CEO statement

2024 was a year in which customers continued to show interest in our services, but also a year characterized by slow decisions on our offers and where many customers continued to face challenges in financing their development projects. This is something we experienced throughout the year, resulting in lower turnover and sales. Our assessment for 2025 is that the customers' situation has improved but will continue to require intensive sales work on our part to ensure increased conversion of our pipeline of approximately SEK 40 million. We have a continuous and close dialog with our customers about our technology and our unique services.

 

We look forward to publishing the completed co-study with the US FDA for our DissolvIt module which we expect will lead to increased sales. The initial feedback has been very positive and we are awaiting the FDA's final approval to share the data with the market and interested customers.

  

We also plan to launch an upgraded version of the XposeAli module for In Vitro, now with Microperfusion. This is something that biological customers lack today and has been requested for a long time. The combination of DissolvIt for mainly generic customers and XposeAli Microperfusion for biological customers makes ISAB a unique provider of In Vitro services with the same platform technology. Furthermore, in combination with our well-established modules on the In Vivo side, we can secure a leading position in delivering high quality services in the field of In Vitro-In Vivo Correlation (IVIVC).

 

Given the market and customer challenges in 2024, we have reduced operating expenses proportionally and in line with our revenues and have ended the year with a stable cash position. As of the end of December 2024, the company's cash and cash equivalents amounted to SEK 4.4 million. However, considering the company's decided strategic plan, with a focus on growth, additional capital and liquidity are deemed necessary. The Board is currently evaluating various financing options for the company's growth journey ahead.

 

We are also in continued dialog with potential partners for the clinical application of PreciseInhale.

 

Management and the Board are working on a plan for 2025 to ensure that our services and technology will generate new customer projects, the publication of FDA data, new growth areas and evaluate several strategic opportunities for the company.

 

Huddinge, February 28, 2025

Manoush Masarrat

CEO 

 

 

Summary of Year-End Report

 

• 2024 has been a year in which customers continued to show interest in our services, but also a year characterized by slow decisions on our offers and where many customers continued to have challenges in financing their development projects. This is something we experienced throughout the year, resulting in lower turnover and sales.

 

• Our assessment for 2025 is that the customers' situation has improved but will continue to require intensive sales work on our part to ensure increased conversion of our existing inquiries and pipeline of about SEK 40 million. We have a continuous and close dialog with our customers about our technology and our unique services.

 

• The combination with DissolvIt for mainly generic customers and XposeAli Microperfusion for biological customers makes ISAB a unique provider of In Vitro services performed on the same platform technology. Furthermore, in combination with our well-established modules on the In Vivo side, it allows us to secure a leading position in delivering high quality services in the field of In Vitro-In Vivo Correlation (IVIVC).

 

• Given the market and customer challenges in 2024, we have reduced operating expenses proportionally and in line with our revenues and have ended the year with a stable cash position. As of the end of December 2024, the company's cash and cash equivalents amounted to SEK 4.4 million. However, in light of the company's decided strategic plan, with a focus on growth, additional capital and liquidity are deemed necessary. The Board of Directors is currently evaluating various financing options for the company's growth journey ahead.

 

Fourth Quarter (Oct – Dec) 2024

 

Net Revenue kSEK 1,492 (5,484)

Operating profit kSEK -2,406 (-749)

Earnings per share before and after dilution SEK -0.16 (-0.07)

Sales* during the period kSEK 918 (7,995)

Order backlog** at the end of the period kSEK 617 (8,966)

 

Reporting period (Jan – Dec) 2024

 

Net Revenue kSEK 11,047 (17,504))

Operating profit kSEK -5,076 (-3,756)

Earnings per share before and after dilution SEK -0.34 (-0.36)

Sales* during the period kSEK 3,583 (15,543)

Order backlog** at the end of the period kSEK 617 (8,966)

 

*Sales is the value of products and services sold during the current period, i.e. sales and not to be confused with net turnover.

 

**Order backlog is signed customer contracts for both products and services not yet invoiced to customers, where work is still in progress and delivery has not yet been made to the customer.

 

Selected financial data in summary

	2024 Oct-Dec	2023 Oct-Dec	2024 Jan-Dec	2023 Jan-Dec
Net turnover, kSEK	1 492	5 484	11 047	17 504
Operating profit, kSEK	-2 406	-749	-5 076	-3 756
Profit after tax, kSEK	-2 413	-903	-5 147	-4 744
Balance sheet total, kSEK	10 529	18 168	10 529	18 168
Cash flow for period, kSEK	-962	-1 864	-3 380	5 986
Cash flow per share for period (SEK)	-0,06	-0,12	-0,22	0,45
Cash and cash equivalents, kSEK	4 445	7 825	4 445	7 825
Earnings per share before and after dillution (SEK)	-0,16	-0,07	-0,34	-0,36
Equity, kSEK	7 807	12 954	7 807	12 954
Equity per share (SEK)	0,51	0,85	0,51	0,85
Equity ratio, %	74,15%	71,30%	74,15%	71,30%
Research and development costs/operating costs, %	38,10 %	31,44%	42,95%	38,75%
Number of shares	15 167 637	15 167 637	15 167 637	15 167 637

