Inhalation Sciences AB (publ) releases Q3 Report 2022
(Stockholm, Sweden, 22 November 2022) Inhalation Sciences AB announces that its interim report for the third quarter 2022 is now available on the company’s website. To read the whole report (in Swedish), visit: http://inhalation.se/investors/finansiella-rapporter/
Summary of interim Q3 report
Commercial: through carefully qualified sales work, we are seeing a steady increase in enquiries and continue to work on converting these into assignments as quickly as possible. In the third quarter, order intake increased by 370% compared to the same period last year. Revenue also increased by 56% over the same period. The quarter ended with 6.8 MSEK in backlog, an increase of 260% compared to the same period last year. The focus remains on converting what we can before the end of the year, while continuing to process new sales of our unique technology.
Regulatory: collaboration with the FDA for the planned In vitro study of ISAB's DissolvIt module is now in the start-up phase. The project will continue for two years and we are very much looking forward to this collaboration.
Financial: the company has not lifted the previously announced credit line due to the new orders received in the third quarter. The credit facility is also not considered to be eligible for lifting during the remainder of 2022 and in consultation with the lenders, the term of the agreement has been extended from June 2023 to December 2023 and the maximum loan amount has been lowered to SEK 4 million.
July – Sept’ 2022
Net sales kSEK 1,782 (1,137)
Operating profit kSEK -3,486 (-4,446)
Earnings per share before dilution SEK -0.31 (-0.40)
Earnings per share after dilution SEK -0.31 (-0.39)
Order intake during the period kSEK 4,778 (1,010)
Order backlog at the end of the period kSEK 6,862 (1,883)
Jan’ – Sept’ 2022
Net sales kSEK 8,083 (5,216)
Operating profit kSEK -10,900 (-13,516)
Earnings per share before dilution SEK -0.96 (-1.20)
Earnings per share after dilution SEK -0.96 (-1.19)
Order intake received during the period kSEK 8,347 (2,208)
Order backlog at the end of the period kSEK 6,862 (1,883)
Order intake is the value of products and services sold during the current period, i.e. sales, and not to be confused with net turnover.
Order backlog is signed customer contracts for both products and services that have not yet been invoiced to customers, where work is still in progress and delivery has not yet been made to the customer.
Selected financial data in summary
| 2022July-Sept | 2021July-Sept | 2022Jan-Sept | 2021Jan-Sept | 2021Jan-Dec | |
| Net sales kSEK | 1,782 | 1,137 | 8,083 | 5,216 | 9,422 |
| Operating profit kSEK | -3,486 | -4,446 | -10,900 | -13,516 | -16,571 |
| Proft after tax kSEK | -3,509 | -4,488 | -10,975 | -13,525 | -16,609 |
| Balance sheet total kSEK | 15,967 | 28,548 | 15,967 | 28,548 | 26,112 |
| Cash flow for period, kSEK | -1,576 | -1,672 | -10,981 | 10,422 | 6,348 |
| Cash flow for period, per share (SEK) | -0.14 | -0.15 | -0.97 | 0.92 | 0.63 |
| Cash and cash equivalents kSEK | 3,414 | 18,469 | 3,414 | 18,469 | 14,395 |
| Earnings per share before dilution kSEK | -0.31 | -0.40 | -0.96 | -1.20 | -1.46 |
| Earnings per share after dilution kSEK | -0.31 | -0.39 | -0.96 | -1.19 | -1.46 |
| Equity kSEK | 8,703 | 22,762 | 8,703 | 22,762 | 19,678 |
| Equity per share (SEK) | 0.77 | 2.00 | 0.77 | 2.00 | 1.73 |
| Equity ratio, % | 54.51% | 79.73% | 54.51% | 79.73% | 75.36% |
| R&D costs / operating costs | 40.99% | 48.77% | 32.64% | 45.63% | 45.59% |
| Number of shares | 11 375 734 | 11 375 734 | 11 375 734 | 11 375 734 | 11 375 734 |
Significant events during the second quarter (April-Sept’) 2022
- On 18 July, the company announced an IRS (Inhalation research Services) order from a new pharmaceutical company in the US with a value of SEK 1,450,000.
- On July 19, ISAB announced that it has submitted an abstract to present results from the clinical trial to the upcoming DDL (Drug Delivery to the Lungs) meeting in December 2022 to be held in Edinburgh, Scotland.
