PHI - Q4 + helåret

PHASE HOLOGRAPHIC

Year-end report 2023/24 (Cision)

2024-06-26 08:04

FEBRUARY 2024 – APRIL 2024

Net sales	1 686(1 869) KSEK
Operating result before depreciation (EBITDA)	-2 719 (-4 240) KSEK
Net result	-5 349(-7 717) KSEK
Earnings per share	-0.22 (-0.38) SEK
Gross margin	60 (31) %

MAY 2023 – APRIL 2024

Net sales	10 510 (9 900) KSEK
Operating result before depreciation (EBITDA)	-12 287 (-16 866) KSEK
Net result	-20 175 (-23 185) KSEK
Earnings per share	-0.81 (-1,16) SEK
Gross margin	71 (51) %

IN SHORT

• PHI has increased its recognition in the growing regenerative medicine field. Our CSO, Kersti Alm, delivered an impactful presentation at the Alliance for Regenerative Medicine conference in Rome.
• We welcomed Ivan Jurkovic to the PHI Board to support our growth and strategic objectives.
• In March, PHI’s sales partner, Altium, hired a distributor manager who has been actively engaging with potential sales partners to open new markets and increase our global footprint.
• We have been intensely involved in supporting Altium by training new sales colleagues and providing support at initial product demonstrations, taking noticeable resources from the PHI team. However, we know that we set ourselves up for future returns.
• PHI published “Shaping the Future of Regenerative Medicine – PHI’s Vision for QPI in Cell Therapy Manufacturing” to outline its vision for QPI technology in regenerative medicine and the technology’s capability to enhance cell quality control throughout the whole cell manufacturing cycle – from bedside to bedside.

CEO COMMENTARY

This spring has been a dynamic and productive period for PHI, as our team and partners have made significant efforts on multiple fronts. Externally, our collaboration with Altium has focused on expanding our sales processes and networks and enhancing our market presence. Internally, our dedicated team has been advancing our ongoing regenerative medicine projects and refining our HoloMonitor technology.

Increased Visibility within Regenerative Medicine

Our visibility in the industry has grown substantially through participation in key investor and regenerative medicine events this spring. Our Chief Scientific Officer, Kersti Alm, delivered an impactful presentation at the Alliance for Regenerative Medicine conference in Rome, highlighting our position in the emerging field of regenerative medicine. These engagements help us find new, exciting partnerships and strengthen existing relationships and PHI’s position in the field.

Additionally, we published a well-received opinion piece, “Shaping the Future of Regenerative Medicine – PHI’s Vision for QPI in Cell Therapy Manufacturing“, which outlines our vision for establishing Quantitative Phase Imaging (QPI) as the gold standard for cell quality control measurements for cell therapies. This publication underscores our commitment to innovation in regenerative medicine and highlights our strategic goals for the future.

Strengthening Our Team and Board

To support our strategic growth and expand our market presence, we have had key additions to our team and board. Since March, Daniel Soor has joined the Altium team as our new distributor manager. Daniel is actively engaging with potential new sales partners worldwide, with a mission to open new markets and broaden HoloMonitor’s global footprint. His efforts are central to supporting our sales strategy and expanding our reach through Altium’s extensive network.

Additionally, we were pleased to announce Ivan Jurkovic as a new board member. Ivan, Altium’s CFO, brings a wealth of experience in financial strategies and risk management, which will be invaluable as we pursue our growth objectives in regenerative medicine. His understanding of financial strategies will aid our growth and objectives, ensuring we navigate the complexities of the regenerative medicine market effectively.

Sales Strategy and Progress

Our collaboration with Altium is critical to scaling our sales processes and networks. We are fully aware that building these systems and relationships does not happen overnight. The sales cycle in the pre-clinical research market is inherently lengthy, involving multiple partners and often complex decision-making processes. Researchers and academics usually require extended periods to secure funding or grants necessary for purchasing new equipment, which contributes to the extended sales cycles, which typically range from 6 to 12 months.

Currently, we are intensely involved in supporting Altium with the training and development of all our new sales partners and colleagues. This period is very demanding for the entire PHI team as we provide comprehensive training, assist in initial on-site product demonstrations, and offer hands-on support. I am proud of the whole team for its dedication and teamwork in this fast-moving period. We know that these efforts are essential investments to ensure our partners are well-equipped to represent HoloMonitor effectively and drive sales.

