Enzymatica AB: Geographic expansion and continued
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YEAR-END REPORT FOR ENZYMATICA AB (PUBL) JANUARY-DECEMBER 2016
Geographic expansion and continued growth in 2016
Q4
- Net sales increased to SEK 11.3 (11.1) million.
- Loss after tax came in at SEK -17.6 (-11.2) million.
- Earnings per share were SEK -0.19 (-0.45).
- Cash and cash equivalents were SEK 35.6 (8.1) million.
Significant events in Q4
- Enzymatica signed an exclusive distribution agreement for Australia, New Zealand, Greece and Cyprus.
- Enzymatica reported results of an experimental study in healthy volunteers and a study evaluating sick Days in elderly care staff.
- On December 19, 2016 an extraordinary general meeting elected a new Board of Directors of the Company
Full year
- Net sales increased to SEK 36.5 (27.9) million.
- Loss after tax came in at SEK -45.0 (-40.8) million.
- Earnings per share were SEK -0.69 (-1.64).
Significant events after Q4
- Enzymatica signed distribution agreement with Stada Arzneimittel AG for Germany
| Financial ratios | ||||||
| (SEK million) | Oct-Dec 2016 | Oct-Dec 2015 | Full year 2016 | Full year 2015 | ||
| Net sales | 11.3 | 11.1 | 36.5 | 27.9 | ||
| Gross margin, % | 56 | 65 | 61 | 70 | ||
| Operating profit/loss | -18.5 | -11.1 | -46.2 | -40.5 | ||
| Cash flow from operating activities | -4.2 | -12.2 | -39.8 | -37.6 | ||
| Average number of employees | 22 | 17 | 21 | 16 | ||
CEO statement: Stronger platform for expansion
In 2016, we increased sales by 31 percent to SEK 36 million compared with SEK 28 million the previous year. The increase is a result of good growth in new markets in combination with continued strong sales in the Swedish market, where ColdZyme retain its share in sales of 4.6 per cent. The introduction of ColdZyme OneCold (7 ml) has performed as we had hoped. The decline in sales of ColdZyme (20 ml) that we initially saw following the introduction of ColdZyme OneCold has ended in the last quarter. We are now increasing sales of both products. All markets are demonstrating growth with the exception of Norway and the UK, where we have not yet sorted out our distribution. Denmark and Finland are following the development curve seen during the first years in Sweden and show sales more than doubled in 2016 compared with the previous year.
In the fourth quarter we took additional steps toward the internationalization of ColdZyme by entering into two new distribution agreements. In early November, we entered into an exclusive distribution agreement with Life NLB Ltd of the Greek and Cypriot markets. We also signed an exclusive distribution agreement with Symbion (Endeavour Consumer Health), Australia's largest distributor to pharmacies and the third largest in New Zealand. Since ColdZyme has to be registered before we can begin to sell it, we expect the launch will be in 2018 at the earliest. We have continued to dedicate considerable effort to quality and regulatory issues and have made good progress in our preparations to adapt to the new European medical device regulations that are expected to take effect over the next few months.
In December we reported the results from two studies. The experimental study on colds, Coldprev II, did not achieve the statistical targets and did not turn out as we had expected. However, the study did provide us with valuable safety data.
Our evaluation of colds and sick days among elderly care staff in Eksjö Municipality, which was published in a scientific journal in November 2016, revealed positive results with significantly fewer sick days while using ColdZyme. We will continue to conduct studies on ColdZyme for treatment of the natural cold in order to deepen our knowledge and broaden our product claims.
We are very pleased that we have recently signed an exclusive distribution agreement with STADA Arzneimittel AG for the German market. The agreement with Stada is a significant breakthrough for our internationalization strategy, but above all it is a recognition of our technology when a pharmaceutical company of Stada's stature, with the stated ambition of increasing its sales with original products, chooses to enter into an agreement with Enzymatica for the sale of ColdZyme in Germany, one of the world's largest markets for over-the-counter products.
We can now close the books on a successful and eventful 2016. In many regards, the year has been influenced by the acquisition of Zymetech, which through its patent portfolio, and the production of marine enzymes from deep sea cod, made it possible to open up a dialogue with potential partners outside Scandinavia. The acquisition itself has entailed higher costs for the consolidated Company, stemming from production and research and development, which we expect to align in 2017. We also completed two share issues during the year that raised SEK 100 million before issue costs for the Company, in order to ensure implementation of our expansion plan and to be able to show potential partners that our financial situation is more sustainable.
A new Board of Directors of the Company that will better reflect the ownership structure that evolved during the year was elected at an extraordinary general meeting on December 19. The new chairman of the board is Bengt Baron, who has extensive experience from various management positions in Swedish industry, including consumer products.
We are entering 2017 as a stronger company, backed by growth and with good prospects for successfully continuing our geographic expansion by reaching out with ColdZyme to new markets. While it is gratifying that we continue to grow steadily in our home-domestic markets, it is only now, with the step on the major markets, we will be able to accelerate growth I look forward to the new year with confidence as CEO of this exciting company.
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. The Company developed ColdZyme ® , a unique mouth spray for fighting colds, launched the product on seven 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 Iceland and collaborates with a contract sales organization in the UK. Enzymatica also sells via distributors in Spain, Finland and Greece.
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.
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, CFO, Enzymatica AB Tel: +46 (0)703-77 71 70 | Email: bengt.jondell@enzymatica.com
Publication Enzymatica AB (publ) is required by Swedish law (the Securities Market Act and/or the Financial Instruments Trading Act) to publish the information in this interim report. The information was submitted for publication on Thursday, February 16, 2017 at 8:30 a.m.
Street address Enzymatica AB (publ) Corporate identity no.: 556719-9244 Mailing address: Ideon Science Park, 223 70 LUND Street address: Scheelevägen 19, Ideon, Lund Tel: +46 (0)46-286 31 00 | info@enzymatica.se | www.enzymatica.se
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