OssDsign (OSSD) Strategy Update summary

Market positioning and clinical differentiation

• Focused on the U.S. spine biologics market, valued at $1.8 billion and experiencing strong growth, with a shift toward synthetic solutions due to efficacy and safety advantages.

• Catalyst product demonstrates unique dual bone formation, growing bone both at the edges and center, leading to rapid and robust fusion, supported by preclinical and clinical studies.

• Achieved significant clinical milestones, including 10,000 patients treated and 14 publications, with high gross margins of 95-96%.

• Clinical evidence shows high fusion rates and rapid outcomes, even in complex cases, with ongoing expansion of the PROPEL registry and plans for a large randomized control trial.

Strategic growth plan and investments

• Launched the "Scale to Profit" strategy for 2025-2028, aiming to accelerate growth and scale to profitability, with a focus on the U.S. market.

• Plans to double the sales force by end of 2025, expand into 15 more states, and increase market access from below 10% to 30% by 2028.

• Targeting adjacent segments such as pelvic (sacroiliac fusions) and extremities (foot and ankle), with preparations underway for broader launches.

• Two new products planned: a minimally invasive surgery (MIS) product expected in 2025 and a hydrophilic strip for lower back surgery by 2027-2028.

Financial targets and operational priorities

• Updated financial ambition to deliver sales exceeding SEK 400 million by 2028 and achieve profitability and positive cash flow in the second half of the strategy period.

• Fully funded plan following a recent directed share issue, supporting investments in sales, clinical evidence, and production scalability.

• Four strategic priorities: accelerate U.S. market access, expand product portfolio, build comprehensive clinical evidence, and scale production with increased U.S. footprint.

• Sales force currently around 10-11 people, with gradual ramp-up planned through 2026; growth targets account for sales team ramp-up time.