Chordate Medical reports Q3 and carries out rights issue
Medtech company Chordate Medical has published the report for the third quarter where they particularly highlight the completion of the migraine study. Strengthened by the results of the study, the company focuses on marketing and sales in selected markets to increase market shares for a future exit. To secure financing for the activities and accelerate towards an exit, the company has decided to carry out a rights issue of approximately 51.3 MSEK. CEO Anders Weilandt comments on the capital raise and the third quarter in an interview.
Chordate Medical develops and sells Kinetic Oscillation Stimulation, K.O.S, a nerve stimulation technology for the treatment of chronic migraine and chronic rhinitis. The K.O.S treatment stimulates the nerves in the nasal cavity with vibrations, which provides a preventive effect. The treatment is both simple and drug-free, which is long awaited in the market according to the company.
Valuable results from the migraine study
In August 2022, Chordate Medical completed the multicenter study PM007 with K.O.S. in patients with chronic migraine. The final study results show that K.O.S provides a significant reduction in the number of headache days, confirming the German sub-results presented at the Migraine Trust International Symposium in London in September.
The German subgroup results show a reduction in the number of headache days of 2.5 days and a treatment response of 41.4 per cent of patients receiving active K.O.S. treatment. The study’s full results will be reported in detail in a scientific article in the coming months.
New market introductions in Q3
With these study results, the company is increasing its marketing efforts in the migraine market. During the third quarter, a market introduction was initiated in the UK, Italy and Israel, as well as in Finland and Germany, where PM007 was conducted.
During this period, they also continued the market authorization process in the United States and China. Together with the consulting company RQM+, Chordate is working on a so-called De Novo application to the FDA for the migraine treatment. The company’s partner in China, Nanos Medical, is responsible for the registration process of the rhinitis treatment.
Increased publicity through congresses
The company reports sales of 0 SEK and an operating profit of SEK -6.2 million for the third quarter. The company is now carrying out several marketing initiatives to increase sales.
For example, Chordate has participated in several international congresses to support market introductions in each country and increase interest in K.O.S. They have been at the Israeli Migraine Association’s Meeting in Tel Aviv, Israel, Neurology Days in Helsinki in Finland and the German Pain Congress in Mannheim, Germany.
The company’s Italian distributor Vedise is also underway with the introduction of migraine treatment, with an initial focus on the private healthcare market. On October 6-7, Vedise attended the national symposium Health: Innovation in the Service of Man in Rome. During the event, Professor Fabrizio Vernieri presented the advantages of the K.O.S. treatment over drug-based alternatives.
Rights issue to strengthen cash position before exit
The marketing initiatives are part of the company’s exit strategy, which consists of three pillars – patent protection, scientific evidence of clinical efficacy and proof of concept in selected markets.
Chordate now chooses to strengthen the cash position, which as of September 30 amounted to 10.1 MSEK, to be able to continue working towards the goal of an exit. The company carries out a rights issue that, upon full subscription, can provide approximately 51.3 MSEK before issue costs. The subscription period runs during the period 14-29 December 2022.
The capital raise will above all enable continued investments in the migraine market with the support of the latest study result. 55 per cent of the issue proceeds will be allocated to market strategic activities, 25 per cent to clinical studies and 20 per cent to market registration and product releases.
CEO talks about Q3 and the capital raise
BioStock contacted Chordate Medical’s CEO Anders Weilandt to find out more about the rights issue and the third quarter’s most important events.
How would you briefly summarize the third quarter?
– As the most exciting quarter so far in the company’s history – is probably the short answer. First getting the results of the subgroup, and then the analysis of the entire study material, is a confirmation of so many years of hard work and beats most of what the company has experienced. The entire Chordate project has now been “de-risked” down to a completely new and much more comfortable level.
»The entire Chordate project has now been “de-risked” down to a completely new and much more comfortable level«
You have decided to carry out a rights issue of 51.3 MSEK. Why is it important for you to raise capital right now?
– We do not want to lose momentum now but be able to exploit the study results immediately. We can only do that if we have the necessary cash.
Finally, what will be your main focus for the rest of 2022, beyond carrying out the issue?
– Achieving market penetration in the markets we have chosen is the single most important thing. And, of course, we look forward to publishing the article from PM007 in a prominent journal, which is very important for building company value. The two marketing support studies PM090 and 010 will also be carried out. And finally, we want to reach the finish line in the market authorization process in the US.
»Since we now have the success of the study behind us, it is with great confidence that we embark on these tasks«
– This involves a lot of hard work and a lot of costs. But since we now have the success of the study behind us, it is with great confidence that we embark on these tasks.
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