Today, 3rd November 2020, Observe Medical presented the third quarter of 2020 results in a video conference online. Through the quarter the company has reached important milestones for the launch of Sippi®. In addition, the Sylak acquisition was closed earlier in the quarter and a further introduction was given in the presentation.
Observe Medical reported important steps forward in terms of the commercialization and go-to-market strategy for its first product Sippi®. Sippi® is a unique and proprietary solution for digital automated urine monitoring in hospitals. The company confirms its global current market estimate potential of 500,000 Sippi® base units and 30 million Sippi® disposable units per year, with further expected increase post Covid-19.
“With Sippi®, Observe Medical contributes to improved clinical results for patients and increased efficiency for the health care system. For us, it is now paramount to roll the Sippi® system out to hospitals, and through the acquisition of Sylak AB, which was completed in October, we have in place a strong sales and distribution vehicle in the Nordics with access to Sippi® target customers,” says Björn Larsson, CEO of Observe Medical.
He further adds; “We see tremendous potential for Sippi®, and after the rights issue of NOK 45 million in July we have a solid financial platform in place. We are now pushing hard to strengthen our capabilities in terms of commercial roll-out. At this stage, we focus on the potential in the Nordics and selected European markets. For the Nordics, Sylak is essential, and when it comes to Europe. we have a strong belief that the distribution agreement we signed for Italy in the third quarter will be followed by similar agreements for other markets soon.”
Observe Medical’s revenues in the third quarter of 2020 was NOK 9,000, as the company is still in launch stage and some of the sales activities has slowed down due to the Covid-19. The Company’s EBITDA was negative NOK 4.8 million (negative NOK 2.4 million in the same quarter in 2019). The net result in the period ended at negative NOK 5.9 million (negative 3.9 million), as the result was affected by increased operating expenses due to increased headcount, increased consultancy cost and increased other operating expenses as a standalone listed company.
“Covid-19 is a big challenge for the health care system all over the world. Observe Medical has been fully operational during the pandemic, but customer access and relationship-building has been difficult due to travel restrictions and hospital constraints, which has temporarily slowed down sales processes,” says Björn Larsson, CEO of Observe Medical.
