STENOCARE market update – September 2023
STENOCARE A/S
NASDAQ FIRST NORTH GROWTH MARKET, DENMARK
TICKER: STENO
STENOCARE A/S (“Stenocare”) is pleased to report on important progress on several tracks. After a period, marked by regulatory delays in Denmark and elsewhere, Stenocare is now seeing traction building in several areas which is expected to translate into a growing sales run rate in the coming quarters and year, breakeven during 2024 and even more ambitious goals and milestones thereafter.
Stenocare to increase its ongoing flow of news releases and market updates. The following is a high-level overview of and update on progress in key markets and activities. Stenocare will elaborate on these activities across its 6 focus areas, (as specified below) in the coming weeks and months in order to offer our shareholders and future investors more detailed insights into the progress of Stenocare and its footprint in the industry as an emerging European market leader.
- Stenocare is winning market share in Denmark: Stenocare has been a first-mover with medical cannabis oil products for the Pilot Programme since 2018. This is a well-known dosage method for medicine, that doctors and patients are familiar with and prefer using. The latest data from the Danish Health authority show that treatments with oil products have been growing since Stenocare introduced its THC Oil and CBD Oil products. Specifically, when looking at quarterly growth of patients treated with oil-products and decline in patients treated with other products, it is a clear trend that full spectrum oil products are winning market share. As previously announced, Stenocare is in the process with the Danish Medicines Agency (DMA) to have a third oil-product approved for sales, and once approved this is expected to further grow the market share. The approval process is moving forward, and although DMA cannot commit to a fixed date for this approval, Stenocare is hopeful it will happen within 4-6 months.
- Stenocare oil products ready for the German market: As previously announced, the first STENOCARE branded medical cannabis oil product has been approved for the Germany market, the largest market in Europe. Together with its local partner, Stenocare has now finalized the supply chain logistical setup and secured the product is covered by German health insurances. Stenocare has been evaluating the German market for several years. Medical cannabis was legalized in Germany during 2017, and since the market has grown to become the largest market in Europe with approx. 230.000 patients in 2023 and projected 310.000 patients in four years. Therefore, it is both an interesting market opportunity and also a market with proven competitors. Stenocare is entering with one oil-product during October, and then has a strategy to expand with more innovative products in the coming years.
- Stenocare getting ready to launch UK Online Clinic for patients: As previously announced, Stenocare has developed an online IT-platform, that can power Online Clinics for patients. The first Online Clinic is being prepared for launch in the UK together with an experienced pain specialist and honorary secretary of the British Pain Society. The Clinic will improve patients access to treatment with medical cannabis and grow the doctor’s geographic reach. Stenocare oil-products will be available via the Online Clinic together with other supplemental medicine products. The UK health authorities are currently processing the regulatory approvals for the new Clinic, and Stenocare is expected the clinic to go live during Q4 this year.
- Stenocare makes progress in other markets: Stenocare is present in both Norway and Sweden, which are so-called magistral markets. This means that medical cannabis has not yet been legalized the way it has in Denmark and the other Stenocare markets. This means that doctors must prescribe a specific (Stenocare) product for a specific patient in order for the delivery to be possible. Consequently, Stenocare is working with doctors, pain-clinics and relevant authorities in both Sweden and Norway in order to build traction. Stenocare is the only supplier, so far, to have delivered full spectrum medical cannabis oil products for both countries. This translates into a strong foundation for growth, although the growth pace to date has been slower than expected. As previously announced, Stenocare is also actively selling its Stenocare branded products in Australia. This is not currently a core activity, although being able to serve such a remote market is seen as another strength that can form the basis for additional, geographical expansion. Stenocare is continuously preparing for entry into more countries and markets and is on track to reach its goal of up to 10 countries by 2025.
- Stenocare investment in product innovation: As previously announced, Stenocare has a strong product pipeline and a track record for making products available for patients. The company has invested in development of an innovative new oil-product, named “ASTRUM-OIL” that is based on a patented oil technology with exclusive rights held by Stenocare. This oil addresses a key industrywide challenge by offering patients improved uptake of the cannabinoids in the blood, which can result in higher and faster effect of the medical cannabis oil dosage. This new patented product family will put Stenocare in a unique competitive position to grow the sales run rate. The company is now planning to have the documents ready for first product prototype review with the medicine agency by end-Q4 this year. Pending regulatory approval, Stenocare hope to supply the new product to patients during H1 2024.
- Stenocare getting ready to expand its supply chain. In order to meet the expected uptake in demand in 2024 and beyond, Stenocare is preparing to seek approval from the medicine agency to export products from its world class cultivation facility in Randers. It is expected that the indoor, highly controlled facility will play an important role in the future general supply chain of Stenocare as well as in the roll out and expansion of the new, innovative premium products as described above. Also, Stenocare, is preparing for relevant external partnerships that may improve the supply chain in due time. This will take Stenocare from being a leading brand based solely on third party sourcing to becoming dual sourcing entity with market leadership in all steps of the value chain, from plant to patient.
Thomas Skovlund Schnegelsberg, founder and CEO comments: “I am proud of the progress that we are making in several of our focus areas. I believe that with our range of initiatives across markets, existing and new products, a new groundbreaking technology that can and will take medical cannabis much closer to the pharma industry and our world class cultivation facility, we have the perfect basis for us to grow, reach breakeven in 2024 and also for us to emerge as a leading European brand for medical cannabis in Europe and beyond”.
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