Inhalation Sciences (ISAB) Q2 2024 earnings summary

Executive summary

• Operating profit improved by 24% in H1 2024 compared to the same period last year, though the company remains loss-making.

• Revenues and new signed orders in Q2 were lower year-over-year, attributed to industry-wide reorganizations and a tough investment climate in life sciences.

• The pipeline of ongoing discussions and offers remains strong at around SEK 30 million.

• Ongoing research collaboration with the US FDA for the DissolvIt in vitro platform is progressing as planned, with final report expected in H2 2024.

Financial highlights

• Net sales for Q2 2024 were 3,357 tkr (5,788 tkr in Q2 2023); H1 2024 net sales were 7,277 tkr (9,026 tkr in H1 2023).

• Operating result for Q2 2024 was -893 tkr (-107 tkr in Q2 2023); H1 2024 operating result was -1,668 tkr (-2,206 tkr in H1 2023).

• Cash and cash equivalents at period end were SEK 5.6 million.

• Order intake for H1 2024 was 1,822 tkr (7,218 tkr in H1 2023); order backlog at period end was 3,745 tkr (9,348 tkr in H1 2023).

• Earnings per share for H1 2024 were -0,11 SEK (-0,19 SEK in H1 2023).

Outlook and guidance

• Strategic focus remains on achieving positive cash flow and building on current momentum for the rest of the year.

• Management believes current cash, combined with expected new orders, should be sufficient for the remainder of the year, with ongoing monitoring.

• The FDA collaboration is expected to be a significant milestone, potentially opening new opportunities in inhalation and in-vitro research.

• The company is actively seeking new clinical partnerships and expanding its service offering, especially through the Actarmo Medical partnership.