Clinical Laserthermia Systems (CLS) has recently published its year-end report for 2023, reporting net sales for the full year of SEK 8,27 million, which is 32 percent more compared to 2022. The increased sales and improved margins also mean that operating profit has improved (-65,9 million SEK) compared to the previous year (-67,4 million SEK).
Sales continued to be highest in the US, but the company also sees an opportunity to spread its TRANBERG Thermal Therapy products globally through a new distribution agreement in Europe and market approval in Singapore, enabling expansion in the Asia-Pacific region.
Focus on MSP services
In 2023, CLS initiated an investment in so-called Mobile Service Provider (MSP) agreements, which means that clinics can test and evaluate TRANBERG for the treatment of prostate cancer.
During the fourth quarter, CLS entered into two new MSP agreements in the US, one with Kearney Urology Center PC and the other with KASRAEIAN UrologyThe collaboration with the clinics is in the start-up phase and is expected to generate revenue in the first quarter of 2024. CLS already has an MSP agreement with AVANT Concierge Urology Clinic.
CLS also expects to enter into more agreements under the MSP model in 2024 as they have several potential agreements in their pipeline, according to the report.
Identified revenue opportunities within neurosurgery
In 2023, CLS also developed its neurosurgery business in the US through orders from the company's neurosurgery partner ClearPoint Neuro and positive feedback from users. However, revenues from the neuro segment were at the same level as in 2022.
CLS has identified potential improvements that could increase revenue by gaining access to a larger portion of the neurosurgery market. Changes may impact the cost base in the coming years, but are expected to deliver significant benefits in the future.
Strategic investments and milestones in 2024
In light of the upcoming strategic investments in neurosurgery, as well as later market approval in Singapore than expected, the company has postponed the goal of achieving positive operating profit (EBITDA) to 2026.
The company now looks forward to unlocking the market potential in Asia Pacific and moving to full market launch in the US, securing additional MSP and commercial agreements, and sharing clinical trial results with the market.