Interim Report - January – June, 2019 Redsense Medical AB (publ)

The strongest result in the company’s history

The first half of 2019 is the strongest yet in the company’s history, with an increase of 30% versus same period last year. Q2 was up 12% versus same period last year and is the strongest quarter on record for the company and we can already now estimate that Q3 will be even stronger.

Financial Summary 

Financial information – 1st half-year 2019 (January 1st - June 30th)

Sales for the period January - June amounted to 4 721 kSEK a growth of 30% compared with the same period 2018. The earnings before interest and taxes (EBIT) were -2 507 kSEK or -0,23 SEK per share. The number of shares outstanding per June 30th was 11 019 765 (June 30th 2018: 10 490 733 shares). 

Financial information - Second Quarter 2019

Sales for the period April - June amounted to 2 758 kSEK, a revenue growth of 12% compared with the same period 2018. Earnings before interest and taxes (EBIT) were -2 403 kSEK which is an improvement versus same period 2018.

Second Quarter 2019 (April 1st - June 30th)

Redsense Medical Group  

  • Sales amounted to 2 758 kSEK (2 461) with an increase by 12% compared to 2018
  • Earnings before interest and taxes amounted to -1 388 kSEK (-2 060)

Redsense Medical AB  

  • Sales amounted to 2 060 kSEK (-1 373)
  • Earnings before interest and taxes amounted to -1 346 kSEK (-1 249)

1st half-year 2019 (January 1st - June 30th)

Redsense Medical Group  

  • Sales amounted to 4 721 kSEK (3 634) with an increase by 30% compared to 2018
  • Earnings before interest and taxes amounted to -2 507 kSEK (-3 199)
  • Total equity amounted to 1 270 kSEK at the end of the period
  • Available liquid assets at the end of the period were 657 kSEK

Redsense Medical AB  

  • Sales amounted to 3 466 kSEK (2 163)
  • Earnings before interest and taxes amounted to -2 131 kSEK (-1 990)
  • Total equity amounted to 45 423 kSEK at the end of the period
  • Available liquid assets at the end of the period were 586 kSEK

Summary and Highlights

Significant Events during Second Quarter

  • Redsense Medical has signed a collaboration agreement with Physidia, a French dialysis company focusing on the home hemodialysis market
  • Dr. Maria Alquist was elected to the Board of Directors
  • Redsense Medical received patent approval in Sweden for its smart wound care technology for optical measuring of blood and exudate
  • Redsense Medical changed list for trading on May 3rd to Spotlight Stock Market
  • In collaboration with the University Health Network in Toronto, an article entitled: "A prototype line clamp for venous access bleeding in hemodialysis: A prospective cohort study", was published in the medical journal Hemodialysis International (2019; 23:151–157)

Significant Events after Second Quarter

  • Q3 started in the first week with Metro Medical Supply Inc., distribution partner of Redsense Medical, based in Nashville, USA booked an order of blood leakage alarms to a value of 1,5 MSEK
  • Participating at the 2nd Annual Conference in IDEAS & Innovation in Dialysis in Seattle presenting a poster about a new innovation around Smart Needle Disconnect Alarm      

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Comments from CEO, Patrik Byhmer, Redsense Medical AB

The strongest result in the company’s history  

The first half of 2019 is the strongest yet in the company’s history, with an increase of 30% versus same period last year. Q2 was up 12% versus same period last year and is the strongest quarter on record for the company and we can already now estimate that Q3 will be even stronger.

Our growth is driven by sales to the US home hemodialysis market and we have already received an increase in order volume in July and August. With President Trump's recently announced initiative we expect a continued increase in the US. During this fall we will continue to build our US business with more partners and stay close to the development by the government. We have good relationships with user groups and care givers (nurses and physicians organisations). Further we will assess and develop our supply chain, particularly serving the US.

In Europe we see an increase in sales from the Netherlands and the UK. We are working close to our distributors with training of customers and exhibitions, and are awaiting the results of several tenders. This is a lengthy process, however, we expect to see more activity during late fall. In Germany we have worked intensely during this summer with introducing the products and training some clinics for evaluation. We hope to have some new customers to announce during the fall.

We have announced a collaboration with Physidia, a French dialysis company focusing on the home hemodialysis market. The collaboration includes a direct connection, using the PAS standard, with the Redsense blood leakage alarm with Physidia’s new S3 dialysis monitor.

We are convinced that the home hemodialysis trend will continue as this modality gives a number of benefits for the patient as well as cost savings compared to treatments in clinic.

Building on our experiences with the PAS product and system we intent to develop a product that can stop the dialysis treatment when the device gives a blood leakage alarm without being connected to the dialysis machine. This project is in collaboration with the University Health Network in Toronto where we have tested the first prototype.

The result from this evaluation has been published in the Hemodialysis International (Kennedy et al 2019; 23:151–157), "A prototype line clamp for venous access bleeding".

We have presented a poster at IDEAS & Innovation in Dialysis in Seattle together with IEC/imec showing our innovative technology and how we can help to change the industry and support an increase in home hemodialysis.

We continue to strengthen our position within our new business area – Wound Care. We already noticed a significant interest in the technology from major international players in the wound care sector. This technology and patent confirm that we have developed a unique solution that can help to improve wound care globally.

Our goal is to create a strong patent protection for the technology in all important regional markets in parallel with the ongoing product development.

Our smart wound care technology makes it possible to develop thin sensor layers for optical measurement of most physiological and biological parameters such as in blood and wound fluids.

Looking ahead we expect continued increased sales for the balance of the year. We continue to focus on sales as well as building and strengthening partnerships with distributors and healthcare stakeholders.

It is also important to maintain business continuity and consistency to keep delivering above expectations. With that in mind, I am very much looking forward to an exciting and busy remaining year 2019!

Halmstad, August 26th, 2019

Patrik Byhmer

CEO Redsense Medical AB

For more information, please contact:

Patrik Byhmer, CEO Redsense Medical AB (publ)
Phone: +46 35 10 60 30
info@redsensemedical.com
www.redsensemedical.com

Publication 

Redsense Medical AB (publ) is obliged to make the information contained herein public pursuant to the EU market abuse regulation. The information was submitted for publication through the agency of the above contact person, at 08:30 CET on August 26th, 2019.

Trading place  

Redsense Medical’s shares have been listed on the Spothlight Stock Market since May 3rd, 2019 and trading takes place under the ticket of REDS.

About Redsense Medical
Redsense Medical is a corporate group with operations mainly in Europe and the United States. The company has developed the Redsense System, an innovation used for monitoring and alarm in the case of blood leakage in connection with a hemodialysis treatment. Redsense Medical solves one of the most serious remaining safety problems within hemodialysis – to quickly detect Venous Needle Dislodgement and catheter leakage to minimizing blood leakage. The system consists of a patented fiber optic sensor, designed for either venous needle or central venous catheter, which is connected to an alarm unit. From the very start, the development of the company's technology has been based on the demands and safety requirements of healthcare providers in the dialysis sector.