Rapid adaptation of the sales process due to covid-19 and preparations for commercial expansion

"The events that occurred during the first quarter of 2020 have challenged us to quickly adapt our global medical technology business to support our customers and the patients who need our life-saving technologies. Among other actions, we have strengthened our resources for support to physicians and patients, particularly through digital channels.

After securing the CE Mark recertification of IRRAflow in late December, our EU launch of the product resumed. IRRAflow inventory is in stock in our European distribution facility, and our initial EU revenue since the recertification was generated via orders from new distribution partners. As hospital systems in Europe reopen, we anticipate that the revenue contribution from the EU and other markets will increase during the year. During this time, our team continues to finalize plans to launch IRRAflow in our next wave of European markets.

In parallel, our US sales team was focused on key IRRAflow evaluations at 6 comprehensive stroke centers and our IRRAflow capital placement increased to a total of 35 systems currently in place. Additionally, the US launch of our Hummingbird family of ICP monitoring products began, and we've been encouraged thus far by the response of our customers to this complementary product line. At the end of Q1, 5 Hummingbird control modules were placed with US customers and additional Hummingbird revenue was generated after the limited launch in Q4."

Kleanthis G. Xanthopoulos, Ph.D., President and CEO of IRRAS
 

First quarter, January - March 2020

• Net revenue amounted to SEK 1.6 million (0.0).
• Operating loss (EBIT) amounted to SEK -35.2 million (-39.1).
• Loss after tax amounted to SEK -34.3 million (-38.7).
• Earnings per share before and after dilution amounted to SEK -1.19 (-1.61).

 

Important events during the quarter

Extraordinary General Meeting
At the Extraordinary General Meeting, held March 2, 2020, it was unanimously resolved to authorize the Board of Directors to decide on a new share issue, convertibles and/or warrants, with or without deviation from the shareholders' preferential rights, a total of no more than SEK 250 million.

• Rights issue decision

The Board of Directors resolved, supported by the issue authorization granted by the Extraordinary General Meeting, to carry out a fully guaranteed rights issue of approximately SEK 217 million, with preferential rights to the Company's existing shareholders. The prospectus was registered by the Swedish Financial Supervisory Authority on March 24, 2020.

Other key accomplishments

Collaboration with Helsinki University to advance uses of IRRAflow
A long-term collaboration for the collection of clinical data with Dr. Mika Niemelä, Professor and Chairman of Neurosurgery, and Dr. Behnam Rezai Jahromi from the University of Helsinki, one of the world's leading neurosurgical institutions was announced in March.

• Rapid adaptation to covid-19

IRRAS' sales efforts were quickly adapted to the restrictions in the health care sector due to covid-19. The company's support to customers has primarily been in digital form during the past months and IRRAflow has continued to be used in patient treatments. Also, the sales processes have been reshaped, but all approvals and associated training of new products have been slowed down due to the hospitals' focus on the covid-19 pandemic.

Important events after the end of the quarter

The rights issue in IRRAS AB, for which the subscription period ended April 9, 2020, resulted in a contribution of SEK 217 million before fees. The number of shares increased by 37,463,366 to a total of 66,281,340.

• IRRAS announced in May that it has been approved for a loan of USD 0.8 million as part of the US covid-19 stimulus package Paycheck Protection Program. The loan is forgivable under certain circumstances.
• Nasdaq Stockholm's listing committee has decided that IRRAS fulfills the requirements for admission to trading of the company's shares on the main market Nasdaq Stockholm subject to customary provisions. The first day of trading is expected to be May 20 2020.

The report is available on the company's website: https://investors.irras.com/en/reports-presentations
 

About IRRAS

IRRAS is a global medical care company focused on delivering innovative medical solutions to improve the lives of critically ill patients. IRRAS designs, develops, and commercializes neurocritical care products that transform patient outcomes and decrease the overall cost of care by addressing complications associated with current treatment methodologies. IRRAS markets and sells its comprehensive, innovative IRRAflow and Hummingbird ICP Monitoring product lines to hospitals worldwide through its direct sales organization in the United States and select European countries as well as an international network of distribution partners. 

IRRAS maintains its headquarters in Stockholm, Sweden, with corporate offices in Munich, Germany, and San Diego, California, USA. For more information, please visit www.irras.com.

IRRAS AB (publ) is listed on Nasdaq First North Premier Growth Market (ticker: IRRAS). Redeye AB is certified adviser of the company with email certifiedadviser@redeye.se orphone +46 8 121 576 90.

 

For more information, please contact:

USA
Kleanthis G. Xanthopoulos, Ph.D.
President and CEO
ir@irras.com

Europa
Sabina Berlin
CFO
+46 73 951 95 02
sabina.berlin@irras.com
 

This document is considered information that IRRAS is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the contact person above, on May 14, 2020 at 8:00 a.m. (CET).