Presentation

Company Profile
CellaVision is a leading provider of digital solutions for medical microscopy in the field of hematology. The product portfolio consists of analysers with supporting applications and software to replace the conventional microscope used in laboratories. The company serves large and mid-size laboratories with high volume testing requirements. Sales are via global partners with support from the parent company in Lund and by the company´s 18 local market support organizations covering more than 40 countries.

Recent highlights
Net sales increased by 23% FX adjusted in Q2, mainly due to 11% higher instrument sales than we expected. Sales of reagents were SEK 5m below the PAS forecast, largely affected by a sales order of SEK 3m being postponed in Q3 due to a supply shortage of generic materials. The gross margin of 69.1% was 40 bps better than we expected, despite FX headwinds, and the EBIT margin of 29% was substantially better than the PAS forecast of 26%.

Outlook
Despite DC-1 picking up good interest in all regions with reactivated demonstrations, we were surprised by the failure of the electromagnetic pulse (EMP) test of DC-1 in China to meet the acceptance criteria, delaying the Chinese registration process. The new sales clearance is expected by the company in H1 2022. Despite Mindray terminating the distribution partnership in China announced for February 2022, and apparently developing its own solutions for digital cell morphology and so becoming a direct competitor, we do not take this as a major threat. We believe CellaVision’s technological moat is strong enough for the company to maintain its market-leader position.