Chordate Medical’s CEO looks ahead to 2025: “The exit process is our primary focus”
During 2024, Chordate Medical made progress in establishing Ozilia, a drug-free treatment for chronic migraines and nasal congestion. For example, the company expanded its presence in markets such as Switzerland and Saudi Arabia. BioStock has reached out to CEO Anders Weilandt to learn more about the highlights of 2024 and the goals for the coming year.
Chordate Medical has developed Kinetic Oscillation Stimulation, a medtech treatment method for chronic migraine and chronic rhinitis. The method is based on neuromodulation and has been shown to reduce symptoms by stimulating the nervous system using mechanical vibrations. The treatment is marketed under the brand name Ozilia in selected markets within the EU and the Middle East.
Focus markets
In 2024, the company concentrated on building market validation in its priority markets: Germany, Saudi Arabia, Switzerland, and Italy. Chordate Medical strategically chose these markets for two main reasons. First, they have well-developed private healthcare sectors and insurance systems, which could eventually lead to a reimbursement code for Ozilia. Second, they offer a favorable pathway to market approval for medical devices like Ozilia.
Available at around 30 clinics
In the autumn, Chordate Medical received its first order for migraine treatment in Saudi Arabia following market approval for this indication. This enabled Chordate and its partner, Janin Medical, to begin a broad market launch of Ozilia as a migraine treatment in the country. The rhinitis treatment is already available at nine clinics in Saudi Arabia.
In Italy, the rhinitis treatment is offered at eleven clinics through the company’s distributor, Vedise Hospital, which is now actively working to also introduce the migraine treatment. In Germany, the migraine treatment has been introduced at six clinics.
In June 2024, Switzerland was added to the list of focus markets, coinciding with the company signing a partnership agreement with Neurolite, a distributor specializing in delivering cutting-edge medical technology solutions in neurology to hospitals and private clinics in Switzerland. Neurolite has placed an initial order for Ozilia products worth SEK 370,000. Ozilia is also undergoing clinical evaluation at three Swiss clinics.
Chordate Medical is also working to initiate clinical use at some of the clinics in Finland that participated in the migraine study PM007.
Continuing efforts toward an exit
Chordate Medical has been clear about its long-term strategy of pursuing an exit, i.e., finding a buyer for the business. Earlier this year, the company took an important step in the exit process by engaging a Swiss advisor, Partner International Switzerland GmbH, to identify potential international buyers for the company.
According to Chordate Medical, a successful exit process relies on several factors: robust scientific evidence from clinical studies, strong market results, and an adequate patent portfolio.
Strengthened patent portfolio and trademark protection
During the year, Chordate Medical has reinforced its patent portfolio, which currently includes 79 granted patents across nine patent families in 32 countries. These patents provide intellectual property protection for the innovations underlying the company’s products for treating chronic migraine and rhinitis. CEO Anders Weilandt emphasizes that the patents are a central component of the company’s market value, offering buyers the opportunity to establish global product sales with long-term protection against competition.
This year, Chordate has also strengthened its trademark, Ozilia, which was introduced in 2023. Recently, Ozilia was registered as a trademark in Japan, complementing earlier registrations in the EU, China, and the UK. While Japan is not currently one of the focus markets, the company views global trademark protection as a strategic investment to secure long-term growth opportunities.
CEO comments
BioStock has reached out to CEO Anders Weilandt to learn more about the path toward an exit and the milestones achieved in 2024.
How would you summarize Chordate Medical’s performance in 2024?
– We have delivered on our plan with the flexibility that a long-term strategy demands. Of course, not everything goes as hoped from the start, and in such cases, it is essential to find new alternative paths to achieve the final goal.
– A clear example was this summer when we assessed our ambitions in the UK as unfruitful and replaced that market with Switzerland, a market characterized by manageable decision-making processes, relatively short paths to reimbursement codes for insurance payments, and significant interest in Ozilia.
How has the market establishment of Ozilia progressed in your focus markets?
– This year, we established six clinics in Germany that can provide Ozilia to migraine patients. It is still early, but it has the potential for good development.
– The new addition, Switzerland, is in the final stage of its validation process, and we hope to see the results of distributor Neurolite’s professionalism and efforts soon.
How is the collaboration with Partner International Switzerland GmbH (PI) progressing, and what advances have been made in the exit process?
– It is simply impossible for me to comment on what is happening in the process. I can say that, so far, we are fully satisfied with the precision and activity level PI has delivered.
What factors are crucial for attracting international buyers, and what strengths does Chordate Medical offer in this context?
– The advisor’s network and reputation are critical. We believe PI, with 24 years of international experience, has precisely that. An advisor must be consistently welcomed by the right decision-makers.
– For the business to be sold, it needs to offer a unique opportunity in a lucrative segment that can be scaled up immediately. In our estimation, Chordate’s products and evidence level meet the criteria required to attract buyers.
This year, you presented interim results from the long-term study PM010. When can we expect new data from your ongoing studies?
– This depends entirely on the pace at which new patients can be recruited into the studies. We will increase the number of trial clinics in both PM010 and the pilot study PM009, which in turn should accelerate recruitment. If the previous monitoring covered about 50 patients in PM010, it is likely suitable to perform the next statistical calculation at around 100 patients. At this time, we cannot precisely assess when we will reach that point.
What are your visions for Chordate Medical in 2025?
– The exit process is, of course, our primary focus, and we aim to achieve a successful outcome within a reasonable timeframe. However, the company cannot comment on how long that might take.
– Continued development in our focus markets, with more satisfied patients and clinics, is crucial for the exit process. In the coming year, I see promising conditions for increasingly clear results.
– Finally, the publication of the article from PM007 is significant and something we are currently awaiting. At the same time, PM010 will likely provide support for assessing the business’s value and, hopefully, PM009 as well.
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.
