Earnings call transcript: Devyser Diagnostics Q1 2025 revenue rises 8%

Devyser Diagnostics AB reported a robust financial performance for the first quarter of 2025, with revenue growth and strategic advancements despite facing restructuring costs and currency headwinds. The company’s stock showed a modest increase of 0.52% following the announcement. Devyser’s revenue for the quarter reached 55 million SEK, marking an 8% year-over-year increase, while the company continues to invest in product innovation and market expansion. According to InvestingPro data, the company has maintained strong revenue momentum with a 28% growth over the last twelve months, though current trading levels suggest the stock is slightly overvalued based on Fair Value calculations.

Key Takeaways

• Devyser’s Q1 2025 revenue grew by 8% year-over-year.
• The company reported significant restructuring costs and currency headwinds.
• Devyser plans to launch new products in transplantation diagnostics.
• The company aims for 30% organic growth in 2025.

Company Performance

Devyser Diagnostics demonstrated strong revenue growth in Q1 2025, achieving the second-highest revenue quarter in its history. Despite this growth, the company faced challenges with a negative EBIT of 21 million SEK, influenced by one-off restructuring costs and foreign exchange headwinds. The company’s strategic focus on clinical genetic labs and transplantation laboratories aims to drive future growth.

Financial Highlights

• Revenue: 55 million SEK, up 8% year-over-year
• Gross Margin: 83.4%
• EBIT: -21 million SEK
• Cash Position: 114 million SEK

Outlook & Guidance

Devyser remains confident in achieving a 30% organic growth target for 2025, aligning with analyst forecasts showing 33% expected revenue growth. The company is focused on leveraging recent investments and enhancing organizational efficiency. Key upcoming milestones include the FDA program for transplantation diagnostics and a MolDX reimbursement application in the U.S., indicating potential market expansion. InvestingPro analysis reveals strong analyst consensus with a "Buy" rating and significant upside potential to their price targets.

Executive Commentary

Fredrik Dahl, Interim CEO, emphasized the company’s strategic focus: "The theme for 2025 is to leverage our recent investments, focus the organization, and turning the company around to profitability." He also highlighted Devyser’s commitment to serving customers and shareholders effectively.

Risks and Challenges

• Restructuring costs may continue to impact short-term profitability.
• Currency fluctuations pose ongoing financial risks.
• Achieving ambitious growth targets requires successful market expansion.
• Regulatory hurdles in international markets could delay product launches.
• Competition in the diagnostics market remains intense.

Q&A

During the earnings call, analysts inquired about distributor sales through Thermo Fisher, with the company reporting continued small orders and no specific guidance on future orders. Devyser expressed confidence in meeting growth targets despite a Q1 slowdown and indicated potential price increases during tender renewals.

Full transcript - Devyser Diagnostics AB (DVYSR) Q1 2025:

Conference Moderator: Now Now I will hand the conference over to the speakers’ Interim CEO, Fredrik Dahl CFO, Sabina Berlin and CCO, Thijs Kipling. Please go ahead.

Fredrik Dahl, Interim CEO, Devicer: Good day, and welcome to the Devicer Q1 twenty twenty five Earnings Call. I’m Fredrik Dahlen, the acting CEO of Devicer, and would like to thank you everyone for joining our call today. On the call today, we have, in addition to myself, also our CFO, Sabina Berlin, and our chief commercial officer, Thijs Kipling. I will start with a short summary of our quarterly results and then recap our updated strategy and present some highlights from the team before handing over to Sabina for a more detailed review of our financial results in q one twenty twenty five and then to Thijs for an update on our commercial activities. We had another solid quarter based on revenue, the second strongest quarter in the history of the company.

The revenue was 55,000,000 SEK, representing a growth of 8% comparing compared to q one last year. Gross margins were 83% and EBIT minus 21,000,000 SEK, including SEK 8,000,000 in one offs related to reorg and another SEK 6,000,000 in FX headwinds. Our cash position was hundred 14,000,000 SEK. As mentioned on the previous call, we have made some updates on our strategy that we now have started to execute on. The overall goal for the for us in the company the coming year is to make Devicer a more efficient organization, and that goal starts with a clearer and more focused strategy.

