Senzime’s Capital Markets Day: Update on business, markets and key figures
Press release: Uppsala 4th of October 2021. At today’s Capital Market Day, Senzime provides a business update regarding ongoing businesses, evaluations, and key figures.
Senzime markets CE and FDA approved systems and cloud-based software to digitally measure the depth of neuromuscular blockade in patients before, during and after surgery, facilitating correct dosing of blocking and reversal agents. By indicating when the patient’s muscle function is restored, the clinician can safely remove the breathing tube without risk of complications. Fewer complications lead to shorter hospital stays and reduced cost of care.
The TetraGraph system includes a monitor, a software, and disposable sensors. The TetraSens sensors stimulates a nerve and records the response from the patient muscles. TetraSens is sold by Senzime according to a "razor / razorblade model" where the sale of the disposable sensors is the lever in the business model.
In 2020, Senzime carried out two new share issues with a total value of approximately SEK 170 million to continue the company's commercialization, among other things through the expansion of its own sales organization in the USA and Germany. Against this background, Senzime hereby updates on the business situation for TetraGraph as follows:
Senzime has established subsidiaries with its own sales organizations in the USA (Senzime Inc) and in Germany (Senzime GmbH). In the USA the organization consists of 10 employees and in Germany it consists of 3 employees. Additional recruitments are underway.
In France, the United Kingdom, Spain, Italy, Switzerland, Austria, South Korea and Australia, among others, sales take place through distributors. Also in the US, Senzime has agreements with two distributors.
The TetraGraph sales process is performed in several steps with hospitals as end customers. Most customers carry out internal evaluations, and decisions are often made by different types of Value Analysis Committees. A trial is the last step in the sales process before a final purchasing decision.
For September and October 2021, the number of ongoing or contracted trials to date worldwide amounts to 64 hospitals, with a total potential of approximately 750 TetraGraph systems if all operating rooms are equipped with a monitor.
Senzime estimates that the Lifetime Value (LTV) of a delivered TetraGraph, including the use of TetraSens sensors, amounts to 250 TSEK over 5 years with a gross margin exceeding 65 percent.
Senzime sees the potential to further increase the gross margin with higher volumes and direct local presence.
The previously announced target of 200 MSEK in sales 2023 remains despite the pandemic temporarily limiting Senzime’s access to hospitals. The goal corresponds to an installed base of 5000 TetraGraph systems by 2023.
The production of TetraGraph is being moved to Uppsala according to plan to increase margins and achieve better efficiency.
Senzime’s license agreement with Fukuda Denshi in Japan is proceeding according to plan.
At the Capital Markets Day, a customer case with a recently completed agreement with a large university hospital in the US is also presented. All 26 operating theatres are being equipped with a TetraGraph to be used when neuromuscular blocking agents are administered, which corresponds to an average of 60 percent of all surgeries. The hospital has also entered into an annual purchase agreement of TetraSens and other consumables.
“The number of TetraGraph evaluations are steadily increasing and is now at completely different levels than just a few months ago. We expect a continued high increase as our sales staff gain easier access to the hospitals. In parallel with our intensive sales work, we are preparing our production and delivery capacity to be able to respond to the orders we believe the evaluations will lead to”, says Pia Renaudin, CEO of Senzime.
Senzime develops and markets CE- and FDA cleared patient monitoring systems driven by unique algorithms and sensors to closely monitor patients under anesthesia. TetraGraph is a system that digitally and continuously measures the degree of neuromuscular blockade in the patient. The goal is improved clinical precision and simplified management in healthcare. By preventing complications and enabling healthcare professionals to follow guidelines and drug recommendations, TetraGraph can contribute to shorten hospital stays and lower healthcare costs. The vision is a world without anesthesia related complications, where everyone wakes up safely after surgery. Senzime operates in growing markets that in Europe and the United States are valued in excess of SEK 15 billion. The company's shares are listed on Nasdaq Stockholm’s main market (ticker SEZI) since June, 30 2021. www.senzime.com