Observe Medical ASA: Business update in light of COVID-19

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Oslo, 19 March 2020 – Observe Medical ASA (OSE: OBSERV) today provides a business update in light of COVID-19. The company reports continued high activity level in operations, and several initiatives in the launch and roll-out of Sippi®.

“The evolving COVID-19 situation has serious impact on all aspects of the global society, specifically the healthcare system and patients, and on Observe Medical as well. Despite the circumstances, we operate, produce and deliver at full capacity. We work according to plan and focus particularly on the international launch and sales of our Sippi digital urine meter system, with the ultimate goal of supporting our customers in the healthcare system and the patients,” says Björn Larsson, CEO of Observe Medical ASA.

The company follows national health authorities’ provisions and recommendations closely, and has implemented measures such as travel restrictions, hygienic measures, work-from-home policy and proactive use of digital communication and video, both internally and for dialogue with customers, suppliers and other business partners. The measures have been implemented to keep Observe Medical’s employees safe, contribute to the national health authorities’ and healthcare professionals work to limit infections, and to secure a continued high activity level in operations.

“COVID-19 situation highlights significant challenges for the global healthcare system. The importance of patient data accuracy and the severe resource constraints with high workload and stressed-out staff, in addition to the burden of healthcare-associated infections, is addressed with our proprietary Sippi system,” says Björn Larsson.

Observe Medical is currently launching Sippi®, an automated and wirelessly connected system for urine measurement, which offers a unique, effective and innovative solution for urine monitoring at the hospital intensive care units (ICUs) and beyond. The system incorporates SippCoat®, a technology that hinders bacteria migration which can lead to urinary infections. In a recently published abstract (full article in review), the technology was shown to significantly inhibit early bacterial biofilm formation in vitro. One of the authors, Professor Jan Van der Linden at Karolinska University Hospital in Stockholm, Sweden stated: “We have published two studies showing that Sippi is superior to analogue systems in accuracy, nurses’ workload and satisfaction. Our latest study, to be published soon, will show SippCoat effectiveness in hindering the most common bacteria stems growth”.

“Last week, together with our German distributor, we initiated the implementation of Sippi in the ICU clinic of a major hospital, and we also received the first order from an Austrian hospital. Meanwhile, we are completing the formation of our international advisory board, which will guide the Sippi scientific and commercial roadmap onwards.” says Björn Larsson.

Further to the COVID-19 situation, Observe Medical is making every effort to stay close to and support its customers and engage in the efforts of trade organizations and their workings groups, for example in health economics, infection prevention and antibiotic resistance. To support in the current situation, Observe Medical has decided to reach out to the authorities and hospitals in Norway and Sweden with a specific program, offering the Sippi® system to ICUs at favorable terms. The company aims to support the relevant authorities and bodies to coordinate the effort in the best possible way.

Observe Medical is monitoring its value chain closely and has a comfortable stock situation with regards to Sippi®. This business update is based on the current situation and subject to change as the COVID-19 situation evolves. It is currently too early to assess the long-term effects of COVID-19 and the impact on Observe Medical with certainty.

For further information, please contact:

Björn Larsson, CEO, +46 766 201 725 / bjorn.larsson@observemedical.com

Per Arne Nygård, CFO, +47 41 10 43 45 / perarne.nygard@observemedical.com

About Observe Medical: Observe medical ASA is listed on Oslo Stock Exchange (ticker OBSERV) develops and markets innovative hospital products that contribute to increased patient safety and a more efficient care system. The company headquarter is in Oslo and its operations are based out of Sweden. Observe Medical's initial product is Sippi®, the only automated digital urine meter with wireless data transfer to the hospital patient data management systems, and also hinders bacterial migration that can lead to urinary infections (Sippcoat®). Sippi® is CE marked and is currently being launched at selected hospitals in Europe. www.observemedical.com