Interim report period from January 2020 to June 2020. Lune Group OY incl subsidiary is consolidated in the group from 2020-06-03

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Peptonic Medical AB (publ) org nr 556776-3064 (www.aktietorget.se ticker: PMED). Group, Lune Group OY incl subsidiary is included from 2020-06-03.

2020 second quarter (Apr-Jun)

  • Net sales of products KSEK 3 572 (1 011)
  • Gross profit KSEK 2 417 (768), Gross margin 68% (76%)
  • Operating loss KSEK -7 166 (-5 797)  
  • Loss per share SEK -0.05 (-0.06) 

2020 First half year (Jan-Jun)

  • Net sales of products KSEK 5 353 (2 481)
  • Gross profit KSEK 3 402 (1 570), Gross margin 64% (63%)
  • Operating loss KSEK -12 973 (-9 695)  
  • Loss per share SEK -0.08 (-0.11) 

From the CEO

The acquisition of Lune Group Oy Ltd is the single most significant event in Peptonic during the first six months of this year. It is also the single most significant event in the history of Peptonic and an important piece in the creation of the future Peptonic. Lune adds products (menstrual cups and intimate hygiene products) and a global distribution network, that will contribute to the growth of Peptonic to become a company offering treatments for and products to improve the quality of life for women.

The integration of the two companies and the work to find and exploit the synergies began already during spring when it was clear that the deal will happen. After the closing, this work has intensified. Much focus has been put and will be put on the digital side of the business. An activity that has received more and more attention due to the COVID-19 pandemic.

There is no doubt that COIVID-19 has had a negative impact on the sales development of VagiVital. Following a promising growth during the first two months of the year, the growth stalled. In particular, retail sales has decreased, whereas on-line sales has increased to some extent. Due to the pandemic, no significant investments in marketing and promotion have been made. These have been rescheduled to later dates. Sales during the first half of the year was on the same level as for the same period last year. However, during the summer we have noted a clear recovery of sales volumes. This is promising for the autumn. Sales via the webshops in Norway and Denmark is developing well. In contrast, sales in England and Hong Kong hasn’t developed as planned. Hence, we are now introducing changes in the distribution to reach the customers more effectively.

In May the first order of VagiVital to China was shipped. This shipment of 53,000 tubes are to be used to introduce the product and the brand among gynaecologists and prescribers. Recently Peptonic received additional order of 106,000 units to China. Half of the order is to be delivered by the end of this year, and the balance during Q1 2021. Users of the products will participate in a large scale survey to collect user experience that can be used to support the marketing authorization application.

Since sales of menstrual cups is mainly happening via retail, this has also been affected negatively by COVID-19. One exception is the US, which is developing well. This is probably due to the fact that a higher portion of sales is on-line.

Operating loss for the period was -12.973 MSEK for the group and -12.382 MSEK for the parent company. Group sales generated 5.353 MSEK, whereas parent company sales was 2.904 MSEK.  Marketing costs, and cost of manufacturing, transportation and distribution amounted to approx. 10.5 MSEK (last year 6.2 MSEK). Costs associated to the acquisition of Lune Group Oy Ltd amounted to approx. 3 MSEK.

The last patients of the clinical study with women that have undergone cancer treatment (hormone dependent cancers) exited the study in June. The study was terminated earlier than planned due to COVID-19, but the number of patients enrolled is sufficient for the results to be valid and representative. The results are expected during Q3 2020.

According to our business model, the growth of Peptonic will take place by way of in-house product development, distribution collaborations and/or acquisitions. The development of an intimate wash based on the positive healing properties of VagiVital is an example of the first. The project is progressing according to plan and the launch is planned for Q1 2021. New and complementing products are under evaluation.

We are now joining forces to take on the post ‘first COVID-19 wave’ challenges. We see many opportunities in working with two brands on a global market.

Johan Inborr, CEO
Stockholm, August 17th, 2019

Financial information

The acquisition of Lune Group OY was completed on 2020-06-03, this report includes their results from and on 2020-06-03 in the consolidated accounts. The balance sheet is consolidated as of 2020-06-30.

Revenue – Sales of goods during the second quarter amounted to KSEK 3 572 (1 011). Other operating income for the quarter was KSEK 17 (17). In the first half of the year, sales of goods amounted to KSEK 5 353 (2 481) . Other operating income for the half year was KSEK 28 (35.

Costs – Costs for the second quarter amounted to KSEK -10 755 (-6 130). The costs for the first half of the year were -18 354 (-12 211). During the half year, costs for products were KSEK 1 951 and market costs were KSEK 8 571.

Profit – The company’s profit after net financial items for the second quarter amounted to KSEK -7 189 (-6 112). For the half year, the corresponding result is KSEK -12 996 (-10 325).

Financial position and liquidity – Cash and bank amounted to KSEK 34 000 (22 651) as of June 30, 2020. During the quarter, the company received a net KSEK 7 195 in newly issued capital via a directed new issue to the Vidarstiftelsen. External acquisition costs for Lune Group during the half year were KSEK 3 163.

Shareholders ‘equity – The company’s shareholders’ equity as of June 30, 2020 amounted to KSEK 

89 098 (77 962), which gives an equity / assets ratio of 89 (94) percent. Equity increased net by KSEK 7 195 through the private placement to Vidarstiftelsen.

Liabilities – The company’s liabilities, as of June 30, 2020, amounted to KSEK 10 445 (4 550).

Organization – During the period, the average number of employees was 5 (2). At the end of the period, the number of employees was 16 (2). In addition to this, from 2018 a marketing manager and a quality manager will be hired as consultants, and the accounts are outsourced to an accounting firm. Employees at Lune Group OY, including subsidiaries, refer to a total of 13 employees.

Share – The total number of shares as of June 30, 2020 was 155 143 476 (95 346 230). During July 2019, the number of shares increased by 31 782 076 shares to 127 128 306 shares after the registration of the new share issue.

For more detailed information, including Key figures, Income statement, Balance sheet and Cash flows, please refer to the PDF version.

Download report (PDF) »

Review and certification

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.

Financial calendar

  • Quarterly report, 3: November 10th 2020
  • Year end report, 2020: February 26th 2021

Stockholm, August 17th, 2020
Hans von Celsing, Chairman of the Board
Anna Tenstam, Board member
Marianne Östlund, Board member
Leni Ekendahl, Board member
Johan Inborr, CEO

For more information, please contact;
Johan Inborr, CEO
Mobile: +46 708 853 893
E-mail:  johan.inborr@peptonicmedical.se

This information is information that Peptonic Medical 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, at 17th August, 2020.


About  VagiVital®

VagiVital® is a patent pending 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. prescription estrogen based products on the market today. It was very well tolerated and caused no serious adverse effects. 

VagiVital® was launched in Sweden as a non-prescription self-care product in July 2018 (see www.vagivital.com).  

About Peptonic Medical

Peptonic Medical is an innovative Swedish medical development company. Its vision is to offer safe and effective treatments and relief for women specific diseases and medical conditions.

VagiVital® is a registered trademark of Peptonic Medical. The product is hormone free and is being commercialised for the non-prescription use for the treatment of vaginal atrophy (VA) and vaginal dryness. The pipeline of Peptonic Medical also includes Vagitocin®, which is an oxytocin-based vaginal gel for the treatment of VA. This product candidate is in clinical development phase 2. The development of Vagitocin® is on hold pending additional data on i.a. the mechanism of action.

Since July 2014, the Peptonic Medical share has been traded on the Spotlight Stock Exchange (www.spotlightstockmarket.se, ticker: PMED) in Stockholm, Sweden. 

For more information: www.peptonicmedical.com