CEO Pia Renaudin on the newly released Q2 report:
” Continued momentum across all markets with new customers in the US and Austria”
Highlights from the Q2-report:
• Sales in Q2 grew by 31%.
• The commercial organization strengthened in the US.
• Multiple new customers generated in Austria.
• The gross margin reached 69%.
• New Board of Directors in-place.
Strengthened sales organization drives growth
In the second quarter, we achieved total sales of SEK 6.6 (5.1) million, a growth of 31 percent. Adjusted for currency effects, the growth was 30 percent. Germany demonstrated steady progress, with sales increasing by 12 percent, supported by a 12 percent rise in electrode volumes. The positive US momentum from the previous quarter continued, with a sales increase of 468 percent.
The investments we initiated in the first quarter in markets beyond Germany and the US are beginning to yield results. We anticipate that, by during the second half of the year, clinics in additional markets to have started using Nevisense.
Percentage quarterly sales growth compared to the same quarter in the previous year.
New US customers contributing positively
Our investments in the US organization have resulted in new customers and a continued positive impact on sales, which increased by 468 percent to SEK 0.7 (0.1) million during the quarter. We also saw a rise in electrode sales. I am pleased that we are starting to see the effect of the measures we have implemented in the US, and I’m equally excited in the recruitment of Leda Beaty as the new Head of US Commercial Operations during the quarter. Leda brings extensive experience and a broad network in the dermatology market, which will further strengthen our ability to expand the customer base and secure reimbursement. We now have four employees in the US compared to just one at the same period last year. These investments have enabled us to begin building a customer base in Florida, Texas and California which has already begun generating sales. During the quarter, we entered into a collaboration with the dermatology network Unified Health in Los Angeles which operates nine clinics, resulting in a first order. During the autumn and next year, we anticipate expanding into additional states in line with our planned investments in the US market.
Germany continues to deliver
Sales in Germany increased by 12 percent reaching SEK 5.2 (4.7) million primarily driven by a 12 percent rise in electrode volume. During the quarter we have expanded our customer base by adding more clinics, and we continue to see strong interest in Nevisense among German clinics.
The German team is doing a fantastic job, and we now have an installed base of over 400 Nevisense systems, with approximately half of them averaging about 6 electrodes per week. I expect both the installed base and average electrode usage, supported by both our indications, to continue to grow.
New markets
As I have previously announced we will establish Nevisense in additional markets beyond the US and Germany. However, expansion into these markets will only proceed if it can be done cost-effectively and with efficient use of resources, either through partnerships or support from existing organizations. The sales representative who started at the end of the first quarter in Austria has already attended congresses there and during the quarter we signed agreements with three customers in Austria. Our new partner in the United Arab Emirates, Al-Shirawi, has now started and there is a clear interest in Nevisense in that market. Skin cancer is a growing problem in the UAE with official statistics indicating that skin cancer accounts for around 14.5 percent of cancer cases among men. We continue to evaluate additional markets to ensure that more patients can gain access to Nevisense.
Expanded indications and research
During the quarter, we advanced the expanded use of Nevisense through the launch of the eBarrier Score for assessing the skin barrier function. Researchers in skin barrier and cosmetic products can now use Nevisense and eBarrier Score to assess products and substantiate claims related to the skin barrier function. The global market for cosmetic products targeting skin barrier improvement is growing rapidly, and while Nevisense is already an established tool in medical research, introducing it to the cosmetic research market broadens its potential over time.
The eBarrier Score, introduced at the end of May, has already generated significant interest among both researchers and the industry. However, total sales in the segment skin barrier function remain limited, amounting to SEK 0.5 (0.6) million for the quarter. While we are making progress and expanding usage,
Gross margin
The gross margin remains strong, driven by increased sales in the US market and a favorable product mix. For the quarter, the margin amounted to 69.1 percent and to 69.5 percent for the first six months of the year. We remain committed to our long-term goal of achieving a stable gross margin above 70 percent as the sales of electrodes accounts for a larger share of overall revenue.
Exciting fall
I look forward to an exciting second half of the year and to be working together with our new board and the management team with the support of our new main shareholders to continue to develop SciBase. We now have a good base in Germany and a good position in the US to work from. New exciting markets and collaborations are underway for all indications to give more patients access to Nevisense. I expect that we will continue to deliver sales growth and a good gross margin for the remainder of the year.
Pia Renaudin, CEO
Sundbyberg August 21st, 2024
Report in full here:
https://investors.scibase.se/en/results-reports