Year end report period from January 2021 to December 2021

Year end report period from January 2021 to December 2021

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

Group, Peptonic Medical Israel Ltd and CommonSense Marketing Inc are included from 2021-10-20.

2021 Fourth quarter (Oct-Dec)

  • Net sales of products KSEK 5,642 (7,258)
  • Gross profit KSEK 3,388 (3,866), Gross margin 60% (53%)
  • Operating loss KSEK -43,974 (-10,702) 
  • Loss per share SEK -0.23 (-0.07)

Full year 2021 (Jan-Dec)

  • Net sales of products KSEK 31,643 (21,283)
  • Gross profit KSEK 19,070 (13,089), Gross margin 60% (61%)
  • Operating loss KSEK -73,718 (-31,053)
  • Loss per share SEK -0.38 (-0.19)

Adjusted earnings before non-recurring costs and the acquisition of Common Sense

2021 Fourth quarter (Oct-Dec)

  • Net sales of products KSEK 5 088 (7,258)
  • Gross profit KSEK 3,490 (3,866), Gross margin 69% (53%)
  • Operating loss KSEK -9,589 (-10,702) 
  • Loss per share SEK -0.05 (-0.07)

Full year 2021 (Jan-Dec)

  • Net sales of products KSEK 30,971 (21,283)
  • Gross profit KSEK 18,634 (13,089), Gross margin 60% (61%)
  • Operating loss KSEK -35 262 (-31,053)
  • Loss per share SEK -0.18 (-0.19)

From the CEO

2021 was a very eventful year for Peptonic Medical.

We start where it ended, with the completion of the acquisition of the assets from the Israeli company Common Sense Ltd. This is because the acquisition is an important step in the company’s strategy going forward.

Peptonic is a medical technology start up group with the vision to become a leading player in clinically proven self-care solutions for women. This is based on the principle of diagnose – treat – prevent. The first area is intimate care. If problems with genital health arise, a woman should be given the opportunity to solve the problems herself with proven products from Peptonic. The products should inspire confidence and offer everything from diagnosis to solution to preventive measures. With the acquisition of Common Sense, Peptonic has taken another important step towards the realization of this strategy. The background to the choice of strategy is that the company has identified a clear and rapidly growing need and a societal trend.

In connection with the covid pandemic, people’s propensity and willingness to take care of their own health has increased significantly. In a comprehensive survey, in which 4,400 people in Germany, Spain, Italy and the United Kingdom were interviewed during the pandemic, 65% answered that they are now more likely to take care of their own health. It is also interesting to note that 63-84% of those surveyed in each country are inspired by taking increased personal responsibility for their health and thereby reducing the burden on healthcare systems. In this trend, the respondents want to see clinically proven self-care solutions, 82% answered that this is very important.

The portfolio currently includes a self-test to diagnose vaginal infections, a self-test to identify amniotic fluid leakage, a treatment for vaginal atrophy and a moisturizing and thus preventive intimate wash. During the autumn of 2021, a clinical study for an adapted variant of VagiVital ActiveGel for treatment against fungal infections has been initiated at Karolinska Hospital. The company is also working to develop treatments for bacterial vaginosis and vestibulitis, it is not yet determined whether this will be in-licensing, acquisition or own development.

The company’s more lifestyle-oriented brand in intimate health, Lunette, has in 2021 continued to develop positively in the domestic market Finland. The addition of primarily additional sustainable menstrual products has contributed to strengthening the position as a leading player in the area. Internationally, it has been tougher and sales development has been negative (-23%). An important analysis of this is that the investment needs to be consolidated into much fewer markets in order to then gradually build up.

The company’s strategy regarding sales is to create profitable references in the domestic markets, which are then taken further internationally. VagiVital’s business in Sweden grew by just over + 30% in 2021 and the company has previously informed that it expects the domestic market for VagiVital to be profitable in 2022. Regarding Lunette’s home market Finland, sales of Lunette grew during the year by just over + 10% and are profitable. The Nordic region currently accounts for just over 30% of the company’s global sales. Sales also developed positively during the year through several successful influencer collaborations.

