Overdoses with opioid-based drugs are now the leading cause of death among Americans under the age of 50. The opioid crisis is estimated to cost $78,5 billion per year in the United States alone, according to the agency. Center for Disease Control and Prevention.
At the same time as drug abuse increases, the manipulation and theft of injectable narcotic drugs has become a growing problem within healthcare.
The demand for solutions for effective quality control and to prevent prescription drugs from falling into the wrong hands, so-called drug diversion, is therefore steadily increasing in line with higher regulatory requirements for drug safety. Read more.
Pharmacologist strengthens quality control
Uppsala-based Pharmacologist has developed a series of products and services that solve a number of challenges related to pharmaceutical formulations.
What is special about Pharmacolog's solutions is that they control the end product, i.e. Quality Control, which cannot be compared to competitors' methods that perform Quality Assurance, i.e. they control the process rather than the finished drug mixture.
DrugLog and PrepLog helps pharmacy and hospital staff prevent medication errors and ensures that the patient receives the right medicine and the right dose. In addition, through WasteLog-system, The company solves the problem of medicines falling into the wrong hands.
During the autumn, the portfolio will be broadened with the launch of Pharmacologist Dashboard, a web-based tool for monitoring and analyzing completed checks of pharmaceutical preparations. Read more.
Pharmacolog's systems complement each other to cover all needs for fast and smooth quality control where pharmaceuticals are prepared.
Increased market focus for growth and profitability
Pharmacolog's sales are currently primarily in Europe and the US through direct sales and via strategic partnerships, for example Codonics and B. Brown.
The company has seen increasing customer activity and Pharmacolog's CEO Mats Hogberg commented to BioStock that the company is changing focus to meet demand in more markets:
»Pharmacolog is shifting its focus from technology development to market development and the path to profitability is through strategic partners. Here I want to do more to further develop existing collaborations and intensify efforts to establish new ones«
The company will launch WasteLog in China this fall and is currently looking for a partner in Japan. In parallel, the company is working on several initiatives to further develop the business, achieve increased volumes and profitability.
Focus on in-house production of consumables
In addition to system sales, the company has seen steady growth in revenue from consumables and service agreements. In order to improve the company's margins, they are investing in their own production of consumables.
In-house manufacturing of consumables is considered to have great potential to improve margins and secure the larger volumes that Pharmacolog predicts will be in demand in the coming years.
Antibiotic project enters next phase
In 2022, Pharmacolog has also advanced in the collaboration project with Uppsala University Hospital and Skåne University Hospital in Malmö for the development of a system for determining antibiotic concentration in the blood of patients being treated for severe infection. Read more.
The company now wants to invest more in the antibiotic project, which will ultimately contribute to more effective treatment and a reduced risk of developing resistant bacterial strains., as per WHO is one of the biggest threats to global health. The next step is to identify suitable development partners in parallel with clinical trials.
Capital raising for faster expansion
To accelerate growth and profitability, Pharmacolog's board of directors decided in early September to conduct a rights issue of units consisting of series B shares and series TO2 warrants of approximately SEK 19,2 million. The issue is covered by approximately 80 percent of subscription commitments and guarantee commitments.
The net proceeds from the rights issue are intended to be used for investments in the following areas:
- Development of new partnerships, approximately 30 percent
- Investments in own production of consumables, approximately 25 percent
- Investments in the antibiotic project, approximately 20 percent
- Commercial investment in Japan with focus on launching DrugLog, 15 percent
- Working capital, approximately 10 percent.
The offer in summary
| Terms & conditions | One existing share gives one unit right and six unit rights give the right to subscribe for one unit in the issue. One unit consists of two newly issued shares of series B and one free subscription warrant of series TO 2. |
| Subscription price | SEK 7,50 per unit |
| Issue volume | SEK 19,2 million |
| Subscription period | 14 September – 28 September 2022 |
| Dilution | Approximately 25 percent upon full subscription. An additional 11,11 percent of the total number of shares upon full exercise of the TO 2 warrants. |
Also read BioStock's interview with CEO Mats Högberg here.
Link to prospectus and application forms here.