Enzymatica

Doubled Sales Also During the Second Quarter

STOCKHOLM, July 16, 2020 /PRNewswire/ --

Q2 

• Net sales reached SEK 13.9 (6.4) million.
• Result after tax came in at SEK -11.7 (-15.7) million.
• Earnings per share, basic and diluted, were SEK -0.08 (-0.11).
• Cash and cash equivalents were SEK 30.9 (40.8) million.

  Significant events in Q2

• Enzymatica more than doubled its sales during the second quarter, driven mainly by strong orders for the German, Austrian and Belgian markets, as well as a replenishment order from Hong Kong & Macau.
• ColdZyme received the highest class of CE marking, which means that the product may be sold as class III device in accordance with MDD (Medical Device Directive) within the EU until May 2024.
• Enzymatica's patent for the cod enzyme, one of the key components in ColdZyme, was approved for Europe and expires in 2035. Patent applications are also pending for other global markets.
• Enzymatica and STADA expanded their agreement for the cold product ViruProtect (ColdZyme) to be valid for an additional 19 countries in Europe. With the expanded agreement, STADA expects to place orders for about SEK 20 million for 2020. The launch of ViruProtect is expected to occur in the fall of 2020.
• A British study initiated by researchers in which endurance athletes used ColdZyme showed significantly shorter duration of colds and milder cold symptoms with upper respiratory tract infections compared with endurance athletes in the untreated group. 
• Fredrik Lindberg stepped down as CEO, but will continue as a Board Member for Enzymatica. Bengt Baron took over as Executive Chairman of the Board and Therese Filmersson, CFO, as acting CEO until a new CEO has been recruited.

H1

• Net sales reached SEK 40.7 (19.7) million.
• Result after tax came in at SEK -11.0 (-27.9) million.
• Earnings per share, basic and diluted, were SEK -0.08 (-0.20).

Significant events after the quarter

• The corona pandemic has resulted in an increase of demand on ColdZyme for the first half of 2020. Social distancing, and increased focus on hygiene, could result in milder common colds for the fortcoming season. Enzymatica's contract manufacturers continue to deliver according to committed production plans - so far without disruptions. Also Enzymatica has not experienced any issues so far in collecting accounts receivables. However, the uncertainty created by the corona pandemic overall makes any prediction regarding demand, logistics and production more uncertain. 
• Because of the coronavirus pandemic, Enzymatica's subsidiary Zymetech's agreement with the German company Maren Cosmetics was renegotiated. In June 2019 Zymetech and Maren signed an agreement under which Zymetech would deliver an enzyme formulation based on Enzymatica's barrier technology for Maren's skin care products for a total estimated order value of SEK 120 million over three years. Because of covid-19, Maren was forced to lower its level of ambition for sales. Given the uncertainty in the market, it is difficult to assess the impact over the next few years, but clearly the agreement will generate substantially lower sales than indicated in earlier estimates.