2018 Third quarter (Jul-Sep)
- Operating loss KSEK -3,420 (-2,969)
- Loss per share SEK -0.04 (-0.07)
First nine months 2018 (Jan-Sep)
- Operating loss KSEK -9,739 (-8,209)
- Loss per share SEK -0.11 (-0.19)
- Net sales – Sales of products for the third quarter were KSEK 120 (0). Sales of products for the first nine months were KSEK 120 (0).
- Costs – Costs for the third quarter were KSEK -3,540 (-2,969). Costs for the first nine months were KSEK -9,925 (-8,209).
- Result – Loss before tax for the third quarter was KSEK -3,461 (-2,970). Loss before tax for the first nine months was KSEK -9,808 (-8,243).
- Financial position and liquidity – Liquid assets was KSEK 6,005 (11,115) as of September 30, 2018.
- Equity – PEPTONIC medical AB´s equity amounted to KSEK 60,384 (64,424) as of September 30, 2018, resulting in a solidity of 93 (91) percent.
- Organization – The average number of employees during the period was 2 (2). At the end of the period the number of employees was 2 (2).
- Share – Total numbers of shares in the company amounted to 86,028,600 (43,014,300) as of September 30, 2018.
From the CEO
During the third quarter many positive events took place in Peptonic. We launched the VagiVital webshop and kicked-off the sales, we received the first product order from Orion Pharma for their launch in Finland and we passed the Oriola quality control to become an approved supplier to a number of pharmacy chains in Sweden – just to mention a few.
In the beginning of October, we informed the market that the on-line sales of VagiVital had developed very well, which indicates that the product has been well received. This trend has been sustained during the month of October. We continuously analyse information from the webshop and apply the new knowledge and experiences to improve the advertising and information flow to our customers. Beginning last week, VagiVital can now also be purchased on www.apohem.se . The dialogue with the pharmacy chains is underway in a positive tone and we think it’s a matter of time before VagiVital can be purchased via these channels, too.
We have also initiated the preparations for launching VagiVital via our own webshops in Norway and Denmark. Our goal is to launch these webshops during the first quarter of 2019. In addition, we are entertaining discussions with a number of potential distributors outside the Nordic region. With focus on the USA, an analysis is underway to find out what documentation will be required for a registration (as a medical device under the 510k directive). In our opinion, a registration will considerably increase the probability of finding a good distributor and partner in this market.
In addition to all these outwards directed activities, we are also actively searching for products to expand our product portfolio in women’s health. This is in line with Peptonic’s long term strategy to grow both organically and through acquisitions/collaborations in this rapidly growing market segment. A number of products are being evaluated at present.
The financial result for the third quarter was as expected. Investment in marketing and sales have contributed to the increase in costs, whereas sales revenues are still rather small, however, with a positive trend.
So, a lot is happening and at a fast pace in Peptoinc, and we have many exciting events to look forward to in the near future. We will of course keep our shareholders and the market informed.
Important events during the period
- On March 22nd , the Company informed that it is close to obtaining CE mark for VagiVital®. This after the Company has received the report of the evaluation of its so called Technical File. The evaluation has been performed by Lloyd’s Register Quality Assurance, Ltd. (LRQA) in England, acting as the Notified Body. The Company submitted the Technical File in January.
- At the AGM On March 28th, all Board Members were re-elected.
- On April the 10th, Peptonic Medical announced its plans for a partly underwritten rights issue of 12.5 MSEK with pre-emptive rights for existing shareholders. Issue price was set at 0.29 SEK per share.
- On April the 24th, the company announced that it has entered an agreement for the commercial supply of its hormone-free selfcare product VagiVital® with Orion Corporation (‘Orion’), with headquarters in Espoo, Finland. The supply agreement is non-exclusive and a result of a successful transfer of the manufacturing technology under the technology transfer agreement signed by the two companies in December 2017.
- On May the 8th, the Company announced that the rights issue had been heavily oversubscribed. In total, the Company raised 12.5 MSEK before cost.
- On May the 31st, the Company announced that its first-to-be-launched product – VagiVital® – has received the CE Mark from Lloyd’s Register Quality Assurance, Ltd. (LRQA) in England, acting as the Notified Body for the product. This means that the product can be marketed in the entire EU market.
- On June the 29th, the Company announced that it has entered a distribution agreement for its hormone-free self-care product VagiVital® with Orion Corporation concerning Finland. Orion plans to launch the Product under its own brand name later this year.
- On July 9th, the Company announced that VagiVital® now can be purchased via its webshop on www.vagivital.se .
Important events after the end of the period
- On November 6th, an extraordinary general meeting (EGM) was held, where the Board”s proposal was approved unanimously. The decision means that the Board has been authorized to decide on issuing new shares, warrants and / or convertibles on one or more occasions prior to the next Annual General Meeting, with or without deviation from shareholders” preferential rights.
- On November 6, it was announced that the Company entered into a loan agreement with Recall Capital (www.recallcapital.se), which enables strengthening the working capital of the Company. The loan can be repaid in cash, through a directed new share issue to Recall Capital, with payment through settlement or through a combination of these. The loan agreement with Recall Capital enables securing increased working capital to the Company. The financing structure means that Peptonic shareholders lend shares to Recall Capital. Recall Capital sells these to liquid assets in the market where the Company”s shares are traded. The liquid funds received by Recall Capital are lent to Peptonic on a continuous basis. The loan can then be repaid by Peptonic, either by cash, or, if the board finds it more favourable to the Company, through a directed new share issue to Recall Capital or through a combination of both. The company plans to raise up to 10 MSEK through this scheme by June 2019.
This interim report has not been reviewed by the Company’s auditors.
The Board of Directors and the CEO certifies that the interim report gives a fair overview of the business, position and profit or loss of the Company.
Year end report, 2017: February 27th 2019
Stockholm, November 9th, 2018
Hans von Celsing, Chairman of the Board Arne Ferstad, Board member
Marianne Östlund, Board member Leni Ekendahl, Board member
Johan Inborr, CEO
For more information please contact:
Johan Inborr, CEO Peptonic Medical AB. Phone: +46 708 853 893
Note: This document has been prepared in both Swedish and English. The Swedish version shall govern in case of differences between the two documents. The document contains certain statements about the Company’s operating environment and future performance. These statements should only be regarded as reflective of prevailing interpretations. No guarantees can be made that these statements are free from errors.
Peptonic Medical is an innovative Swedish development company. Our vision is to offer safe and effective treatments for women suffering from vaginal atrophy during menopause and after.
VagiVital® is a trademark of Peptonic Medical. The product is hormone free and is being commercialised for the non-prescription use for the treatment of vaginal atrophy.
In July 2014, Peptonic Medical was listed on the AktieTorget stock exchange (www.spotlightstockmarket.com , ticker: PMED) in Stockholm.
For more information: www.peptonicmedical.com.
VagiVital® is a hormone free self-care product for the treatment of vaginal atrophy and vaginal dryness. The product has been tested in randomised clinical studies (vaginal atrophy) with very positive results both for objective (vaginal pH and proportion of superficial cells in the vaginal mucosa) and subjective (most bothersome symptoms, such as vaginal dryness, vaginal irritation/itching, dyspareunia and dysuria) parameters. The magnitude of symptom relief is on par with that demonstrated with e.g. estrogen based products on the market today. It was very well tolerated and caused no serious adverse effects.
Peptonic Medical has launched VagiVital® as a non-prescription self-care product in 2018. For more information: www.vagivital.com.