OssDsign - Well-positioned for expansion
New company strategy: ASCENT25 New ambitious financial targets Strengthening balance sheet for growth investments Updated company strategy, ambitious growth agenda Following a change in management and the transformative acquisition of Sirakoss in late 2020, OssDsign announced a new corporate strategy called ASCENT25. The strategy builds on investments in the core business of cranial implants and the new potential in orthobiologics. Five strategic initiatives will be prioritised: focus resources on the US market, build up the orthobiologics business, innovate the product portfolio, establish clinical superiority, and drive operational efficiency. Resources will also be moved away from the facial and dental indications, which could be subject to out-licensing deals.
Aiming for SEK 300m-400m in sales by 2025 Based on its growth and operational initiatives, OssDsign targets sales between SEK 300m and SEK 400m by 2025 (65%-74% CAGR ’20-’25) and positive OCF by 2024. This is in line with our estimates. The acquired Osteo3 product looks set to contribute strongly, as an off-the-shelf product with premium pricing and over 90% gross margins.
We believe the already established commercial infrastructure and customer base could lead to a significant contribution of ~25% of group sales in ’23e. Commercial activities related to the launch of the synthetic bone graft substitute have been initiated during H1’21, and the company still expects the first revenue contribution in H2’21. OssDsign recently announced that it has been awarded a group purchasing agreement with Premier in the US.
Premier is the US’s second-largest GPO, with ~330K hospital beds across ~4,100 hospitals. This provides OssDsign’s US distributors with a “hunting license” in all of Premier’s member clinics. Funding secured - new fair value range SEK 8-21 (12-37) OssDsign successfully completed a rights issue in May, bringing SEK 270m at SEK 7.
75 per share. We estimate that the fund raising could bridge.