As mentioned, we propose focusing on two customer segments, the clinical genetic labs and the transplantation laboratories. We strongly believe there are significantly more unmet diagnostic needs that we can address here together with our customers and scientific collaborators. We are now in the process of updating our product road map by reaching out to our top customers and asking them what they need help with. This voice of customer exercise will guide us to better prioritize which products we should develop in the coming years. Transplantation diagnostics has been subjected to paradigm shifts with the introduction of cell free DNA as a sensitive diagnostic marker to measure transplant rejection.

We’re trying to transform how this diagnostic is carried out by bringing the test closer to the patient. Instead of shipping samples out to service labs with long turnaround time and high costs, we propose to provide products directly to the transplantation labs where patients meet the medical and scientific expertise. This result in increased turnaround time, better accessibility to patients, lower prices, and without compromising on performance. During the quarter, we have identified a number of customers in The US that are ready to adopt our CF DNA product today through self validation already before an FDA approval is in place. In addition to a good business opportunity, income it confirms our strategy on decentralizing the test, and a dialogue with is ongoing with many of these large transplantation labs, and their overall opportunity for DeVisor remains very promising.

As part of the transplantation strategy, we have initiated an FDA project as previously communicated. To put some more color into the process, we have now started to collect samples and qualified partnering transplant centers. The project’s scope is quite straightforward, including just a handful of centers with a few hundreds of samples needed to carry out the required reproducibility and accuracy studies. Timeline will be communicated later this year. So a few highlights.

So I would like to highlight a few activities from the quarter starting with r and d and product updates. One of the most exciting meetings we had this past quarter was with a collaborator in Texas that carries out about 1,500 transplantations per year. They are reluctant to send out samples to service labs and have now started to work on evaluating our technology in house for set of certification. This is not only a great commercial opportunity, but more importantly, it confirms our strategy regarding decentralization of transplantation diagnostics. We’re now in process of initiating more of these labs in The US.

Continue with transplantation, we have developed a product to address an unmet and very important clinical need in patients with malignant disease after stem cell transplantation. The product is called HLA loss and will be launched before summer and represents a unique and premium product in the segment. This is something we are very excited about. Another upcoming launch is our genomic blood group typing that represents a tool for typing blood donors and has the potential to transform the field of transfusion medicine. We expect to launch this product during the summer and release more information on that.

Finally, we’re just weeks away from submitting our reimbursement application to MolDX for our post transplantation test as a service called transplant trace cfDNA product. We expect confirmation after summer and are in parallel building up our commercial channel with some of the largest transplantation institutions and companies. I would like to add a few more highlights from the team that deserves mentioning. As previously announced in late twenty four, we achieved IBD r class d approval for from our external regulatory assessment on our deviser RHD product. We have now finalized our internal quality process that enable us to start shipping the product.

And this is the highest risk classification under EU regulation. And get it over the line, so to speak, speaks to the strength of both our technical and regulatory teams. We have now demonstrated that we can deliver class d products end to end from development to batch release and shipping directly to customers. And because we built a scalable and regulatory and quality framework, we are well positioned to support the development of any IBD product regardless of risk class as we continue to grow our company and portfolio forward. Moving on to production, there are still many low hanging fruits to our manufacturing more streamlined and efficient.

We have initiated a number of value generating projects such as additional introduction of liquid handling automation and projects to extend the shelf life of our products. Therefore, we are confident that there is still plenty of opportunities to increase gross margins even further from where we are today. Finally, we have been able to execute the majority of initiated organizational changes in q one by increasing focus and efficiency. These changes have been done without compromising top line growth nor delaying any development projects. This initiative is key for the company to reach our financial targets of 20% EBIT by 2026.

And with that, I would like to hand over to Sabina to share more details on our financial results for q one twenty twenty five.

Sabina Berlin, CFO, Devicer: Thank you, Fredrik. So let’s give you a summary of the financials for the quarter. Revenue for the period January to March came in at SEK 54,800,000.0 compared to SEK 50,700,000.0 in the same quarter last year and SEK 64,200,000.0 in Q4 of last year. Growth of 7.9% in the quarter is lower than what we saw in Q4, but as stated many times, there will always fluctuations in individual quarters. We continue to see the same strong trajectory as we have in historical years.

