OssDsign: Exit from cranial - ABG

• Focus on orthobiologics going forward
• New financial targets and rights issue
• Expected to be accretive to earnings already in 2024

Cranial implants business to be discontinued by end of 2023
OssDsign has announced that they will exit from its old legacy business of cranial implants, and focus its resources on its orthobiologics product Catalyst, a nanosynthetic bone graft product used in spinal fusion surgeries. Catalyst has reported stellar growth since the launch in 2021, and has already outgrown the cranial implant product in size after only 18 months, and has much higher gross margin, an estimated 30%- point (approx. 90% vs 60%). The exit from the cranial implant business will lower the annual opex level by an estimated SEK 30-40m, equal to 18-24% cut in opex based on our opex forecast for 2023, and will trigger a restructuring charge with a cash impact of SEK 10-15m, in addition to some potential non-cash charges related to the discontinuing of the cranial implant business.

Länk till analysen i sin helhet: https://cr.abgsc.com/contentassets/e852a93796714f00aeed3dda783bd2bd/pdf/analyst.pdf