STOCKHOLM, Sweden--(BUSINESS WIRE)--Regulatory News:
In the third quarter we report a continued positive trend in sales of
our own portfolio of infection prevention products for the healthcare
sector. We have delivered a total of approx. 284,000 products so far
this year, an increase by approx. 260 percent. This means that we are
already now close to our goal of at least doubling the full-year volumes
from 2015. Combined with stable license revenues and costs under
control, this means that we can deliver an EBITDA margin of 28 percent
in the quarter.
Third Quarter (July-September 2016)
During the third quarter, a total of approx. 87,000 (15,000) BIP
products were delivered, an increase of approx. 480 %.
Revenues amounted to SEK 34.9 (60.4) million. Corresponding quarter
previous year consists of the additional one-off order from C.R. Bard
of SEK 28 million.
EBITDA amounted to SEK 9.7 (34.5) million. The change from the
corresponding quarter previous year was essentially a consequence of
the additional one-off order from C.R. Bard.
Operating profit amounted to SEK 1.4 (26.2) million.
Reported net profit for the quarter amounted to SEK -0.5 (6.6)
million, corresponding to SEK -0.02 (0.20) per share. Net profit for
the quarter has been positively affected by market valuation of the
bond with SEK1.4 (-12.5) million.
Operating cash flow for the quarter amounted to SEK -0.3 (9.5)
million, corresponding to SEK 0 (0.30) per share.
Nine-month period (January-September 2016)
During the period, a total of approx. 284,000 (78,000) BIP products
were delivered, an increase of approx. 260 %.
Revenues for the period amounted to SEK 94.7 (117.9) million.
Corresponding period previous year consists of the additional one-off
order from C.R. Bard of SEK 28 million.
EBITDA for the period amounted to SEK 10.6 (26.3) million. The change
from the corresponding period previous year was essentially a
consequence of the additional one-off order from C.R. Bard.
Operating profit amounted to SEK -14.4 (1.8) million.
Reported net profit for the period amounted to SEK -19.4 (-7.2)
million, corresponding to SEK -0.58 (-0.22) per share. Net profit for
the period has been positively affected by market valuation of the
bond with SEK 2.8 (5.4) million.
Operating cash flow for the period amounted to SEK -0.7 (-6.9)
million, corresponding to SEK 0 (-0.2) per share.
Key events during the third quarter
Repeat order from India of 60,000 catheters
Extended maturity for credit facility
New clinical study started at the Martini-Klinik
Key events after the end of the third quarter
New clinical study confirms reduced infections in ICU
Bactiguard expands in Europe
Repeat order from China of 100,000 catheters
Main shareholders issue a loan commitment of SEK 50 million
Comments by the CEO
It is gratifying that we can report a positive sales trend also in this
quarter for our portfolio of infection prevention products for the
healthcare market. The largest delivery went to India as a result of the
order we received in August of 2016. During the third quarter we
delivered approx. 87,000 units, which gives us a total of approx.
284,000 products so far for 2016. Already after the third quarter we
have thereby almost reached the goal for the whole of 2016, to at least
double the volumes of the previous year.
The total revenues are in line with the revenues for the second quarter
of 2016 but, compared to the same quarter of last year, the revenues are
lower. This can be fully explained by the extra order we received from
C.R. Bard in August of last year which increased the revenues
significantly. In parallel to the increased volume of sales we continue
to keep costs down, which means that in this quarter we managed to reach
an EBITDA margin of 28 percent.
In market terms we have, during the summer months, focused on extensive
training efforts for the staff of our distributor in China. They now
approach the market at full speed with the goal of intiating sales to
approx. 100 hospitals before the end of this year. In early November, we
received a repeat order of 100,000 catheters. We see this new order as a
confirmation that the Chinese market represents a huge potential for
In India, we have during the year delivered a total of some 100,000
catheter. Marketing and sales activities continue unabated. A large
number of hospitals have tested our product and nearly 15 different
medical groups have started using it regularly and have placed repeat
orders. The clinical trial involving 1,000 patients has almost reached
the halfway point and we are now starting the registration process of
our central venous catheter.