Theijs will soon share some additional information about the performance of our different markets during the past few months. Despite the lower than average growth between two quarters, this was still the second largest quarter revenue wise in the company’s history, as Fredrik stated early on in the call. Our EMEA region remains our biggest market but grew less than usual this quarter but with strong underlying growth trend. USA has taken some market share and Asia Pacific continues to show strong growth, although still from small numbers. It should be noted in this table that Thermo Fisher sales is split between EMEA and U.

S. As we ship to both US and European thermal warehouses. Distributor sales this quarter is a mix of a few smaller thermal orders and a healthy sales funnel from our smaller distributors globally. Our distributor sales business is well managed and steadily growing. Our direct markets, as previously mentioned, showed a more soft quarter overall with some markets performing very well and some slightly below average mainly due to phasing over quarters, which Thijs also will cover shortly.

Gross margin, it came in at 83.4% during the quarter after a softer twenty twenty four and shows that we are back on track and have started gaining momentum from the expanded office facility with the new manufacturing section, a momentum that we expect to continue. EBIT during the quarter was minus SEK 20,500,000.0. During the period of January to March, several additional savings initiatives were initiated to rightsize the cost base and the P and L includes about SEK 8,000,000 in one off items from those initiatives. Some of these initiatives carry over into the beginning of Q2 before we see the updated run rate going forward. The quarter was also heavily impacted by an unusually strong Swedish krona and EBIT carries about SEK 6,000,000 in negative FX impact from the balance sheet alone.

Comparing EBIT with that of Q1 last year, adjusted with the impact from one offs and FX, the main operations of the company show an improvement over last year. We closed the quarter with SEK114 million in cash, and I do feel comfortable that our cash flow will turn over the foreseeable period as our focus on profitability continues. And with that, I hand over to Thijs. Thank

Thijs Kipling, Chief Commercial Officer, Devicer: you, Sabina, and good morning from Boston here in The US where I’m attending the annual conference for solid organs focusing on heart and lung together with Thermo Fisher. And what a great week in Boston this already is, I can tell you. Q one of twenty twenty five was, as mentioned, our second best revenue quarter in the history of the company. Despite the expected softness in revenues from Thermo Fisher, we advanced our business on many fronts, launched our new strategy, optimized our cost structure, and most importantly, did we continue to onboard more new customers, which I will update you on here in the coming slides. Moving up and updating you on the term of Fisher.

Q one was decent even despite the very strong q four of last year, including the stock up stock up effects mentioned for Thermo Fisher on their side. We continue to win over large new accounts as Fredrik also mentioned in his slides earlier. And, generally, we see Thermo Fisher drive the market expansion in a very strong manner across both Europe, North America, while gradually establishing the business outside these territories. And I’ve had many potential customers here at this conference outside Europe and North America coming to us and asking about how can they get on and test cfDNA. So it’s a very promising outlook.

The FDA program continues to follow plan, and we’re engaging with several of the clinical sites within The US to help us along with the studies needed for the FDA application. As communicated, this is basically only about replicating data that we have from Europe already. We know that the product works well, and hence, this is not a question of if, but it’s only a matter of when the FDA approval will come. A general update on North America. As Fredrik mentioned, within our CLIA lab, we’re soon planning on submitting our reimbursement application to MultiX related to our transplant transplant trace cfDNA test for solid organs.

Reimbursement is expecting during the second half of twenty twenty five and is an important milestone that will be instrumental in the current conversations that we are having with potential partners within The US around commercializing the services of solid organs. We have also already submitted for reimbursement for our ISD service in our Atlanta based ClearLab and await confirmation during q three. The new site of contracts is being delivered on, and there’s a lot of activity every week, which we anticipate will only ramp up continuously during the months ahead of us. RHD in Canada is starting to generate revenues with especially Canadian blood services started testing in larger volumes, while Hemo Quebec is expecting to reach this a little later on. Within The US, we continue our work with RHD across different channels, and I remain confident that we’re still only at the very onset of our RHD success story here in The States.

