To read the whole report (in Swedish), visit: http://inhalation.se/investors/finansiella-rapporter/
CEO comments
2023 was another year in which we continued to take new market share and successfully deliver on our strategic goals. Over the past three years, revenue has increased steadily by 29% from 2021 to 2022 and now by 44% from 2022 to 2023. At the same time, we have also significantly improved our operating profit during the same period. With this positive development, we are very close to reaching our strategic milestone of becoming cash flow positive in the near term.
Our offer for inhalation services (IRS) continued to develop strongly according to plan and accounted for 68% of revenue in 2023. We are in continuous dialogue with various partners to broaden our service offering. As a step in this, we are very positive about our deepened strategic collaboration with
We saw a positive development in the markets where we have distribution partners in 2023; through these collaborations, we have been able to offer our unique platform technology to completely new markets. Altogether, the distribution markets contributed approximately
The FDA study with our In Vitro module, DissolvIt, continues according to plan and resulted in approximately
In
Through our completed issue we managed to repay the bridging loan that the company took out at the beginning of the year and to ensure a stable cash flow that remained intact throughout the year.
Personally, I feel very proud of the solid work that the ISAB organization has delivered in 2023. The cooperation between the Board, our partners and our customers has continued to grow in confidence and is positive in all respects.
In 2024, we will continue on the path taken from previous years with a strong focus on our strategy, as well as increased growth and improved liquidity. Expansion of our inhalation services, the completion of the ongoing FDA study and publication of our clinical data are some of the milestones that should create opportunities for continued growth in 2024. The Board and Management look forward to a very exciting 2024 for ISAB.
Huddinge,
Manoush Masarrat
CEO
Selected financial data in summary
2023Jan-Dec | 2022Jan-Dec | |||
Net sales kSEK | 17,504 | 12,914 | ||
Operating profit kSEK | -3,756 | -12,026 | ||
Profit after tax kSEK | -4,744 | -12,125 | ||
Balance sheet total kSEK | 18,168 | 12,985 | ||
Cash flow for period, kSEK | 5,986 | -12,556 | ||
Cash flow for period per share (SEK) | 0.45 | -1.10 | ||
Cash and cash equivalents kSEK | 7,825 | 1,839 | ||
Earnings per share before and after dilution kSEK | -0.36 | -1.07 | ||
Equity, kSEK | 12,954 | 7,553 | ||
Equity per share (SEK) | 0.85 | 0.66 | ||
Equity ratio, % | 71.30% | 58.17% | ||
R&D costs/operating costs | 38.75% | 40.80% | ||
Number of shares | 15,167,637 | 11,375,734 |
The net revenue in the Annual Report differs from the 2023 year-end Report as a reclassification has been made to
Financing
The Board and CEO assess that the company has sufficient capital to finance the business going forward based on the current decided plan. ISAB's continued investment in the commercialization and expansion of
Total investment in R&D expenditure is shown in the table below.
R&D expenditure, costs and investments, kSEK | 2023 | 2022 |
R&D costs | -5,999 | -8,840 |
Investments in capitalised R&D costs | 0 | 0 |
Amortisation of R&D costs | -1,117 | 1,179 |
Total R&D expenditure | -7,116 | -7,661 |
Significant events during the financial year
- On
January 16 , the company lifted part of the loan credit with a sum ofSEK 1.8 million . -
On
March 7 , the company announced that it had received confirmation of anIRS order worth118,480 EUR . -
On
April 6 , the company announced the Board's decision on a new issue ofSEK 17.1 million with preferential rights for the company's shareholders. -
On
May 12 , the company announced the outcome of the preferential issue of shares that the company had announced onApril 6 . The rights issue was subscribed to approximately 23.0% percent and approximately 57.0% was subscribed by underwriters. Through the rights issue, approximatelySEK 13.7 million was added to the company before deductions for issue costs. -
On
June 21 , the company announced a newIRS order of98,000 EURO from an American repeat customer for its In-vitro module DissolvIt. -
On
June 27 , the company announced a new order for PreciseInhale, with associated modules, for125,800 EURO . -
On
June 28 , the company announced an additional instrument order from a distributor inAsia forUSD 94,000 . -
On
August 23 , the company announced that theSEK 1.8 million loan that ISAB took out onJanuary 16, 2023 was planned to be repaid to lenders at the end of August. The total cost including setup fee and interest was approximatelySEK 2.6 million . -
On
October 16 , the company announced a newIRS order worth188,900 EURO . This order was from a repeat customer who is amongst the top 5 in the world in generics and it concerned the company's In-Vitro module DissolvIt. -
On
October 18 , the company announced that it had strengthened its IP portfolio regarding its main product PreciseInhale through a new patent granted in theUSA . The patent extends to 2034. -
On
November 8 , the company announced a new order worth54,700 EURO , which is the result of a collaboration with a partner specialized in regulatory testing. -
On
November 13 , the company announced a new instrument order for276,450 EURO , from a repeat customer, a large European pharmaceutical company with a "substantial" pipeline of inhaled therapies. -
On
November 21 , the company announced that it had received a newIRS order worthEUR 100,000 , from a recurring multinational European pharmaceutical company.
