Interim report period from January 2021 to September 2021

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Lune Group OY incl subsidiary is consolidated in the group from 2020-06-03

Peptonic Medical AB (publ) org nr 556776-3064 (www.spotlightstockmarket.com ticker: PMED)

Group, Lune Group OY incl subsidiary is included from 2020-06-03

2021 third quarter (Jul-Sep)

  • Net sales of products KSEK 7,234 (9,260)
  • Gross profit KSEK 4,493 (6,228), Gross margin 62% (67%)
  • Operating loss KSEK -9,853 (-7,264)  
  • Loss per share SEK -0.05 (-0.04) 

2021 first nine months (Jan-Sep)

  • Net sales of products KSEK 28,949 (13,732)
  • Gross profit KSEK 16,060 (9,608), Gross margin 55% (63%)
  • Operating loss KSEK – 28,780 (-20,257)  
  • Loss per share SEK -0.15 (-0.12) 

From the CEO

In terms of sales, VagiVital grows by + 53% compared with the corresponding period last year (SEK 1,179 thousand vs SEK 769 thousand). Digital sales for VagiVital grows by + 145% in the same comparison. In a comparison with the previous quarter, digital sales increase corresponds to + 66%. It is worth noting that Sweden is making an all-time high for an individual quarter as pharmacy sales have also been very good. During the quarter, Apotek Hjärtat included VagiVital Moisturizing V Cleanser in its range online and Peptonic expects more pharmacy chains to follow in the future. This shows that Peptonic’s investment in an expanded range is important and valuable. The company expects the domestic market for VagiVital to show a positive result in 2022.

Lunette has had a challenging quarter in terms of sales with -30% compared with the previous period in 2020. It should be noted that the corresponding period last year was a very strong quarter. Regardless, the third quarter of 2021 for Lunette is below the company’s expectations. The number of Google searches for menstrual cups has generally decreased in recent months. This is seen as an explanation for reduced sales, another is increased competition, a third is that the company will change distributor in Australia. Sales to Australia is expected to pick up again in 2022. The domestic market Finland, where Lunette continues to have a strong position and strong distribution channels, is still doing well. The company expects Finland Lunette sales to show growth for the full year 2021 vs 2020.

As previously communicated, Lunette’s offer needs to be broadened from being only a brand for menstrual cups to be a broader brand for sustainable intimate well-being. Work on this is ongoing and at the end of the quarter, an intimate wash was made available to customers in Lunette’s online stores. Expansion in to distribution channels is under way. More products are under development to be introduced during 2022. The company expects that continued broadening will lead to the Lunette brand showing growth again. With a Q3 below expectations the original goal of showing growth in 2021 compared to 2020 can be challenging to achieve, but the objective remains. From 2022, Peptonic intends to show continued growth of the brand.

The third quarter means an improvement in earnings of SEK 2.4 million (+ 20%) compared with the previous quarter. The cost efficiency program that was initiated during the summer has begun to result. The cost base includes preparations for the US launch, marketing, extraordinary costs regarding restructuring of SEK -750 thousand and costs for continued work to recover outstanding debt from former distributor Yuanjia Bio in China.

Regarding the work with cost efficiency, the two business units VagiVital and Lunette have been merged into one global marketing organisation and the sales work is now done by regional organizations that handle all the company’s brands. With the organizational change synergy effects has enabled the company to save significantly on external consulting costs and made savings in the form of reduced number of staff. The changes correlates to an annual saving correlating to 6 MSEK. The sales organization will also sell Common Sense products, which means additional coordination gains as Common Sense previously has had its own sales organization. The cost efficiency work also means that the company will invest in fewer markets on its own with a continued important objective of increasing the number of solid international partners instead.

Peptonic’s vision and main objective is to offer women accessible and clinically proven self-care. This according to the principle diagnose, treat, prevent. In a wider perspective, the purpose is to take pressure off healthcare systems worldwide.

Considering this, we are very pleased with the recent acquisition of the Israeli company Common Sense Ltd. Common Sense has developed and sells two patented and leading products in the field of self-diagnosis. One is a test for self-diagnosis of bacterial vaginosis and the other a self-test that can differentiate between diffuse leakage of urine and amniotic fluid discharge in pregnant women. In the latter case, it is important that the pregnant woman sees a gynecologist to avoid the risk of membrane ruptures. Customers include Bayer, Exeltis, Primalabs, Walmart, Walgreens and CVS. Some sell under their own brand and some under Common Sense brands. As a consequence of covid-19, a greater acceptance for self-testing has evolved, which also means that the area is growing.

The acquisition of Common Sense is an important additional step for Peptonic towards building a unique portfolio offering accessible and clinically proven world-class self-care solutions. In addition to the acquisition of Common Sense, Peptonic has initiated a clinical study against candida at Karolinska University Hospital. An important objective is also to broaden the portfolio with treatments against bacterial vaginosis and vestibulitis. This can be done through own development, in-licensing or further acquisitions. Exploratory work assessing this is in progress. Common Sense also has a development project that assesses the possibilities of using the company’s technology for self-diagnosis of urinary tract infections. Peptonic expects that the portfolio broadening will increase its attractiveness in negotiations with potential distributors and constitute a door opener for a closer dialogue with the profession.

Concerning China, the process is still ongoing to recover outstanding debt of approximately SEK 4.4 million. Peptonic is also in dialogue with possible alternative partners for the Chinese market. It is too early to say whether any of these dialogues will result in an agreement. With a strong partner, Peptonic will restart its investment in China. As long as this has not been found the focus will be on building the business in other markets first and address China at a later stage.

