ViroGates announces preliminary results for Q1, 2023: Quarterly revenue affected by a slower-than-expected conversion of COVID-19 hospitals into use in triage in the emergency department
COMPANY ANNOUNCEMENT - No. 6-2023 – Inside Information - 04 April 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, today announces preliminary results for Q1, 2023 and revised guidance.
Preliminary revenue for Q1, 2023 amounts to approximately DKK 1 million, representing a decline of 67% compared to the same period last year. There are several reasons for the shortfall, the main one being that the conversion of hospitals previously measuring suPAR for COVID-19 reasons into hospitals measuring suPAR for triage in the emergency departments is progressing slower than expected.
Based on the shortfall ViroGates now expects full-year revenue between DKK 8 to 11 million in 2023 (previously DKK 14 to 17 million). This is due to an estimated ramp-up period of approximately 4-8 months in converting customers using suPARnostic® for COVID-19 to use suPARnostic® for acute care triage in the emergency department. Accordingly, the guidance on earnings before tax and interest (EBIT) is revised to approximately DKK -10 to -13 million (previously DKK -8 to -11 million) for 2023.
ViroGates view former COVID-19 hospitals as potential customers since they have already installed suPARnostic® in their central laboratories, and suPARnostic® can therefore be ordered through already existing infrastructure by the clinicians in the emergency departments. Focusing on explaining the advantages of using suPARnostic® in the emergency department generally is the key objective going forward for ViroGates’ sales force and distribution partners.
ViroGates’ strategic objective of becoming cash flow positive during 2024 is consequently revised. ViroGates now expects to become cash flow positive during 2025.
Jakob Knudsen, CEO of ViroGates, says: “We are disappointed with our recorded revenue for Q1 2023. We did not expect our COVID-19 customers to come to such a halt and had expected a more rapid transition into use in the emergency departments. We based our predictions on the fact that our products had been installed in the clinical labs at the hospitals and their use during the COVID-19 period. Based on the low number of clinical orders in Q1, we do not believe it is realistic to achieve the guidance we previously issued. We do believe that we can convert hospitals but realize that it will take somewhere between 4 and 8 months. We will now focus our efforts on converting customers and report on our progress with this task.
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, and France, 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 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]