Significant events after the reporting period
- On
January 22 , the company announced that it had entered into a strategic partnership with the German companyActarmo Medical GmbH . This is in line with the company's stated strategy to expand its portfolio within inhalation research services. Actarmo has an established customer base and expertise in formulation development, analytical testing under full Good Manufacturing Practice (GMP) and consulting services for all aspects of inhaler delivery devices. With this collaboration, ISAB's potential total addressable market (TAM) is expanded by 30% to a total sum of approx. 630 MEUR. -
On
March 11 , the company announced the publication of its feasibility study for clinical use of the PreciseInhale platform in the highly respected publication theEuropean Journal of Pharmaceutical Sciences . This enables in-depth collaborative discussions with companies active in the clinical market that ISAB did not have access to before and a market with an estimated value ofSEK 5 billion .
Expected future developments
ISAB is steadily expanding the measures for the commercialisation of its services (IRS) and PreciseInhale and its modules. In collaboration with leading pharmaceutical companies and universities that have invested in PreciseInhale, the
Financial development
Operating income
ISAB's revenue consists of the sale of the PreciseInhale system, the DissolvIt module and contract research services (IRS). Contract research services through the business area Inhalation Sciences Research Services (IRS) during the reporting period amounted to approximately 66% (54%) of the operating income.
Operating expenses
Amounts are stated in kSEK (thousands of Swedish kronor). Figures in parentheses refer to the corresponding period of the previous year unless otherwise stated.
Results and financial position - reporting period (Jan-Dec)
The operation's income regarding goods and services amounted to
Operating costs amounted to
Sales expenses
Sales and marketing costs during the reporting period amounted to
Business development and administration costs
Business development and administration costs during the reporting period amounted to
Research and development costs
Research and development costs during the reporting period amounted to
Personnel costs amounted to
Depreciation amounted to
Other operating income and operating expenses
Other operating income amounted to 642 (351).
Other operating expenses amounted to 162 (0).
The operating profit amounted to
Profit after financial items amounted to
Profit after tax amounted to
Earnings per share before and after dilution amounted to
Cash flow per share before capital contribution amounted to
Cash and cash equivalents as of
The company's equity as of
Equity per share as of
The company's equity ratio as of
The earnings trend follows the forecast and expectation drawn up by the management during the year.
Multi-year overview
kSEK | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 |
Net sales | 17,504 | 12,194 | 9,422 | 10,137 | 8,949 | 5,441 | 8,022 |
Profit after net financial items | -4,744 | -12,125 | -16,609 | 9,875 | -4,345 | -11,883 | -6,358 |
Balance sheet, total | 18,168 | 12,985 | 26,112 | 18,488 | 23,198 | 19,653 | 23,313 |
Equity ratio, %, | 71 | 58 | 75 | 57 | 22 | 55 | 68 |
Average number of employees | 8 | 9 | 9 | 8 | 7 | 6 | 5 |
Order intake during the period
Order backlog at the end of the period
To read full report (in Swedish) go HERE.
For more information about Inhalation Sciences, please contact:
Manoush Masarrat, CEO
E-mail: Manoush.masarrat@inhalation.se
Mobile: +46 (0)73 628 9153
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