Episurf Medical (EPIS) Q2 2024 earnings summary

Executive summary

• Achieved 45% sales growth despite a smaller sales force and ongoing sales organization transformation.

• US market now represents 45% of German turnover, showing rapid progress in the US.

• Identified SEK 12m in annual cost savings and paused the costly EPIC-Knee trial to focus on more promising initiatives.

• Rights issue raised SEK 90m before costs, subscribed to 75%, strengthening financial position.

• Strategic focus on US commercialization, cost efficiency, and product pipeline expansion.

Financial highlights

• Q2 2024 net sales rose to SEK 3.2m (2.2), and H1 2024 net sales reached SEK 6.2m (4.8), both year-over-year increases.

• Q2 2024 loss for the period improved to SEK -21.4m (-28.9), and H1 2024 loss to SEK -42.0m (-52.1) year-over-year.

• Q2 2024 EPS was SEK -0.06 (-0.09); H1 2024 EPS was SEK -0.13 (-0.17) year-over-year.

• Cash and cash equivalents at period end were SEK 86.7m (107.0), reflecting improved cash flow from restructuring.

• Equity ratio increased to 88.1% (82.0) year-over-year.

Outlook and guidance

• Focus on accelerating US commercialization and transitioning to distributor sales outside the US.

• Pausing the EPIC-Knee study will yield material cost savings from Q3 2024 onward.

• Exiting India and Australia to save SEK 4m annually, with minimal revenue impact.

• Ongoing 510(k) FDA review for big toe implant, with US launch targeted as a key growth driver.