Enzymatica AB: Strong growth in 2015 and acquisition for international expansion

Regulatory information
FY 2015
* Net sales increased to SEK 27.9 (19.1) million.
* Loss after tax came in at SEK -40.8 (-32.4) million.
* Earnings per share totaled SEK -1.64 (-1.41).

FY 2015          

  • Net sales increased to SEK 27.9 (19.1) million.
  • Loss after tax came in at SEK -40.8 (-32.4) million.
  • Earnings per share totaled SEK -1.64 (-1.41).

Q4       

  • Net sales increased to SEK 11.1 (8.7) million.
  • Loss after tax came in at SEK -11.2 (-12.3) million.
  • Earnings per share totaled SEK -0.45 (-0.49).
  • Cash and cash equivalents were SEK 8.1 (37.9) million.

Significant events after the end of the period
Enzymatica signed an agreement to acquire Icelandic company Zymetech via a non-cash issue in January 2016. The transaction is to be approved at an extraordinary general meeting on February 15. The capital contributed by the subsequent cash issues will
enable  a stronger focus on commercial investments and international geographic expansion. For more information, please see www.enzymtica.se

Enzymatica received a bridge loan from ALMI on February 5 in the amount of SEK 5 million in conjunction with the agreement to acquire Zymetech.

Financial ratios          
(SEK million) Oct-Dec
2015
Oct-Dec
2014
Full year
2015
Full year
2014
 
Net sales 11.1 8.7 27.9 19.1  
Gross margin, % 65 79 70 74  
Operating profit/loss -11.0 -12.2 -40.4 -32.7  
Cash flow from operating activities -12.2 -13.0 -37.7 -40.7  
Average number of employees 17 14 16 13  

CEO statement: Foundations laid for international expansion with Zymetech acquisition

In 2015, we increased our sales by 46 percent to SEK 27.9 million, in comparison to around SEK 19 million the year prior, as a result of continuing strong sales on the Swedish market, where ColdZyme® has reached a market share of approximately 5 percent. Calculated in SEK, our product has thus established itself among the best-selling cold products in Swedish pharmacies. Consumers have responded very positively to our smaller package, OneCold, especially in Sweden.
The increased sales and lower overhead costs contributed to an improvement in our operating loss for Q4 compared to the same period in 2014.
In the UK, Enzymatica strengthened its presence by signing an agreement with pharmacy chain Lloyds in October to begin sales in December. The agreement will make ColdZyme available in an additional 1,300 pharmacies.
We took several key steps in our international expansion in Q4. We signed an agreement with distributor Tamro in Finland, which kicked off ColdZyme  sales in November. A short time later, Enzymatica also signed a distribution agreement with Spanish pharmaceutical company Esteve for Spain and Andorra to launch the product in January 2016. Under both of these agreements, our distributor pays for the marketing costs for the respective market.
In 2015, we put in a lot of work on building a foundation for our continuing internationalization. Our work on establishing a quality management system and other measures for compliance with international directives for medical devices has been necessary and important to meet the high quality requirements of partners. We also planned for the upcoming clinical follow-up study of ColdZyme in the UK in 2016 and continued our market entry activities in the Nordic region and other selected markets.
The next step to facilitate international expansion is the bid for our Icelandic partner Zymetech, which I see as a key strategic complement to Enzymatica's business. The acquisition gives us sole ownership of the patent protection for ColdZyme throughout Europe and a dozen or so additional countries. This gives us the ability to offer distributors exclusive distribution rights, which facilities our international expansion.
We also get control over enzyme production as well as access to international research expertise and Zymetech's research portfolio. The proposed new share issues create the financial stability to enable us to be more commercially aggressive and thus foster a substantial long-term future increase in sales.
Fredrik Lindberg, CEO

For questions about this report, please contact:
Fredrik Lindberg, CEO, Enzymatica AB
Tel: +46 (0)708-86 53 70 | Email: fredrik.lindberg@enzymatica.com

Johan Wennerholm, CFO, Enzymatica AB
Tel: +46 (0)730-42 99 97 | Email: johan.wennerholm@enzymatica.com

Enzymatica at a glance
Enzymatica AB is a life science company whose business concept is to provide effective relief for some of the most common diseases where viruses and bacteria play a decisive role. In a short period of time, the company developed ColdZyme®, a unique mouth spray for fighting colds, launched the product in six markets and reached a position over the past winter as one of the most-sold cold products in Swedish pharmacies measured in SEK. Enzymatica has its own sales organization in Scandinavia and collaborates with a contract sales organization in the UK.

Our development focuses on medical devices for upper respiratory tract infections and oral health. An enzyme from deep-sea fish is a key sub-component in product development.

Enzymatica was founded in 2007, has its head office in Lund, Sweden and has been listed on the Nasdaq First North since June 15, 2015.

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