Chordate continues its marketing activities and exit strategy
In 2023, Chordate Medical has taken steps forward in the commercial progress with the migraine treatment Ozilia. The long-term goal is to sell the company. To continue working towards this goal, the company intends to carry out a rights issue of 41.8 MSEK. BioStock reached out to CEO Anders Weilandt to find out more.
Chordate Medical has developed a nerve stimulation technique for the treatment of chronic migraine and chronic rhinitis. The treatment is drug-free and was previously called Kinetic Oscillation Stimulation (K.O.S), but now goes by the brand name Ozilia.
Focus on key markets
In 2023, Chordate Medical focused on establishing Ozilia in the company’s prioritized markets; Finland, Germany, the UK, Italy, Israel and the Gulf region. A key strategy has been to participate in several congresses, both at a national level in Europe and an international level in the US and South Korea.
Market introductions supported by study results
During the congresses, Chordate Medical presented the study results from the PM007 patient study, which showed that Ozilia provides a statistically significant reduction in the number of monthly headache days with moderate to severe intensity. In August 2023, the complete study results were submitted as manuscripts for publication in a scientific journal within the neurology field.
New studies initiated
In 2023, Chordate Medical has also initiated the pilot study PM009 and the post-market study PM010. The first seven patients have been enrolled in the PM010 study, which is a so-called post-market surveillance (PMS) study that is part of the requirements for CE marking. The study aims to follow long-term results and safety, which means that the study results may also be important in fine-tuning treatment recommendations.
The first patient has also been included in the company’s open pilot study PM009, which will include a total of 25-30 migraine patients who do not respond to treatment with CGRP inhibitors.
Starts 2024 with a capital raise
Just before Christmas, Chordate Medical announced the intention to carry out a rights issue to finance the marketing and study activities and accelerate the work towards an exit, i.e. a sale of the company. The subscription period runs between 2 – 16 February. If the rights issue is fully subscribed, the company will receive approximately 41.8 MSEK.
The proceeds will be used to continue the work in the final phase of the company’s exit strategy, where the goal is to demonstrate early market penetration in selected markets to demonstrate the potential of the technology. This marketing work was intensified in 2023 and will continue during the current year.
CEO comments on 2023 and plans ahead
BioStock reached out to Chordate Medical’s CEO Anders Weilandt to find out more about the past year and expectations for 2024.
Can you summarize the most significant progress made during 2023?
– It feels very satisfying that we were able to check off the crucial part of producing scientific evidence last year. The results from PM007 are surprisingly clear and stable, sparking positive reactions among the specialists we met during the autumn congresses.
– The significance of this stable foundation for our market introduction can hardly be overstated. It is worth repeating that it is highly unusual for a medtech alternative to demonstrate comparable or better clinical effect and level of response as drugs. This is good news for all patients and treating physicians who have long sought alternatives that are not based on drugs and do not have any unexpected side effects.
»It is worth repeating that it is highly unusual for a medtech alternative to demonstrate comparable or better clinical effect and level of response as drugs. This is good news for all patients and treating physicians«
– Since the middle of the year, we have also seen an increase in orders, primarily for the rhinitis indication and mainly from Italy and Saudi Arabia. Additionally, there are initial signs that we are making headway with deals related to the migraine indication, primarily in Germany. It is still very early in the process, but every journey starts with a small step. This is the beginning of the proof-of-concept we aim to build towards achieving our strategic goal.
What goals have you set for 2024?
– First and foremost, we aim to achieve product registration for both indications in the United Arab Emirates and for migraine in Saudi Arabia. The Chinese registration project is expected to meet its targets for the period, and work on obtaining market clearance in the USA will continue.
– Shortly, we anticipate news regarding the publication of the scientific article for the PM007 study. This is not within our control; it is between the authors of the article and the scientific journal.
– Furthermore, the year is entirely focused on generating more sales and gradually initiating more clinics, primarily for the migraine indication but also for rhinitis – where we have the potential to make headway in securing deals.
»Shortly, we anticipate news regarding the publication of the scientific article for the PM007 study. This is not within our control; it is between the authors of the article and the scientific journal. Furthermore, the year is entirely focused on generating more sales and gradually initiating more clinics.«
What benefits do you see with an exit, from a shareholder perspective?
– Our strategy is based on the analysis that shareholders benefit from a company sale because we assess that this process leads to a quicker return on investment. This can be compared to building up the company over a long period until dividends start to be generated from profits that are not needed for further company expansion. We see only these two options for shareholder returns that we, as a company, can influence: either selling the company or generating dividends. In our assessment, the first option is both faster and carries lower risk.
– Of course, one can buy and sell a listed stock as its price rises, thus gaining returns – but that is not something a company can build a strategy around as a development company. That idea might be more fitting for a stable and broader business operation that has generated profits over an extended period.
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.
