CLS sees opportunity to increase revenue
In the year-end report for 2023, CLS summarizes an eventful year with increased revenues, primarily driven by the urology segment and the new Mobile Service Provider model. Moreover, the company has identified a way to increase revenues within the neurosurgery segment.
Clinical Laserthermia Systems (CLS) recently published its year-end report, reporting a full-year net sales of SEK 8.27 million which is 32 per cent higher compared to 2022. With increased sales and improved margins, the operating result has improved somewhat compared to the previous year, from SEK –67.4 million to SEK –65.9 million.
Like previous years, the US market was the primary source of revenue. Nevertheless, the company also sees an opportunity to sell its TRANBERG Thermal Therapy products globally, driven by new distributor deal in Europe alongside market approval in Singapore, enabling expansion into the Asia-Pacific region.
Focus on MSP
During 2023, CLS established a Mobile Service Provider (MSP) model, allowing clinics to test and evaluate TRANBERG for the treatment of prostate cancer. In the fourth quarter, CLS entered into two new MSP agreements in the USA, with Kearney Urology Center PC and KASRAEIAN Urology respectively. These collaborations are in the startup phase and expected to generate revenue in the first quarter of 2024. Moreover, CLS already has an MSP agreement with AVANT Concierge Urology Clinic.
According to the report, CLS is set to enter additional MSP agreements in 2024, with several potential agreements already in the pipeline.
Identified revenue opportunities within neurosurgery
In 2023, CLS also introduced aneurosurgery segment for its US market endeavours. They saw orders from the neurosurgery partner ClearPoint Neuro and received positive feedback from users. Yet, revenues from the segment remained at the same level as in 2022.
However, CLS has identified improvement potentials in their offer which could result in increased revenues from the segment, by providing access to a larger portion of the neurosurgery market. Albeit, such improvements would require investment and thus increase costs in the coming years – while bringing significant benefits in the long term, according to the company.
Strategic investments and milestones in 2024
In light of the upcoming strategic investments in neurosurgery, as well as the later-than-expected market approval in Singapore, the company has postponed the goal of achieving positive operating profit (EBITDA) to 2026.
The company is now looking forward to unlocking the market potential in the Asia-Pacific region and shifting into full market launch in the US, as well as securing additional MSP and commercial agreements. In addition, the market can expect clinical trial results.
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.
