iZafe Group AB (publ.) – presents today, November 7, its report for the third quarter of 2022.
Summary of financial performance
- Net sales for the quarter amounted to SEK 75 (38) thousand. The quarter's net sales consist of revenues related to the sale of the digital pharmaceutical robot Dosell.
- Operating profit for the quarter amounted to SEK -5,680 (-5,342) thousand.
- Profit after financial items for the quarter amounted to SEK -5,751 (-6,183) thousand.
- Cash flow for the period amounted to SEK -4,513 (-6,475) thousand.
- Earnings per share for the quarter before / after dilution amounted to SEK -0.1 (-0.2).
- Equity per share at the end of the period amounted to SEK 0.3 (1.5).
- The equity ratio at the end of the period was 75.0 (62.3) percent.
Significant events during the quarter
- The company has signed a cooperation agreement with the welfare platform Avanto Care. The collaboration means that iZafe's products are integrated with Avanto Care's platform and gives the opportunity to work more proactively with the users' medication.
- With our partners Careium AS and Hepro AS, 20 and 25 Dosell have respectively been implemented in new municipalities in Norway.
- Together with Aleris, the Company has started a pilot project for safer medication management. The goal is to introduce Dosell for the patient group that has advanced healthcare at home. During the quarter, 30 patients were introduced to the pharmaceutical robot.
Significant events after the end of the quarter
- During quarter four 2022, 12,075,688 warrants of series TO10B were exercised, representing approximately 34.1 percent of outstanding warrants. The subscription price amounted to SEK 0.26 per B-share and raised approximately SEK 3.1 million for the company before issue costs
- The company has signed a cooperation agreement with Medcam AB, which sells medical devices to the healthcare sector in the Nordic region and Europe. The primary focus will be on the Dutch market, but the potential for the company to enter several countries exists in the near future.
COMMENTS FROM THE CEO
A lot has happened in the last quarter and we continue to make strides on our growth journey – both in the Swedish and European markets.
There is a growing demand for products and services that enable more digital care where medication and adherence are crucial.
Our Dosell vending machine continues to do well across the board and we are pleased to see strong demand and positive sales for Dosell consumer through Apoteket AB. The packaging and sales of our consumer product have been crucial in moving forward in dialogues with potential partners in other European countries. We have now accumulated enough experience and documentation to streamline the processes and reduce the costs associated with selling and marketing Dosell to consumers.
Our entire business concept is based on sales through specific partners who handle sales, warehousing, logistics and marketing. With a focus on ensuring quality in small volumes at first, we will be able to scale up the volume and sales of many of our partners in more markets as early as next year.
We have also started the implementation of Dosell at Aleris ASIH (Advanced Home Healthcare) which is very exciting. The whole ASIH market relies on a different type of Dosell than the procured Dosell at regional level. It has a different design that makes it very difficult for the drug robots to handle. We can proudly say that we are the only pharmaceutical robot on the Swedish market that can handle these dose bags.
We have a clear vision to offer proactive holistic health for many more providers and patients, with a focus on these four elements:
- Securing established and professional owners who can support the company with long-term external funding
- Strategic acquisitions that broaden our offering and portfolio ensuring the right medicine at the right time
- 3.Managing personal data and ensuring that the necessary integration work is implemented
- Internationalization towards new markets and together with both existing and new partners
Since October, we have a new Board in place that will help us to realize the action plan ahead. We have secured expertise and networks around finance, digitization, GDPR, sensitive data management and legal requirements. There we now have a clear strategy and plan for acquisitions, integrations with other wellbeing platforms, sales and internationalization.
The potential acquisition of Pilloxa is very interesting as we see that there is a strong demand around the ability to ensure adherence through all stages of the patient journey and to be able to integrate data into wellbeing platforms and home monitoring. The status on this is that we have completed due diligence and are now in the final stages of negotiations.
Another milestone during the quarter is our entry into the Dutch market. The Netherlands is an important market for us as they are the foremost pioneers in dose packaged medicine. The majority of all manufacturers of dose packaging machines are based in the Netherlands, which means that once we have been successful there, there will be positive knock-on effects throughout Europe.
Finally, I would like to mention that we are in dialogue with several other players in key markets in Europe, with whom we hope to have a clear agreement shortly. In this way, iZafe can in the future contribute broadly to a more proactive holistic approach to health, resulting in better health for more people. Socially sustainable value for society – that's really important.