Enzymatica AB: Excellent volume growth for ColdZyme®
Q2
- Net sales reached SEK 4.9 (3.1) million.
- Loss after tax came in at SEK -12.3 (-10.4) thousand.
- Earnings per share were SEK -0.20 (-0.42).
- Cash and cash equivalents were SEK 26.9 (23.4) thousand
Significant events in Q2
- Enzymatica completed its acquisition of Icelandic company Zymetech effective April 1.
- Enzymatica completed its new share issue, raising SEK 60 million before issue expenses.
H1
- Net sales increased to SEK 13.3 (10.0) million.
- Loss after tax came in at SEK -20.9 (-19.5) million.
- Earnings per share were SEK -0.47 (-0.78).
| Financial ratios | |||||
| (SEK THOUSAND) | Q2 2016 | Q2 2015 | H1 2016 | H1 2015 | Full year 2015 |
| Net sales | 4.9 | 3.1 | 13.3 | 10.0 | 27.9 |
| Gross margin, % | 63 | 86 | 62 | 76 | 70 |
| Operating profit/loss | -12.3 | -10.4 | -20.0 | -19.5 | -40.5 |
| Cash flow from operating activities | -15.1 | -7.9 | -19.9 | -12.7 | -37.7 |
| Average number of employees | 22 | 15 | 19 | 15 | 16 |
(Zymetech is consolidated in Enzymatica's figures as at April 1, 2016)
CEO statement: With the Zymetech acquisition, we are entering a new phase
We started off the quarter by completing the acquisition of Icelandic company Zymetech, and a new share issue in the amount of SEK 60 million was conducted in May. Enzymatica's stated objective is to establish international sales via renowned partners, and now we are in the process of putting in place the final pieces of a stable foundation. The acquisition of Zymetech gave us a patent family with high strategic significance and know-how relating to the enzyme technology on which ColdZyme is based. We can thus now offer our potential distribution partners both exclusivity and high-class collaboration. Given that Enzymatica and the success of ColdZyme in Sweden are still relatively unknown on the global market, we need to be patient and realize the fact that the internationalization process will take time. This makes it all the more gratifying that we are continuing to increase sales on the markets on which we already operate. Sales in H1 (including Zymetech) were up 32% year-on-year, and increased by 58% in Q2. The number of ColdZyme units sold to end consumers from Swedish pharmacies increased in Q2 by 37%, which indicates a continuing increase in customer demand. As previously announced, it is now important to pitch the success of ColdZyme on the domestic market to potential distribution partners outside of the Nordic region. We are primarily concentrating on the European market, because the product is already CE-marked in the EU. We have also established contacts outside of Europe in parallel because the time for approval processes in other parts of the world prolongs the time to launch.
Meanwhile, the Zymetech integration process is proceeding according to plan. Enzymatica is making a minor investment in the production plant in Iceland in 2016 to secure access to the enzyme and raise production capacity for future expansion.
We are now in the off season for colds, but I'm confidently looking forward to the second half of the year and to our sales continuing to increase. By the end of the year, we should be able to see the first results of our efforts to sign contracts with new distributors, and we also expect at that time to be able to present the results of our ongoing follow-up study of ColdZyme, which is currently in progress in the UK.
Fredrik Lindberg, CEO
Enzymatica at a glance
Enzymatica AB is a life science company whose business concept is to develop medical devices based on barrier technology and marine enzymes for self care in major market segments. In a short period of time, the company developed ColdZyme®, a unique mouth spray for fighting colds, launched the product in six markets and reached a position over the past winter as one of the most-sold cold products in Swedish pharmacies measured in SEK. Enzymatica has its own sales organization in Scandinavia and collaborates with a contract sales organization in the UK. Enzymatica also sells via distributers in Finland and Spain.
Our development focuses on medical devices for upper respiratory tract infections and oral health. An enzyme from deep-sea fish is a key sub-component in product development.
Enzymatica was founded in 2007, has its head office in Lund, Sweden and has been listed on the Nasdaq First North since June 15, 2015.
For questions about this report, please contact:
Fredrik Lindberg, CEO, Enzymatica AB
Tel: +46 (0)708-86 53 70 | Email: fredrik.lindberg@enzymatica.com
Bengt Jöndell, Interim CFO, Enzymatica AB
Tel: +46 (0)703-77 71 70 | Email: bengt.jondell@enzymatica.com