The year-end report for 2022 shows a record for Miris’ sales of analysis instruments that promote neonatal health. With a sales increase of 22 percent and a gross margin of 75 percent, the medical technology company is well on its way to establishing Miris HMA as standard care for breast milk analysis. BioStock contacted CEO Camilla Myhre Sandberg to learn more about sales records, market potential and the outlook going forward.
Medical technology is an important part of how we take care of premature babies and Miris has been at the forefront of promoting neonatal nutrition since 2006. The medtech company has developed and sells Miris HMA, the world’s first approved instrument for analysing the nutritional content of breast milk.
The customer base is increasing
Miris HMA gives neonatal care units and milk banks the opportunity to analyse the nutritional content of breast milk to individualise enrichment for each premature baby, the so-called Target Fortification. The company’s customer base is gradually increasing and the company already covers a large part of intensive care units for neonatal care (NICUs) and milk banks in the US and Europe.
The company also sells products for sample preparation and consumables to offer a complete product portfolio for breast milk analysis. Recently, Miris entered a collaboration with Swedish Trients on the development and licensing of a calculation tool adapted for Miris’ customers in neonatal care. This will give Miris a completely new product to offer to both existing and new customers.
Miris reporting record sales
The company has recently published the year-end report for 2022, which shows Miris reporting strong sales growth of 22 per cent compared to 2021 and a net sales for the full year of 18.6 MSEK, an increase of 22 percent compared to 2021. The company reported a gross margin of 75 per cent.
These were nice figures for the company that could celebrate a new record for both net sales and gross margin. The negative result improved by 2 MSEK to -11.3 MSEK compared with 2021. With record-strong sales and increasing gross margins, the outlook for reaching profitability going forward has thus improved.
Consumables increasingly important
Miris highlights that sales of consumables for Miris HMA have increased by 33 percent compared to 2021 and by as much as 388 percent since 2017. Recurring revenues such as consumables and service agreements accounted for close to a third of total net sales in 2022.
Comments from the CEO
BioStock contacted Miris’ CEO Camilla Myhre Sandberg to find out more about the company’s continued sales record and the outlook going forward.
Camilla, the full-year report shows Miris reporting record sales for Miris. What has driven sales?
– We can clearly see that many hospitals have really started to get going after the pandemic in 2022. Many of our clients who applied for investment budgets during the pandemic have now started to have their budgets approved.
– The sales have also been driven by our continuous work to inform and educate the market about the importance of individually adapting nutrition for premature babies.
– We also see a clear trend that our installations give ripple effects in the form of referrals from customers telling colleagues at other hospitals about Miris HMA and the clinical benefits they see when using the instrument.
What were the most important events for the company in 2022?
– Most important were definitely the strengthened sales growth, the improvement in operating margin, the increased gross margin, and that we have obtained ISO13485 certification.
– We remain very focused on improving the operating margin through increased sales and cost control. ISO13485 certification means both a quality stamp for the company as a medtech company and will also give us opportunities to apply for market approval for our clinical application in new regions such as China and the Middle East.
What is the potential for continued market growth?
– With licensing revenues from tools for research, next-generation analysis instruments and a re-examination of the business model, we assess that the global market potential in total will grow from 3–4 BSEK per 5-year period to 10–11 BSEK per 5-year period.
– The potential for market growth is thus very large. We currently have no competitors and the establishment of target fortification as standard care for premature babies has only just begun.
– At the same time, we are experiencing increased interest and focus on nutrition in neonatal care. We see clear indications that the market is definitely beginning to mature.
Can you elaborate on which markets you are focusing on now and which will be important to you going forward?
– The U.S. and Europe are the two most important markets for Miris right now. These markets will remain to be the most important also in the future. There is still great potential in these regions.
– At the same time, we also continue to grow in Asia with the help of our distributors. As previously mentioned, with ISO13485 certification in place, the possibility of applying for approval for the clinical market in, for example, China and the Middle East has also opened up.
What are the plans for product development?
– In 2022, we began the important work of developing the next generation HMA (HMA 2.0). One of the sub-projects was partly financed by the Swedish Agency for Economic and Regional Growth through an automation check of 150 KSEK. The development work for HMA 2.0 will continue in 2023 at the pace we believe we can afford. This means that the speed of development will be determined by the sales development.
– We have also just started the development work for the calculation tool in collaboration with Trients. The calculation tool is expected to be launched before the end of the year which means that we can provide a completely new product to both existing and new customers.
– Trients will develop the calculation tool while Miris will be responsible for customer interfaces and layout. For this development project, we have also received support via a digitisation check of 250 KSEK from Almi Uppsala. The support from Almi Uppsala will cover up to 50 percent of Miri’s development costs within this project.
What does Miris’ financial situation look like for 2023?
– The company’s cash position at year-end amounted to 2.5 MSEK. In addition, an overdraft facility of SEK 5 million is available if necessary. For 2023, we expect continued increase in sales. We assess that the company is financially equipped to continue the company’s operations and the development of the next generation of HMA instruments for the next 12 months.
– If the sales increase do not occur at the budgeted rate it is possible to save cash and cash equivalents through restrictionsin the development work of HMA 2.0 to limit the continued operation of the business. In that case, the speed of the development project and the launch of HMA 2.0 will be affected.
Finally, what can we expect from Miris in 2023?
– Our most important tasks for 2023 are continued sales growth and a further improvement in the operating margin. Then we want to move forward in the development of the next generation of HMA. However, highest priority is profitability and this may mean that the development project may be delayed.