Observe Medical ASA: Q1 2020 financial results

Oslo, 12 May 2020 – Observe Medical ASA (OSE: OBSERV) today released its presentation of the first quarter 2020, including an updated market study indicating a doubling of the potential market value for the company’s first product, Sippi®. The company’s long term revenue ambition for Sippi® is increased accordingly to NOK 500 million.

“During the first quarter, the healthcare system across the globe has been put under tremendous pressure, and the COVID-19 pandemic has emphasised the need for increased capacity and efficiency in intensive care units. We expect this to be a strong driver for both volume and value growth of the market for Sippi®, CEO of Observe Medical Björn Larsson says.

Although certain customer prospects have slowed down during the COVID-19 pandemic, Observe Medical experiences strong customer commitment in resuming Sippi® implementation, once the situation at hospitals normalizes.

“We have full focus on preparing our organization to grasp the opportunity for growth going forward. Our scientific advisory board is now operational, emphasizing the clinical and commercial roadmap for Sippi®,” Larsson says.

The company’s ambition is to drive growth by leveraging its expertise in commercialization of medical technology products in combination with targeted M&A. The company’s first product, Sippi® is a unique and proprietary solution for urine monitoring in hospitals. Sippi is the only automated digital urine meter with wireless data transfer to patient data management systems, and is hindering bacterial migration which can lead to urinary infections.

Observe Medical’s revenues in the first quarter of 2020 came in at NOK 32 thousand, as the company is still in launch stage, while the company’s EBITDA was negative NOK 4.4 million (negative NOK 2.7 million in the same quarter in 2019). The net result in the period ended at negative NOK 0.4 million (negative 4.1 million), as the result was affected positively by significant exchange rate fluctuation in the period.

Observe Medical is hosting a presentation of the first quarter 2020 financial results at Felix Konferansesenter, Aker Brygge, Oslo, Tuesday 12 May at 08.30 CET. The event will be webcasted live on www.observemedical.com – Investor relations and https://channel.royalcast.com/webcast/hegnarmedia/20200512_4/

EBITDA and other alternative performance measures (APMs) are defined and reconciled to the IFRS financial statements as a part of the APM section of the attached quarterly presentation.

For further information, please contact:
Björn Larsson, CEO.
Mobile: +46 76 620 17 25 E-mail:
bjorn.larsson@observemedical.com

Per Arne Nygård, CFO
Mobile: +47 411 04 345 E-mail:
perarne.nygard@observemedical.com

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

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.