Pharmacolog publishes interim report January - June 2023
Pharmacolog i Uppsala AB (publ) announces today that the interim report for the period January – June 2023 has been published.
The annual report is attached as a PDF and is available on the company’s website:
https://pharmacolog.com/investor-relations-2/financial-reports/ (Swedish only).
Second quarter April 1 – June 30 2023
- Consolidated net sales for the second quarter amounted to 1 279 (3 221) KSEK.
- Operating result for the quarter amounted to -5 589 (-4 783) KSEK.
- Net earnings per share before and after dilution for the quarter were -0,29 (-0,31) SEK.
First six months January 1 – June 30 2023
- Consolidated net sales for the period amounted to 6 008 (5 242) KSEK.
- Operating result for the period amounted to -9 887 (-9 101) KSEK.
- Net earnings per share before and after dilution for the period were -0,50 (-0,59) SEK
Significant events during the second quarter April 1 – June 30 2023
- B. Braun Spain installs DrugLog™ at Hospital San Pedro de Alcantara.
- Pharmacolog implements a change in the current strategy to pave the way for strong commercial development. By selling the company’s analytics software through a SaaS model, the customers’ initial investment is reduced and the company will at the same time secure recurring revenue.
- The Chairman of the Board, Björn Varnestig, leaves his position at his own request. Acting CEO Erik Hedlund returns to his role as Chairman of the Board and Lars Gusch, former COO, is appointed as the company’s new CEO.
- Pharmacolog and B. Braun extend existing agreement to include sales of Druglog™ and PrepLog™ with associated services in Portugal.
- Pharmacolog announces that the Board of Directors, subject to approval from the Extraordinary General Meeting on June 16, 2023, decides to carry out an issue of units consisting of shares of series B and warrants with preferential rights for existing shareholders of approximately SEK 27.3 million. The rights issue is subject to 60 percent of subscription commitments and underwriting commitments. The rights issue presupposes a reduction of the share capital and changes to the Articles of Association, which are also proposed to be resolved at an Extraordinary General Meeting.
- Pharmacolog appoints Sofia Uhrbom as CFO.
- Pharmacolog’s new hardware platform becomes available for sale.
- Pharmacolog presents the company’s new strategic direction at Småbolagsdagarna 2023.
- Pharmacolog France receives an order for a DrugLog™ system for placement at Clinique Saint-Pierre Ottignies (CSPO) in Belgium. The system will be used for final check of chemotherapy preparations at the hospital pharmacy.
- The shareholders of Pharmacolog in Uppsala are invited to an Extraordinary General Meeting on June 16, 2023. The EGM resolves on amendments to the limits of the Articles of Association for share capital and the number of shares, share capital reduction before rights issue, approval of the Board of Directors’ resolution from 14 May 2023 on a rights issue and share capital reduction after issue.
- Pharmacolog i Uppsala AB (publ) launches an upgrade of Pharmacolog Dashboard™ featuring both comprehensive analysis guidance and language support for prioritized markets.
- The Board of Directors resolves, with authorization from the Annual General Meeting on June 16, 2023, on an issue of units consisting of shares and warrants with preferential rights for existing shareholders.
- Pharmacolog signs a Letter of Intent (LOI) regarding product integration with Knoware which is the editor of ComeoCare™, the leading medication management system in Belgium.
- The shareholders of Pharmacolog in Uppsala are invited to the Annual General Meeting on June 30, 2023. The AGM resolves to re-elect Erik Hedlund and Ragnar Linder and elect Anders Hedlund and Henrik Magnusson Hjorth as new members. Erik Hedlund was also re-elected as Chairman of the Board.
Significant events after the end of the reporting period
- PrepLog™, used for compounding quality control at hospital pharmacies, is fully integrated with Chimio®, the leading chemotherapy management system in France.
- Pharmacolog announces that WasteLog™, used for drug diversion prevention, has been installed at several renowned hospitals in the United States.
- The rights issue was completed on July 10 and subscribed for a total of 60 percent, where approximately 32.6 percent was subscribed through the use of unit rights, approximately 0.4 percent was subscribed for without use of unit rights and approximately 27.0 percent are subscribed by underwriters. Pharmacolog will thereby receive approximately SEK 16.4 million, before issue costs.
- Pharmacolog USA receives an order from West Virginia University (WVU) Medicine for a WasteLog™ system to be placed at J.W. Ruby Memorial Hospital in Morgantown, WV.
- Pharmacolog initiates the roll-out of the analysis software delivered as Software as a Service (SaaS) according to the company’s new strategic direction. The introduction takes place gradually, starting with France.
CEO comments
I would like to start my comments by once again thanking the involved new and existing shareholders for their trust in connection with the rights issue initiated in the second quarter 2023. Through the rights issue, the company has received approximately SEK 16.4 million before issuance costs and will be able to intensify the fight for drug safety.
The second quarter continued to be characterized by significant changes for Pharmacolog. These changes were both organizational and strategic and we see those as crucial for Pharmacolog’s future, with the company increasingly focusing on the commercialization of the solutions offered. The goal is to strengthen Pharmacolog’s market position and to expand the establishment of our sophisticated products.
Monitoring and evaluation of the market for our solutions have highlighted the need for our products to act more in concert with third-party systems in the same ecosystem, such as drug management systems and software systems for drug diversion detection and controlled substance compliance, to achieve effective penetration in the market. Therefore, our new strategic direction includes intensifying collaboration with strategic partners. In the second quarter, an important step in this direction was taken with the signing of a letter of interest with Knoware, a European provider of drug administration systems. Ultimately, we would like to offer solutions integrated with a large number of partners.
Our expectations for sales in the second quarter were not confirmed. Sales of SEK 1,279 are unsatisfying and the figures result equally from a weak development of direct sales as well as sales through our distributors.
Expansion of the distribution network is therefore one of our main strategic priorities. Activities to strengthen channel management were initiated in the 2nd quarter and are currently being translated into action. The introduction of our products to the Japanese market also continued in cooperation with Business Sweden. The first goal, an installation of DrugLog™ at a reference customer, is now within reach, albeit somewhat belatedly, and will form the basis for establishing a local strategic partnership.
Furthermore, a SaaS model for our products was developed, which includes an up to 75% lower initial investment in instrumentation for our customers and recurring revenues for Pharmacolog. This model is offered in conjunction with our new hardware platform and is now being gradually introduced and implemented in various markets. Initial feedback from France, the first market where our products are offered as a SaaS solution, looks promising and we are looking forward with confidence to the first orders.
With me as the newly appointed Managing Director – a trustworthy appointment for which I would like to take this opportunity to express my thanks once again – with a competent, committed, and focused team and an Executive Board strengthened by the election of new members, we will now continue with all our might the activities started in the second quarter to set up and implement our new strategic alignment.
Uppsala in August 2023
Lars Gusch, CEO
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 25-08-2023 08:30 CET.
For more information contact:
Lars Gusch, CEO
Email: lars.gusch@pharmacolog.com
Phone: +46 70-223 97 72
About Pharmacolog
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.
The following trademarks are owned and protected by Pharmacolog i Uppsala AB: Pharmacolog™-logo, DrugLog™, WasteLog™, PrepLog™ and Pharmacolog Dashboard™.
Further information regarding the company is available at https://pharmacolog.com/.
The company’s Certified Adviser is Mangold Fondkommission AB.