While sales this quarter were not as strong as anticipated due to our focus on intense training, process building and hand-overs, we remain optimistic about Altium’s contributions in the latter part of 2024. The groundwork is laid now, and through rigorous training and support, we look forward and expect to yield improved results as we move forward. We are confident that the strategic initiatives we have implemented will begin to show significant returns, enhancing our market presence and driving growth in the latter half of the year.

Looking Ahead

Moving forward, we are committed to anchoring our position in the regenerative medicine market, expanding our collaborations and HoloMonitor’s global reach. Our goal is to make Quantitative Phase Imaging (QPI) a measurement standard for cell quality control, ensuring that future cell therapies are safe, cost-effective, and widely accessible.

I want to thank our whole PHI team, partners, and stakeholders for their unwavering support and belief in our vision.

Have a good summer,

Patrik Eschricht, CEO

ABOUT PHI

Phase Holographic Imaging (PHI), a leading medical technology company, develops and markets its non-invasive time-lapse imaging instruments for studying living cells.

The foundation of PHI’s current commercial HoloMonitor® products is Quantitative Phase Imaging (QPI) technology. This technology brings an innovative approach to real-time cell quality evaluation. It offers a detailed analysis of a large number of cell health and behavior characteristics without harming or influencing living cells and thus differing from conventional measurement methods, which often jeopardize cell integrity.

PHI is actively focusing on developing its business to expand from its current pre-clinical research market to the sizable healthcare industry and the emerging regenerative medicine field.

PHI envisions setting a new benchmark with QPI as a gold standard method for cell quality control, enabling regenerative treatments to advance and making future cell therapies safe, reliable, and economically and universally accessible for patients worldwide.

The addressable market

PHI has been active within the pre-clinical and biomedical cell research market, having established a global presence with HoloMonitor® systems and their scientific validation in both academia and industry, primarily addressing cancer, stem cell and drug development research.

PHI’s HoloMonitor technology is transforming pre-clinical research by providing a foundation for better cell models, which are critical before clinical drug testing. This innovative approach, utilizing Quantitative Phase Imaging (QPI), ensures cells remain unaffected during analysis. Unlike conventional cell measurement methods that often require genetic manipulation or staining with toxic substances, QPI offers a non-invasive alternative that maintains the integrity of cell cultures. This advancement addresses the critical need for accurate, cost-efficient preclinical data to reduce the high failure rates in drug development. With 9 out of 10 drugs failing in clinical trials due to ineffective results or adverse effects, largely stemming from flawed preclinical outcomes, PHI’s technology represents a significant leap forward. By enabling scientists to obtain better data without compromising cell health, HoloMonitor sets a new standard in drug development and basic medical research, aiming for more successful patient outcomes and reduced research expenses.

PHI is strategically prepared to extend its reach into the large clinical market and emerging regenerative medicine field, which presents significant growth opportunities. By striving to achieve Good Manufacturing Practice (GMP) standards and create a company quality management system (QMS), PHI aims to penetrate these markets in the future, where its non-invasive cell analysis solutions can offer critical cell quality control assessment.

Regenerative medicine is a groundbreaking field focused on developing methods to regenerate, repair, or replace damaged cells, tissues, or organs. It integrates biology, chemistry, computer science, and engineering to develop treatments for conditions previously thought untreatable. It has already begun to transform healthcare by offering new hope to patients with conditions like cancer, Parkinson’s disease, diabetes, and deafness, displaying its vast potential to improve and save lives around the globe.

Business model & strategy

PHI markets a competitive combination of sophisticated software and quality hardware, constantly evolving its offerings through in-house development in response to changing market needs. The production of the hardware and accessories is strategically outsourced to specialized subcontractors located in Sweden.

PHI’s business model strategically centers around the HoloMonitor portfolio, designed to meet the specific needs of academia and industry research labs. The company prioritizes direct interactions and live product demonstrations at potential customer facilities, particularly in cell-based research environments. Combined with a digital marketing approach, this sales strategy is essential for demonstrating HoloMonitor’s advantages firsthand, aiming to foster trust and enabling customers to assess its suitability for their unique research needs. The sales process at PHI is designed to align with the detailed and extended decision-making cycles often found within the scientific community. It accounts for the crucial phase of securing grant funding or other financial support for institutions looking to invest in new research equipment. As a result, sales cycles typically span 6 to 12 months.

