Observe Medical released on 17 February its results for the fourth quarter of 2022. Looking back at 2022, it has been a truly transformational year, including signing of two exclusivity agreements and building organisation to become Europe's leading urine measurement provider.
“The year 2022 has been a transformational year for Observe Medical. Building on the growth initiatives seen earlier in the year, we signed two exclusivity agreements in the fourth quarter to acquire a market leading product portfolio of urine measurement systems and a medical production facility in Italy. It has been an exciting final quarter and looking ahead, our roadmap is clear – we are working towards becoming Europe’s leading urine measurement provider. As we enter 2023, I look forward to keeping the market updated on our transactions and several workstreams,” said Rune Nystad, CEO of Observe Medical.
Portfolio update
In the fourth quarter, the company continued to progress its partnership with Fresenius Kabi in the US. Since the start of the partnership, Observe Medical has provided Fresenius with Biim devices and training across 265 dialysis clinics. As part of a recent and significant reorganisation, Fresenius has re-confirmed that Biim will be central to their dialysis offering moving forward.
In the same quarter, Observe Medical announced an exclusivity agreement with Ferrari L., a medical device production facility in Verona, Italy. Once the deal is completed, Observe Medical plans to manufacture most of its own products in-house. This will allow the company to control its value chain, significantly optimise the costs of goods sold, and improve profitability.
Observe has also commenced the production set-up of the urine measurement portfolio it intends to acquire from Convatec and is ready to start producing the tools needed to make individual medical device components. Once production is initiated, Sippi® will be introduced to the market via the same established sales channels as Unometer™ and AdboPressure™.
At the start of 2023, Observe Medical appointed Jørgen Mann as the company’s Chief Commercial Officer. He will lead Observe Medical’s commercial efforts as the company reaches new markets.
Financial highlights
In the fourth quarter of 2022, Observe Medical reported NOK 4.1 million in operating revenues, compared to NOK 3.6 million in the fourth quarter of 2021. For 2022, the company’s operating revenues amounted to NOK 19.5 million compared to NOK 24 million in 2021.
For the fourth quarter of 2022, the company’s reported NOK 4.1 million in operating revenue compared to NOK 3.6 million in the same quarter in 2021. Operating revenue for the full year of 2022 amounted to NOK 19.5 million compared to NOK 24.0 in 2021. The company’s EBITDA for the quarter amounted to NOK -16.5, compared to NOK -14.1 in the fourth quarter 2021. For the full year of 2022, the company’s EBITDA amounted to NOK -53.4 million compared to NOK -42.6 million in 2021. The result reflects continues investments in growth inititaives and consolidation of Biim Ultrasound from March 1, 2022.
Financing
As announced on the 14th of December 2022, the company is working to raise funds to support the acquisitions of the Unometer™ product portfolio and Ferrari L. The company will consider the most beneficial financial structure to support the transactions based on today’s capital market. No definitive decision has been made, and no binding agreements regarding the completion of these transactions have been entered.
For further information, please contact:
Rune Nystad, CEO Observe Medical
Mobile: +47 916 24 683
E-mail: rune.nystad@observemedical.com
Per Arne Nygård, CFO of Observe Medical
Mobile: +47 411 04 345
E-mail: perarne.nygard@observemedical.com
About Observe Medical
Observe Medical is a Nordic medtech company that develops, markets and sells innovative medtech products for the global market. The Company is committed to improving patient welfare and patient outcomes, improving clinical data accuracy and promoting positive health economics.
The Company seeks to drive growth by leveraging its expertise in sales and commercialisation of its broad portfolio of medical technology products, mainly
in urine measurement, ultrasound, anesthesiology/ICUs, surgery and wound care, in combination with targeted M&A. The Company is headquartered in Oslo, Norway, with additional offices in Narvik (Norway), Gothenburg (Sweden), Oulu (Finland), and Seattle (the US). In addition, Observe Medical has a direct sale organisation in the Nordics and a distributor network internationally.
Further information is available at www.observemedical.com.
