OssDsign: Beats expectations with growth of 117% - ABG

Sales 15% better, EBIT 0% vs. ABGSCe
We cut '23-'24e sales by 5-6%
Lowered fair value range to SEK 6-16 (8-21)


Cranial PSI strength behind sales beat

OssDsign performed well despite what should have been a challenging hospital environment. It managed to grow 117% y-o-y and beat ABGSCe by 15% on sales, mostly as Cranial PSI sales were 25% better than we expected. The US grew by 162%, and this strength was largely driven by Catalyst (bone graft), which had sales of SEK 7.5m in the quarter (0% vs. ABGSCe). Cranial PSI was relatively flat in the US (-1% y-o-y), likely as it is shifting sales efforts to Catalyst, but showcased high growth of 68% in Europe. We think this is also partly from penetration in France post- the AP-HP contract win and a recovery in the German market. OssDsign had a phasing effect from an accelerated in-voicing of SEK 1m, due to production streamlining having an effect with products being sent faster, which is a positive. EBIT was 0% vs. ABGSCe but net profit was -38% below due to a purely mechanical contingent consideration revaluation.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ossdsign/Equity-research/2023/2/ossdsign---beats-expectations-with-growth-of-117/