- On 4 August, the company announced that the FDA has approved the submitted application for the planned DissolveIt study and that it is scheduled to start in the autumn of 2022.
- On 15 August, Board member Klaus Gottwald announced his intention to leave the Company's Board. The Nomination Committee proposed that Jan Hellqvist be elected as a new member.
- On 5 September, the Company announced a new order from a global pharmaceutical company for the development of their software with a value of SEK 360,000.
- On 15 September, the company announced an IRS order from a new pharmaceutical company in the US with a value of SEK 1,390,000.
- On September 16, the company announced a new order from the University of Vienna with a value of SEK 620,000.
- On 29 September, the company announced a new IRS order from a repeat customer with a value of SEK 806 000. This press release mentioned administration "via an intubated incision in the throat" which is the incorrect term. The correct terminology is "via intra-tracheal inhalation".
Significant events during the reporting period (Jan’-Sept’) 2022
- On January 18, the company announced that it had submitted a White Paper application to the FDA. This is for DissolvIt, and to get it approved as a recommended dissolution method in inhalation studies.
- On 14 February, the company announced that it is upgrading its quality management system (QMS).
- On May 24, the company announced that it has received a line of credit from a consortium of lenders of up to SEK 10 million, creating the scope to finance the company's operations and growth over the next 12-14 months. The company has not had to lift the previously announced credit line due to the new contracts received in the third quarter. The credit facility is also not expected to be lifted during the remainder of 2022 and in consultation with the lenders, the term of the agreement has been extended from June 2023 to December 2023 and the maximum loan amount has been lowered to SEK 4 million
Significant events after the reporting period
- On 28 October, the company announced an IRS order from a new generics pharmaceutical company with a value of SEK 1,170,000.
Company events
On September 5, 2022, an Extraordinary General Meeting was held and, in accordance with the Nomination Committee's proposal, Jan Hellqvist was elected as a new member of the Board of Directors of the Company.
The decision means that the Company's Board of Directors will consist of Daniel Spasic, Per Gerde, Sonja Gerde, Mårten Winge and Jan Hellqvist. As previously communicated, Klaus Gottwald has at his own request chosen to resign as a member of the Board of Directors of the Company.
| Multi-year overview | |||||||
| Tkr | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
| Net sales | 9,422 | 10,137 | 8,949 | 5,441 | 8,022 | 7,216 | 8,086 |
| Profit after net financial items | -16,609 | 9,875 | -4,345 | -11,883 | -6,358 | -5,365 | -2,854 |
| Balance sheet total | 26,112 | 18,488 | 23,198 | 19,653 | 23,313 | 10,427 | 9,191 |
| Equity ratio, %, | 75 | 57 | 22 | 55 | 68 | 40 | 26 |
| Average no. of employees | 9 | 8 | 7 | 6 | 5 | 5 | 5 |
CEO statement
We are growing and continue to strengthen our position in the market. Having realigned our strategy earlier this year with an increased focus on Inhalation Research Services (IRS), we are seeing increasing interest from the market in the form of both new and existing customers. Confirming this, our order intake totaled SEK 4.7 million in the third quarter, the majority of which came from our IRS services.
- Commercial: Through carefully qualified sales efforts, we are seeing a steady increase in enquiries and continue to work on converting these into assignments as quickly as possible. In the third quarter of 2022, order intake increased by 370% compared to the same period last year. Revenue also increased by 56% over the same period. The quarter ended with 6.8 MSEK in backlog, an increase of 260% compared to the same period last year. The focus remains on converting what we can before the end of the year, while continuing to process new sales of our unique technology.
- Regulatory: collaboration with the FDA for the planned in vitro study of ISAB's DissolvIt module is now in the start-up phase. The project will continue for two years and we are very much looking forward to this collaboration.
- Financial: The company has not lifted the previously announced credit line due to the new orders received in the third quarter. The credit facility is also not considered to be eligible for lifting during the remainder of 2022 and in consultation with the lenders, the term of the agreement has been extended from June 2023 to December 2023 and the maximum loan amount has been lowered to SEK 4 million.
The upcoming 4th quarter will see an increase in tempo for the organisation. We are working towards both delivering the contracts we have already signed and finalising the ongoing negotiations of future contracts. At the same time, we are working on selected strategic partnerships to prepare our service portfolio and offer our customers, an even more complete solution in inhalation services.
Huddinge, 22 November 2022
Manoush Masarrat
CEO
To read full report (in Swedish) go HERE.
