Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PhotoCure ASA (PHCUF, Financial) reported a 6% increase in Hexvix/Cysview revenues year over year, driven by higher average pricing and volume increases in North America.
- The company has raised its guidance for Saphira tower placements in the US to 55-70, reflecting strong growth and market penetration.
- PhotoCure ASA (PHCUF) achieved positive EBITDA of NOK 27.8 million, an improvement from the previous year, indicating effective cost management and revenue growth.
- The company is actively expanding its presence in Europe, with double-digit growth in priority markets and a strategic partnership with Richard Wolf to develop a new Flex Blue Light system.
- The ForTec Mobile strategy is underway, aiming to increase access and affordability of Blue Light Cystoscopy in the US, with 18 systems being deployed.
Negative Points
- The Flex segment in North America is experiencing a phase-down, negatively impacting Cysview usage and requiring offset by rigid market growth.
- PhotoCure ASA (PHCUF) faced challenges in Europe due to hospital strikes in Sweden and shifted purchasing patterns in Germany, affecting Q2 performance.
- The company's revenue guidance remains broad, with uncertainties around the impact of new initiatives like the ForTec rollout and Olympus system launch.
- The development timeline for the Richard Wolf Flex Blue Light system is estimated at 2 to 2.5 years, delaying potential market entry and revenue generation.
- Despite positive developments, the company has not provided specific growth contribution expectations for the ForTec initiative in the second half of the year.
Q & A Highlights
Q: When you say Q2 performance in Europe is not expected to affect the full year, what type of performance are you expecting out of Europe in terms of growth?
A: Erik Dahl, CFO, explained that despite some setbacks in Q2, such as shipment movements and healthcare strikes, the company has already captured much of the lost ground in July. They expect Europe to contribute to the 6% to 9% revenue growth guidance for the year.
Q: What are the potential swing factors that could affect the high and low ends of your revenue guidance?
A: Daniel Schneider, CEO, mentioned that the launch of Olympus systems, upgrades in Germany, and the impact of the ForTec strategy in the US are key factors. These developments are expected to contribute positively to revenue growth.
Q: Can you offer a growth contribution range for ForTec in the back half of the year?
A: Daniel Schneider stated that it is too early to provide specific numbers as the 18 towers are just being deployed. However, they expect these to be more productive than the existing base.
Q: What is the estimated timeline for the Richard Wolf Flex development?
A: The development is expected to take 2 to 2.5 years, or 24 to 30 months. The company is looking for ways to expedite the process without compromising quality.
Q: With all the new therapeutics approved or in late-stage trials for non-muscle invasive bladder cancer, are you engaging with these manufacturers?
A: Daniel Schneider confirmed that they are actively engaged with several manufacturers. The company believes Blue Light Cystoscopy can play a significant role in the success of these new therapeutics by ensuring appropriate patient selection and treatment efficacy.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
