Presentation

ProstaLund is a Swedish medtech company, that develops and commercialises innovative products and treatments in the space of urology. ProstaLund has patented CoreTherm®, an individualized thermotherapy treatment for benign prostatic hyperplasia (BPH). CoreTherm works by heating the prostate tissue so that parts of it become necrotic. CoreTherm® is used today in hospitals and outpatient clinics in Sweden and around the world. ProstaLund AB’s subsidiary Nordisk Medicin & Teknik AB provides products to simplify work within healthcare.

Recent highlights
Prostalund has signed its first two as part of its internationalization strategy. The first agreement was with the British company iUrology and the second with the Israeli company AMI Technologies. In early 2022, a utility patent for the Schelin Catheter was approved in China and in July, ProstaLund filed a 510(k) application to FDA for the Schelin Catheter™, taking an additional step towards introducing the product in the USA.
In Q2 2022, ProstaLund reported net sales for H1 of SEK 8.1m (8.5), demonstrating a 4.7% decrease y/y. One reason why the sales have not grown in the same parity as the number of treatments is that PostaLund has not received royalties for the product Gepan as in previous years. Thus, adjusting for royalties, sales in H1 2021 amounted to SEK 7.7m. The gross margin for H1 was 76% (87%) and this decline could be explained by the FX that affect ProstaLund’s purchases in USD and sales in SEK.

Outlook
ProstaLund’s goal is to reach 1,500 CoreTherm treatments from Q3, and twelve months ahead. The company’s focus continues to be the Nordic market, however, ProstaLund tends to keep expanding its internationalization strategy. Furthermore, has the board decided on a rights issue, that is expected to provide the company with up to SEK 18m before costs.
Factset consensus, estimate sales and EBITDA to reach SEK 20.5m and SEK -7.5m respectively at the end of 2022. In the same period, gross margin is expected to reach 82%.