During q one, we did a US focused webinar on RHD together with the prestigious cap today featuring two KOLs from Canadian Blood Services and Hemo Quebec in Canada, which generated a lot of interest. And during this year, we will announce more about whom we will be partnering with to have RHD testing in The US to go before the prophylactic treatment as the current standard is. Lastly, we’re now starting to see our first customers using our test for cystic fibrosis in clinical routine testing, which is also very promising. Generally, our growth in The US will come from across our product technology areas, both PCR, next generation sequencing, fragment analysis, and will be accelerated by our ClearLab. Moving on to Europe, I’m pleased to see that across our markets in Spain, France, DACH and The UK, we actually had growth of around 50% versus q one of twenty twenty four.

This is as we have planned it, and hence, I expect to see continued strong growth momentum in these markets also going forward. In markets such as Nordics, Italy, and Benelux, we were impacted by some large customers placing their orders in late q four of last year, which had an impact and made q one of this year softer, as Sabina has mentioned. The underlying growth and the outlook, however, looks strong also in these markets. And as you may have seen, we announced another very strong tender win in Italy just last week with an incremental growth of 10% over the previous tender. Generally, across Europe, in q one, we had 10% more buying customers than the same period last year and at average selling prices, excluding transplantation, being 13% above last year as well.

Devicer is leading across Europe when it comes to IVDR certifying products, which is a quality reassurance to our customers that we are the safe choice when considering new products to their labs. The new IVDR regulation comes into full effect in just a couple of years now, and hence, Devicer is in a very strong position to leverage the regulatory leadership that we already have. Q one was indeed a busy quarter where we especially focused on the launch of the new strategy. That was a key milestone. We are all ready for many laps at preferred one stop shop, and I’m confident that this is a position we can claim across all our direct markets over time.

We’re now gearing up to launch several new products and software solutions alongside AI collaborations during the remainder of the year, which will further support our growth. And as an example, when looking at our four most recent product launches, they actually accounted for approximately 18% of total revenues in the past year. And with that, I pass the word back to you, Fredrik.

Fredrik Dahl, Interim CEO, Devicer: Thank you, Tyson, Sabina. The theme for 2025 is to leverage our recent investments, focus the organization, and turning the company around to profitability towards our financial targets. With all the exciting product launches, internal activities, and commercial focus, I’m confident we will turn the company around and achieve these goals as we have set out for 2026. With a more focused and efficient organization, we are positioning Devicer to better serve our customers and patients as well as our employees and shareholders. With that, I would like to open up for questions.

Conference Moderator: The next question comes from Philipp Weiberg from Pareto Securities. So

Philipp Weiberg, Analyst, Pareto Securities: I’ve got a couple of questions here. Perhaps I’ll start with just a question about the distributor sales here. So Thermo Fisher orders have been in focus now for the past quarters. And it almost halved now since Q4, and that’s not nothing unexpected. But I was just wondering if you could say anything more about like what you’re expecting now going forward.

As you said, there are there were some small orders in this quarter, but are you expecting any big ones now going forward like we saw in q four, for instance?

Fredrik Dahl, Interim CEO, Devicer: Yep. Hi, Filip. So now the as as we usually answer, we we don’t guide on any specific customers, and that that’s true for thermal as well. So there’s orders coming in as as mentioned both in in q one and then it continues in in in q two, but no no further guidance.

Philipp Weiberg, Analyst, Pareto Securities: Okay. Alright. And then perhaps on the growth rate here now for this year. It started a bit slow and also a bit expected, but you also have a financial target to reach 30% organic growth per year. So how confident would you say that you will reach that during 2025?

Fredrik Dahl, Interim CEO, Devicer: Well, we’re very confident that we’re gonna meet all the goals and milestones that we have set out. The as as Sabina mentioned, there is fluctuations from quarter to quarter. But for the full year, there is no reason for us to to change any guidance.

Philipp Weiberg, Analyst, Pareto Securities: Okay. You and I think, Thijs also talked a bit about launching new tests and additional customers coming up. You have reimbursement. So it sounds like it’s going to be pretty heavily tilted towards towards the second half. Is that a correct assumption now?