The launch of VagiVital in the USA has been postponed until the first quarter of 2022. The reason is that Orion Corporation in Finland currently has problems with the equipment used in the manufacture of VagiVital AktivGel. The equipment will be repaired during the current quarter. The intention is to make an initial launch digitally and use that knowledge as a foundation to sign a partner who can build sales in the USA broadly. The assignment for Peptonic’s US organization has also been expanded with the acquisition of Common Sense with several very important customers.

During the current quarter, Fermata initiated its market test of VagiVital in Japan. If it turns out well in the next few months, negotiations on a possible extended agreement will be initiated.

Revisage in Poland and Adexilis in Hungary, Slovakia and Croatia have not yet launched VagiVital’s products as they have experienced that Covid-19 has made it difficult to do so effectively.

Reference models for the realization of the company vision are created in the home markets Sweden and Finland. The markets constitute 30% of Peptonic’s global sales. Lunette in Finland is already profitable and VagiVital is expected to be profitable in Sweden in 2022. The business models have been created through a holistic approach with primarily digital marketing and a combination of distribution in physical and digital channels (own and partners). This has also made the domestic markets less vulnerable to the pandemic. In terms of communication, the strategy has been to stand out and help women by breaking taboos and thereby also increase the size of the category as a whole. Building consumer brands takes time and is costly, the development in Sweden and Finland shows it can be done with Peptonic brands.

To expand the business internationally more cost-effectively, the strategy going forward is an increased focus on signing solid agreements with solid distributors in local markets. Peptonic does this with a relevant broadening of the portfolio and a better packaging and presentation of the profitable business models created in the domestic markets Sweden and Finland. With a rapidly increasing competition digitally, the company will focus on a smaller number of online stores in the future, also this with the intention of expanding internationally in a more cost efficient way.

For the sake of order, the company would like to inform that the preliminary investigation that the Swedish Environmental Crime Agency initiated in September 2020 concerning serious insider crime is still ongoing. The company and its representatives continues to cooperate with the authority in the matter.

Bromma, November 10, 2021

Erik Sundquist, CEO


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. 

Revenue – Sales of goods during the third quarter amounted to SEK 7,234 (9,260) thousand. Other operating income for the quarter was SEK -52 (43) thousand. During the first nine months of the year, sales of goods amounted to SEK 28,949 (13,732) thousand. Other operating income for the period was SEK -43 (70) thousand.

Costs – Costs for the third quarter amounted to SEK -17,038 (-17,133) thousand. Costs for the first nine months of the year amounted to SEK -57,686 (-35,485) thousand. During the period the costs for products have been SEK -12,888 (-4,124) thousand. During the second quarter a reservation for estimated negative profit recognition for business in China has affected other costs with the amount of SEK 1,400 thousand. A re-structuring cost of SEK 500 thousand has also been added to the costs; total SEK 1,900 thousand has affected the outcome for the second quarter and first half year. 

Profit – The company’s profit after net financial items for the third quarter amounted to SEK -9,853 (-7,273) thousand. For the first nine months of the year the corresponding amount is SEK -28,936 (-20,270) thousand.

Financial position and liquidity – Cash and bank amounted to SEK 10,009 (25,379) thousand as of September 30th, 2021. During the first nine months, the group received a net of SEK 7,500 thousand that were converted to shares through a directed set-off issue to Vidar Foundation. 

Shareholders ‘equity – The group’s shareholders’ equity as of September 30, 2021, amounted to SEK 72,349 (81,910) thousand, which gives an equity / assets ratio of 87 (92) percent. Equity increased net by SEK 7,500 thousand through the conversion to shares through a directed set-off issue to Vidar Foundation. 

Liabilities – The group’s liabilities, as of September 30, 2021, amounted to SEK 10,576 (7,320) thousand.

Organization – During the period, the average number of employees was 18 (5). At the end of the period, the number of employees was 17 (16). In addition to this the group had a quality manager hired as consultant, and the accounts are outsourced to an accounting firm. Employees at Lune Group OY, including subsidiaries, refer to a total of 14 employees.

Share – The total number of shares as of September 30, 2021 was 191,639,642 (162,911,613).

For more detailed information, including Key figures, Income statement, Balance sheet and Statement of cash flow, please refer to the PDF version:

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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

  • Year-end report, 2021, February 25th 2022

Stockholm, November 10th, 2021
Hans von Celsing, Chairmen of the Board
Anna Tenstam, Board member
Marianne Östlund, Board member
Leni Ekendahl, Board member
Erik Sundquist, CEO

For more information please contact:
Erik Sundquist, CEO PEPTONIC medical AB.
Phone: +46 722 499 043

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.


About Peptonic Medical AB

Peptonic Medical AB (publ) is an innovative medtech company that conducts research, development and sales of medical devices and lifestyle products in the field of women’s health. Peptonic launched its first product, VagiVital®️ Active Gel against vaginal atrophy, in July 2018. In April 2021, VagiVital®️ Moisturizing V Cleanser, was launched, a moisturizing and preventive intimate wash. The company was founded in 2009 and the share has been traded on Spotlight (www.spotlightstockmarket.com) in Stockholm since 2014.

Since August 2020, Lune Group Oy Ltd. has been a wholly owned subsidiary of Peptonic Medical. The company was founded in 2005 with the purpose to lead a light-hearted menstrual revolution in positive spirit via patented menstrual cups. The company is now evolving into leading the way in sustainable, intimate well-being.

In October 2021, all assets of Israeli company Common Sense Ltd were acquired. Common Sense has developed unique and patented self-tests to accurately diagnose bacterial vaginosis and amniotic fluid leakage respectively.

Download the report (PDF) »