Interim Report - January – September, 2019 Redsense Medical AB (publ)
Quarter 3, 2019, showed an increase in sales of 103% versus same period last year and is the strongest in the company’s history. The growth is driven by the US market.
Third quarter, 1 July – 30 September 2019
Redsense Medical group
- Sales amounted to 4 645 KSEK (2 286), with an increase of 103% compared to 2018.
- Earnings before interest and taxes amounted to -590 KSEK (-970).
Redsense Medical AB
- Net sales amounted to 3 257 KSEK (1 871).
- Earnings before interest and taxes amounted to -895 KSEK (-530).
1 January – 30 September 2019
Redsense Medical group
- Sales amounted to 9 541 KSEK (5 087), with an increase of 88 % compared to 2018.
- Earnings before interest and taxes amounted to -3 107 KSEK (-4 169).
- Total equity amounted to 9 418 KSEK at the end of the period.
- Available liquid assets amounted to 10 272 KSEK at the end of the period.
Redsense Medical AB
- Net sales amounted to 6 723 KSEK (4 034).
- Earnings before interest and taxes amounted to -3 026 KSEK (-2 520).
- Total equity amounted to 53 188 KSEK at the end of the period.
- Available liquid assets amounted to 9 980 KSEK at the end of the period.
Financial information YTD
Consolidated earnings for the first nine months of 2019 amounted to -3 107 KSEK before tax, which corresponds to -0.28 SEK per share. Liquid assets at the end of the period amounted to 10 272 KSEK. The number of outstanding shares as of September 30 was 11 019 765.
Summary and Highlights
Significant events during third quarter
- USA-based distribution partner Metro Medical Supply Inc. placed order valued at 1,5 MSEK in the first days of Q3.
- Submitted a PCT application based on Swedish patent for smart bandage.
- More than 4 MSEK value in orders from the USA in July and August.
- Submitted patent application for new technology derived from the existing smart bandage and stand-alone applicable in different industries.
- Targeted share issue of 8,5 MSEK to accelerate expansion, meet increased demand, as well as develop and commercialize previously evaluated blood clamp prototype.
- Increased use of Redsense among top dialysis providers in the USA.
- Announced project with European nurse organization to facilitate venous needle dislodgement reporting.
Significant events after third quarter
- Received 500 KSEK funding from Vinnova to develop AI-driven wound monitoring software.
- Received theInternational Search Report and Written Opinion issued by the International Searching Authority regarding patent in wound-care, for optical measuring of several physiological and biological parameters, such as blood and exudate. All claims under the Opinion have been found to be novel and have “inventive step” (i.e., to be non-obvious). The invention is also considered industrially applicable.
- Redsense offsets loan raised in connection with directed share issue. The amount of the loan offset by the issue was MSEK 3 plus interest.
- Signedwith Ann-Marie Eriksson, who will be the Company's Chief Technology Officer.
This quarter the pace continued to increase. Our sales are doubled vs same period last year and Q3 has the same sales as the first two quarters together and replaces this year’s second quarter as the strongest quarter in the company’s history.
The sales growth is mainly driven by the US home hemodialysis market. The relatively new treatments with nocturnal home hemodialysis and patients being able to do the treatments even without assistance are growing. The focus from the US government has initiated much activity with dialysis companies to support the legislation in favor of home dialysis There is much that needs to be addressed, such as training of doctors about home treatment advantages, and thus be willing to put patients on it; nurses and other caregivers needs to be trained to support and prepare the patients for a successful dialysis in the home.
In Europe we also see that our distributors are promoting and are evaluating needs in clinics all over Europe. In Europa as well as in most other countries there are a large number unreported events. To promote transparency and awareness of adverse events related to venous needle dislodging we have initiated a cooperation with the European nurses organization to create a reporting tool to make it easier for nurses and care-givers to report events.
We are also preparing to meet the new European regulatory requirements which will be implemented by 2021.
We got a first approval of our PCT patent on smart bandage, which underlines the strength of the invention. The first prototype is made and tested - showing that the theory also works in practice.
We are well geared for the future. With the substantially increasing orders we are focusing on strengthening our supply chain for the new production levels. We see an increased usage particularly in the US but also in Europe and we are confident that the growth will continue!
Looking forward to close 2019 as the best year yet!
For more information, please contact:
Patrik Byhmer, CEO Redsense Medical AB (publ)
Phone: +46 35 10 60 30
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.