Presentation

Company Profile
IRRAS AB is a commercial-stage medical technology company focused on developing and commercialising innovative solutions for brain surgery. The company’s initial product, IRRAflow, addresses the complications associated with the current treatment methods of intracranial bleeding with a dual lumen catheter that combines active irrigation with ongoing fluid drainage. Another product line, the Hummingbird products, targets traumatic brain injury. IRRAS sells its products to hospitals globally through its direct sales organisation in the U.S. and select European countries as well as an international network of distribution partners.

Recent highlights
Net sales in Q1 beat our expectations by 11%, but EBIT was SEK 1.6m lower than we anticipated. The negative deviation of EBIT was primarily due to the revaluation of the standard cost prices, which weighed on the cost of sales by SEK 5 m. In June, IRRAS raised gross proceeds of approximately SEK 66m in a directed share issue of 13.2m shares at a subscription price of SEK 5 per share. In July, IRRAS announced that Will Martin has assumed the role of President and that CEO. Leanthis G. Xanthopoulos, Ph.D., has stepped down as CEO and will remain on the company’s Board of Directors.

Outlook
Following the new capital raise, we forecast the ending cash balance to be approximately SEK 70m by year-end. However, it could be less if IRRAS were to maintain its quarterly cash burn at the same level as shown in Q1 of SEK 34m. If the company can reach a loan agreement with the EIB of EUR 9m, we believe the cash could be enough to carry IRRAS until it reaches positive cash flow, at the earliest in 2024/2025.