Fredrik Dahl, Interim CEO, Devicer: I think that’s that’s fair to say. I mean but there there’s definitely still activities. We’re we’re seeing, as as Thijs mentioned also, that we definitely see a more activity with Thermo Fisher, and I think in a in a very good way. So the but it’s true. It’s a fair assumption.

Philipp Weiberg, Analyst, Pareto Securities: Okay. And perhaps just the last one for me, Dan, here. So all of these restructuring costs, this one off effect, you said that there are some that will now go into Q2 as well. But is it possible to give you any sort of quantification around how much that is in relation to what we now saw in Q1?

Fredrik Dahl, Interim CEO, Devicer: Sabina, maybe you want to take that one.

Sabina Berlin, CFO, Devicer: We will not guide into the details, but I can say that it’s only the tail of the restructuring that will impact q two, and the main changes were carried in q one.

Philipp Weiberg, Analyst, Pareto Securities: All right. Okay. Yeah. Thanks for that. That’s all that’s all from me.

Conference Moderator: Comes from Ulrik Trotter from Carnegie. Please go ahead.

Clara, Analyst, Carnegie: Hi, it’s Clara from Carnegie. I’m here on behalf of Ulrik. So you’re mentioning your restructuring. Can you clarify a bit more what is entailed?

Fredrik Dahl, Interim CEO, Devicer: Without going into any specifics, so as communicated on the last earnings call and and the recap today, we have updated the strategy to be focusing on these two customer segments, the clinical genetics labs and the and the transplantation. And what we have done is to just made a few adjustments to the organization that better reflects this updated strategy.

Clara, Analyst, Carnegie: Okay. Thank you. So I have one more question. You mentioned that Europe is going quite well, if I understood it right. Is there a trend shift that we see in the direct sales in Europe?

Fredrik Dahl, Interim CEO, Devicer: Maybe, Thijs, you want to take that one? Yes.

Thijs Kipling, Chief Commercial Officer, Devicer: I can do that. No. No. I mean, no trend ship trends trend shift in any way. I mean, we the underlying demand is is solid.

Right? So we we just we saw a little bit of a phasing here in with Italy, especially being slower in q one, and other markets really deliver overdelivering, honestly. So no no trends. Everything is it’s moving. And we’re as I said, we’re we are increasing the number of buying customers.

We’re increasing the prices not only for Europe, but across the board. So it’s a it’s a very healthy state.

Fredrik Dahl, Interim CEO, Devicer: I could say something that

Clara, Analyst, Carnegie: Okay. Perfect.

Fredrik Dahl, Interim CEO, Devicer: That we’re, you know, we are particularly happy with that that some of the regions outside Italy and Europe are are picking up pace. And as you know, everyone who’s working with diagnostics, you know it takes time. But when you have tractions in diagnostic, it tends to stick as a very sticky business. And I think that’s what we’re capitalizing on right now in in the regions outside Italy, and it’s very, very exciting, actually.

Clara, Analyst, Carnegie: Thank you very much for those answers. If it’s okay, I have one last question. So what do you think is expected to in terms of Thermo Fisher, the destocking effects in the second quarter?

Fredrik Dahl, Interim CEO, Devicer: No. I think I will refer to the same answer as I did previously that we’re not guiding any specifics about the thermal orders. The the orders are coming in both here in q one and and q two, but no further guidance.

Clara, Analyst, Carnegie: Okay. Thank you very much.

Conference Moderator: The next question comes from Oscar Bergmann from Redeye. Please go ahead.

Oscar Bergmann, Analyst, Redeye: Hello, everyone. I’ve got a few questions. The first one is if you can elaborate on the sales development and its drivers in Italy specifically. And just some comments on how much you how much more you can actually get out of this market.

Fredrik Dahl, Interim CEO, Devicer: Thijs, do you want to take that one?

Thijs Kipling, Chief Commercial Officer, Devicer: Yeah. I mean, you have a good question, Oscar. I think take the the most recent tender as an as a good good example. We we then we’re taking out ten ten at least 10% incremental growth on in on that tender. It Italy, in in historic terms, know, have been growing modest double digit or high single.

