Pharmacolog is implementing a change in the current strategy to pave the way for strong commercial development. The company’s analytics software will be sold through a SaaS model to significantly decrease the initial investment for customers and the company will at the same time secure recurring revenue. The distribution will also be broadened to more channels and markets.
The distribution of the products has so far has been based on sales through two partners, B. Braun and Codonics. To increase exposure to customers, a broader approach is taken, with more distributors and partners.
The company’s strategy has so far been based on sales of capital-intensive products with limited opportunities for recurring revenue. The new strategy assumes that the customer value lies in the analysis software and is based on the deployment of large volumes of simplified devices at a low price combined with a SaaS (Software as a Service) model for the analysis software. Thecustomerscansubscribe to theanalysesthey require and automaticallybenefitfromcontinuousimprovementsandupdatedanalysissoftware.ByofferingPharmacolog’ssolutionsatalowerentrycost, morehospitalscanimplementqualitycontrolofcompounded drugsandtherebyincreasepatientsafety. The goal is also to create value for our shareholders.
Erik Hedlund, acting CEO of Pharmacolog comments: “With the introduction of a SaaS strategy, the initial investment for hospitals can be reduced by up to 75% while the company secures recurring revenue. For its sales, the company has been dependent on the cooperation with the two companies B. Braun and Codonics. The distribution network needs to be broadened with new partners and distributors in Europe, the US and Asia to ensure high growth.”
This disclosure contains information that Pharmacolog is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 17-04-2023 13:45 CET.
Pharmacolog provides solutions and products that enhance work efficiency and safety when preparing injectable medication. Our goal is to help prevent medication errors and ensure maximum medication efficacy when treating patients with powerful yet potentially harmful injectable drugs. Pharmacolog’s products help staff at pharmacies and hospital wards minimize the risk of errors in the compounding process. Furthermore, by verifying that drugs and narcotics used in surgery have not been tampered with, our solutions also make a vital contribution to preventing drug diversion.