CellaVision AB

Good profitability despite negative COVID-19-effect - Seite 3

EMEA grew with seven percent excluding structural effect from the acquisition of RAL. Including sales of RAL's reagents, growth amounted to 89 percent. Although the possibility of installations was clearly limited due to the COVID-19 pandemic, sales of large systems were relatively good. Just like in North America we have become a standard in large parts of Western Europe, meaning that when a laboratory replaces its instruments and systems, CellaVision's solutions are included in the installation. This means that we will see a normalization of sales as soon as hematology installations can be resumed. CellaVision DC-1 has been launched in most European markets, but the restrictions caused by the pandemic have meant that many smaller laboratories have been closed, which has significantly delayed the commercialization process.

APAC had a strong quarter with sales of SEK 32.6 million (15.8), corresponding to an increase of 106 percent. The COVID-19 situation in APAC is more mixed than in other regions. China performed well in the quarter, in Korea we see a more normalized situation, while other countries such as Japan, Australia and India have been completely closed down during parts of the second quarter.

RAL/Reagents

The acquisition of RAL was formally completed on October 1, 2019 and RAL has since been part of CellaVision. Sales of reagents developed well during the quarter and contributed to sales growth, primarily in EMEA. We continue to launch reagents in new markets while advancing the important work of optimizing the so-called staining protocols. The acquisition has implied that CellaVision now has a wider product range and a larger market. Reagents become an integral part of the customer offering and complement previous capital goods with consumables. We work intensively to expand sample preparation products in hematology to new markets through CellaVision's comprehensive organization for local market support. In the long term, we also expect the acquisition of RAL to enable us to expand to adjacent analysis areas outside hematology.

Geographic expansion

During the quarter we became operational in Russia. Overall, CellaVision now has 18 local organizations that offer market support in more than 40 countries. We will wait for further establishments until the COVID-19 pandemic has subsided.

In addition, a global agreement was established during the quarter for CellaVision's instruments for the veterinary market as well as a global agreement for reagents with one of our distribution partners.