ViroGates announces its half-year report for H1, 2023: Revenue is still negatively affected by lower-than-expected sales to clinical routine customers
COMPANY ANNOUNCEMENT - No. 14-2023 – Inside information - 17 August 2023
BIRKERØD, DENMARK – ViroGates A/S, a medical technology company developing blood tests for better triaging in hospitals to improve patient care and reduce healthcare costs, announces its half-year report for the period 1 January 2023 – 30 June 2023, as approved today by the company’s Board of Directors.
In H1, 2023, ViroGates’ revenue was TDKK 2,553, representing a decline of 59% compared to the same period in 2022 (TDKK 6,295). The decrease is due to a more challenging-than-expected conversion of COVID-19 hospitals into hospitals using suPARnostic® in the ED for triage as well as lower activity levels from previous clinical routine customers.
As notified in the previous quarterly report (Q1, 2023), ViroGates’ management and the Board of Directors have worked on a revised measure of the number of customers more strongly correlated with current revenue levels. The new measure builds upon the previous measure and reports ViroGates’ recurring customers within both clinical routine and research based on the following criteria:
- Placement of at least two purchasing orders during the last 12 months
- Accumulated value of the two purchasing orders above EUR 10.000
According to the new measure, ViroGates reports 14 recurring customers by the end of H1, 2023 (as of 30 June 2023), of which ten customers are using suPARnostic® in clinical routine, and four customers are using suPARnostic® for research purposes.
In addition, in H1, 2023, ViroGates commercially launched the finger-prick blood-testing product, suPARnostic® POC+, held a kick-off conference with the sales organization, and initiated activities to target the health clinics segment.
ViroGates maintains its financial guidance for 2023 revenue between DKK 8 to 11 million on this basis. ViroGates expects full-year EBIT of DKK -10 to -13 million for 2023 and maintains expectations to become cash flow positive during 2025 with existing cash at hand.
Financial results in H1, 2023
The financial results in H1, 2023 are reported below (H1, 2022 results in brackets):
- Revenue decreased by 59% to 2,553 (TDKK 6,295)
- Operating expenses decreased by 18% to TDKK -9,713 (TDKK -11,902)
- Operating loss increased by 28% to TDKK -7,161 (TDKK -5,608)
- Net loss increased by -36% to TDKK -6,653 (TDKK -4,894)
- Cash and cash equivalents at the end of the period amounted to TDKK 8,551 (TDKK 4,636)
Business highlights in H1, 2023
The business highlights of H1, 2023 included:
- Announcement of the appointment of Josephine Baum Jørgensen as the new Chief Financial Officer
- Announcement of the development and CE-IVD accreditation of suPARnostic® TurbiLatex on the Roche Diagnostics PURE and PRO platforms
- Commercial launch of the finger-prick blood-testing product, suPARnostic® POC+, and the first sales of the POC+ to our commercial partner in Lithuania
- Revision of the guidance for 2023 and cash flow expectations based on the preliminary results of Q1, 2023 and amendment of the policy on disclosing customers
- Announcement of an agreement with Sobi for the development of suPARnostic® for commercial use in the US in combination with Sobi’s Kineret® treatment for COVID-19-related pneumonia
- Grant of warrants to Denmark's Export and Investment Fund (EIFO) as part of the finalization of the debt financing agreement and receipt of the first tranche
Jakob Knudsen, CEO of ViroGates, says: “It has been a challenging half-year for ViroGates. We have witnessed much lower activity from our customers than expected coming into 2023. It has proven harder than expected to convert COVID-19 customers into customers using our products more broadly, e.g. for triage in the ED. While continuing to convert and gain new customers within clinical routine in hospitals, we have expanded our efforts into new customer segments, where activities seem to be rolling at a higher pace, namely both in research and private health clinics. We are ambitious about these segments and expect our efforts to yield results already from H2 2023. As promised earlier this year, we have also introduced a new measure of recurring customers better aligned with future revenue streams.”
This announcement is a summary and should be read in connection with ViroGates’ Half-Year Report for H1, 2023, published on 17 August 2023. A downloadable PDF version will be available on the company’s website.
Tomorrow, 18th of August at 10:00, ViroGates will host a webinar for investors on the H1, 2023 report, followed by a Q&A session - sign up for the webinar here.
For further information, please contact:
CEO, Jakob Knudsen
Tel. (+45) 2226 1355, email: [email protected]
Västra Hamnen Corporate Finance
Tel. (+46) 40 200 250, email: [email protected]
ViroGates A/S is an international medical technology company developing and marketing blood test products under the suPARnostic® brand for better triaging in hospitals to improve patient care, reduce healthcare costs and empower clinical staff.
The company was founded in 2000. Headquartered in Denmark, ViroGates’ sales force covers Spain, France, and Benelux, while distributors serve other markets. ViroGates’ shares (VIRO) are listed on Nasdaq First North Growth Market Denmark. For more information, please visit www.virogates.com.
About suPAR and suPARnostic®
suPAR is the biomarker detected by ViroGates’ suPARnostic® products and is a protein in plasma, measurable in every human being. suPAR is considered a general risk status biomarker indicating disease presence, disease severity and progression, organ damage and mortality risk across disease areas such as cardiovascular diseases, kidney diseases, type 2 diabetes, cancer, etc. Strong scientific evidence from more than 850 clinical trials and studies show that the higher the level of suPAR, the worse the prognosis for the patient.
The suPARnostic® products can be used to support healthcare professionals in making clinical decisions on hospitalization or discharge of acute care patients. The increasing demands on health systems globally and tightening healthcare budgets necessitate efficiency improvements and innovative solutions in hospitals. The use of suPAR in clinical routine in emergency departments can improve patient care and reduce healthcare costs by increasing the number of discharges by up to 34% and reducing the average hospital length-of-stay by up to 6% without affecting mortality. suPARnostic® TurbiLatex is currently available on Roche Diagnostics’ cobas® instruments, Siemens Healthineers ADVIA® XPT and Atellica® instruments, the Abbott Labs Architect™ and Alinity™ instruments and the Beckmann Coulter AU 5800 instrument. ViroGates works with partners to develop solutions for other platforms. ViroGates has recently launched its Point of Care suPARnostic® POC+ product, a platform that uses only a few drops of finger-prick blood instead of plasma for full quantitative suPAR results in less than 20 minutes.
Prospects about the future reflect ViroGates' current expectations for future events and results. The statements are by nature inherent in risks, uncertainties and other matters that are difficult to predict or out of control. The actual results may therefore differ from the expectations expressed.
- Jakob Knudsen, CEO, +45 2226 1355, [email protected]