Observe Medical ASA released a combined business update and interim financial results for the fourth quarter and full year 2021. For the full year 2021, operating revenues were up 55% y/y to NOK 24 mill and gross margin increased to 39.6%. The roll-out of Biim Ultrasound probes to Fresenius is also well underway, with 202 probes out of 260 successfully shipped.
For the full year 2021, Observe Medical reported NOK 24 million in operating revenues, a 55 percent year-over-year increase driven by strong sales growth for the Nordic distribution portfolio. Gross margin increased from 37.5 percent in 2020 to 39.6 percent in 2021. EBITDA before non-recurring items, i.e. expenses related to the acquisition of Biim and Sylak in 2021 and 2020, respectively, was negative NOK 28.5 million in 2021 (2020: negative NOK 24.9 million). Net result was negative NOK 26.3 million (negative NOK 36.9 million).
The patented, wireless, and pocketable ultrasound probe Biim was acquired by Observe Medical in a successful acquisition in the first quarter of this year. Other achievements in the year to date include a capital raise that secured financial headroom for accelerated growth and good progress in launching the Company’s other proprietary product, the digital urine meter Sippi, in Poland.
“For Sippi, we are currently targeting top distributors in Europe, and we have defined a regulatory pathway with the US Food and Drug Administration enabling commercialization of Sippi in the US in Q4 this year and market entry with a selected partner by Q1 2023,” said Rune Nystad.
Fresenius contract
Fresenius is the leading provider of kidney care services in the US. The first phase of the Fresenius contract is almost completed with 202 of the 260 probes delivered to Fresenius Kidney Care’s educational dialysis clinics in the US. The remaining 58 Biim probes will be delivered in April this year, completing the planned initial delivery of Biim probes.
“For Observe Medical, this marks a significant milestone in our relationship with Fresenius. The company has more than 2500 dialysis centres across the US, and we expect to be in a position to introduce our Biim probe to most of these. Moreover, with Fresenius being considered a leader in its segment, other health care companies are also showing interest in our product,” said Rune Nystad, CEO of Observe Medical.
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