In 2023, Enzymatica presented important research results for ColdZyme and strengthened the marketing of the product. However, the sales growth has been lower than expected during the year, especially outside the company’s own markets. Despite this, the company remains committed to its long-term financial targets and looks ahead to what is to come in 2024. The company’s Chairman of the Board, Bengt Baron, tells us more in an interview.

Enzymatica‘s flagship product is ColdZyme, a mouth spray that protects against cold viruses and can shorten the duration of illness. The company also sees commercial value in expanding the use of ColdZyme for various types of upper respiratory tract virus infections. Therefore, the company has prioritised research that provides further insights into the clinical effects and potential of ColdZyme.

Sales in 2023

Today, ColdZyme is sold in over 30 markets across four continents, resulting in a total turnover of 35.1 MSEK during the first three quarters of the year. According to the company, sales in their own markets—Sweden, the United Kingdom, and Iceland—have been strong, while sales outside these markets have been lower than expected.

Back home, the company launched a major marketing campaign early in the fall, resulting in increased sales. However, looking at the markets overseen by the company’s distributor, STADA, the order intake has been notably low. Consequently, the company is in discussions with STADA to find constructive ways forward and has also initiated dialogues with other potential partners.

Remain committed to financial targets

Thus, Enzymatica still has a way to go before reaching the long-term financial goals of sales of 600 MSEK with an EBIT margin of at least 28 per cent by the end of 2026. The projected growth compared to current sales is expected to result through launches in new significant markets such as China, Japan, and the USA, alongside increased market shares in existing core markets – Sweden, the United Kingdom, Germany, Italy, and France.

According to the company’s latest quarterly report, they remain comitted to their long-term financial goals, given the positive research results the company recently presented.

Strengthened by positive research results

In August, results from an in-vitro study at the Medical University of Innsbruck were presented, which explored the effect of ColdZyme on human cells infected with the influenza virus. The results show that ColdZyme disrupts the infection cycle and significantly reduces the viral load.

A month later, Enzymatica was able to present interim results from an in vivo study at the University of Kent evaluating ColdZyme’s effect on athletes with symptoms of upper respiratory tract infections. The results show with statistical significance that ColdZyme reduces the amount of rhinovirus, the most common cause of the common cold. Moreover, individuals using ColdZyme experienced significantly fewer symptoms of sore throat than people who used placebo. The entire study is expected to be completed in the first half of 2024.

Comments from Chairman Bengt Baron

BioStock reached out to Bengt Baron, Enzymatica’s Chairman of the Board since 2016, to find out more about the past year and his expectations for next year.

How would you summarise Enzymatica’s development in 2023?

– The year has been characterised by two different narratives. We are not achieving the sales that I would have liked, but at the same time the company has taken a number of very important steps during the year. We finish2023 as a significantly stronger company than we were a year ago.

– On the research front, we have had a couple of significant breakthroughs. Unfortunately, it feels like the world has not fully grasped the sensational study results yet. The study in Innsbruck marks the first time anyone has shown that a cold spray is effective on already infected cells. The first results from study in Kent has demonstrated that the amount of virus decreases compared to a placebo, subsequently reducing symptoms of sore throat. This means that ColdZyme has completely unique properties regarding its effectiveness against the most common cause of colds and one of the most common complaints.

– Organisationally, we have continued to prepare the company for the expansion that we know is coming. We have strengthened the capacity of our production facility in Iceland and we are currently expanding our sales organisation. In addition, we have completed all the work on certification according to the new European MDR regulations and are awaiting approval in the spring.

– Now our focus is entirely on spreading the knowledge of our unique product to more consumers. We know that 9 out of 10 people who try ColdZyme would buy it again, so our challenge is to get as many people as possible to try it.

»On the research front, we have had a couple of significant breakthroughs. Unfortunately, it feels like the world has not fully grasped the sensational study results yet. […] Now our focus is entirely on spreading the knowledge of our unique product to more consumers.

How do you assess Enzymatica’s sales performance throughout the year?

– We are content with our sales in Sweden, where we have increased our market share. However, on our partner markets, things are not looking as bright due to excessively low order volumes. We are addressing this by expanding our sales organisation and engaging in direct dialogue with our partners. I respect that many of them have also faced challenges during the pandemic, but with this year’s fantastic study results, we are in a new position. Consequently, we need to approach the market with the best possible team around us. If we have partners who are not delivering, we need to replace them.

What trends have you observed in the cold market?

– After the pandemic, there is a completely new awareness among consumers regarding viruses and the importance of protecting oneself from infection. Most understand that vaccines provide an excellent foundation, but additional measures are necessary to protect against new virus variants. This is where we see ColdZyme potentially serving as a good complement to vaccines, something that has also been highlighted by researchers.

– Another noteworthy development for us is that an advisory committee to the US Food and Drug Administration (FDA) has stated that the substance phenylephrine lacks effectiveness when taken orally. Phenylephrine is present in many products for allergy and cold relief, and we are seeing major pharmacy chains in the US choosing to remove these from their shelves. Eventually, this could open a market for ColdZyme as these chains seek new alternatives for their cold remedy sections. The US is a challenging market for a small company like Enzymatica, but it is the world’s largest cold market, and we aim to enter when possible.

»The US is a challenging market for a small company like Enzymatica, but it is the world’s largest cold market, and we aim to enter when possible.«

What is your strategy to strengthen your market position and sales?

– We need to meet the market together with partners who believe as much in the product as we do. Consequently, we are now reviewing our partner network and identifying areas where we need to strengthen our team. With robust scientific documentation and a truly unique product that is loved by users, it should not be hard to sell it for those who want to.

– It is also critical that more people take part of and understand the sensational results of our latest clinical studies. To my knowledge, no other product has shown similar results and can help consumers all over the world as easily and effectively.

– Now it is all about reaching new consumers and establishing ColdZyme in new markets. Intensive work is underway to enter the largest cold markets such as the US, China and Japan. In Europe, the new MDR certification will be important to us. As far as we know, ColdZyme is the only cold spray in Europe that will receive this approval.

Finally, what are you looking forward to Enzymatica achieving in 2024?

– Our focus for 2024 revolves around two key aspects. Firstly, spreading knowledge about the unique scientific study results, and secondly, boosting sales. In a year’s time, I envision Coldzyme being a staple in more handbags and bathroom cabinets worldwide. Most importantly, I want people to feel that ColdZyme has helped them avoid catching a cold and that we have contributed to being able to participate in work meetings, birthdays, and workouts that might otherwise have been lost. The pandemic was truly challenging for us as a company, but we have an entirely unique product that brings tangible benefits. That is why I believe 2024 has the potential to be an incredibly exciting year for Enzymatica.

»Our focus for 2024 revolves around two key aspects. Firstly, spreading knowledge about the unique scientific study results, and secondly, boosting sales. In a year’s time, I envision Coldzyme being a staple in more handbags and bathroom cabinets worldwide.«

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