Interim report January – March 2018
First quarter, January – March 2018
- Net sales increased by 16 % and amounted to SEK 10 643 T (9 189)
- Operating profit for the period amounted to SEK 3 581 T (3 501)
- Profit for the period amounted to SEK 2 768 T (2 707)
- Earnings per share amounted to SEK 0,69 (0,67)
- Cash balance on balance sheet date amounted to SEK 20 961 T (10 165)
Significant events during the first quarter
Market and sales
SyntheticMR has received clearance from the FDA regarding its software SyMRI NEURO. Together with the FDA's clearance from August 2017, this means that SyMRI as a whole can now be offered to clinics and hospitals on the US market. SyMRI NEURO is also the first product on the market that includes volume calculation and segmentation of myelin. Quantification of myelin may be useful in, for example, monitoring of patients with neurodegenerative diseases such as multiple sclerosis and dementia.
During the period, SyntheticMR's partner Philips received clearance from the FDA regarding the sequence required to make Philips MR systems compatible with SyntheticMR's SyMRI software. This means that SyntheticMR can start the process of getting US FDA clearance for SyMRI on Philips MR systems.
MAGiC has been cleared for clinical use and sales in China, through clearance by the China Food and Drug Administration (CFDA).
Significant events after the first quarter
No significant events after the balance sheet date.
CEO comments
Sales growth continues in SyntheticMR
Revenue increase during the first quarter of the year was 16 percent, despite a strong comparison quarter last year. Net sales in Q1 was thus SEK 10.6 million, resulting in sales for rolling 12 months of SEK 37.1 million. Operating profit amounted to SEK 3.6 million, which means that the operating margin is still over 30 percent.
Sales of MAGiC are developing well. During the first quarter, MAGiC was cleared for clinical use and sales in China, through clearance by the China Food and Drug Administration (CFDA). This means that MAGiC is now cleared for sale in all major markets in the world. China is one of the largest and fastest growing markets globally. The customer value offered by MAGiC, in terms of efficiency and simplicity, fits well with the needs of the Chinese market.
The cooperation with Philips is developing well. At the end of the quarter Philips received clearance from FDA for its sequence. This is positive because it further increases the interest in developing our cooperation from both parties. We will now start the product clearance process in the US for Philips MR systems. In parallel to this, we will continue our joint improvement work on the sales process.
During the second quarter, Siemens will launch syngo.via Open Apps. This means that SyMRI will be available as a downloadable application at any hospital or clinic that uses the Siemens visualization tool syngo.via. Customers are offered a 3-month trial period, which can be extended to an annual license if wanted. Initial sales are expected in 2018 with an increase over the coming years.
During an event at the Swedish Embassy in Vienna organized by Business Sweden, Dr. Alex Rovira, Vall d'Hebron University Hospital, Barcelona, made a presentation on the topic "Future MRI Markers to Monitor MS". He noted that follow-up with SyMRI adds value through time gain but also because of more objective information to base his treatment plan on.
I look positively on the sales growth in the first quarter, and our partnerships continue to develop well. At the same time, users continue to testify to the clinical value added by SyMRI.
Stefan Tell
CEO SyntheticMR AB
For more information please contact Fredrik Jeppsson, CFO and Head of Investor Relations SyntheticMR AB +46 72 303 13 39 or Stefan Tell, CEO SyntheticMR AB, +46 73 373 40 90.
This information is information that SyntheticMR AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on April 25th 2018.
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