CEO comments

 
SyMRI sales continue to increase

The increase in number of sold SyMRI licenses continued in the second quarter and sales growth in the first half year is well above 100% compared to the same period last year. The increased sales of SyMRI has given us a stronger product mix compared to previous periods.

Sales to GE Healthcare of the customized product they market as MAGiC were negatively impacted by effects related to the pandemic. The situation gives, not surprisingly, consequences such as changed priorities and postponed projects for some end customers. Positive in this context is that we have no example of planned projects being canceled.

As informed during the period, Philips Healthcare USA has now included SyMRI in its product catalog. After a long process, it is very gratifying that this important partner now prioritizes putting more focus on offering our solutions to their customers. This contributes significantly to our strategy of increasing resources to market and sell SyMRI. We saw the first results of the developed collaboration during the same quarter through an order from ProScan Imaging. This time-limited license order was the first from an end customer consisting of 25 independent clinics in seven different states of the United States.

The increases sales of SyMRI and the collaboration agreement with Philips Healthcare are concrete results of the investments we have made in our own sales resources in priority markets.

Sales during the second quarter amounted to SEK 9.9 million (12.9), which is a decrease of 23 percent compared to the corresponding period last year. The decrease is attributable to the lower sales to GE Healthcare.

The operating profit amounted to SEK -3.0 million (3.2) in the second quarter, which corresponds to a margin of -30 percent (25). In addition to the lower sales mentioned above, the lower result is also due to the increased investment in own sales resources, primarily in the USA. We feel secure with the investment in the market organization. We continue to ensure that in the event of any negative market signals, our costs are largely scalable and thus can be reduced quickly.

Strengthened collaboration for continued growth and product development

In addition to the agreement with Philips Healthcare, the processes continue successfully with existing and new partners. For example, our relationship with GE Healthcare is further developed around how sales of existing products will grow. The discussions with new partners now focus mainly on commercialization.

Collaboration with our partners is also important in the highly prioritized work to develop our product portfolio. Several joint development projects around the next generation of SyMRI are proceeding as expected. Our 3D technology-based product will significantly improve the output of an MRI examination, which will provide major benefits for the healthcare providers’ management of various disease states. Another very interesting project is the development of the product we sell today to also include examination of the musculoskeletal system, including, for example, knee and spine. As with the product's currently approved brain examination, a large proportion of all MRI examinations are done in this area. A broader approval increases the sales potential of SyMRI significantly. In order to improve our product development plan, we frequently consult our clinical advisors. This is a newly formed group and consists of several renowned specialists from reputable hospitals and universities.

The right conditions for growth

I am confident that we are implementing the right strategies, and the positive feedback from the market strengthens me in this conviction. The feedback from our customers and partners testifies to the strength of our unique product offerings and that we are taking the right initiative to develop our product portfolio. The new payment model that builds a customer base for recurring sales of SyMRI over time is introduced efficiently. The external situation has had a slightly limiting effect on our operations so far. Even so we have succeeded in increasing the number of completed and started business processes during the quarter in a satisfactory way in all our priority markets. Over time, we will increase sales growth by implementing a commercially sustainable plan by a very competent and professional organization.

For further information, please contact Ulrik Harrysson, CEO SyntheticMR AB, +46 70 529 29 87 or Johanna Norén, Interim CFO SyntheticMR AB, +46 70 619 21 00.
 

This information is information that SyntheticMR AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on July 14th 2020.

SyntheticMR AB develops and markets innovative software solutions for Magnetic Resonance Imaging (MRI). SyntheticMR AB’s product SyMRI® delivers multiple contrast images and quantitative data from a single 6-minute scan. The product is available in different packages. SyMRI IMAGE supports faster MRI workflows and improved patient throughput. SyMRI NEURO delivers automatic segmentation of brain tissue, supporting objective decision support. SyMRI is CE-marked and FDA 510(k) cleared. SyMRI is a registered trademark in Europe and in the USA. SyntheticMR is listed on the Spotlight Stock Market in Stockholm, Sweden. For additional information, please visit www.syntheticmr.com.