Continued lower sales due to pandemic but some stabilization
- Net sales reached SEK 6.1 (13.9) million.
- Result after tax came in at SEK -19.7 (-11.7) million.
- Earnings per share, basic and diluted, were SEK -0.14 (-0.08).
- Cash and cash equivalents were SEK 64.8 (30.9) million.
Significant events in Q1
Enzymatica’s sales in the quarter decreased compared with Q2 2020 because of the pandemic resulting in fewer common colds. However, the cold remedy market in Sweden and in other markets began to recover during the quarter.
Enzymatica’s rights issue was completed on June 2nd and the company raised SEK 59.1 million before issue expenses. The issue was fully subscribed and underwritten by the company's three largest shareholders.
The Japanese Patent Office granted Enzymatica’s patent for the cod enzyme, which is one of the key components in the mouth spray ColdZyme®, for the Japanese market. The patent is valid until 2036.
Enzymatica announced that the company is launching ColdZyme on Amazon in Sweden and the UK, which will improve consumer access to the product and generate increased exposure of the brand.
Charlotte Andersson was appointed new Director Quality Assurance and Stefan Olsson Head of Corporate Communications.
- Net sales totaled SEK 23.1 (40.7) million.
- Result after tax came in at SEK -28.5 (-11.0) million.
- Earnings per share, basic and diluted, were SEK -0.20 (-0.08).
Significants events after the quarter
On July 12 Enzymatica announced that the company has licensed exclusive rights to its German partner STADA to market and sell ViruProtect® (ColdZyme) in Vietnam. The Vietnamese self-care market is estimated to about EUR 2 billion and the Ear-Nose-Throat category to about EUR 20 million.
On July 13 Enzymatica announced that the Board of Directors has appointed Claus Egstrand, the company’s current Chief Operating Officer, to new CEO for Enzymatica. He assumes the new position at the latest on January 1, 2022. Claus Egstrand replaces Therese Filmersson, who has been acting CEO since June 2020, and who will return to the role as CFO.
Impact of the coronavirus pandemic
As a result of the coronavirus pandemic, with social distancing, improved hand hygiene and fewer social contacts, the cold remedy market in Sweden and internationally was down by 50 percent during the first quarter, but the markets began to stabilize during the second quarter. Enzymatica believes that the cold remedy markets will continue to recover in H2 2021 when the vaccination campaigns in the various countries are expected to be completed, primarily at the start of the cold season in the fourth quarter. The company does not see any direct other effects of COVID-19 on the business with respect to production, logistics, sickness absence, etc.
|(SEK THOUSAND)||Q2 |
|Full year |
|Gross margin, %||29||58||47||71||68|
|Cash flow from operating activities||-14.4||-1.3||-13.1||-5.8||-10.7|
|Average number of employees||24||18||24||18||18|
From the chairman: The new rights issue secures capital for further expansion
The effects of the pandemic continued to negatively impact Enzymatica’s sales in the second quarter. At the same time, we see signs that the markets are beginning to recover, albeit at low levels. During the quarter, we completed a rights issue, securing the company's capital needs to continue our international expansion. Enzymatica was also awarded patent approval in the Japanese market for one of the key components in ColdZyme, and also commissioned a new business support system.
Enzymatica’s sales during the second quarter totaled SEK 6.1 million, compared with SEK 13.9 million during the corresponding period in 2020. The lower sales are attributable to the effects of the pandemic with social distancing, better hand hygiene and fewer social contacts resulting in substantially fewer common colds. During the quarter we received orders for ColdZyme on markets, such as Romania, Poland and the Balkans.
During the second quarter the cold remedy market in Sweden and internationally began to recover; for example, in the month of June (until and including week 25) we see that the Swedish market grew by 21 % compared to previous year. In Australia, which is at the beginning of its cold season, data shows that the market continues to recover and is currently comparable to pre-pandemic levels.
During the quarter we completed a rights issue that raised SEK 59.1 million before issue expenses for the company. The issue was fully subscribed, including 55.6% with subscription rights and 4.6% without subscription rights, and Enzymatica's three largest shareholders subscribed for the remaining 39.8% under guarantee commitments. This demonstrates that our largest shareholders continue to have strong confidence in the company and its potential moving forward. The issue secures capital to continue our international expansion initiatives, conduct clinical trials, strengthen the organization and supply chain, and meet working capital needs.
Enzymatica has an extensive and growing patent protection for ColdZyme. In May the Japanese Patent Office granted a patent for the cod enzyme that is one of the main components in ColdZyme. This gives us fifteen years of protection for our product in one of the world's largest healthcare markets. An equivalent patent was granted in both the EU and Russia in 2020.
During the quarter we also deployed a new business system that provides even better support for production, demand planning and business management.
This significant investment provides important operational support to successfully manage the international expansion.
After the quarter, the Board of Directors appointed Claus Egstrand to new CEO for the company, and he will assume his new position at the latest on January 1, 2022. Claus has worked for Enzymatica since 2017, first as Chief Commercial Officer, and then as Chief Operating Officer. It is a strength that we have succeeded with an internal recruitment and Claus has a perfect background with long experience from the international pharmaceutical and medtech industries. He has proven, on several occasions, his ability to lead the development of operations generating double-digit growth, both with regard to revenues and earnings. We are most grateful for Claus’ continuous, strong commitment for Enzymatica.
As in the last quarter, we will continue to work tirelessly in Q3 to support our distributors both in existing markets and in the launch of ColdZyme in new markets and secure additional distributor agreements for new geographic markets. We also continue working on clinical trials and regulatory work to prepare for the MDR, the new regulatory framework for medical devices. The sales development is estimated to be inconsistent because of the effects of the pandemic as well as due to the current expansion phase of the company. As vaccination programs are completed in Sweden and internationally, we are convinced that the cold remedy markets will recover. We have begun to see an initial recovery in Q2, and expect a more solid recovery in the upcoming cold season (Q4 2021 och Q1 2022).
Bengt Baron, Executive Chairman of the Board
For questions about this report, please contact:
Bengt Baron, Executive Chairman of the Board, Enzymatica AB
Tel: +46 (0)708- 59 30 09 | Email: firstname.lastname@example.org
Therese Filmersson, CFO, acting CEO, Enzymatica AB
Tel: +46 (0)708- 40 72 24 | Email: email@example.com
This information is information that Enzymatica is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 a.m. CET on Friday, July 16, 2021.
Enzymatica AB (publ) Corporate identity no.: 556719-9244
Enzymatica is listed on the Nasdaq First North Growth Market. The Company is traded under the ticker symbol ENZY and ISIN code SE0003943620.
Enzymatica’s certified advisor is Erik Penser Bank. Tel: +46 (0)8-463 83 00