In the Nordic region, the sales channels are a mix of own online stores, retail online stores and retail physical stores. It is the company’s analysis that this mix of distribution models works best. The digital part of the business is growing fastest, and marketing is also primarily digital, where the company has found a working model.

The model is now being taken to the US, where VagiVital has been launched on Amazon and in its own online store, and will then gradually build up the distribution network both digitally and in physical stores. In the United States, there are also a number of partners for whom Peptonic produces vaginal self-tests which are sold under the partners’ own brands. Peptonic’s own brand VagiVital is built up in parallel with these and will over time have a unique range with the concept that is created – diagnose, treat, prevent.

In markets outside the Nordic region and the US, the company’s current intention is to build sales through collaborations with local distributors. During the year, it was the company’s assessment that the portfolio needs to be broadened to better attract partners who can take a holistic approach and launch Peptonic’s portfolio locally.

In 2021, the company has informed that it has terminated the agreement with Yuanjia Bio for the Chinese market due to a non-payment of SEK 4 million, and that it has an ongoing arbitration case in China to try to get back outstanding debt.

During the year, the organizations for Lunette and VagiVital were merged into one, which led to organizational savings corresponding to SEK 6 million for the full year. The company is currently evaluating opportunities to link the Lunette and VagiVital brands even closer to each other.

The products that were added to the company’s portfolio through the acquisition of the assets in Common Sense are now sold and marketed by Peptonic’s existing organization, which is why the Common Sense sales and marketing organization did not participate in the acquisition. Peptonic is headquartered in Bromma, Sweden, the subsidiary Lune in Finland, the production and development company Peptonic Medical Israel and sales company in the US.

During the year, we chose to burden the result with a number of substantial extraordinary costs, which amount to SEK -38.5 million during the year, of which the quarter was charged with SEK -35.0 million. The extraordinary costs are primarily of an accounting nature and include amortization of goodwill relating to the acquisition of Lune Group, the acquisition of the assets in Common Sense, operations in Common Sense, restructuring costs and costs related to the EBM case. Adjusted profit without these extraordinary costs for the full year 2021 was SEK -35.3 million (SEK -31.1 million) with sales corresponding to SEK 31.0 million (SEK 21.3 million). The adjusted result for the old operations excluding the Common Sense acquisition for the last quarter was SEK -9.5 million (SEK -10.7 million last year) with sales of SEK 5.0 million (SEK 7.3 million). Note that in 2020 there was sales to China of 2.0 MSEK.

ReasonAmount (thousand SEK)Heading under the income statement
Termination salary of the CEO, 18 months from 15/4 2021, including severance pay of 6 monthly salaries. Expensed until 2023-04-14.5 746Personnel costs
Doubtful trade receivable customer China. The entire amount is 100% expensed. Attempts to recover the amount are ongoing.4 098Other external costs
Costs for acquisition of the assets in Common Sense, external costs. In comparison with previous years, these costs have not been capitalized.1 007Other operating expenses
Own costs in connection with the acquisition of Common Sense.700Personnel costs
Legal costs in connection with the EBM investigation.531Other external costs
Impairment of goodwill amounted to SEK 23,495 thousand regarding Lune Group OY, in accordance with current accounting rules.23 495Depreciation of tangible and intangible fixed assets (group level)
Operating and start-up deficit at the newly started subsidiary Peptonic Medical Israel Ltd, refers to Oct-Dec 20212 879Under each type of cost in the income statement
Total impact of extra costs 2021 38 456  


With the acquisition of Common Sense, Peptonic Medical Israel was started, to which the assets were transferred during the last quarter. Since then, the focus has been on securing the deliveries of raw material suppliers and accelerating production and shipping against incoming orders. The company did not have time to ship and invoice more than a limited amount during Q4 2021 and is working to catch up. This means that invoicing will improve in the coming periods.

