Observe Medical ASA: Second quarter and first half year 2022 results
Oslo, 25 August 2022 – Observe Medical ASA (“the Company” or “Observe Medical”) today release its results for the second quarter and first half year of 2022.
Following the acquisition of Biim Ultrasound in March 2022 and corresponding high corporate activity, Observe Medical has worked to integrate and extract operational synergies across the company and product portfolio. The company has also worked to build the organization for future product scale-up and advanced its partnership with Fresenius Kidney Care.
Throughout March and April 2022, Observe Medical completed the first delivery phase of Biim ultrasound probes to Fresenius Kidney Care in the US. The roll-out continues as planned, with 260 probes delivered to Fresenius educational centres.
Observe Medical continues to work closely with the Fresenius team to produce educational videos, which are expected to drive adoption amongst an additional 2 500 Fresenius centers in the US. Observe Medical will soon move towards the second phase of the agreement to supply additional Biim ultrasound probes.
“Looking back at the first half of 2022, the most significant development has been the acquisition and integration of Biim Ultrasound, which placed us on the map of Nordic medtech companies to watch. Over the last few months, we have worked diligently to integrate and extract operational synergies, and I am pleased to say that the work has gone according to plan and that we are ready to take on the second half of 2022,” said Rune Nystad, CEO of Observe Medical.
“Now, part of our commercial focus will be advancing our existing partnership with Fresenius Kidney Care in the US whilst we reinforce the marketing efforts for Sippi®,” he added.
In the first quarter of 2022, Observe Medical announced that the company’s supplier for the Sippi® Disposable Unit closed down production in Belarus due to the Ukraine crisis. In August 2022, the company selected a new production and manufacturing partner in Italy. This agreement will support the ongoing scale-up preparations for the product in Europe.
Sippi® has also gained international interest as a product that can support efficiency in the intensive care unit. Replacing one of the last manual monitoring procedures in the ICU, Sippi® can also offer increased efficiency to mitigate the ongoing nursing gap.
The company’s Nordic sales and distribution platform has also signed four new contracts, including contracts for anesthesia tubes and anti-bacterial medical honey across several hospitals in Sweden. As a result, the company now has 35 active contracts with regional health authorities in Sweden and another five ongoing tenders with an estimated total value of NOK 3 million.
Financial highlights for the first half of 2022
For the first half of 2022, Observe Medical reported NOK 12 million in total revenues, with revenues from the sales of the Biim ultrasound probe amounting to NOK 5 million. Gross margin improved to 39.7% (up 2.5pp), driven by the increased sale of proprietary products.
See the attached presentation material and report for detailed information about the financial results for the second quarter and the first half of 2022.
Management will host a presentation and Q&A session at 08:30 CEST today. The presentation will take place at Haakon VIIs gate 2 and will be available via webcast at the following link: https://channel.royalcast.com/landingpage/hegnarmedia/20220825_3/
After the live event, the presentation and recording will be made available under the Investor Relations section on the Company's website, https://observemedical.com/investor-relations/.
For further information, please contact:
Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com
Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@observemedical.com
About Observe Medical
Observe Medical is a Nordic medtech company that develops, markets and sells innovative medtech products for the global market. The Company is committed to improving patient welfare and patient outcomes, improving clinical data accuracy and promoting positive health economics.
The Company seeks to drive growth by leveraging its expertise in sales and commercialization of its broad portfolio of medical technology products, mainly in urine measurement, ultrasound, anesthesiology/ICUs, surgery and wound care, in combination with targeted M&A.
The Company is headquartered in Oslo, Norway, with additional offices in Narvik (Norway), Gothenburg (Sweden), Oulu (Finland), and Seattle (the US). In addition, Observe Medical has a direct sale organization in the Nordics and a distributor network internationally.
Further information is available at www.observemedical.com.