Sales to the Middle East so far this year has been far below our
expectations. The region has of course been affected by the unstable
political and economic situation. We are now increasing our resources
and market activity and at the same time evaluate our distributors in
the region in order to increase sales.
Deliveries to Europe remain relatively low but we recently signed new
distribution agreements in Finland, Greece, Poland and Austria and we
are now focusing on establishing partnerships in other major markets in
Europe. Both Poland and Greece are excellent examples of how the right
partners, with a good introduction, can establish regular sales to both
hospitals and homecare patients.
In Sweden we encounter an increasing interest in infection prevention
with tests and evaluations ongoing in several parts of the country. We
are gradually developing our presence, region by region, and, in
October, won a tender for Kronoberg and Blekinge. Our products are also
available for hospitals in the Halland region starting 1 October and in
Värmland starting 1 November.
The cooperation with our new license partner in orthopedic implants,
Vigilenz Medical Devices, continues in full swing and the clinical study
is now underway. We continue to pursue efforts to develop new
partnerships and licensing deals and our objective remains to sign at
least one new license agreeement before the end of the year.
In September we were proud to present that one of the world’s leading
prostate cancer clinic, the Martini-Klinik in Hamburg, will conduct a
clinical trial with Bactiguard with the aim of reducing the risk of
catheter related urinary tract infections and antibiotic use in patients
undergoing surgery for prostate cancer. We are hopeful that this study,
which will be ongoing for 6-9 months, will show that the use of
Bactiguard’s technology reduces the need for antibiotics for this group
Recently we received further confirmation that Bactiguard’s technology
is effective in preventing infections. This was is in the form of an
independent, randomized clinical trial from Saudi Arabia that showes
that Bactiguard coated urinary tract catheters reduces the number of
catheter related urinary tract infections in patients in the ICU by 90
percent compared to standard silicone catheters.
Finally, during this quarter, we also presented an extended maturity
until 31 December, 2017 for the credit facility of SEK 100 million that
we signed in November of 2015. On 12 December this year our bond matures
and will be repayed. We also communicated this week an enhanced credit
facility in the form of a loan commitment from the major shareholders.
Thus, we maintain the financial flexibility of the company even after
repayment of the bond until a long-term financing is in place.
The interim report for Bactiguard Holding AB (publ) for the period
July-September 2016 is available as a PDF at www.bactiguard.com
This information is information that Bactiguard Holding AB (publ) is
obliged to make public pursuant to the EU Market Abuse Regulation and
the Securities Markets Act. The information was submitted for
publication, through the agency of the contact person set out below
2016-11-10, at. 08.00.
A telephone conference for investors, analysts and media will be held at
10:00 CET today, where CEO Christian Kinch and CFO Fredrik Järrsten will
present the interim report and answer questions.
The report and a presentation for the conference call will be available
at Bactiguard’s website www.bactiguard.com
from 8:00 CET the same day.
To participate in the conference, please dial +46 8 566 426 62
Bactiguard is a Swedish medtech company with a mission of preventing
healthcare associated infections, reducing the use of antibiotics and
saving lives by developing and supplying infection prevention solutions
for the healthcare industry. The company’s patented coating prevents
healthcare associated infections by reducing bacterial adhesion and
growth on medical devices. Bactiguard®-coated urinary catheters are
market leading in the US and Japan, and in recent years the company has
developed its own product portfolio of catheters for the urinary and
respiratory tract and the blood stream. Bactiguard is currently in a
strong expansion phase, focused on new markets in the Europe, Middle
East, Asia, South America and Southern Africa. The company has market
presence in some 50 countries and has about 60 employees. Its
headquarters is located in Stockholm and production facilities in Sweden
and Malaysia. Bactiguard is listed on Nasdaq Stockholm. Read more about
Bactiguard at www.bactiguard.com
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