 

 

Significant events during the fourth quarter (Oct-Dec) 2024

 

• On October 10, the company announced the publication of the successful study with the company's   In vitro module,  XposeALI®  together  with  Karolinska  Institute.  The publication was made in Frontiers in Medicine (Pulmonary Medicine Section).
• On October 16, the company provided an update on the status of the ongoing DissolvIt study with the US Food and Drug Administration (FDA), one of the key decision-making bodies for drug development.
• On December 17, the company announced two new sales orders from repeat customers. These orders were for product service with a total value of 33,900 Euro.
• Significant events during the reporting period (Jan-Dec) 2024

 

 

Significant events during the reporting period (Jan-Dec) 2024

 

• On January 22, the company announced that it has entered a strategic partnership with the German company Actarmo Medical GmbH, in line with the company's stated strategy to expand its portfolio of inhalation research services. Actarmo has an established customer base and expertise in formulation development, analytical testing under full good manufacturing practice (GMP) and consulting services for all aspects of inhaler delivery devices. With this partnership, ISAB's potential market (TAM) is expanded by 30% to a total of approximately EUR 630 million.
• On March 11, the company announced the publication of its feasibility study for clinical use of the PreciseInhale platform in the prestigious European Journal of Pharmaceutical Sciences. This enables in-depth collaboration discussions with companies active in the clinical market that ISAB did not have access to before and a market with an estimated value of SEK 5 billion.
• On April 10, the company announced that it has been invited by the FDA to present the company's technology during the FDA's public workshop GDUFA (generic Drug User Fee Amendments) on May 20, 2024. This workshop will be open to the public and aims to inform about the ongoing research that can contribute and improve the development of generic drugs.
• On May 21, the company announced a product order with a value of approximately 700 KSEK. This order is from a recurring customer who is among the top 5 in the

world in generics and has ISAB's PreciseInhale instrument and DissolvIt module installed for several years.

• On June 13, the company announced an IRS order with a value of approximately 600 KSEK. This order is from a recurring customer that is one of the top 10 pharmaceutical companies in the world.
• On August 12, the company announced its intention to call an Extraordinary General Meeting to elect Ulf Ericsson as a new member of the Board of Directors. Ulf Ericsson, born in 1966, has 28 years of experience in life science, specializing in pharmaceuticals, inhalers and inhalation formulations. He has worked at Astra Zeneca for 17 years, mostly in senior positions with global responsibility. He is currently an independent consultant in business development and strategy in life science.
• On August 15, the company announced several orders with a total value of approximately SEK 600 thousand. These mostly concern service assignments (IRS) from ISAB's regular customers.

 

Significant events after the reporting period

 

• On January 10, the company announced a new IRS order with a value of SEK 212,000 from a repeat customer who is a leader in generics and biosimilars.
• On January 13, the company announced its launch plan for the upgraded version of the XposeAli module, now with Microperfusion. This module is intended for the biological market with a potential of about 4 billion dollars.

 

Corporate events

 

• On August 12, the company announced its intention to call an Extraordinary General Meeting to elect Ulf Ericsson as a new member of the Board of Directors. Ulf Ericsson, born in 1966, has 28 years of experience in life science, specializing in pharmaceuticals, inhalers, and inhalation formulations. He has worked at Astra Zeneca for 17 years, mostly in senior positions with global responsibility. He is currently an independent consultant in business development and strategy in life science.

 

Multi-year overview

 

kSEK	2024	2023	2022	2021	2020
Net revenue	11 047	17 504	12 194	9 422	10 137
Profit after net financial terms	-5 147	-4 744	-12 125	-16 609	9 875
Balance sheet total	10 529	18 168	12 985	26 112	18 488
Equity ratio, %,	74	71	58	75	57
Average number of employees	6	8	9	9	8

 

 

For more information about Inhalation Sciences, please contact:

Manoush Masarrat, CEO

E-mail: Manoush.masarrat@inhalation.se

Mobile: +46 (0)73 628 9153

 

About Inhalation Sciences Sweden AB (publ)

Inhalation Sciences Sweden AB (publ) develops and commercializes world-leading instruments and services for research into inhalation. The company’s patented lab instruments PreciseInhale® and DissolvIt® enable researchers in the pharma industry to make drug pipeline decisions at an early stage, saving time and resources for R&D departments, and enables researchers in academic institutions to define how aerosols and small particles impact our lungs, and so our health, when being inhaled.