Year-end Report 2021 Redsense Medical AB (publ)

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October – December 2021

  • Net sales amounted to kSEK 4,059 (2,228), an increase by 82 percent.
  • Operating loss, EBIT amounted to kSEK 3,073 (4,716).
  • Result after tax amounted to kSEK -733 (-5,610).
  • Earnings per share was SEK -0.05(-0.40) before and after dilution.

January – December 2021

  • Net sales amounted to kSEK 9,362 (14,442), a decrease by 35 percent.
  • Operating loss, EBIT amounted to kSEK 11,991 (8,124).
  • Result after tax amounted to kSEK -7,972 (-9,035).
  • Earnings per share was SEK -0.57 (-0.64) before and after dilution.
  • Net cash at December 31 was kSEK 24,328 (65,023).
  • Cash and cash equivalents amounted to kSEK 4,983 (29,007).
  • Cash flow from operating activities amounted to kSEK -12,941 (-3,836).
  • The Board of Directors intends to propose to the Annual General Meeting that no dividend be paid to the shareholders for the fiscal year 2021.

Significant events during the period

  • On October 13, Redsense Medical announced its first order from Canada.
  • On November 18, Redsense Medical announced an order from Christus Spohn Hospital in the United States.
  • The Nomination Committee proposed current CEO and largest individual shareholder Patrik Byhmer as new Chairman of the Board as of the Annual General Meeting in May 2022. Patrik Byhmer will thus step down from the position as CEO in this connection and the Board of Directors has started the recruitment of a new CEO.
  • On December 30, Redsense Medical announced its completed registration with the UK Medicines & Healthcare products Regulatory Agency (MHRA), which ensures the Company continued access to the UK market.

Comment from the CEO

Redsense records its best fourth quarter yet

With net sales totaling kSEK 4,059 for the quarter, Redsense follows up the third quarter’s increase of net sales quarter-to-quarter with another indication of good progress, recording a strong finish to the year. In the fourth quarter of 2019, the last fourth quarter prior to the pandemic, net sales amounted to kSEK 3,967. In 2020, the corresponding amount was kSEK 2,228. As such, this is Redsense’s best fourth quarter to date, which in part is testament to how the hemodialysis landscape continues to emerge from the major disturbances experienced during the pandemic.

Great efforts by the team have strengthened the company

The COVID-19 pandemic has been a trying period for everyone, and an especially difficult ordeal for the health care providers and the patients that depend on their continued operations. We, as a product supplier, have been forced to do what we can to innovate and develop new approaches to address the changing conditions – and the team has done so, rising to the occasion in a great way. As global supply chains have slowed and caused shortages, we have taken measures to streamline and secure our own supply chains, and we are coming out of that crisis stronger than we went into it. We have reviewed and updated materials and followed up the various processes in the company, going to great lengths to ensure that the company can get back on track smoothly as restrictions are lifted. We have raised our skills continuously with regard to remote training and virtual meetings throughout this period, achieving lasting efficiencies. We are pleased to see that dialysis care in general has also adopted digital means of communication to a greater extent, facilitating training and monitoring moving forward.

Vaccines protect the patient population

The effectiveness of the COVID-19 vaccines also in patients diagnosed with end stage kidney disease, as demonstrated in a recent DaVita Clinical Research study, is reassuring; vaccinated dialysis patients developed antibodies at par with the rates seen in the broader Phase III trials, and even in cases of breakthrough infection, vaccinated patients were less likely to be hospitalized or die.

Prior to the vaccine, the vulnerable and immunocompromised dialysis patient population saw a hospitalization rate significantly higher than the general population. The hospitalization rate of home dialysis patients, however, was less than that of in-center patients, which speaks to the immense advantages of not having to leave the home several times a week to travel to a dialysis facility shared with other frail patients. Naturally, this staggering difference does not go unnoticed, and home hemodialysis, where Redsense’s solution plays an instrumental role, is looking more and more attractive.

New technology met with interest in Europe

Our new Bluetooth-connected accessory, the Redsense Clamp, remains in clinical validation. This is proceeding as planned, and preparations for the upcoming market introduction are under way. The Clamp, which clamps the bloodline to stop blood flow when the alarm unit detects a blood leakage, enhances the Redsense System from a warning device to an automatic, protective device and gives us a unique offer.

We are pleased to see that this upgraded ability, which will improve patient safety considerably, is already in demand in the market. There are more and more tenders across Europe asking for solutions for external blood loss monitoring that specifically include the request for a capacity to stop the blood pump. Most recently, it was the Swedish healthcare region Västra Götaland that brought this request. Our new technology is thus opening doors, and we are confident that it is a major boost toRedsense’s offer.

In summary, we are now putting 2021 behind us, and I would like to thank our employees who have put so much effort into getting us where we are today. I would also like to thank all our shareholders for their continued confidence, and I look forward to the market release of our new product Redsense Clamp during 2022.

Contact information

For more information, please contact: 
CEO Patrik Byhmer
Telephone: +4670-357 21 64

Redsense Medical 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 contact person above at CET 08:30 on Monday, February 28, 2022.

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.