PHI is actively expanding its global reach within its current core markets, such as North America, Europe, Asia, and Australia, while also exploring new territories. At the heart of this strategic expansion is the partnership with Altium, a major investor and global distributor of PHI. Altium’s engagement has been transformative for PHI’s operations, not only providing substantial financial backing but also significantly enhancing PHI’s market presence through Altium’s well-established sales channels and distribution networks. The joint efforts aim to broaden the geographic reach and adoption of the HoloMonitor system, utilizing targeted demonstrations and deeper market penetration to enhance sales performance and cash flow, positioning PHI as a key player in its field. This collaboration enables PHI to focus on its core expertise and innovation capabilities—advancing QPI technology and product development within regenerative medicine.

Achieving future goals

PHI is focusing on achieving important milestones in the coming years, utilizing the potential of its partnerships and collaborations. PHI has a clear focus on expanding its business to the clinical research market and positioning itself in the Regenerative Medicine field.

The collaboration with Altium is instrumental in PHI’s approach to gaining a stronger foothold in the regenerative medicine field, where PHI’s cell quality control technology can meet critical industry needs. PHI is also actively fostering alliances with leading institutions such as the Wake Forest Institute for Regenerative Medicine (WFIRM), renowned for its groundbreaking contributions to translating scientific research into clinical therapies. Collaborating with WFIRM enriches PHI’s initiatives, providing access to an exceptional ecosystem of expertise and innovation. This partnership bolsters PHI’s leadership in regenerative medicine, enabling the ongoing development and application of PHI’s cell quality control technology.

PHI engages in these strategic relationships to fortify the Company’s position as a thought leader in the field with the intention to accelerate progress, bolster market penetration, open new doors to new business opportunities, and enhance shareholder value. 

Min kommentar
Försäljningen var som väntat inte mycket att hänga i julgranen. Man skriver att perioden har präglats av utbildningsinsatser för Altiums personal,vilket har tagit resurser från PHI som annars skulle varit ute och krängt instrument. Gott så.

Kikar vi på några delar av rapporten ser vi att den så viktiga bruttomarginalen förstärkts från 51% till 71%. På helåret har man sänkt kostnadsmassan med 3 Msek vilket är bra. Man nämner försäljningscyklerna,att det tar tid från att penetrera kundmassan till avslut sker.Det för att pot kunder ska få loss pengar för inköp. Det får man ha respekt för och är alltså inget ovanligt inom forskarvärlden.

Man skriver att man jobbar vidare på att få till en standard för HoloMonitor samt ett kvalitetssystem på plats.Detta är crucial för att etablera HoloMonitor och QPI som ett accepterat instrument och teknik för forskningsvärlden. Man är fortfarande inne i intensiva utbildningsinsatser för Altium vill man understryka.

Ok,så vad ska vi tycka om denna rapport då?

Jag hade gärna sett bättre försäljningssiffror ska jag erkänna. Men som långliggare i aktien har man lärt sig att det mesta tar tid och att man ska vara utrustad med stora mått av tålamod.Jag har tålamod då jag vet att QPI och HoloMonitor förr eller senare kommer slå igenom,och när det sker kommer det synas rejält i säljeriet. På +sidan är den högre bruttomarginalen samt den lägre kostnadsmassan hoppingivande.Men för att få till en lönsamhet kan man inte bara trimma verksamheten utan det krävs volymsälj att slå ut detta på. Först då är man på säker mark och kan titta på expansion i den större skalan. Nu skriver man dock att ett sådant synsätt är på gång i organisationen,där Altium ska stå för säljeriet och PHI för det interna utvecklingsarbetet och finslipandet. Exakt så vill jag se att att framtiden blir. Att jämka samman 2 verksamheter till 1 stark aktör. Det är man alltså på gång med. Men som sagt,tålamod var ordet. Sen hade jag gärna sett några rader om vad som sker bakom kulisserna som ex bygget av mackapären för tillverkning av stamceller. Men ok det lär vi få reda på via andra kanaler när det finns info att förmedla. All´n all :man knegar oförtrutet på.

Vi får nöja oss med det.

                                               Mvh the99