We finished the third quarter strongly. In the quarter, we saw increased usage of our disposables on key markets, reflecting the growing installed base of monitors and interest in our technology. Overall, sales increased by 159 percent to SEK 3.7 m for the third quarter, and adjusted for the acquisition of Respiratroy Motion Inc. (RMI) and currency effects, growth was 79 percent. Gross profit was SEK 2.6 m, with a gross margin of 69.6 percent. Our gross margin continued to increase as a result of strong sales performance in the USA.
The installed base of TetraGraph® continued to grow steadily on our core markets, and usage of our disposables is rising, especially on our major hospital accounts. Sales of monitors were up by 45 percent and disposables by 113 percent in the third quarter, adjusted for RMI and currency effects. Sales increased by 32 percent in Europe, and 110 percent in the USA, adjusted for RMI and currency effects. We’re currently involved in several tenders in Europe, as well as negotiation processes in the USA that we expect to be carried out in 2023.
We completed our acquisition of Respiratory Motion at the beginning of the third quarter, and this operation has now been consolidated. We expect the expanded product portfolio to generate sales synergies from 2023 onwards. In the third quarter, ExSpiron® contributed sales of TSEK 757. We’ve started the process of transferring production of the ExSpiron® monitor to Uppsala, Sweden, which in time, we expect to increase our gross margin further.
The new guidelines that have been adopted by American Society of Anesthesiologists (ASA) represent a major recognition for Senzime, and for the millions of patients affected by critical complications from neuromuscular blocking agents every year. These new clinical guidelines include strong recommendations to observe patients with a quantitative monitor, rather than relying solely on clinical and subjective assessment. They also offered strong recommendations to hasten the use of quantitative monitoring to improve patient safety. Senzime’s TetraGraph is a patient monitoring system that satisfies the standards of these new American guidelines, enabling improved patient safety and fewer complications.
Our previously announced strategic partnership with American Masimo is progressing as planed. Our ambition is to submit the module developed to connect TetraGraph® with Masimo’s patient monitoring system Root® for approval at the end of 2023, and to launch at the beginning of 2024.
I’m grateful for all the hard work done by everyone at Senzime, and their efforts for patients on our markets. With new guidelines in place in the USA and Europe, we’re making good progress in continuing our efforts to eliminate complications to save lives, improve patient safety and reduce healthcare costs.
Pia Renaudin, CEO
Uppsala, Sweden, November 2022