STOCKHOLM, SE / ACCESSWIRE / November 29, 2024 / PMD Device Solutions (FRA:8T0) (STO:PMDS) Press release: Stockholm, 29 November 2024. PMD Device Solutions AB's (PMDS) interim report for July - September 2024 is now available on the company's website, www.pmd-solutions.com.
Financial information July - September 2024 (figures in brackets relate to the same period in Q3 2023)
Consolidated net sales for the three months are in line with expectations at kSEK 8,017 and are 35% Lower than in Q2 2024. Revenue predominantly came from acute hospital recurring sensor sales (76%), while revenue from our new Hospital at Home managed service offering amounted to 5%. The remaining 14% came from the delivery of capital equipment, licence sales and sales from the new subsidiary Coala Life Inc.
Recurring sales kSEK 6,861 (9,588) predominantly came from acute hospital recurring sensor sales (76%) while revenue from our new Hospital at Home managed service offering amounted to 5%.
The gross margin decreased slightly from 78.5% to 75.4% from Q3 2023 to Q3 2024.
EBITDA was kSEK -8,898 (-8,002), due to higher costs associated with acquiring Coala Life and the former Promore Pharma group companies, in addition to the rights issue activity during Q3
Loss for the quarter was kSEK 11,838 (Q2 2023: 7,872). The increase is due to the costs associated with being a listed company.
Basic earnings per-share were SEK -0.52 (-0.56).
Cash and cash equivalents as of September 30, 2024, were kSEK 970 (1,248).
Highlights Q3
PMDS completed a rights issue in September 2024, raising funds and reducing liabilities.
In August 2024, the Company formed a new entity, Remote Care Connect in the United States. The former commercial activities of Coala Life Inc, following reorganisation will continue under this new company going forward.
Notable events since Q3
PMDS carries out a rights issue of approximately SEK 22 million.
The link to the Year-end report: https://investors.pmd-solutions.com/en/investors/reports-and-presentations/
CEO COMMENTS
PMDS is navigating a transformative year, building on key milestones such as the reverse takeover in January and the acquisition of the Coala estate. Strategic actions, including the reorganisation of its US business under Remote Care Connect Inc., a rights issue to strengthen the balance sheet, and restructuring its European operations to focus on sales-driven growth, have laid a strong foundation for the future.
The third quarter brought both opportunities and challenges. Revenue was impacted by transitional factors, including the reorganisation of sales in Ireland, as the Irish healthcare system (HSE) transitioned to a regional management structure. Despite these short-term pressures, the success of our Virtual Ward service, which achieved a 22% reduction in COPD admissions, highlights the significant value our solutions bring to healthcare systems. We are working closely with the HSE and other caregivers to align our offerings with their frameworks, paving the way for future growth.
Financially, PMDS recognises the need to address losses incurred during this transitional period, alongside short-term liquidity concerns linked to the timing of HSE receivables. Constructive discussions with stakeholders, combined with disciplined cost management and high-margin revenue prioritisation, demonstrate PMDS's proactive approach to overcoming these challenges and achieving stability.
The Virtual Ward success in Ireland has been complemented by advancements in other key markets. The hospital saw a 22% reduction in admissions with chronic respiratory disease during 2023 & 2024. In the UK, our acceptance onto the G-Cloud framework simplifies procurement processes and accelerates the adoption of our solutions. Furthermore, a study at Nottingham NHS Trust Hospital again validated RespiraSense's ability to detect patient decline earlier than standard methods, reinforcing its position as a leading solution in this key market. Similarly, two successful pilots and the commencement of a third, focused on COPD patients in Germany, signal the market's potential as a growth area from 2026 onward.
The acquisition of Coala Life has introduced short-term financial pressures, including the absorption of liabilities, but also provides strategic opportunities. The sale of the Coala Life Monitor allows PMDS to sharpen its focus on RespiraSense, while retaining key assets such as the Qora platform and Remote Care Connect Inc. in the US.
Looking ahead, based on the growing adoption of RespiraSense and continued expansion of our Hospital at Home solutions, PMDS remains focused and positive on achieving positive cash flow from the end of 2024 on an Annual Recurring Revenue (ARR) basis. Operational efficiencies, set to begin in January 2025, coupled with increasing demand across key markets, position us to meet our ambitious financial targets, including our ARR goal of 260M SEK in 2026. These actions underscore PMDS's readiness to lead in MedTech innovation and deliver long-term value through sustainable growth.
Thank you to our stakeholders for their continued trust and support as we continue transforming global healthcare systems through innovation.
Stockholm, November 29th 2024
Myles Murray, Founder and CEO
For additional information, please contact
Myles Murray, CEO
Phone: +353 86 887 4994
E-mail: myles@pmd-solutions.com & for general enquiries investor.relations@pmd-solutions.com
The Company's Certified Adviser is Redeye.
Information about PMDS
PMD Device Solutions AB develops and sells medical products for respiratory monitoring in both the hospital acute monitoring sector and the remote monitoring homecare sector. Its primary product is RespiraSense, a solution used for monitoring respiratory rate to support the detection of patient deterioration early and to avoid preventable respiratory failure and adverse patient outcomes. RespiraSense is, to the Company's knowledge, the world's only continuous, motion-tolerant respiratory rate monitor delivering class-leading reliability in measuring respiratory rate. RespiraSense is a novel technology that is commercialised in Europe, the UK, and FDA cleared in the US. The company's shares are listed on Nasdaq First North Growth Market (STO: PMDS).
Attachments
FINAL PMD Q3 InterimReport OCT24
SOURCE: PMD Device Solutions
View the original press release on accesswire.com
