INTERIM REPORT Period from January 2020 to June 2020 Lune Group OY incl subsidiary is consolidated in the group from 2020-06-03

Peptonic Medical AB (publ) org nr 556776-3064

(www.aktietorget.se ticker: PMED)

Group, Lune Group OY incl subsidiary is included from 2020-06-03

2020 SECOND QUARTER (Apr-Jun)

  • Net sales of products KSEK 3 572 (1 011)
  • Gross profit KSEK 2 417 (768), Gross margin 68% (76%)
  • Operating loss KSEK -7 166 (-5 797) 
  • Loss per share SEK -0.05 (-0.06)

2020 FIRST HALF YEAR (Jan-Jun)

  • Net sales of products KSEK 5 353 (2 481)
  • Gross profit KSEK 3 402 (1 570), Gross margin 64% (63%)
  • Operating loss KSEK -12 973 (-9 695) 
  • Loss per share SEK -0.08 (-0.11)

From the CEO

The acquisition of Lune Group Oy Ltd is the single most significant event in Peptonic during the first six months of this year. It is also the single most significant event in the history of Peptonic and an important piece in the creation of the future Peptonic. Lune adds products (menstrual cups and intimate hygiene products) and a global distribution network, that will contribute to the growth of Peptonic to become a company offering treatments for and products to improve the quality of life for women.

The integration of the two companies and the work to find and exploit the synergies began already during spring when it was clear that the deal will happen. After the closing, this work has intensified. Much focus has been put and will be put on the digital side of the business. An activity that has received more and more attention due to the COVID-19 pandemic.

There is no doubt that COIVID-19 has had a negative impact on the sales development of VagiVital. Following a promising growth during the first two months of the year, the growth stalled. In particular, retail sales has decreased, whereas on-line sales has increased to some extent. Due to the pandemic, no significant investments in marketing and promotion have been made. These have been rescheduled to later dates. Sales during the first half of the year was on the same level as for the same period last year. However, during the summer we have noted a clear recovery of sales volumes. This is promising for the autumn. Sales via the webshops in Norway and Denmark is developing well. In contrast, sales in England and Hong Kong hasn’t developed as planned. Hence, we are now introducing changes in the distribution to reach the customers more effectively.

In May the first order of VagiVital to China was shipped. This shipment of 53,000 tubes are to be used to introduce the product and the brand among gynaecologists and prescribers. Recently Peptonic received additional order of 106,000 units to China. Half of the order is to be delivered by the end of this year, and the balance during Q1 2021. Users of the products will participate in a large scale survey to collect user experience that can be used to support the marketing authorization application.

Since sales of menstrual cups is mainly happening via retail, this has also been affected negatively by COVID-19. One exception is the US, which is developing well. This is probably due to the fact that a higher portion of sales is on-line.

Operating loss for the period was -12.973 MSEK for the group and -12.382 MSEK for the parent company. Group sales generated 5.353 MSEK, whereas parent company sales was 2.904 MSEK.  Marketing costs, and cost of manufacturing, transportation and distribution amounted to approx. 10.5 MSEK (last year 6.2 MSEK). Costs associated to the acquisition of Lune Group Oy Ltd amounted to approx. 3 MSEK.

The last patients of the clinical study with women that have undergone cancer treatment (hormone dependent cancers) exited the study in June. The study was terminated earlier than planned due to COVID-19, but the number of patients enrolled is sufficient for the results to be valid and representative. The results are expected during Q3 2020.

According to our business model, the growth of Peptonic will take place by way of in-house product development, distribution collaborations and/or acquisitions. The development of an intimate wash based on the positive healing properties of VagiVital is an example of the first. The project is progressing according to plan and the launch is planned for Q1 2021. New and complementing products are under evaluation.

We are now joining forces to take on the post ‘first COVID-19 wave’ challenges. We see many opportunities in working with two brands on a global market.

Johan Inborr

CEOStockholm, August 17th, 2019

KEY FIGURES 6 mon 6 mon 12 mon 12 mon
Peptonic Group jan-jun jan-jun jan-dec jan-dec
2020 2019 2019 2018
Sales goods, KSEK 5 353 2 481 4 408 383
Gross profit sales goods, KSEK 3 402 1 570 2 583 283
Gross margin, % 64% 63% 59% 74%
Operating profit, KSEK -12 973 -9 695 -23 992 -14 381
Return on equity,% -30 -31 -35 -26
Equity ratio,% 89 94 93 80
Earnings per share, SEK -0.08 -0.11 -0.18 -0.17
Liquidity per share, SEK 0.22 0.24 0.26 0.13
Equity per share, SEK 0.53 0.82 0.62 0.64
Share price per closing, SEK 1.66 1.51 1.89 0.50
Share price/Equity per share, SEK 3.12 1.85 3.05 0.78
Equity per share, SEK 155 143 476 95 346 230 138 128 306 86 028 600
 

FINANCIAL INFORMATION
The acquisition of Lune Group OY was completed on 2020-06-03, this report includes their results from and on 2020-06-03 in the consolidated accounts. The balance sheet is consolidated as of 2020-06-30.

