Translation: Original published in Finnish on 08/10/2026 at 08:29 am EEST

Source: Inderes

Bioretec will publish its H1 report on Thursday, August 13. We expect the company's revenue to grow significantly from the weak comparison period and earnings to improve, although they will still remain clearly in the red. In the report, we are particularly interested in the commercial progress of the RemeOs product family in the US and Europe, as well as the impact of recently implemented cost-saving measures.

The ramp-up of RemeOs sales supports growth against a weak comparison period

We expect Q2 revenue to increase to 1.2 MEUR (Q2'25: 0.7 MEUR). The comparison period's revenue was weighed down by inventory buybacks from US distributors. We expect growth to rely particularly on the gradual ramp-up of RemeOs trauma screw sales in the key markets of the US and Europe. In the US, the company has shifted to a direct distribution model and expanded its distributor network, which we expect to start reflecting in the figures. Sales initiated in Europe with the CE mark also support growth. Further, we are monitoring the development of the Activa product family, particularly in China, where volume-based pricing has weighed on prices. The previous quarter positively surprised us, and in the report, we will closely monitor not only year-on-year growth but also quarter-on-quarter development. Defensive revenue based on recurring consumption should, as it scales, grow very steadily from one quarter to the next. At this stage, however, revenue is still at an absolutely low level, and individual orders can cause significant fluctuations in quarterly figures.

The loss will narrow due to revenue growth and the removal of non-recurring items from the comparison period

We expect Q2 EBIT to settle at -1.7 MEUR (H1'25: -3.4 MEUR). The comparison period's result was significantly burdened by a one-off cost of around 1 MEUR related to inventory repurchases. In addition, the earnings improvement is supported by revenue growth and our expectation of a gross margin exceeding 70%. Operating costs are still high relative to revenue, which keeps earnings clearly in the red. The company announced in June that it had concluded change negotiations, targeting additional annual savings of 0.2 MEUR on top of the previous savings target of 0.4 MEUR. These measures help curb cost growth and adjust production capacity to meet actual demand.

Focus on RemeOs commercialization progress

Bioretec does not provide any financial guidance. The most important aspect of the report relates to management's verbal comments on the development of demand for the RemeOs product family and the expansion of the sales network in the US and Europe. There were preliminary signs of growth picking up in the early part of the year, and it is crucial for the investment case that these signals strengthen.

We are also monitoring any updates to the marketing authorization processes and the progress of the RemeOs DrillPin clinical trials. In addition, we are interested in hearing how the recently implemented cost-saving measures in production are taking hold and how the funds raised from the spring share issue (around 12.9 MEUR) will be allocated to strengthen sales.