Peptonic Medical AB (publ) org nr 556776-3064
(www.aktietorget.se ticker: PMED)
2022 first quarter (Jan-Mar)
- Net sales of products KSEK 8,908 (11,381)
- Net sales adjusted excl. China 8,908 (9,181) KSEK
- Gross profit KSEK 5,596 (6,568), Gross margin 63% (58%)
- Operating loss KSEK -10,875 (-6,424)
- Loss per share SEK -0.06 (-0.03)
From the CEO
Sales during the first quarter grew by + 58% compared with the previous quarter. In comparable figures (ex China) with the corresponding period last year, sales fell by -3%. An important underlying reason is that Lunette did not reach expectations, where sales decreased by -35% compared with the same period last year.
The operating result improves 13% compared with the previous quarter. Compared with the same period last year, the result excluding China is SEK -3.75 million, corresponding to -34%. Underlying causes;
- Impact on earnings due to reduced sales for the Lunette brand – SEK 1.8 million
- Upstart costs for CommonSense SEK -1.7 million
- Prelaunch costs for VagiVital in US SEK -0.8 million
A major focus in the quarter has been on incorporating CommonSense into the company’s business by motivating and securing staff in Israel as well as securing commitment from suppliers and customers. Invoicing of CommonSense products in the quarter amounted to SEK 2.1 million, compared with SEK 0.6 million in the previous quarter. Sales occurred in the US and Europe and are expected to continue to increase in the coming quarters. CommonSense has changed its name to Peptonic Medical Israel.
The products that obtained with the acquisition of CommonSense, patented vaginal self-diagnose tests, are key to Peptonic’s new strategy. Peptonic is building a unique portfolio of clinically proven intimate self-care according to the principle of diagnose/treat/prevent. Emerging portfolio meets a rapidly growing societal trend where people after the Covid pandemic are much more focused on taking greater responsibility for their own health. Self-care products are increasingly being sought as solutions to various health problems. There is a want to relieve healthcare systems and for these self-care solutions to be clinically proven. The pandemic has also developed a habit of self-testing. With current products and future portfolio strategy, Peptonic is very well positioned to meet this strong trend with a unique offering.
For further development of the portfolio, a clinical study is ongoing with a treatment for fungal infections at Karolinska Hospital. Work is also underway to identify future treatments for bacterial vaginosis and vestibulitis.
To better clarify the offer and strategy, CommonSense vaginal self-tests are merged with existing products under the brand VagiVital, VagiVital AktivGel and VagiVital Moisturizing V Cleanser, into a common business unit called Medical Consumer.
The various products in the business aunit are currently mostly sold as OEMs to customers who market the products under their own brands. Over time, they will be increasingly sold under Peptonic’s own brand VagiVital. For this reason, the CE mark for vaginal self-tests during the quarter was expanded with the name VagiVital VS for self-diagnosis of vaginal infections and VagiVital AL for identification of diffuse leakage during the latter part of pregnancies.
Business area Medical Consumer products
- VagiVital VS – Self-test to diagnose vaginal infections, unique precision and immediate results.
- VagiVital AL –Self-test to identify diffuse leakage during the latter part of a pregnancy. There is no equivalent in the market.
- VagiVital Active Gel – Gel treatment for vaginal atrophy. Hormone-free, smudge-free, clinically proven.
- VagiVital Moisturizing V Cleanser – Moisturizing and preventive intimate cleansing.
The business unit will also include future products such as treatments for fungal infections, bacterial vaginosis and vestibulitis.
The Medical Consumer business unit had sales of SEK 3.8 million during the period. Of this, SEK 2.1 million consisted of vaginal self-tests and SEK 1.7 million of original products under Vagivital, ie VagiVital AktivGel and VagiVital Moisturizing V Cleanser. VagiVital AktivGel and VagiVital Moisturizing V Cleanser grew by +71% compared to the previous quarter but decreased by -4% in comparison with the corresponding period last year. The period last year included a major batch order from Orion in Finland, which in the current year is instead expected during the second quarter. The Medical Consumer business area is expected to increase sales during the current quarter.
Geographically, the strategy for the Medical Consumer business unit is to set a business model in the domestic market Sweden for the own brand VagiVital, from which lessons are learned and used when building in other markets. In this context, it is positive to note that Sweden as a reference market continues to develop very strongly for VagiVital and grows by + 29% compared with the previous quarter and by more than + 100% compared with the corresponding period last year. The new products, VagiVital VS and VagiVital AL, will be launched in Sweden during the year, whereby VagiVital as an overall brand will be more clearly positioned as a unique intimate self-care concept – diagnose/treat/prevent. The domestic market made a positive contribution in the quarter for the first time since the start.
In the US, important work was done during the quarter to secure previous OEM customers for CommonSense such as Walgreens, CVS and Exeltis. Deliveries to all these players were initiated during the quarter and are expected to increase in the current quarter. The intention for the Medical Consumer business area in the US is to create a profitable business for the company with a combination of these OEM solutions and sales of own brand VagiVital. Some OEM customers have also requested more active marketing work for the company’s products. As part of this, VagiVital Active Gel and VagiVital Moisturizing V Cleanser were made available for sale on Amazon and on their own online store during the quarter. The goal is to educate consumers, create consumer profiles and show a positive sales trend to thereby be listed with more players in retail and broaden distribution. VagiVital VS will be added to the range in the US at the end of the year.
