Chordate Medical is a medtech company listed on Nasdaq First North Growth Market. The company has developed Ozilia – a neuromodulating, drug-free treatment for chronic migraine and rhinitis. Today, Ozilia is used in clinics in Sweden, Germany, Italy, Saudi Arabia, and Switzerland.
– This is a noteworthy increase but, relatively speaking, continued to be at a low level and falls within the fluctuation associated with the phase of early commercialisation, which is where the company is currently positioned. […] We are pleased to note increasing sales to the EMEA, which is a direct result of the addition of the new distributor Narro Medical for the migraine area in Saudi Arabia.
Cash flow from operating activities was -SEK 6.05 million. At the end of the period, the company’s total cash and bank balances amounted to SEK 12.86 million.
Publication in Neurology and expanded study
The most prominent event of the quarter was the publication of results from the migraine study PM007 in the scientific journal Neurology. The study demonstrated that Ozilia significantly reduces the number of headache days per month and confirms that the treatment has an effect comparable to conventional drugs used for the preventive treatment of chronic migraine.
Furthermore, the company’s ongoing follow-up study, PM010, was expanded earlier this year with the inclusion of Inselspital, University Hospital for Neurology in Bern, Switzerland, as the twelfth participating clinic. PM010 is an open-label long-term study of Ozilia conducted across four European countries, with up to 200 planned participants. Results from the study will be reported on an ongoing basis and will support both regulatory requirements and the optimisation of treatment recommendations.
New distributor in Saudi Arabia
As part of its continued international growth strategy, Chordate Medical expanded its presence in Saudi Arabia during the quarter by appointing a new distributor – Narro Trading Est. (Narro Medical).
The company already had an established distribution collaboration in the country, but sees a growing need for additional focus and specialist expertise in neurology, particularly in relation to migraine treatment. This addition aims to intensify market efforts and strengthen the company’s position in this key growth region.
Strengthened cash position in Q1
To ensure continued market development and support the ongoing exit process, Chordate Medical carried out a rights issue during the quarter, which was subscribed to 79.9 percent. Given the uncertain market climate, the result is considered strong. The capital raise added approximately SEK 17.7 million to the company before transaction costs.
CEO comments
BioStock contacted CEO Anders Weilandt to learn more about the key milestones of the first quarter and the company’s plans going forward.
How would you summarise the first months of 2025 for Chordate Medical?
– Getting the PM007 study published in Neurology is the single most important achievement in terms of scientific validation in the company’s history. The journal’s classification of the study and the significance of the results at Class 1 level are extremely important, and something we are proud of.
– The continued support from our shareholders, which allows us to focus on the final strategic step towards a potential exit, is absolutely crucial for the company.
The report shows that most sales came from the EMEA region. What opportunities do you see for further growth and presence in that region?
– Saudi Arabia is by far the largest and most important market in EMEA. Once Ozilia is established as a treatment there, it is reasonable to expect that the treatment will spread to other markets in the region.
You have made efforts to reduce costs, yet Q1 still shows a significant negative cash flow. What are the main factors driving this?
– The costs of the rights issue are recorded on the balance sheet but affect cash flow, which disturbs the year-on-year comparison. Cost reductions are ongoing and will be reflected evident in the upcoming quarters.
How long is the company’s financial runway with the current cash position, and how do you plan to prioritise spending moving forward?
– Since our costs will decrease gradually, our runway is extended, supporting the ongoing exit efforts. We do not provide forecasts, so that will become clear in future reporting.
Finally, how do you view the timeline for the exit process? What milestones need to be reached before the next step can be taken?
– Finding an international buyer for a company is a highly dynamic process, and we are right in the middle of it. The timeline is governed by that dynamic and does not involve milestones we can directly control. The process identifies those parties that show the greatest interest and are willing to move toward a more formalised stage of discussions. I cannot comment on the specific developments within the process at the moment, other than that it remains our full focus.
