CS MEDICA Q3 2023/2024: Growth Through Strategic Regulatory and Market Adaptations

Navigating Complex Markets with Innovations Leads to a 400% Increase in Revenue Year-to-Date and an Expansive Global Reach, Supported by a Robust mDKK 49.3 Order Pipeline.

CS MEDICA, a Danish MedTech leader specializing in pain management, autoimmune diseases, and stress-related disorders, announced achieving a year-to-date revenue growth of over 400%, totaling mDKK 4.6, complemented by an additional order intake of mDKK 49.3.

As revenue recognition occurs post-product delivery and invoicing in markets where our medical devices must be approved for sale by regulatory authorities, the lead time is longer than cosmetics or products without regulatory restrictions.

Lone Henriksen, CEO of CS MEDICA, comments: "In a complex global market, we've experienced substantial interest from sectors including pharmaceuticals, retailers, and cosmetic firms. Our unique blend of CBD and pharmaceutical regulatory compliance distinguishes us globally. With a robust pipeline valued at mDKK 49.3 and increasing product registrations, we aim to convert significant orders into revenue over the next 12-18 months."
 

Market Adaptations: Effective compliance and successful product registrations have streamlined the transition from order intake to production, enhancing market reach and operational efficiency.

Customer Engagement Contract Dynamics:

• Compliance-Focused Customers: Require extensive validation, often extending contract negotiations beyond 10 months. Payment terms may vary per first order and recurring orders.
• Market-Leading Partners: Rapidly integrate our products to secure first-mover advantages, typically within 2-3 months.
• Strategic Distributors: Aim to secure large volumes without exclusivity, supporting broad market penetration.

Market Entry and Regulatory Strategy:

• Immediate Production Markets: Such as the EU, UK, and US, where products can directly move from order to production, where lead time on average is 4 months.
• Pending and Extended Registration Markets: Handle registrations with strategic focus, optimizing registration lead times from 3 to 18 months, depending on the region. Historically, these regions achieve a robust conversion rate of approximately 71%.

Lone continues, "Over the past year, we have engaged in negotiations with several potential partners poised to elevate our business to new heights. These partnerships still need to be reflected in our pipeline as we diligently prepare for the next growth phase, ensuring we have the capacity and infrastructure to support these advancements."

Operational Enhancements: Starting a new production facility in India or working with a partner to optimize vertical integration of the value chain, we can reduce production cycles to two months, decreasing minimum order quantities and prices, which can help accelerate negotiations and revenue realization.

Commitment to Excellence: CS MEDICA continues to prioritize regulatory compliance and market readiness, ensuring our medical devices meet the highest standards for quality and safety, distinguishing our offerings from cosmetic CBD products.