Focus on market establisment for Chordate
As Chordate Medical reports its second-quarter results, it is no surprise that the spotlight is on the recently signed agreement with Neurolite. The company has already secured an initial order and remains focused on expanding its presence in Switzerland and other key target markets.
– Interest among specialists and neurologists is growing, and Ozilia is a unique alternative that an increasing number of migraine care providers are considering, says CEO Anders Weilandt.
Chordate Medical has developed a treatment method for chronic migraine and chronic nasal congestion (rhinitis). The treatment is intended as an alternative to existing surgical and drug-based approaches. Ozilia is a medical device that stimulates the nerves in the nasal mucosa through vibrations, affecting the autonomic nervous system. This has shown to have a positive preventive effect on both conditions.
The company recently released its report for the second quarter of 2024, where CEO Anders Weilandt highlights the agreement with Swiss company Neurolite as the single most important event. The company has previously focused on launching Ozilia in several selected markets in the EU and the Middle East, and now Switzerland is being added to that list.
– The headache/migraine care in Switzerland is well-developed, similar to Germany, and the distribution between private and public healthcare is advantageous for us. The decision-making processes are decentralized and relatively quick compared to many other markets, Anders Weilandt said in a previous interview with BioStock.
First order in Switzerland
The ink on the newly signed contract had barely dried when a first order worth SEK 370 000 was placed. Alongside this, Neurolite was also registered as Chordate’s regulatory representative in Switzerland and Liechtenstein.
– We have been noting considerable interest in Ozilia in Switzerland for some time, and we have been engaged in discussions with a number of interested parties. This, combined with Switzerland’s manageable decision-making processes, which have relatively short paths to remuneration codes for insurance payments, makes Switzerland a very suitable focus market for the company.
Market efforts are progressing
The Swiss order is the first concrete result of the market development efforts that the company is currently carrying out. During the second quarter, Chordate presented Ozilia at several investor conferences, while also participating at the headache congress Dreiländertagung Kopfschmerz in Switzerland. This work will continue in the fall to build on the momentum gained during the spring.
– Interest in neuromodulation as a treatment technique among specialists and neurologists is growing, and in this area Ozilia is a unique alternative that an increasing number of migraine care providers are considering, says Anders Weilandt.
Looking ahead to TO8
Turning to the financial side of the quarterly report, the company has net sales of just over SEK 172 000 during the second quarter. Cash flow amounted to approximately SEK -7 million, and by the end of the quarter, the cash balance stood at just over SEK 11.5 million. In mid-November, Chordate will be conducting a capital raise by exercising warrants of the TO8 series, which could provide crucial funds for continued market development.
CEO comments
BioStock reached out to Anders Weilandt to learn more about his views on the past quarter and what lies ahead.
You have received a first order from Neurolite. What are your expectations for the collaboration going forward?
– Neurolite is entirely focused on neurology and has extensive experience in introducing new products to the market. We have already noticed how quickly they are leveraging their established network and trust with key customers. The expectation is that we will see clear and rapid progress in the market.
You emphasise presenting the company to investors and potential buyers. What feedback are you receiving from them?
– Generally, we receive confirmation that alternatives to pharmaceuticals generate curiosity and interest. At the same time, everyone realizes that it is a different journey to introduce medical technology in a segment dominated by pharmaceuticals. However, there are several historical examples of success, which many are already aware of.
What do they want to see from you for an acquisition to be considered?
– The strategy we have been working on since the fall of 2019 is largely confirmed as correct and desirable by most we meet. A relevant patent portfolio, clinical evidence from studies, and clear results from selected focus markets are what are considered necessary for the final step in our plan.
You are currently conducting two clinical studies, PM010 and PM009. How are these progressing?
– Both studies are proceeding according to plan, although patient recruitment is always a challenge. PM009 is evaluating the effect of Ozilia in the preventive treatment of migraine patients who do not respond to treatment with CGRP inhibitors and other migraine medications. It is an important study with significant potential upside for the company. Any level of positive results could create new opportunities for the company as this patient group has very few remaining treatment options.
– PM010 is an open clinical follow-up study aimed at monitoring the long-term results and safety of Ozilia in patients with chronic migraine under regular clinical treatment.
This fall, you are launching the TO8 warrant exercise. How do you view the financial situation and the prospects for effectively establishing Ozilia in the market?
– Chordate has so far been, and still is, entirely dependent on strong support from its owners. Assessing risk and sentiment in the market for our type of project is, for obvious reasons, more challenging than it has been for a long time. It is crucial that we keep the company financed so the product can establish the results needed for the final step in the strategic plan.