Revenue - Sales of goods during the second quarter amounted to KSEK 3 572 (1 011). Other operating income for the quarter was KSEK 17 (17). In the first half of the year, sales of goods amounted to KSEK

5 353 (2 481) . Other operating income for the half year was KSEK 28 (35.

Costs - Costs for the second quarter amounted to KSEK -10 755 (-6 130). The costs for the first half of the year were -18 354 (-12 211). During the half year, costs for products were KSEK 1 951 and market costs were KSEK 8 571.

Profit - The company's profit after net financial items for the second quarter amounted to KSEK -7 189

(-6 112). For the half year, the corresponding result is KSEK -12 996 (-10 325).

Financial position and liquidity - Cash and bank amounted to KSEK 34 000 (22 651) as of June 30, 2020. During the quarter, the company received a net KSEK 7 195 in newly issued capital via a directed new issue to the Vidarstiftelsen. External acquisition costs for Lune Group during the half year were KSEK 3 163.

Shareholders 'equity - The company's shareholders' equity as of June 30, 2020 amounted to KSEK

89 098 (77 962), which gives an equity / assets ratio of 89 (94) percent. Equity increased net by KSEK 7 195 through the private placement to Vidarstiftelsen.

Liabilities - The company's liabilities, as of June 30, 2020, amounted to KSEK 10 445 (4 550).

Organization - During the period, the average number of employees was 5 (2). At the end of the period, the number of employees was 16 (2). In addition to this, from 2018 a marketing manager and a quality manager will be hired as consultants, and the accounts are outsourced to an accounting firm. Employees at Lune Group OY, including subsidiaries, refer to a total of 13 employees.Share - The total number of shares as of June 30, 2020 was 155 143 476 (95 346 230). During July 2019, the number of shares increased by 31 782 076 shares to 127 128 306 shares after the registration of the new share issue.
 

INCOME STATMENT
Peptonic Group 3 mon 3 mon 6 mon 6 mon 12 mon
Apr-Jun Apr-Jun Jan-Jun Jan-Jun Jan-Dec
KSEK Note 2020 2019 2020 2019 2019
Operating income
Sales of products 3 572 1 011 5 353 2 481 4 408
Other operating income   17 17 28 35 64
Total operating income  3 589 1 028 5 381 2 516 4 472
Operating expenses
Cost of goods -1 155 -243 -1 951 -911 -1 825
Other external expenses 1 -6 360 -4 843 -11 127 -7 695 -17 041
Personnel costs -2 416 -1 044 -3 713 -2 197 -6 475
Depreciation -770 -695 -1 465 -1 408 -2 855
Other operating costs -54 0 -98 0 -198
Total operating expensses -10 755 -6 825 -18 354 -12 211 -28 394
Operating loss   -7 166 -5 797 -12 973 -9 695 -23 922
Net financial income/expense -23 -315 -23 -630 -587
Loss before taxes -7 189 -6 112 -12 996 -10 325 -24 509
Taxes 4 0 4 0 0
Adjustment for minority share of the result 196 0 196 0 0
Net loss for the period -6 989 -6 112 -12 796 -10 325 -24 509
 

BALANCE SHEET

Peptonic Group 30-jun 30-jun 31-dec
KSEK  Note 2020 2019 2019
Assets
Non-Current assets
Intangeble assets 2 55 262 55 412 54 252
Tangeble assets 3 1 842 0 0
Financial assets 7 - -
Total non-current assets   57 112 55 412 54 252
Current assets  
Stock 6 351 751 594
On going fund raising 0 1 572 0
Other receivbles 1 329 1 314 945
Tax receivable 0 - -
Prepaid expenses and accrued income   750 812 176
Liquid assets  34 000 22 651 35 984
Total current assets   42 431 27 100 37 699
Total assets 99 542 82 512 91 951
Equity and liabilites
Equity  
Ristricted equity
Share capital 15 577 9 535 13 813
Ongoing right issues 0 25 970 0
Development Cost Fund 12 332 13 130 12 600
Non- restrictes equity 0 0 0
Share premiun reserv non-restricted  182 108 137 848 182 006
Profit or loss brought forward -113 222 -98 196 -98 196
Net loss for the period -13 984 -10 325 -24 509
Minority share of equity 6 286 0 0
Total equity   89 098 77 962 85 714
Current liabilites  
Liabilities interest bearing 0 0 0
Trade payables 6 606 433 495
Other payables 234 1 718 3 768
Prepaid income and accrued expenses 3 605 4 550 6 237
Total current liabilities 10 445 6 701 10 500
Total equity and liabilities 4 99 542 84 663 96 214
 

