 September, ISAB announced that its first DissolvIt® module had been installed at the laboratory of an international company in Switzerland.
- ISAB has also begun the recruitment process for two key people in its organization - a sales manager and quality and regulatory manager, to further strengthen competence in sales and clinical validation.
- ISAB's Board of Directors held its annual strategy meeting and agreed on the strategic priorities for 2021 and 2022.
Significant events during the reporting period (Jan-Sep) 2020
- On 24 January 2020, the company announced that a returning global pharmaceutical customer who had previously contracted ISAB for advanced research services had also chosen to purchase ISAB's lab instrument PreciseInhale®, as well as signing a contract research assignment (IRS) worth SEK 750 thousand.
- On March 12, 2020, the company announced that it had received a new PreciseInhale® order from the Institute of Environmental Medicine (IMM) at Karolinska Institutet, one of the world's leading innovative lung research organizations, and now a returning ISAB customer. IMM has signed an order for approximately SEK 0.5 million for an eight-month lease of a PreciseInhale® system, with a call option at the end of the period. Delivery was planned for spring 2020.
- On March 16, 2020, ISAB delivered its first fully commercialized DissolvIt in vitro module with a value of approximately SEK 0.7 million.
- During March 2020, a PreciseInhale® system was delivered with an order value of SEK 3 million.
- On April 23, the company announced that all shares in Ziccum AB had been sold at a total value of approximately SEK 21.2 million after selling expenses. The sale entails an accounting profit amounting to approximately SEK 19.5 million.
- Loan financing during 2019 amounting to SEK 12.5 million was repaid in its entirety on April 28, 2020, which was financed through the sale of all shares in the associated company Ziccum AB.
- On April 29, the company announced that a global distribution agreement has been signed with TSE Systems GMBH. TSE Systems is a leading manufacturer of research instruments for laboratories. TSE Systems will immediately include ISAB's PreciseInhale® platform in its broad portfolio of high-quality inhalation laboratory equipment and, with the support of TSE's global sales, marketing and distribution channels, initiate active marketing and sales of PreciseInhale® with associated modules.
- On May 4, the company announced that it had signed a contract research assignment (CRO) worth approximately SEK 0.3 million with a global pharmaceutical company. The assignment includes testing in ISAB's in vitro dissolution model DissolvIt®, a leading method in inhalation research. The total value of the order is approximately SEK 0.5 million, of which approximately SEK 0.3 million is for services provided by ISAB's research organization.
- On May 12, the company announced that it had strengthened its Board with the election of Daniel Spasic and Mårten Winge. Both provide the company with important expertise in pharmaceutical research, marketing and sales, strategic product positioning and transaction experience.
- On June 12, the Board and management subscribed for warrants in ISAB.
- On June 22, the company announced that it had signed another new contract research assignment (CRO) valued at approximately SEK 0.8 million. This assignment, commissioned by a returning global pharmaceutical customer, will also be carried out using ISAB's leading in vitro dissolution tool DissolvIt®.
- On June 30, the company announced that it has had one of its key patents approved without restrictions in Europe. This is a patent that primarily protects the method of being able to control aerosol exposures to a more limited part of the lungs with high selectivity, so-called "regional targeting" or regional dosing.
- On August 20, ISAB announced the repositioning of its CRO organization under a new brand name - Inhalation Research Services (IRS), offering precise, predictive early-stage lung data.
- During the month of August, ISAB began the recruitment process for a sales manager to strengthen its commercial organization, and quality manager to strengthen the organization's regulatory and quality system and support the planned clinical trial of PreciseInhale.
- On September 23, ISAB's Board held its annual strategy meeting and agreed on ISAB's strategic plan and priorities for 2021 and 2022
Due to the prevailing circumstances regarding COVID-19, ISAB has initiated short-term work for employees and consultants with a 40% reduction in working hours. This should not affect the company's operations and customer deliveries, but is seen as a short-term solution until the situation stabilizes.
Significant events after the reporting period
- On October 15, a preclinical research paper authored by Per Gerde, Maria Malmlöf, and Ewa Selg of ISAB regarding In Vitro-In Vivo Correlation (IVIC) was published in the Journal of Aerosol Science, where good agreement was shown between data from ISAB's DissolvIt and data from a rat lung.
- On October 21, ISAB published its clinical validation plan for PreciseInhale®.
- On October 26, ISAB published a signed collaborative project with an order value of SEK 260,000 with a long-term customer for further development of ISAB's module XposeALI.
- On October 30, ISAB announced that the company had received a new order for a PreciseInhale amounting to SEK 1.4 million from VITO, The Flemish Institute for Technological Research.
