Observe Medical ASA: Q4 2019 financial results

Oslo, 25 February 2020 – Observe Medical ASA (OSE: OBSERV) continued implementation of its growth strategy in the fourth quarter of 2019, including the commercialization of its first product Sippi®.

“In the fourth quarter of 2019, we have taken important steps in the commercialization of Sippi. In parallel we have strengthened our foundation for value creation and growth by establishing Observe Medical as a standalone publicly listed company. We have a new leadership team in place, a strong board of directors, and we have established good corporate infrastructure and internal processes.” says Björn Larsson CEO of Observe Medical ASA.

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.

“We have embarked on our commercialization journey and see strong evidence of the attractiveness of the proprietary Sippi technology. During the recent months, we have received tenders both in Sweden and in Italy, and we have successfully achieved MDD recertification by the notified body Intertek and received positive results from an important bacterial study at Karolinska Institute in Sweden. We are now in the process of establishing an advisory board, which will be important in terms of guiding further product development and the commercial pathway for Sippi,” says Larsson.

Observe Medical’s revenues in the fourth quarter of 2019 came in at NOK 94 thousand, as the company is still in launch stage, while the company’s EBITDA was negative NOK 3.6 million (negative NOK 1.2 million in the same quarter in 2018). The net result in the period ended at negative NOK 4.5 million (positive 14.7 million), as the 2018 numbers were affected by a significant decrease in contingent consideration liability.

“In the first half of 2020, we are targeting installations of the new generation of Sippi at Karolinska Hospital in Stockholm. In addition, we will drive further sales of Sippi by working specifically on improving and broadening our distribution channels as well as focused direct sales. Another key focus area will be to establish further evidence of the clinical effect of Sippi as well as the strong health economic profile of the product,” says Larsson.

Observe Medical is hosting a presentation of the fourth quarter 2019 financial results at Felix Konferansesenter, Aker Brygge, Oslo, Thursday 25 February at 08.30 CET. The event will be webcasted live on www.observemedical.com – Investor relations and https://channel.royalcast.com/webcast/hegnarmedia/20200225_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.