Traction in the US market reflects transition to a new expanded commercial model
In 2022, we initiated the transition of Acarix to full commercial focus on the US market. This shift rapidly resulted in a breakthrough order from the US Veterans Health Administration (VA), the largest healthcare provider in the US, in early Q1 2023. Since then, we have continued to develop this opportunity leading to sales orders from additional VA hospitals and adopting the CADScor®System clinical workflow into their standard operating procedures. Furthermore, we are progressing in negotiating a national VA contract covering the US ahead of our initial plan.
In parallel, we have continued to expand our US geographic footprint and now have a sales force of over 40 sales representatives covering all US states under one commercial leadership. This expanded team has brought deep cardiovascular expertise, a broad network, and access to our key sales channels. The number of demonstrations and evaluations have increased three-fold during the last two months, indicating the impact this team will have now that they are fully up and running.
Sales in the US have tripled this year compared to previous year to SEK 1.9 million. The increase is driven by new business and an average utilization rate of CADScor systems of 3.3 patients per day. A figure that is almost twice as high as we previously reported in Germany.
Extract from CEO Helen Ljungdahl Round’s message to the Interim Report.
Second quarter 2023 compared to the same period in 2022
- Revenue in the second quarter amounted to kSEK 1,540 (1,680). Gross profit amounted to kSEK 1,291 (1,317), corresponding to a gross margin of 84% (78%) and an improvement of 6% points compared to the same period in 2022.
- During the quarter, 10 (20) CADScor®Systems and 2,682 (1,880) patches were sold.
- Operating costs amounted to kSEK 23,186 (19,698).
- Loss before tax amounted to kSEK –22,004 (–18,420).
- Net cash flow for the period amounted to kSEK 9,114 (-19,177).
- Earnings per share amounted to SEK –0.05 (–0.07).
First half of 2023 compared to the same period in 2022
- Revenue in the first half of the year amounted to kSEK 3,495 (3,005). Gross profit amounted to kSEK 2,978 (2,371), corresponding to a gross margin of 85% (79%) and an improvement of 6% points compared to the same period in 2022.
- During the first half of the year, 22 (34) CADScor®Systems and 5,217 (4,440) patches were sold.
- Operating expenses amounted to kSEK 41,307 (35,500).
- Loss before tax amounted to kSEK –38,484 (–33,267).
- Net cash flow amounted to kSEK 14,253 (–33,992).
- Cash and cash equivalents amounted to kSEK 26,299 (50,323).
- Earnings per share amounted to SEK –0.10 (–0.13). No dilutive effects occurred.
- Number of shares on the balance sheet date amounts to 452,868,010 (251,972,194).
Events in the second quarter, 2023
- On April 3, the company announced a new strategic partnership with CompleMed, a nationwide sales organization focused on the US cardiology market. The partnership expands Acarix’s sales organization with 16 additional sales teams covering initially 30 new states in the U.S. market, resulting in a current geographic market coverage of 43 states.
- On April 4, the Company announced that the Board of Directors had resolved to carry out a new issue of 21,057,443 shares at a subscription price of SEK 0.45 per share, corresponding to issue proceeds of approximately SEK 9.5 million before deduction of costs attributable to the transaction.
- On April 11, the company sent out the notice to the Annual General Meeting on Thursday May 11, 2023 at 10.00 a.m. at Baker & McKenzie Advokatbyrå’s premises at Vasagatan 7 in Stockholm.
- On April 20, the company published its annual report for 2022.
- On May 9, the company announced that it had together with the American College of Cardiology (ACC) established a first edition of a clinical protocol for the CADScor®system. The protocol established a workflow for the CADScor®system as a diagnostic aid for patients with stable chest pain.
- On May 11, the company published its interim report for the first quarter of 2023
- On May 16, the company announced the award of the 2023 Catalyst Program Award in the Life Sciences sector by Business Sweden. The Catalyst program is designed to support and accelerate the growth of Sweden’s most innovative and promising companies by providing tailored commercialization support, advice and coaching in a selected market.
- On May 17, the company announced that the client Abo-Auda Associates Cardiologists in Texoma, Texas will use the CADScor®System as a routine diagnostic aid in assessing patients with stable chest pain.
- On May 22, the company announced the result from the exercise of warrants and will receive approximately SEK 21.6 million before deduction of transaction costs. At the same time, a directed share issue with a consortium of existing shareholders is resolved and approximately SEK 2.7 million before transaction costs will be raised.
Events after June 30, 2023
- On August 28, the company announced the appointment of Dr. Deepak R. Talreja, MD, as new Medical Advisor. With an impressive background in cardiology, Dr. Talreja brings a wealth of knowledge and expertise to Acarix, further strengthening the company’s commitment to transforming early cardiac diagnostics through cutting-edge acoustic and AI-based technology.
- On August 29, the company announced significant progress in the use of the CADScor System by the Veterans Administration (VA), the largest healthcare provider in the United States. VA Healthcare System in southeastern Louisiana has now approved the inclusion of the CADScor System in its Standard Operating Procedure (SOP) for risk stratification of symptomatic patients with suspected coronary artery disease (CAD). Furthermore, another VA hospital – Biloxi VA Medical Center (VA Gulf Coast Veterans Healthcare System) has placed first order for CADScor System with associated patches.
Link to the report: https://www.acarix.com/for-investors/financial-reports-and-calendar
