Peptonic Medical provides an operational update after the first 120 days with new CEO
Peptonic Medical AB ("Peptonic") today presents an operational update highlighting the strategic measures implemented during Anna Linton's first 120 days as CEO. These efforts, aimed at achieving profitability, combine initiatives for increased sales and cost efficiency.
Initiatives for Increased Sales
Strategic shift in focus: The company has more clearly shifted its focus towards sales growth. Resources are now more heavily allocated to sales and marketing activities for the existing portfolio of intimate self-care products, while fewer resources are dedicated to the development of future products.
Established partnerships: The emphasis is on maximizing the leverage of existing partnerships through volume increases and the broadening of the product offering to take advantage of already established channels. At the same time, initiatives have been taken to expand distribution in Europe and to launch the VagiVital brand in the USA.
Increased presence in America: During 2023, America, primarily the USA, accounted for 45 percent of the company's sales of VagiVital, making the USA Peptonic's most important market. Ongoing discussions with existing partners within retail chains such as Walgreens and CVS to expand the product range with more of Peptonic's intimate care products, as well as reintroducing and expanding the range at Walmart, create favorable conditions for future sales growth during the first half of 2025. The launch of the VagiVital brand in the USA is expected in the fall of 2024, further strengthening Peptonic's market presence. A recently signed agreement with a partner in the USA supports the launch efforts and sales activities.
Expanding distribution in Europe: Sales of VagiVital and Vernivia were relatively evenly distributed between the Nordic countries and the rest of Europe, which accounted for the remaining 55 percent of sales in 2023. Negotiations are ongoing with potential partners to expand distribution and increase sales volumes in Europe, particularly in Spain, Italy, and France.
Measures for Cost Efficiency
A thorough review of the company's overhead costs has resulted in measures that will gradually reduce these significantly. The full effect of the initiatives is expected around the turn of the year.
Reducing the organization: Staff and the board have been reduced after careful consideration to streamline the company's resources while maintaining the capacity to increase revenue.
Reduced product development: The plan to develop and launch ten products in 2024 has been reduced to four, freeing up resources for sales and marketing activities.
Subsidiary Lune: In 2023, Peptonic's subsidiary Lune generated sales of 11.3 MSEK, with a negative operating result of -4 MSEK. Despite several initiatives to create growth and profitability, increased competition has contributed to a continued decline in sales and an increase in losses. Lune filed for bankruptcy in the spring of 2024. The winding down of Lune will reduce Peptonic's overhead costs and improve operating results.
In summary, CEO Anna Linton expresses strong confidence in the future. "By focusing on sales growth in combination with continued cost efficiency measures, I am convinced that we will turn the company's development towards profitability."
For further information, please contact:
Anna Linton, CEO Peptonic Medical AB
Email: anna.linton@peptonicmedical.se
Phone: +46 70-244 92 07
About Peptonic
Peptonic Medical AB (publ) is a cutting-edge Swedish biomedical company, dedicated in the development and distribution of clinically proven self-care treatments and self-diagnostic tests in intimate women's health. The portfolio is sold under the brands Vagivital and Vernivia. The company's vision is to revolutionize intimate health by empowering women to diagnose, treat, and prevent intimate medical conditions independently and effectively.
Central to the growth strategy is the geographical expansion of VagiVital and Verniva through local partners. Peptonic Medical also intends to continuously broaden the company's product portfolio through acquisitions and the development of innovative and competitive products in-house. The company's mousse-based drug delivery technology, Venerol, and the gel base in VagiVital create favorable conditions for expanding the portfolio.
The company is headquartered in Stockholm, Sweden, and has subsidiaries Common Sense Marketing Inc in the USA and Peptonic Medical Ltd in Israel. Peptonic Medical was founded in 2009, and the company's shares have been listed on the Spotlight Stock Market since 2014.