Company events
At the Annual General Meeting on May 12, 2020, Board members Per Gerde, Sonja Gerde and Klaus Gottwald were re-elected, and Mårten Winge and Daniel Spasic were newly elected. Daniel Spasic was elected new Chairman of the Board. Members Fredrik Sjövall and Tom Sundelin declined re-election.
| Selected financial data in summary | |||||
| 2020 Jul-Sep |
2019 Jul-sSp |
2020 Jan-Sep |
2019 Jan-Sep |
2019 Jan-Dec |
|
| Net sales KSEK | 0 | 1 713 | 8 261 | 5 113 | 8 949 |
| Operating profit KSEK | -3 002 | -2 747 | -4 484 | -5 903 | -7 896 |
| Profit after tax KSEK | -3 033 | -3 123 | 14 163 | -1 861 | -4 345 |
| Balance sheet, total KSEK | 20 999 | 24 211 | 20 999 | 24 211 | 23 198 |
| Cash flow for period KSEK | 138 | -292 | 6 666 | 5 290 | 2 517 |
| Cash flow for period per share (SEK) | 0,02 | -0,03 | 0,77 | 0.61 | 0.29 |
| Cash and cash equivalents KSEK | 11 464 | 7 571 | 11 464 | 7 571 | 4 798 |
| Earnings per share before dilution (SEK) | -0.35 | -0.36 | 1.64 | -0.22 | -0.50 |
| Earnings per share after dilution (SEK) | -0.35 | - 0.36 | 1.63 | - 0.22 | -0.50 |
| Equity, KSEK | 14 764 | 7 723 | 14 764 | 7 723 | 5 240 |
| Equity per share (SEK) | 1.71 | 0.90 | 1.71 | 0.90 | 0.61 |
| Equity ratio, % | 70.31% | 31.90% | 70.31% | 31.90% | 22.23% |
| R&D costs / operating costs, % | 44.91% | 63.12% | 35.97% | 63.12% | 34.00% |
| Number of shares | 8 635 180 | 8 618 930 | 8 635 180 | 8 618 930 | 8 618 930 |
Business
Inhalation Sciences Sweden AB (publ), Org. Nr. 556665-6038, is a public limited company registered in Sweden with its registered office in Huddinge. The company's Head Office is located at Hälsovägen 7, 141 57 Huddinge.
Inhalation Sciences Sweden AB (publ) develops and commercializes world-leading instruments for research into inhalation. The company’s patented lab instrument, PreciseInhale®, enables researchers to characterize, with high precision, how aerosols and small particles impact our lungs, and so our health, when we inhale them.
Multi-year overview
| KSEK | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 |
| Net sales | 8 949 | 5 441 | 8 022 | 7 216 | 8 086 | 10 358 | 2 380 |
| Profit after net financial items | -4 345 | -11 883 | -6 358 | -5 365 | -2 854 | 64 | -5 521 |
| Balance sheet total | 23 198 | 19 653 | 23 313 | 10 427 | 9 191 | 7 451 | 2 750 |
| Equity ratio, % | 22 | 55 | 68 | 40 | 26 | 18 | 10 |
| Average no.of employees | 7 | 6 | 5 | 5 | 5 | 4 | 3 |
CEO’S STATEMENT
Despite continued challenges in meeting customers physically and attending large industry conferences, due to the ongoing pandemic, we have seen interest in our products and services increasing, amongst both existing and new potential customers. So far in 2020, our IRS services have grown from 17% of our sales to 36% compared to the same period last year, which is a great strength, creating greater diversification in our business and offering customers more flexibility in the present circumstances.
During the third quarter, our outstanding “quotes” doubled in number compared to previous quarters. Due to this increased demand we decided to return all employees to full-time employment starting on October 1, 2020.
If we compare our financial result during the period January-September 2020 with the previous year, we strengthened both sales and profit as well as the company's cash flow. By our assessment 2020 will be a clear year of growth compared with 2019. Based on ongoing customer discussions, we are convinced too that a number of new contracts will be won during the fourth quarter 2020, meaning that the full year can end strongly. Our ongoing dialogue with a number of potential partners around research projects where PreciseInhale can play a decisive role continues as planned.
For us at ISAB, our primary priority is to grow and strengthen the company in the long-term, so building a quality company that will become the market leader in its niche. This vision and goal are what all of us, as employees, Management and Board members, are working towards. We look to the future with confidence, and too with a clearly defined plan for 2021, and the coming years, in place.
Huddinge, 26 November 2020
Manoush Masarrat
CEO
To read full report (in Swedish) go HERE.
For more information about Inhalation Sciences, please contact:
Manoush Masarrat, CEO
E-mail: Manoush.masarrat@inhalation.se
Mobile: +46 (0)73 628 9153
About Inhalation Sciences Sweden AB (publ)
Inhalation Sciences Sweden AB (publ) develops and commercializes world-leading instruments for research into inhalation. The company’s patented lab instrument, PreciseInhale®, enables researchers to characterize, with high precision, how aerosols and small particles impact our lungs, and so our health, when we inhale them.
The information above was provided by Inhalation Sciences Sweden AB (publ) through the above contact person, for publication on November 26, 08.00 (CET), 2020.