Inhalation Sciences (ISAB) Q3 2024 earnings summary

Executive summary

• Sales from new signed offers slightly exceeded the same period last year, but recognized revenues and net sales declined year-over-year due to slow customer decision-making and funding delays.

• Net sales for Q3 2024 were SEK 2.3 million, down from SEK 3.4 million year-over-year; nine-month sales totaled SEK 9.6 million, down from SEK 12.7 million.

• Operating loss improved by 12% for Jan–Sep 2024, reaching SEK -2.7 million compared to SEK -3.0 million last year, driven by effective cost adjustments.

• Order intake for Q3 increased to SEK 843 thousand (SEK 330 thousand last year), but order backlog at period end was SEK 2.2 million, down from SEK 6.3 million.

• The pipeline remains strong at around SEK 40 million, with active discussions ongoing with both existing and new customers.

Financial highlights

• Q3 2024 net sales: SEK 2.3 million (Q3 2023: SEK 3.4 million); Jan–Sep 2024: SEK 9.6 million (Jan–Sep 2023: SEK 12.7 million).

• Operating profit improved by 12% for January to September 2024 compared to the same period last year.

• Q3 operating loss: SEK -1.0 million (Q3 2023: SEK -1.0 million); Jan–Sep operating loss: SEK -2.7 million (Jan–Sep 2023: SEK -3.0 million).

• Cash and cash equivalents at period end: SEK 5.4 million, nearly unchanged from the end of Q2.

• Equity ratio at period end: 76.1% (74.9% last year); equity at period end: SEK 10.2 million.

Outlook and guidance

• A clear commercial plan is set to be activated following FDA approval of the ongoing study, with commercial activities expected to start early next year.

• Top-line data from the FDA study is expected to be shared within a couple of months, with full publication in H1 2025, targeting the growing generics market in inhaled drug development.

• Management continues to focus on converting a stable pipeline of SEK 40 million in sent offers to formal orders.

• Cost structure has been adapted to current market conditions to move towards profitability and positive cash flow.

• Strategic evaluation ongoing to expand service portfolio and ensure long-term financial stability.