In Europe, the corresponding escalation of OEM sales of vaginal self-tests to Bayer and Primalabs is taking place, deliveries were initiated during the quarter and are expected to increase this quarter. Over time, the focus on sales under VagiVital’s own brand will increase in Europe.
In terms of channels, the strategy for the Medical Consumer business area is a combination of online sales and selected retail, primarily pharmacies.
Peptonic’s other business area, Lifestyle Consumer, includes the company’s wholly owned subsidiary Lune Oy Ltd in Finland, which sells the Lunette lifestyle brand for sustainable and inclusive intimate well-being. Consumer Lifestyle had sales of SEK 5.1 million during the period. Compared with the previous quarter sales grew by + 30%, compared with the corresponding period last year, sales fell by -35%, which is below expectations. An underlying reason is that competition in the category is intensifying with an increasing number of players. Another reason is that the company has acted in very many markets and thereby reduced its competitiveness. The company is investing in the future to better meet the increasing competition by focusing on fewer markets, including Finland, Sweden and Australia.
Peptonic’s brands are marketed to consumers. Consumer marketing is costly. This, in combination with the development of the product portfolio, means that capital is still needed. During the quarter, Peptonic completed a rights issue with warrants, in which the company received SEK 30.6 million. As the issue was not fully subscribed, there is an additional need for future financing.
In parallel with business development and the company’s growth through acquisitions, the organization is being optimized. During the year, extensive optimizations were made, corresponding to savings of SEK 11 million on an annual basis. The savings have been made possible through synergies and a focus on fewer markets. To realize the goals going forward, the organization also needs to be strengthened, most recently with a sales resource to Sweden for future launches and continued expansion, and to make the whole of Scandinavia for Medical Consumer a home market. The team will also be strengthened with a sales resource that supports and develops partner businesses outside the Nordic region and the US.
Looking ahead, Peptonic’s new Medical Consumer business area is a core focus that is very well positioned to meet a strong current societal trend with a unique offering. We are very much looking forward to continuing to develop the company and to making life much easier and more enjoyable for very many women.
Stockholm, 12th May 2022
Erik Sundquist, CEO Peptonic Medical
The creation of Peptonic Medical Israel Ltd and acquisition of CommonSense Marketing Inc was completed on 2021-10-20, this report includes their results from and on 2021-10-20 in the consolidated accounts. The balance sheet is consolidated as of 2021-10-20.
Revenue – Sales of goods during the first quarter amounted to SEK 8,908 (11,381) thousand. Other operating income for the quarter was SEK 521 (-10) thousand.
Costs – Costs for the first quarter amounted to SEK -20,303 (-17,795) thousand. During the quarter, costs for products were SEK -3,312 (-4,813) thousand and marketing and sales costs were SEK -4,208 thousand.
Profit – The Group’s profit after net financial items for the first quarter amounted to SEK -11,258 (-6,491) thousand.
Financial position and liquidity – Cash and bank as of March 31, 2022, amounted to SEK 17,461 (33,520) thousand. During the quarter, the group received a net of SEK 30,5 million in newly issued capital through an ongoing new share issue that was registered at the beginning of April 2022.
Shareholders ‘equity – The Group’s shareholders’ equity as of March 31, 2022, amounted to SEK 67,761 (118,945) thousand, which gives an equity / assets ratio of 70 (91) percent.
Liabilities – The company’s liabilities, as of March 31, 2022, amounted to SEK 28,430 (11,974) thousand.
Organization – During the quarter, the average number of employees is estimated at 34 (19). At the end of the period, the number of employees was 34 (19). In addition to this, the parent company and Lune Group Oy has four consultants hired on long-term agreements in the market and quality, and the accounts are outsourced to an accounting firm. Employees at Lune Group OY, including subsidiaries, refer to a total of 13 employees and in Peptonic Medical Israel Ltd there are 17 employees.
Share – The total number of shares as of March 31, 2022, was 191,639,642 (191,639,642).
For key figures, income statement, balance sheet, statement of cash flow and changes in equity, download complete year end report as 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.
- Annual General Meeting: May 24th 2022
- Quarterly report, 2: August 18th 2022
- Quarterly report, 3: November 10th 2022
- Year end report, 2022: February 24th 2023
Stockholm, May 12th, 2022
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.
Download report as PDF document
About Peptonic Medical AB
Peptonic Medical AB (publ) is an innovative medtech start up company, dedicated to researching and developing ground breaking products in the women’s health space and improving access to these products on a global scale.
Founded in 2009, the company now produces its own range of intimate health and wellness products under the Vagivital brand and is also the parent company of Lune Group Oy Ltd and Peptonic Medical Israel Ltd. The group is home to a holistic range of products that are trusted by experts and loved by customers. Peptonic Medical share has been traded on Spotlight (www.spotlightstockmarket.com) in Stockholm since 2014.