Enzymatica boosts Q4 revenue but sees room for stronger partner sales
The cold season is in full swing, which is also reflected in Enzymatica’s fourth-quarter report, showing increased sales compared to the same period in 2023. However, full-year revenue declined compared to the previous year, primarily due to the absence of sales through partners. BioStock reached out to the company’s CEO, Claus Egstrand, to learn more.
Enzymatica has developed ColdZyme, a mouth spray used to treat and alleviate symptoms of the common cold and flu. ColdZyme is sold in Sweden and the United Kingdom through contract organisations and is distributed in other markets through partner agreements.
Stable sales in own markets
In the fourth quarter, sales of ColdZyme increased by 2.7 MSEK in Enzymatica’s own markets – Sweden, the UK, and Iceland – representing an 18.5 per cent growth compared to the same period the previous year.
Net sales for the quarter amounted to 17.2 MSEK, an increase of 8.4 per cent compared to Q4 2023. Growth was particularly strong in the UK, where sales through Boots increased by 11.4 per cent, and sales on amazon.co.uk increased by 71.8 per cent compared to the fourth quarter of 2023.
However, in Sweden, a slight decline was noted, with pharmacy sales decreasing by approximately 3.1 per cent during the quarter.
Low sales via partners
However, partner sales in the company’s other markets were nearly non-existent during the fourth quarter and the rest of the year, leading to a 10.5 per cent decrease in total revenue to 45.6 MSEK. The operating result for the full year amounted to -52.1 MSEK.
The company continues its dialogue with partners in China and Japan to define the next steps while actively working to identify a suitable partner for the North American markets. In Europe, collaboration with existing partners continues, alongside ongoing discussions with potential new partners.
Scientific breakthroughs generate interest
Additionally, potential partners have shown interest after the preliminary results of the study at the University of Kent were published. The results indicate that ColdZyme reduces the duration of the infection and lowers the viral load. By breaking the virus’s spread cycle, ColdZyme addresses the root cause of the infection, rather than just alleviating the symptoms. The study was completed in 2024 and is expected to be published in a scientific journal in the first quarter of 2025. Enzymatica assesses that the final publication will play a decisive role in creating new partnerships and global growth opportunities.
Launched MDR packaging and strengthened sales organisation
In 2024, ColdZyme also received CE certification according to the new EU Medical Device Regulation (MDR) that replaces the previous directive. In October, the new MDR-labeled packaging was launched in Sweden, which enhances consumer information with clearer health claims for ColdZyme. In the fourth quarter, Enzymatica also ran campaigns on TV4 and YouTube as part of its marketing strategy. To further strengthen the marketing and sales organisation, Enzymatica has recruited a new Senior Director Marketing & Sales for Sweden, as well as a Director of Strategic Partnerships.
CEO comment
Biotock contacted Enzymatica’s CEO, Claus Egstrand, to gain a deeper insight into both the progress and challenges the company has encountered during the quarter.
The fourth quarter showed sales growth, but low sales through your distribution partners. Why is that?
– Pre the pandemic, partners such as STADA and Sanofi were very excited, and a strong order flow was placed. Unfortunately, the launches essentially failed, even after strong starts, as societies went into lockdown and vaccines and social distancing led to no outbreaks of colds. This in turn left the partners with major inventory write-offs which curtailed any interest in the protective segment of the market.
– With the new data from the University of Kent, ColdZyme now offers relaunch potential with partners, as ColdZyme shows strong data – shortening duration of the cold and providing symptom relief, by treating the underlying cause of colds, the virus infection itself.
What are you doing to reverse the trend and get fruitful partnerships going?
– As per above, we have shared the data that Professor Davison posted on the UK Clinical Study Registry (ISRCTN) database. Partners and Enzymatica are now waiting for the manuscript, summarizing the clinical result from the independent, investigator-initiated study, to be peer-reviewed and published.
How might the upcoming publication of study results influence your growth opportunities?
– It will be very welcome. In fact, peer-review and publication is needed for the potential partners to advertise ColdZyme to consumers.
– Every consumer healthcare market in Europe is different, but markets such as Germany and the United Kingdom need peer-reviewed data to enable advertisement to consumers.
– Other markets such as France, Italy and Spain are strongly influenced by the individual pharmacies, so a publication is very important to gain distribution and pharmacy support for a new treatment paradigm in the cold/cough self-medication market.
What factors have driven the recent increase in sales, particularly in the UK?
– In short: strong consumer satisfaction with high repeat purchase rates, as ColdZyme is not advertised to consumers in the United Kingdom. It also helps that the incidence of colds has been high this cold season.
What strategies are you implementing to boost sales and solidify your market position in Sweden?
– It is too early to share plans as the cold market is very competitive. But we are obviously evaluating how the new study data from University of Kent can strengthen consumer offering.
The company’s cash position was strengthened during the autumn through a rights issue. How do you assess your financial resilience heading into 2025?
– We don’t share financial information in detail, but Board is very confident that we are financially strong for 2025.
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.
