Spermosens year-end status update: Strong progress and promising outlook for 2025
Spermosens AB (“Spermosens” or the “Company”) provides a year-end update on its progress in 2024, a transformative year marked by key achievements, new leadership and the execution of a revised strategy that has positioned the Company for success going forward.
Spermosens continues to advance its unique and patented JUNO-Checked technology, designed to transform male fertility diagnostics. The technology measures sperm cells' ability to bind to the egg, a crucial factor in fertilization. This provides a more accurate and meaningful assessment of male fertility, which is essential for improving the success rates of assisted reproductive technologies (ART) such as in vitro fertilization (IVF). The JUNO-Checked technology has gained significant attention from sperm banks for its potential to improve donor selection and enhance fertility outcomes. Globally, over 3 million IVF treatments are performed annually, yet fewer than 20% are successful. The technology addresses a growing fertility care market valued at approximately USD 25 billion in 2023, with an annual growth rate of 6% projected through 2030. Accurate diagnostics and personalized treatment are key to improving outcomes in this market.
In 2024, Spermosens launched a revised strategy that has proven to be pivotal in advancing the Company’s objectives. The focus on clinical validation of its JUNO-Checked technology, alongside commercialization through strategic partnerships and license agreements, has allowed Spermosens to optimize resources and accelerate its clinical development. This approach has been central to positioning the Company optimally for long-term success.
An important milestone this year was the approval of the clinical study at the Reproductive Medicine Center (RMC) in Malmö. The recently announced interim results from the clinical study were highly encouraging, demonstrating the diagnostic potential of the JUNO-Checked technology. These first results indicate that the technology can provide a much needed assessment of male fertility, which is critical for improving fertility treatment outcomes. This is an important step forward, holding great promise for both the success of the clinical study and the Company’s ability to attract commercial partners. The positive news from the clinical study strengthens Spermosens’ position in the market and reinforces the commercial viability of its technology.
The Company also secured critical financing through a rights issue, followed by directed issues and a credit facility – the latter ensuring access to additional funds. The rights issue provided gross proceeds of approximately SEK 4.7 million while the directed issues, partly conditional on EGM approval, generated gross proceeds of approximately SEK 6.0 million. Combined, these efforts generated gross proceeds of approximately SEK 10.7 million, with an additional SEK 1 million available from the credit facility. Warrants expiring in H1 2025 could provide further funding. The financing is essential for continuing the clinical study and pursuing licensing agreements to unlock the value of the JUNO-Checked technology.
Spermosens has engaged in promising discussions with potential strategic partners in the United States, Japan and Europe. These ongoing dialogues reflect growing interest in the JUNO-Checked technology and its potential to improve fertility outcomes. The Company is seeing increasing interest from sperm banks, which recognize the technology’s ability to enhance sperm quality assessments and improve donor selection which represent essential competitive advantages. Positive results from the clinical study are expected to help securing license agreements and revenue.
The leadership changes in 2024 have also made a significant impact. CEO Tore Duvold, Chairman Ulrik Spork and CSO Maria Liljander joined Spermosens, bringing valuable expertise in reproductive health, clinical studies, business development and strategic management. Their leadership and competencies are instrumental in driving the Company’s progress and success.
Looking ahead, CFO Ulrik Nilsson has announced his decision to step down by the end of December 2024. The Board and management extend their heartfelt gratitude to Ulrik for his tremendous contributions during his time with the Company. Alexander Dahlquist will succeed Ulrik as CFO, bringing significant experience in financial management and corporate affairs. Alexander brings over 30 years of international finance and business experience, spanning roles in both growing organizations and large global companies such as Mars, Goodyear Dunlop and Saint Gobain. He has served as CFO for GDL Transport and BIMobject, a NASDAQ First North-listed company, and has been engaged with biopharmaceutical companies like PharmNovo and Coegin Pharma. Alexander’s expertise includes business controlling, organizational development and process optimization, making him a valuable addition to Spermosens’ leadership team.
The Company is aware that CFO Ulrik Nilsson recently made a personal decision to slightly reduce his shareholding ahead of the year-end. This decision follows his previous significant investments in the company and aligns with his personal financial planning. It does not impact the company’s strategic direction or the commitment of the management team. Spermosens remains fully dedicated to executing its strategy and delivering long-term value to shareholders.
Looking ahead: Key milestones for 2025
As we move into 2025, Spermosens is well-positioned to continue its progress and build on the achievements of 2024. The positive interim results from the clinical study and the ongoing discussions with potential partners are strong indicators of the Company's potential for success.
In the year ahead, Spermosens will continue to focus on building strong clinical evidence through the ongoing study, with regular interim results expected to provide further validation of the JUNO-Checked technology’s diagnostic capabilities. These results will play a crucial role in strengthening the Company’s position and advancing partnering discussions.
Spermosens will extend its dialogues with more potential partners, with the aim of finalizing licensing agreements that will enable the Company to bring its technology to major markets and drive growth. The partnerships are expected to be a key driver of value creation for the Company, as they will provide resources, expertise and revenue needed to position JUNO-Checked as a widespread product in the ART market.
Tore Duvold, CEO of Spermosens, comments: “2024 has been a transformative and exiting year for Spermosens, and we have made significant progress fulfilling several crucial milestones. The revised strategy, the positive interim results from our clinical study and the critical financing we secured have all laid the ground for future success. We are encouraged by the growing interest in our unique JUNO-Checked technology and the potential it holds to improve male fertility diagnostics. As we move into 2025, we remain focused on our mission to help millions of couples struggling to conceive by providing innovative solutions that improve fertility care. I would like to extend my deepest gratitude to our team, business partners and shareholders for their continued support as we build on this momentum. On behalf of the Spermosens team, I wish everyone a happy and prosperous New Year.”
For more information, please contact
Tore Duvold, CEO
info@spermosens.com
Spermosens AB is a pioneering biotechnology company dedicated to advancing fertility treatments through innovative diagnostic solutions. Based in Sweden, Spermosens specializes in developing cutting-edge technologies that improve fertility outcomes and simplify the treatment process for individuals and couples facing infertility challenges. The proprietary JUNO-Checked product aims to enhance the precision and effectiveness of fertility diagnostics, ultimately helping more people achieve their dream of parenthood. Committed to scientific excellence and patient care, Spermosens collaborates with leading research institutions and commercial partners to bring transformative solutions to the market. The company's shares are listed on the Spotlight Stock Market. The shares have ISIN code SE0015346424 and are traded under the short name SPERM. For more information, see www.spermosens.com
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