OssDsign: Focus on sales growth in Q3 - ABG

Catalyst to grow 94% in Q3'24e
EBIT revised down by 1.8%-2.4% due to higher opex
Q3'24 results due 12 November


Q3'24 expectations

We forecast Q3 sales of SEK 32.5m, up 94% y-o-y adjusted for the discontinued business, and up 9% sequentially from Q2'24. After the discontinuation of its cranial business (year-end '23), management has focused on its orthobiologics product, Catalyst, in the US spine market. We expect management to have continued to improve market access, adding more and more hospitals as customers, but also to have increased penetration at its existing customers by getting more surgeons to use the product. The ramp-up in sales could be lumpy between quarters but we expect to see a continued positive sales trajectory on a trailing 12-months basis over the coming years. With regard to EBIT in Q3, we forecast SEK -14.4m in Q3, driven by a 93.0% gross margin and a sequential increase in opex to SEK 44.6m (vs. SEK 42.2m in Q2'24) as we forecast gradually increased spending on sales and marketing.

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