NanoEcho (NANECH) Q2 2024 earnings summary

Executive summary

• Transitioned from product development to clinical phase, focusing on innovative diagnostics for rectal cancer using magneto-nucleus ultrasound technology with iron oxide nanoparticles.

• Completed product development and formal verification of imaging system, now ready for clinical studies.

• Achieved ISO 13485 certification for quality management, enabling EU market entry.

• Successfully listed shares on Nasdaq First North Growth Market after an oversubscribed rights issue raising approximately 17.6 MSEK.

• Conducted a health economic analysis showing potential for significant cost savings and improved patient outcomes.

Financial highlights

• Net sales for H1 2024 were SEK 0, consistent with the pre-revenue clinical phase.

• Net loss after tax was SEK 8.7 million for H1 2024, compared to SEK 7.2 million in the same period last year.

• Negative operating cash flow of SEK 9.3 million for H1 2024, versus SEK 7 million last year.

• Cash and cash equivalents at period end were SEK 2.3 million, down from SEK 22.3 million year-over-year.

• Equity at period end was SEK 9.8 million, with a solidity of 68%.

Outlook and guidance

• Focus shifts to clinical trials, starting with a dose confirmation study, followed by proof-of-concept and registration studies.

• Market approval targeted for H2 2027, with potential acceleration if additional capital is secured.

• Health economic analysis supports cost-effectiveness and will inform pricing strategy for market launch.

• Initial market focus is on Europe, especially Sweden, with plans for distributor-based sales and recurring revenue per examination.

• Expecting regulatory feedback on clinical trial application in autumn 2024.