Important milestones pave the way for a serial acquiring business. Perpetua Medical AB (publ) announces today that the interim report for the period January - March 2024 has been published.
The interim report is attached as a PDF and is available on the company's website:
https://perpetuamedical.se/investor-relations-2/financial-reports/(Swedish only).
The Board has decided to appoint Anders Hedlund as interim CEO of the company. He replaces thereby Lars Gusch. The replacement of CEO will be in effect from May 1, 2024.
Nolsterby Invest AB, controlled by Board members Erik Hedlund and Anders Hedlund, has during the period April 2-April 5 bought shares corresponding to a value of approximately SEK 303,000.
The Extraordinary General Meeting in Pharmacolog i Uppsala AB, April 16, 2024. It was resolved to change § 1 Company name in the articles of association to: "The company's company name is Perpetua Medical AB (publ). The company's shares are now traded at Nasdaq First North Stockholm under the ticker PERP B.
Nolsterby Invest AB, controlled by Board members Erik Hedlund and Anders Hedlund, has bought shares on April 15 corresponding to a value of approximately SEK 182,000.
CEO comments
Dear Shareholders,
I started my tenure as CEO on the first of May at what has now become Perpetua Medical. Hence, this is my first CEO letter and also the first CEO letter for the new business we aim to build. Before I go through the first quarter and the operations we are currently conducting, I would like to express my gratitude towards my predecessor, Lars Gusch. During a challenging 2023, Lars stepped in as CEO in a meritorious manner. Among others, he was instrumental in the divestment of Druglog. Lars, thank you and best of luck going forward.
There is not too much to say about the Q1'24 report. We report positive earnings, which is almost somewhat ironic given that it was the absence of such together with a harsh financing climate that made us implement a strategy with the main objective of divesting our assets.
The profit is, though, attributable to the divestment of the Druglog product. In February, we announced the divestment of Druglog to Raysearch Laboratories in an asset acquisition. The cash consideration amounted to SEK 7 million and was recognized in the first quarter.
At the end of the quarter, we report a cash position of above SEK 11 million. Our burn-rate will continue to decrease after H1'24 as our cost savings come into full effect. In our annual report for 2023, we claim going concern for the coming 12 months. So far, so good. The current situation, with a relatively good cash position but without any material operations, will, however, not create any long-term value in the company. I would, therefore, like to give an update on the ongoing activities at Perpetua Medical.
The process of screening acquisition targets is carried out systematically together with experienced M&A advisors. Our key criteria can, somewhat simplified, be described as "profitability today, growth tomorrow". In concrete terms, we want to acquire well-run companies where we, with our competence and network in the field, together with the operating managers can develop the businesses. Key factors in this regard are that the product portfolio consists also of proprietary products and that the demand is global.
Having said that, we are well aware of our current situation and can't initially go too high in terms of target size. Building this company group will proceed gradually and sustainably. We hope that we can use some of our existing cash position for the first M&As. We also want to provide incentives to the founders and managers to maintain within the company and develop the business. The dependence on a few key personnel is often high when we screen acquisition targets.
From our screening list of some 20 companies, we are in dialogue with a handful of those. We don't have any explicit acquisition pace but we hope to enter into a more intensified stage with a couple of those in the near term.
What is left of the Pharmacolog business is primarily related to Wastelog, a product based on the same technology as Druglog. Wastelog has gained traction solely on the US market and has an installed base in line with Druglog. The strategy to also divest Wastelog stands and we are in dialogue with a couple of stakeholders.
Our ambition with Perpetua Medical is to build a serial acquiring business with independent subsidiaries operating in the healthcare sector. We believe strongly in the decentralized and long-term ownership model. I look forward to updating you on Perpetua Medical's progress!
Anders Hedlund, CEO of Perpetua Medical AB (publ)
This is a translation from the Swedish version of the press release. If any subject of interpretation between the two, the Swedish version prevails.
This disclosure contains information that Pharmacolog is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 17-05-2024 08:30 CET.
Further information regarding the company is available athttps://perpetuamedical.se/.
The company's Certified Adviser is:
Mangold Fondkommission AB
Phone: 08-5030 15 50
E-mail ca@mangold.se.