STATMENT OF CASH FLOW

Peptonic Group 6 mon 6 mon 12 months
Jan-June Jan-June Jan-Dec
KSEK Note 2020 2019 2019
CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL 
Operating profit/loss -12 996 -10 325 -24 509
Non-cash flow items -1 465 2 038 2 855
Paid tax 4 - -
NET CASH FLOW FROM OPERATING ACTIVITIES BEFORE CHANGES IN WORKING CAPITAL -14 457 -8 287 -21 654
Increase (-) decrease (+) inventory -5 757 -142 23
Increase (-) decrease (+) receivables -959 -1 335 -338
Increase (-) decrease (+) liabilities 4 208 -1 140 2 827
NET CASH FLOW FROM OPERATING ACTIVITIES -16 965 -10 904 -19 142
CASH FLOW FROM INVESTING ACTIVITIES
Investment in immaterial assets, net -2 400 -424 -711
Investment in material assets, net -1 917 - -
Acquisition of subsidiaries, net cash impact 12 110 0 0
Investment in financial assets, net -7 0 0
Divestment / reduction of  financial assets - - -
NET CASH FLOW FROM INVESTING ACTIVITIES 7 785 -424 -711
CASH FLOW FROM FINANCING ACTIVITIES
Rights issue 7 500 34 421 56 752
Issue expenses -305 -1 307 -1 780
Bridgeloan 0 -10 500 -10 500
NET CASH FLOW FROM FINANCING ACTIVITIES 7 195 22 614 44 472
TOTAL CASH FLOW FOR THE YEAR -1 984 11 286 24 619
Cash and cash equivalents at beginning of period 35 984 11 365 11 365
CASH AND CASH EQUIVALENTS AT END OF THE YEAR 34 000 22 651 35 984
 

This interim report has not been reviewed by the Company’s auditors.

The Board of Directors and the CEO certifies that the interim report gives a fair overview of the business, position and profit or loss of the Company.

FINANCIAL CALENDER

Quarterly report, 3                                                   November 10th 2020

Year end report, 2020                                             February 26th 2021

Stockholm, August 17th, 2020

Hans von Celsing, Chairman of the Board                       Anna Tenstam, Board member

Marianne Östlund, Board member                                   Leni Ekendahl, Board member

Johan Inborr, CEO



For more information, please contact;

Johan Inborr, CEO

Mobile: +46 708 853 893

E-mail:  johan.inborr@peptonicmedical.se

This information is information that Peptonic Medical AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 17th August, 2020.

About  VagiVital®

VagiVital® is a patent pending hormone free self-care product for the treatment of vaginal atrophy and vaginal dryness. The product has been tested in randomised clinical studies (vaginal atrophy) with very positive results both for objective (vaginal pH and proportion of superficial cells in the vaginal mucosa) and subjective (most bothersome symptoms, such as vaginal dryness, vaginal irritation/itching, dyspareunia and dysuria) parameters. The magnitude of symptom relief is on par with that demonstrated with e.g. prescription estrogen based products on the market today. It was very well tolerated and caused no serious adverse effects.

VagiVital® was launched in Sweden as a non-prescription self-care product in July 2018 (see www.vagivital.com).  

About Peptonic Medical

Peptonic Medical is an innovative Swedish medical development company. Its vision is to offer safe and effective treatments and relief for women specific diseases and medical conditions.

VagiVital® is a registered trademark of Peptonic Medical. The product is hormone free and is being commercialised for the non-prescription use for the treatment of vaginal atrophy (VA) and vaginal dryness. The pipeline of Peptonic Medical also includes Vagitocin®, which is an oxytocin-based vaginal gel for the treatment of VA. This product candidate is in clinical development phase 2. The development of Vagitocin® is on hold pending additional data on i.a. the mechanism of action.

Since July 2014, the Peptonic Medical share has been traded on the Spotlight Stock Exchange (www.spotlightstockmarket.se, ticker: PMED) in Stockholm, Sweden.

For more information: www.peptonicmedical.com

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