Presentation

Company Profile
C-RAD offers cutting-edge solutions in advanced radiation therapy to cure cancer. C-RAD was founded in 2004 by researchers from Karolinska Institutet and the Royal Institute of Technology in Stockholm, and people with extensive industrial experience in the field of radiation therapy. The product portfolio is comprised of solutions for patient positioning, real time monitoring and tumour localisation. The company has sales offices in Scandinavia, German-speaking countries, North America, France and China. C-RAD’s distributors are spread in several markets, primarily in Asia and Europe.

Recent highlights
Both the order intake and net sales were slightly better than expected, with the company having reported FX-adjusted growth of 24% y/y and 51% y/y, respectively. However, EBIT was 37% better than we anticipated, driven by a more robust gross margin of 63% than the PAS estimate of 60%. The main reason for the stronger-than-expected margin was a higher share of Life Cycle Business, which accounted for 14% of total sales versus the PAS forecast of 12%.

Outlook
Management provided a positive outlook for H2 2021, with many markets showing indications of normalisation. We expect the gross margin to improve to 62% in 2025 from 59% in 2020 as we forecast Life Cycle Business to increase to 17% of total sales in 2025 from 11% in 2020. C-RAD is also demonstrating good operational scalability, and we forecast an EBIT margin expansion to 26% in 2025 from 8% in 2020.