The construction of the portfolio diagnose – treat – prevent costs. Building consumer brands also involves significant marketing costs. Peptonic has announced that during the first quarter of 2022, a rights issue will be carried out to finance continued marketing, FDA approval of the company’s product to identify amniotic fluid leakage and continued development of the company’s portfolio. It will be relevant with further rounds of financing in the future to reach the goal of the company’s vision.

If we look ahead in the longer term, Peptonic has something very exciting going on. Addressable market globally at the consumer level is about $ 20 billion. With our growing portfolio of diagnose – treat – prevention, we are creating a unique self-care offer in this market. An offer that meets the 65% who after the pandemic will spend more time on self-care, the 82% who believe that these solutions must be clinically proven and the up to 84% who are inspired by relieving healthcare systems by seeking self-care solutions. We do this based on the profitable model we put in the Nordic home market and expand into the world. Next in line is the United States. In other parts, we continue to try to attract local partners. Should partners continue to prove to be a challenge, we will build market by market ourselves based on the Nordic model. We are inspired by the fact that we will help many women to a better and simpler life and that we will relieve healthcare systems around the world.

Stockholm, 25 February 2022

Erik Sundquist, CEO Peptonic Medical

Financial information

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 fourth quarter amounted to SEK 5,642 (7,258) thousand. Other operating income for the quarter was SEK 610 (1,087) thousand. In the full year, sales of goods amounted to SEK 31,643 (21,283) thousand. Other operating income for the period was SEK 622 (1,151) thousand. Other income included income for the Group of SEK 499 thousand for the acquisition of CommonSense Marketing Inc in the fourth quarter.

Income in the interim report for the third quarter was too high due to faulty elimination in the revenues. This has been corrected in this report. The reported profit was correct in the interim report for the third quarter.

Costs – Costs for the fourth quarter amounted to SEK -50,226 (-19,047) thousand. The costs for the full year were SEK -105,893 (-53,487) thousand. During the full year, costs for products were SEK -12,573 (-8,194) thousand and a cost of SEK -23,495 thousand has been taken in the Group for the write-down of goodwill for Lune Group. Besides this, costs of SEK -12,082 thousand has been taken during the year for costs of one-off character.

Costs for products in the interim report for the third quarter was too high due to faulty elimination in the costs of sold goods. This has been corrected in this report. The reported profit was correct in the interim report for the third quarter.

Profit – The Group’s profit after net financial items for the fourth quarter amounted to SEK -43,858 (-10,991) thousand. For the full year, the corresponding result is SEK -73,688 (-31,333) thousand.

Financial position and liquidity – Cash and bank as of December 31, 2021, amounted to SEK 10,153 (39,312) thousand. External acquisition costs for the assets of CommonSense Ltd and the company CommonSense Marketing Inc have during the year a net burden on liquidity of SEK -4,495 thousand.

Shareholders ‘equity – The Group’s shareholders’ equity as of December 31, 2021, amounted to SEK 52,017 (117,820) thousand, which gives an equity / assets ratio of 62 (88) percent.

Liabilities – The company’s liabilities, as of December 31, 2021, amounted to SEK 31,483 (16,618) thousand.

Organization – During the full year, the average number of employees is estimated at 18 (12). 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 December 31, 2021, was 191,639,642 (162,911,613).

For key figures, income statement, balance sheet, statement of cash flow and changes in equity, download complete year end report as PDF:

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Review and certification

This Year End 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. The Board will not propose any dividend to the Annual General Meeting.

Financial calendar

  • Annual report 2021: February 28th 2022
  • Quarterly report, 1: May 12th 2022
  • 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, February 25th, 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 contact:
Erik Sundquist, CEO
Phone: + 46 (0)722 49 90 43
erik.sundquist@peptonicmedical.se

Download the report as PDF document

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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.