• Total Revenue (Q4 2024): SEK68.3 million, an increase of about 8% adjusted for currency effects.
• Full Year Revenue (2024): SEK261.9 million, an increase of close to 13% adjusted for currency effects.
• License Revenue (Q4 2024): SEK44 million, a growth of 38% adjusted for currency effects.
• BD Revenue (Q4 2024): SEK35.8 million, a growth of 24% adjusted for currency effects.
• Zimmer Biomet Revenue (Q4 2024): SEK3.6 million, a small increase of SEK0.5 million.
• Wound Management Revenue (Q4 2024): SEK15.6 million, a growth of about 12%.
• BIP Portfolio Revenue (Q4 2024): SEK3.2 million, a decrease of about SEK7 million.
• EBITDA (Q4 2024): SEK8.4 million, an increase of almost SEK13 million, with a margin of around 12%.
• Full Year EBITDA (2024): SEK18.0 million, an increase of SEK94 million, with a margin of about 7%.
• Operating Expenses (Full Year 2024): SEK207.9 million, a decrease of about 12%.
• Cash Flow from Operating Activities (Q4 2024): SEK18.9 million.
• Cash and Cash Equivalents (End of 2024): SEK116.7 million.

• Warning! GuruFocus has detected 2 Warning Signs with OSTO:BACTI B.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bactiguard Holding AB (OSTO:BACTI B) reported increased revenues and EBITDA profitability for both Q4 and the full year 2024, marking three consecutive quarters of positive financial development.
• The company successfully executed its strategic shift from production and sales to a knowledge specialist and licensed partnership organization, resulting in SEK18 million of EBITDA for the full year.
• Bactiguard's core infection prevention technology, which involves an ultra-thin coating of noble metals, has been validated by over 40 clinical studies involving more than 100,000 patients.
• The partnership with BD has been a significant contributor to revenue growth, with a 24% increase in revenues from BD in Q4 and a 33% increase for the full year.
• The wound management portfolio contributed to profitable growth, with regulatory approval of Hydrocyn aqua in India and positive study results published in the British Journal of Surgery.

Negative Points

• The termination of the orthopaedic products agreement with Zimmer Biomet due to complex US FDA approval processes was a setback, although it provided valuable insights into US regulatory requirements.
• Revenues from the BIP portfolio decreased by SEK7 million in Q4, and no additional BIP revenues are expected for the coming fiscal year.
• The company faces challenges in the regulatory processes for market registrations, which can delay new market launches.
• There is uncertainty regarding the future revenue levels from Zimmer Biomet, particularly after the termination of the broader orthopaedic agreement.
• The company is still conducting a review of its financial targets, indicating potential uncertainty or adjustments in its long-term financial outlook.

Q & A Highlights

Q: Can you provide more details on the higher BD sales and the potential for continued growth in 2025? A: Patrick Bach, CFO, explained that there was strong growth from BD in both the quarter and the full year, with a Q4 increase of almost SEK7 million (23%) and a full-year increase of over SEK30 million (33%). The growth is attributed to both new and existing markets, and there have been no changes in pricing. The partnership with BD is expected to continue strengthening across all markets.

Q: Regarding the Zimmer Biomet Agreement, will revenues be higher or lower in 2025 compared to 2024? A: Patrick Bach, CFO, stated that they cannot predict the sales levels for 2025. However, the Q4 results included the last revenues from the now-discontinued orthopaedics agreement. Revenues from the trauma agreement are driven by both minimum royalties and market royalties, which is expected to continue into 2025.

Q: What is the timeline for the market registration of Foley catheters with BD, and which markets will be targeted in 2025? A: Christine Lind, CEO, mentioned that BD has global rights outside of China, with a focus on the US market. The regulatory processes are ongoing, and while they are making filings to enable market launches, the exact timelines depend on regulatory authorities. The partnership is expected to cover both new and existing markets.

Q: What milestones should we look out for in the clinical studies over the next 12 to 18 months? A: Christine Lind, CEO, noted that the clinical trials have relatively long endpoints, such as a 12-month follow-up for infections associated with fractures. The studies are ongoing, and while updates are received from Zimmer, full results will be shared once the studies are complete.

Q: Are you anticipating continued cost reductions in 2025 compared to 2024? A: Patrick Bach, CFO, stated that while they will continue to focus on cost control, they do not anticipate further cost reductions. The company will make necessary adjustments to achieve growth while maintaining a commitment to EBITDA profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.