The spread of the new Coronavirus is affecting business world-wide. For some companies, however, the economic strain is minimal. This is the case for the Swedish inhalation device company Iconovo, who are in a strong financial situation thanks to a recent heavy haul of cash.
The whole world seems to be on hold as Covid-19 continues to spread incessantly. The markets have generally reacted negatively to the outbreak, however, as is the rule of market economy, businesses with stable financial situations are best equipped to tackle the upcoming weeks/months of economic slowdown.
Iconovo is on stable financial footing
One example is Lund-based Iconovo, a company specialising in developing generic inhalation devices and respective drug formulations.
Last year, Iconovo was able to raise 60 MSEK. The huge cash haul not only gives the company the needed resources to develop a fourth inhalation platform called ICOpre, which is meant to become a generic for GSK’s Ellipta platform, it also gives Iconovo enough leeway to avoid refinancing in the current market climate.
Read more about the large potential for ICOpre here.
Hardly affected by coronavirus outbreak
Iconovo ended 2019 with 89 MSEK of cash on hand, which will not only cover the costs of the large investment, but also shield the company from any unwanted side effects from the economic downturn sparked by the coronavirus outbreak.
So, while the company is having to make some adjustments in workflow and planning, in a recent press release, Iconovo points out that it is not dependent on any physical goods and already has the few ones needed in stock. This is another factor that helps minimise the shock from the coronavirus outbreak.
Future CEO has strong faith in Iconovo’s future
The positive position for Iconovo is further highlighted by the fact that Johan Wäborg, who will take over as CEO of the company next month, subscribed 200,000 warrants, which amount to over 1,2 MSEK. The future CEO sites Iconovo’s innovation strengths as a major reason for the good faith in the company:
“Despite the extreme turbulence in the stock market, it was an obvious choice to subscribe for the options. I look forward to joining as CEO of Iconovo on April 14 and our future journey together. Iconovo is a unique and innovative development company with great potential.”
Moving forward with optimism
It is clear that the next few months will be difficult all throughout the world, but innovative bio and medtech companies like Iconovo, who are in good financial positions thanks mainly to strong innovation and can continue their project development, stand a good chance to make it through this global crisis without heavy repercussions.
The content of BioStock’s news and analyses is independent but the work of BioStock is to a certain degree financed by life science companies. The above article concerns a company from which BioStock has received financing.