Enzymatica AB: Breakthrough in Germany and continued increase in sales

2017-04-20

INTERIM REPORT FOR
ENZYMATICA AB (publ)
JANUARY-MARCH 2017

Breakthrough in Germany and continued increase in sales

First quarter

  • Net sales reached SEK 9.6 (8.4) million.
  • Loss after tax came in at SEK -11.4 (-8.1) million.
  • Earnings per share were SEK -0.13 (-0.32).
  • Cash and cash equivalents were SEK 26.0 (7.2) million at the end of the quarter.

Significant events during the quarter

  • Enzymatica entered into an exclusive distribution agreement with STADA Arzneimittel AG for distribution of ColdZyme® in the German market.
Key figures      
(SEK million) Jan.-March
2017
Jan.-March 
2016
Full year
2016
Net sales 9.6 8.4 36.5
Gross margin, % 62 61 61
Operating profit/loss -11.5 -7.7 -46.2
Cash flow from operating activities -8.9 -5.0 -38.4
Average number of employees 21 16  

Comments from the CEO: Collaboration with STADA

In February, we signed an exclusive distribution agreement with STADA Arzneimittel AG for the German market. STADA is a German public company with a traditionally strong presence in Europe and especially Germany. STADA has pursued a strategy of growth through trademarked products in recent years and is an extremely interesting partner. STADA is the market leader in the cold segment in the German market, with a range of symptoms relieving products, as well as in the UK and Russia. With the addition of ColdZyme to its product portfolio the company now has a complete offering for its customers. The German common cold market for over-the-counter products is substantial, with a value of approximately SEK 12 billion at the retail level, which is ten times the Swedish market, why it is legitimate to say that this is an international breakthrough for both Enzymatica and ColdZyme.

In April we were able to expand our collaboration with STADA by adding Austria and Belgium to the distribution agreement, two markets comparable to Sweden in size . For all new markets, sales will begin in the fall of 2017 and we have already initiated preparations together with our new distribution partner. Our focus remains unchanged on expanding our geographic presence internationally, including outside Europe, though with a longer time horizon, as well as on continuing to strengthen the position of ColdZyme through product development projects and clinical documentation. 

It is rewarding to see that  the acquisition of the Icelandic company Zymetech in April 2016 is now beginning to pay off. The acquisition of Zymetech included patents that have made it possible to offer distributors exclusivity, a unique production facility of enzymes that ensures reliable delivery, and product and research expertise that will facilitate development of a broader portfolio. This acquisition of Zymetech, which affected the quarter with approximately 3 MSEK compared with the corresponding quarter previous year, has undoubtedly made possible the agreement with Stada.

In addition to this strong international breakthrough, I am extremely pleased that we are continuing to grow in our home markets, especially Sweden and Denmark. Enzymatica can now report yet another quarter, the 17th in a row, with increased sales compared with the same quarter the previous year.

I look forward to good growth opportunities for Enzymatica as we continue to launch ColdZyme internationally.

Fredrik Lindberg, CEO

Enzymatica at a glance
Enzymatica AB is a medical device 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 eight markets and reached a position over the past winter as one of the best-selling 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, Greece 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 and has been listed on Nasdaq First North since June 15, 2015.

The Board of Directors and CEO hereby confirm that this interim report provides a true and fair view of the parent company's and group's business, financial position and results of operations, and describes material risks and uncertainties faced by the parent company and group companies.

Lund, Thursday, February 16, 2017

Bengt Baron
Board Chair
Marianne Dicander Alexandersson
Board Member
Mats Andersson 
Board Member
     
Gudmundur Palmason
Board Member
Sigurgeir Guðlaugsson 
Board Member
Louise Nicolin
Board Member
     
Fredrik Lindberg
CEO
   
   

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, April 20, 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

Enzymatica is listed on the Nasdaq First North. The Company is traded under the ticker symbol ENZY and ISIN code SE0003943620. 

Enzymatica's certified advisor is Erik Penser Bank.