OssDsign’s Strategic Shift Following SEK 158 Million Raise
OssDsign Secures Significant Funding for Future Growth
OssDsign, a notable venture backed by Karolinska Development AB (NASDAQ: KDEV), has recently completed a successful share issuance, securing approximately SEK 158 million. This funding is critical for propelling OssDsign towards its future goals and implementing an updated strategy designed to enhance operations and market presence during the period from 2025 to 2028.
This directed share issue attracted a variety of institutional investors, including both established shareholders and fresh participants from Sweden and beyond. Investments came from reputable names such as Adrigo Asset Management and La Financiere de L’Echiquier, demonstrating confidence in OssDsign’s growth potential.
New Strategic Framework: ScaleToProfit
With the influx of capital, OssDsign has also announced an innovative strategy known as "ScaleToProfit." This ambitious plan outlines four primary focus areas that are pivotal for driving the company’s growth:
1. Strengthening Sales and Marketing Efforts
The first aspect of the strategy aims to double the sales force in the U.S. by 2026, alongside ramping up marketing initiatives to broaden its customer base. This push is essential to elevate OssDsign’s visibility and sales performance within the competitive landscape.
2. Expanding Research and Development
OssDsign is committed to launching two new products and obtaining at least one expanded indication clearance from U.S. regulators during this strategic period. Such innovation is vital for staying ahead in the market and meeting patient needs.
3. Focus on Clinical Studies
The company plans to enhance its clinical research framework by building the PROPEL spinal fusion registry while conducting 2-3 smaller clinical prospective studies. These efforts will provide critical data and insights needed for further product development and validation.
4. Optimizing Production Efficiency
To support its growing operations, OssDsign intends to implement a scalable and cost-efficient production process, with a significant focus on establishing a stronger footprint in the U.S. This move is strategic for aligning production capabilities with the anticipated demand.
Revised Financial Objectives Amid Growth Strategy
Alongside its strategic initiatives, OssDsign has articulated revised financial targets, which are ambitious yet reflective of the potential supported by the recent capital infusion:
Projected Sales Growth
The company aspires to achieve sales exceeding SEK 400 million by 2028, translating to a remarkable compounded annual growth rate of over 30 percent throughout the 2025–2028 period, highlighting its trajectory towards significant revenue expansion.
Path to Profitability
Another critical goal is to reach EBIT profitability and positive cash flow by the second half of the planned period. This objective reinforces OssDsign's commitment to sustainable growth and financial health.
“The recent share issuance reflects significant confidence in OssDsign’s vision from both existing and new institutional investors. This strong backing enhances our capability to implement our growth strategy effectively,” said Viktor Drvota, CEO of Karolinska Development.
Currently, Karolinska Development's ownership stake in OssDsign stands at 3%, indicative of its commitment to supporting innovative companies within its portfolio.
Contact Information for Further Inquiries
For additional insights or inquiries regarding OssDsign's strategy and operations, please reach out to:
Viktor Drvota, CEO, Karolinska Development AB
Phone: +46 73 982 52 02, e-mail: viktor.drvota@karolinskadevelopment.com
Johan Dighed, General Counsel and Deputy CEO, Karolinska Development AB
Phone: +46 70 207 48 26, e-mail: johan.dighed@karolinskadevelopment.com
Frequently Asked Questions
What is the significance of the SEK 158 million raise for OssDsign?
The SEK 158 million funding will enable OssDsign to expand its operational capabilities and reinforce its strategic goals aimed at growth and profitability.
What areas will OssDsign focus on under its new strategy?
The company will focus on enhancing sales and marketing, expanding R&D, conducting clinical studies, and improving production processes.
What are OssDsign's sales targets for 2028?
OssDsign aims to achieve sales exceeding SEK 400 million by 2028, marking a significant growth period for the company.
When does OssDsign expect to reach profitability?
The company is targeting EBIT profitability and positive cash flow in the latter half of the 2025–2028 timeframe.
What role does Karolinska Development play in OssDsign?
Karolinska Development, owning a 3% stake, supports OssDsign in achieving its strategic and financial objectives through guidance and capital investment.
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