Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- CellaVision AB (CLVSF, Financial) reported strong sales growth in India, contributing positively despite market uncertainties.
- The company achieved an organic growth rate of 9% for the quarter, nearly reaching double digits.
- Gross margin improved from 66% to 68%, attributed to the implementation of price increases.
- CellaVision AB (CLVSF) is progressing well with its strategic partnership with CX, enhancing joint training and marketing activities globally.
- The company is on track with its clinical validation and regulatory process for its bone marrow product, aiming for a 2025 launch in Europe.
Negative Points
- Sales in the Americas declined due to uncertainties in the hospital environment, influenced by political and election-related factors.
- The company experienced a temporary halt in shipments to China, affecting quarterly performance.
- Instrument sales growth was only 6%, which is considered low, particularly impacted by the US market.
- Cash flow appeared weaker compared to the previous year, primarily due to working capital fluctuations.
- R&D expenses increased, driven by clinical trials and development programs, impacting overall expenses.
Q & A Highlights
Q: What drove the strong instrument sales growth in the EMA region?
A: Simon Ãstergaard, President and CEO, explained that growth was observed in both Eastern and mature European markets, with the Middle East also contributing significantly as CellaVision began to gain market share there.
Q: Is there any seasonality affecting the APAC region's Q3 numbers, or is it purely timing-related?
A: Simon Ãstergaard noted that for APAC, the fluctuations are primarily due to the timing of large orders, particularly those shipped to China, rather than seasonal factors.
Q: Can you elaborate on the increase in R&D expenses and what activities are driving this?
A: Simon Ãstergaard confirmed that the increase is partly due to clinical trials for the bone marrow application, as well as progress on multiple programs outlined in their roadmap, contributing to the additional costs.
Q: When is the bone marrow application expected to receive the CE mark, and is it a first-half or second-half event in 2025?
A: Simon Ãstergaard stated that they aim to complete clinical trials by the end of the year, with regulatory processes expected to take the first half of 2025, targeting a launch in the second half.
Q: How has the collaboration with CX improved visibility into end-customer behaviors and operations?
A: Simon Ãstergaard highlighted that the collaboration has significantly improved insights into inventory levels and end-user market activities, enhancing their ability to manage operations and understand digital CMAT adoption.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
