ViroGates announces its Interim Report for Q1, 2023: Quarterly revenue declined by 67% compared to Q1 due to a longer ramp-up period in Emergency Departments
COMPANY ANNOUNCEMENT - No. 9-2022 - 4 May 2023 - Inside information
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 Interim Report for the period 1 January 2023 – 31 March 2023, as approved by the company’s Board of Directors.
In Q1, 2023, ViroGates’ revenue was TDKK 1,049, representing a decline of 67% compared to the same period in the previous year (TDKK 3,197). The expectations of another COVID wave at the beginning of the year fell short due to the dominance of less severe variants and, thereby, fewer infections and hospitalizations. This limited the sale of suPARnostic® products for COVID-19 purposes. At the same time, ViroGates experienced a slower than expected conversion of the same COVID-19 hospitals into hospitals using suPARnostic® in the ED for general triage and a more difficult onboarding of new ED customers since post-COVID budgets were strained and willingness to introduce new tools lower in this period.
By the end of the quarter, ViroGates can report 38 clinical routine customers, representing a 21% decrease from the latest disclosed number by the end of Q4, 2022 (48). As a result of the shortcoming in Q1, 2023, the management and Board of Directors are working on a revised measure of the number of customers and will inform the market as soon as the necessary analyses have been made.
Jakob Knudsen, CEO of ViroGates, says: “We are disappointed with our performance in this year’s first quarter. The unstable macroeconomic environment and the remnants of the COVID-19 pandemic will continue to be a challenge for ViroGates in 2023. However, our performance coming to such a halt in the first quarter of the year has led to a thorough analysis of our revenue streams, including how they have been and are related to COVID-19. We are also working with our Board to strengthen the correlation between the number of customers and our revenues. We are still confident that our suPARnostic® POC+, recent additional platform validations, and sales initiatives will get us back on track.”
Financial results in Q1, 2023
The financial results in Q1, 2023 are reported below (Q1, 2022 results in brackets):
- Revenue declined by 67% to TDKK 1,049 (TDKK 3,197)
- Operating expenses decreased by 28% to TDKK -4,165 (TDKK -5,819)
- Operating loss decreased by 5% to TDKK -3,279 (TDKK -3,435)
- Net loss decreased by 1% to TDKK -2,942 (TDKK -2,966)
- Cash and cash equivalents at the end of the period amounted to TDKK 6,462 (TDKK 10,870)
Business highlights in Q1, 2023
The business highlights of Q1, 2023 included:
- Announcement of the commercial launch of suPARnostic® POC+ product for a complete quantitative analysis of suPAR in finger prick blood
- Announcement of CE-IVD approval for suPARnostic® TurbiLatex on the Roche Diagnostics cobas® Pure and Pro instrument platforms
- Continued negotiations with Vækstfonden debt financing as well as Sobi regarding funding for commercializing suPARnostic® in the US in response to the EUA post-authorization requirement by the FDA
This announcement is a summary and should be read with ViroGates’ Interim Report for Q1, 2023, published on 4 May 2023. A downloadable PDF version will be available on the company’s website
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 the Nordics, Spain, France and Benelux, while distributors serve other markets.
ViroGates' shares (VIRO) are listed on Nasdaq First North Growth Market Denmark. For more information, 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 900 clinical trials shows 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]