Since 2021, Scandinavian ChemoTech has operated two distinct business units - Human Care and Animal Care. While Human Care was the group's initial focus, the Board of Directors has made key decisions to support the independence and growth of the two separate entities. By separating the successful cash generating Animal Care unit from the more complex processes of Human Care, where much of the company's burn rate is concentrated, resources can be reallocated to boost sales activities within Animal Care. With these changes the company anticipates annual savings of 2-3 MSEK, which can be reallocated to revenue-generating activities within Animal Care.
Regulatory press release
Lund, Sweden 30 December 2024
To streamline the operations, the Board has decided to restructure the businesses using existing corporate entities. Animal Care will gradually transition from Sweden to its US subsidiary while also maintaining its strong sales performance in Central Europe under VQ Animal Care Inc. Additionally, the Human Care business will during 2025 move to the older entity Vetiqure AB, retaining the Scandinavian ChemoTech name, while the publicly listed holding company is set to adopt a new name.
These strategic changes reflect the company's commitment to enhancing revenue, improving profitability, and sustaining robust sales in key markets, particularly in US and Central Europe
The Future pathway for TSE for Human Care in India, EU and USA
It is important to emphasize that the company's ambitions to revolutionize Human Care remain strong. However, the Board of Directors believes it is in the best interest of shareholders that Human Care operations to be funded through cash flows generated by Animal Care, rather than through new share issues.
Since the IQwave system is primarily designed for the treatment of superficial tumours, commonly seen in India and Asia, the regulatory focus will shift toward these regions. This strategy prioritizes cost-effective opportunities over the costly European regulatory processes, where the commercial potential for the current IQwave product remains limited. However, the future of TSE in the European market is envisioned to have a significant impact on cancer care as a laparoscopic or robotic solution. Our search and discussions with potential partners for technologies continues.
These changes will not impact our ambitions with our trial and collaboration with AIIMS Jodhpur in India.
For further information please contact:
Mohan Frick, CEO
Phone: +46 (0)10-218 93 00
E-mail: ir@chemotech.se
Certified Adviser: Redeye AB
This disclosure contains information that ChemoTech is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 30-12-2024 14:10 CET.
Scandinavian ChemoTech AB (publ)
ChemoTech is a Swedish medical technology company based in Lund that has developed a patented technology platform to offer cancer patients access to a new treatment alternative, Tumour Specific Electroporation (TSE), available for treatment of both humans and animals. There are a large number of cancer patients whose tumours for various reasons cannot be treated by conventional methods but where TSE can be a solution. Therefore, the company continuously evaluates new opportunities and areas of application for the technology. ChemoTech's shares (CMOTEC B) are listed on Nasdaq First North Growth Market in Stockholm and Redeye AB is the company's Certified Adviser. Read more at: www.chemotech.se.
