Built on precision-engineered β₂-adrenergic receptor agonists, Stockholm-based Peptonic Medical develops and sells self-care products within intimate women's health. With the brands VagiVital and Vernivia Peptonic offers clinically proven products for the diagnosis, treatment and prevention of medical conditions in the genital area.
The financial situation has been strained for a long time, which has permeated the share price – the share is down over 90 percent in a year. In order to get costs in order, the company launched an efficiency program in the autumn in which the Finnish subsidiary Lune Group and the Israeli manufacturing unit was closed. It was also recently announced that the company's CFO Jenni Bjornulfson is leaving his position as part of the savings.
Further attempts to overcome the shaky finances came in the form of a rights issue, where the aim was to raise an initial SEK 26,5 million. The outcome was presented at the end of February, where a total of 62 percent of the issue was subscribed, which brought in SEK 16,5 million before issue costs. This money will be added to a cash position that at the end of 2024 amounted to approximately SEK 3,7 million. This can then be compared to the fact that the operating profit during the last quarter amounted to SEK -26,7 million.
Reconstruction is expected to take three to six months.
The cost savings and capital injection are therefore not enough and Peptonic has therefore decided to apply for reconstruction. In a reconstruction, the company is given the opportunity to restructure the business to avoid bankruptcy. The application is granted if the district court assesses that the business is fundamentally viable and in the process the company receives protection against claims from creditors for debts that arose before the decision.
In a press release, Peptonic writes that it views the opportunity positively and that it is determined to continue operating the business, reduce costs and achieve profitability. The application will now be heard in the district court and if granted, the process itself is expected to take three to six months. During that time, the company will continue to implement cost savings.
– The decision to apply for corporate restructuring has not been taken lightly, but it is a necessary measure to address the company's financial challenges, comments the Chairman of the Board Anders BlomWe are convinced that the reconstruction gives us the best conditions to recover. Our focus is now on financial stability and ensuring a profitable future for Peptonic.