Release Date: July 11, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FDA approval received for ASTar platform, enabling full commercial push in the US.
- Successful completion of cost-saving program, resulting in higher-than-expected savings.
- Extended financing arrangement with Nexttobe, ensuring financial stability through the year.
- Strong customer interest and endorsements from CMS for NTAP reimbursement funding.
- Continued commercial traction in core markets, including Italy and Belgium.
Negative Points
- Operating loss of SEK57 million for Q2, excluding restructuring costs.
- Low top-line revenue of SEK0.6 million for the quarter, reflecting slow income realization from reagent rental model.
- High average monthly burn rate of SEK16.7 million, despite cost-saving measures.
- Complex and lengthy sales cycles, particularly in Europe due to tender-driven processes.
- Uncertainty around future financing options, with ongoing need to pursue alternative funding sources.
Q & A Highlights
Q: What about the prospect of the US commercial partner? Any engagements with potential US commercial partners?
A: We continue to explore partners around the world. In the US, we are engaging directly to get immediate feedback and shape market growth. However, we are open to partnering in the future. - Stuart Gander, CEO
Q: Can you provide an external feel for investors regarding the number of evaluations or feedback from the process going forward?
A: We are considering providing more visibility on evaluations as indicators of contracting, but we need to be cautious about not misleading investors. - Stuart Gander, CEO
Q: What about the level of dynamics and readiness to engage in ASTar solutions in Europe?
A: Europe is developing slower due to tender-driven processes and complex funding mechanisms. However, we see progress in core markets like Italy and Belgium. - Stuart Gander, CEO
Q: What is the expected run rate in terms of OpEx and cash burn once the restructuring is in place?
A: The SEK50 million savings program will have full effect in Q3 and Q4. You can divide SEK50 million by 12 to estimate the monthly savings. - Christer Samuelsson, CFO
Q: Is there any reason to expect a difference in cash flow and result impact of the SEK50 million savings?
A: The risk is fairly low. We are managing working capital effectively, and we are on top of our commercial side purchases. - Christer Samuelsson, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
