- Total Revenue (Q2): SEK60.9 million, an increase of almost 19% compared to the same period last year.
- Total Revenue (First Half): SEK119.7 million, an increase of 6.5% versus last year.
- EBITDA (Q2): SEK1.2 million.
- EBITDA (First Half): Negative SEK0.3 million.
- License Revenue (Q2): SEK37.8 million, an increase of SEK13 million.
- BD Revenue (Q2): SEK27.6 million, an increase of SEK9.1 million.
- BD Revenue (First Half): SEK55.6 million, adjusted for currency effects, increased by 1.1%.
- Zimmer Biomet Revenue (Q2): SEK10.2 million, an increase of SEK5.2 million.
- Wound Management Revenue (Q2): SEK14.7 million, an increase of SEK3.5 million.
- Wound Management Revenue (First Half): SEK27.4 million, an increase of SEK5 million, corresponding to 22.5% growth.
- BIP Revenue (Q2): SEK4.8 million, a decrease of SEK3.3 million.
- BIP Revenue (First Half): SEK10.9 million, a decrease of SEK2.3 million.
- Other Revenues (Q2): SEK3.5 million, with positive currency effects of SEK1.5 million.
- Other Revenues (First Half): SEK8.4 million, with currency effects of SEK4.2 million.
- Operating Expenses (Q2): SEK47.8 million, a decrease of SEK33.9 million.
- Cash Flow from Operating Activities (Q2): SEK16.8 million.
- Cash Flow from Investing Activities (Q2): Negative SEK4 million.
- Cash Flow from Financing Activities (Q2): Negative SEK3.3 million.
- Total Cash Flow (Q2): SEK9.5 million.
- Total Cash Flow (First Half): Negative SEK22.1 million.
- Cash and Cash Equivalents (End of June): SEK105.3 million.
Release Date: July 16, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Total revenues for Q2 2024 increased by almost 19% compared to the same period last year.
- Positive EBITDA for Q2 2024, indicating a move towards profitability.
- Expansion of Bactiguard coated products to new markets, including Japan.
- Strengthened R&D team with the appointment of Nathaniel Bachrach as Interim Head of R&D.
- Wound Management portfolio continues to deliver profitable growth, with Q2 revenues of approximately SEK15 million.
Negative Points
- EBITDA for the first half of 2024 was still negative at SEK0.3 million.
- Revenues from the BIP portfolio decreased by SEK3.3 million for Q2.
- The transition to new markets with BD is ongoing, with no immediate significant revenue impact expected for 2024.
- Operating expenses remain high, although there has been a decrease.
- The company is still in the process of completing transitional activities from its 2023 transformation.
Q & A Highlights
Q: Could you please update us on the BD partnership, including the status of the long-term agreement and revenue expectations for expanded markets?
A: Christine Lind, CEO: We have focused on transitioning additional markets to BD, particularly in Europe and the Middle East. Our existing agreements remain in full force, and we are confident in our collaboration with BD. Patrick Bach, CFO: We report solid revenue from BD for the third consecutive quarter. While new markets will take time to impact numbers, we remain optimistic about future growth.
Q: Can you provide details on Zimmer Biomet's contributions in Q2 and expectations for the second half of the year?
A: Patrick Bach, CFO: Zimmer Biomet contributed SEK10.2 million in Q2, including exclusivity and license revenues. We have products in the market across Europe and receive royalties and minimum royalties from the trauma agreement. We expect larger volumes in 2025 and beyond.
Q: What are the expected incremental OpEx savings in the second half of the year?
A: Patrick Bach, CFO: We are on track with our cost reduction plan, aiming to exceed SEK25 million in annual savings. We expect continued positive developments in reducing operating costs while still investing in the business and strengthening our team.
Q: Can you provide an update on Zimmer Biomet's activities in Europe and any new product rollouts?
A: Christine Lind, CEO: Zimmer Biomet continues to roll out products across Europe, focusing on new market approvals for trauma products. We are also working on new product developments under our existing agreements, including the recon collaboration.
Q: How far are you from reaching the minimum royalties with Zimmer Biomet?
A: Patrick Bach, CFO: We report both royalties and minimum royalties within the license revenues. The specific amounts vary from quarter to quarter, so I cannot provide exact figures.
Q: Do you need a new agreement with BD, or can you operate under the existing one?
A: Christine Lind, CEO: Our existing agreements with BD remain in full force, covering all global regions except China. We can continue commercialization activities and enhance efforts in existing markets without any contractual issues.
Q: What are the key priorities for Bactiguard moving forward?
A: Christine Lind, CEO: We aim to enhance our business with current license partners, grow our wound management portfolio profitably, and build our knowledge and specialist organization. We are focused on achieving sustainable profitability and delivering on the promise of Bactiguard technology.
Q: How are the financial results for Q2 and the first half of the year?
A: Patrick Bach, CFO: Total revenues for Q2 were SEK60.9 million, a 19% increase compared to last year. License revenues and EBITDA are stabilizing, and we are on track to deliver cost savings exceeding SEK25 million annually. Cash flow from operating activities was SEK16.8 million for Q2.
Q: What are the highlights of the quarter for Bactiguard?
A: Christine Lind, CEO: Key highlights include my appointment as CEO, the reelection of Thomas von Koch as Chair of the Board, and the expansion of Bactiguard coated products to new markets. We also strengthened our organization with the appointment of Nathaniel Bachrach as Interim Head of R&D.
Q: What is the status of the wound management portfolio?
A: Christine Lind, CEO: The wound management portfolio delivered revenues of approximately SEK15 million for Q2, continuing profitable growth. We featured our wound healing product line at the European Wound Management Association Conference, attracting significant interest from clinicians.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