I I don’t see anything that will change that in any way. So it’s a very robust business. We are, in many of the areas, clearly the market leader, and we are certainly the one stop shop. This is the market where we have most traction with this strategy of becoming one stop shop, and that will accumulate. So Italy will continue.

Oscar Bergmann, Analyst, Redeye: Okay. Alright. So I guess sort of a follow-up question on that then. Just as you said, we see tenders have increases from previous agreements. And I was wondering if you can explain what drives these increases.

Is it mainly pricing? Is it new tests or more of the same tests? I mean, is it driven by cross and upselling, or is there more of the same?

Fredrik Dahl, Interim CEO, Devicer: Yeah. Thijs, you can

Thijs Kipling, Chief Commercial Officer, Devicer: Yeah. It’s a combination. So whenever there’s a a a, you know, a reopening of new tender, that’s our opportunity to also impose more of the increased prices beyond what has been or otherwise stated in the in the contract of the tender. So that that there’s a value increase in terms of how we manage and work with pricing. But beyond that, we are we are successfully adding more and more products into the same tenders.

Right? So doing demos, presenting new opportunities, and by that, we’re enlarging the the tender scope to include more of device products.

Fredrik Dahl, Interim CEO, Devicer: Maybe as a short comment on pricing so sorry, Oscar. So maybe as a short follow-up on pricing is is what we have noticed is that, you know, we’re not losing any customers. It’s very, very rarely. And I would say it’s fair to say that there is room for looking at the crisis on on our products to see sort of what, you know, what we can do there. But, clearly, we’re not we’re not at the point where where the customer feel that they they need to look at alternatives.

Oscar Bergmann, Analyst, Redeye: Okay. And I suspect you you can do the the price increases once you get new tenders, or can you go and sort of make changes in in in in existing tenders for for price increases?

Thijs Kipling, Chief Commercial Officer, Devicer: Right. Yeah. So no. If Oscar, they usually tenders any contract is is restricted or gated to so there’s only a certain increase that you’re allowed to. Right?

So if you really wanna have bigger changes, it has to be when you roll that tender over to a new tender. So that that’s the

Oscar Bergmann, Analyst, Redeye: Okay.

Thijs Kipling, Chief Commercial Officer, Devicer: That’s the usual pattern.

Oscar Bergmann, Analyst, Redeye: Alright. And I think you guys I don’t know when you said this, think maybe it was in November sometime, but there was a presentation where you said that you have high expectations on The U. S. Market and it’s going to be a bigger market than Italy even. And I concur with that assessment, but what’s interesting when you make that sort of statement is a sort of time line for it.

So I was just wondering if you can give some sort of timeline of when The US could actually be a bigger market than than Italy.

Fredrik Dahl, Interim CEO, Devicer: You know, Thijs, I think it’s a question for you.

Thijs Kipling, Chief Commercial Officer, Devicer: Yeah. I think I’ll I’ll stay with FedEx comments before. Right? We we we don’t do and give this type of guidance, but it’s on good track, I can tell you.

Oscar Bergmann, Analyst, Redeye: Okay. I can always try to to get some sort of answer. Just have a few more questions before I head back into the queue. It’s very interesting to see the geographical sales development. Unfortunately, we sort of have to wait for the annual reports to see this in any ID play?

Is this something that you are looking into providing on a quarterly basis as well?

Fredrik Dahl, Interim CEO, Devicer: Samina?

Sabina Berlin, CFO, Devicer: Well, the annual report tends to provide more details in general. And so far, we’ve been going with our biggest regions in the quarterly reports. But we’ll we’ll take your feedback with us, and we’ll see when we provide more details also on a quarterly basis.

Oscar Bergmann, Analyst, Redeye: Okay. We know in in in q four, there was also some shimmers and customers who were transitioned, I guess, you can say to the Thermo Fisher. Was this also the case in q one or was all of that transition finalized in in q four?

Fredrik Dahl, Interim CEO, Devicer: Yeah. Sabina and Thijs may ship in.

Thijs Kipling, Chief Commercial Officer, Devicer: Yeah. I can I can start, Sabina? It it was it was transitioned during last year. So that’s to be considered also in the Okay. In the comparison, right, to last year.

So some of it has now shifted to distributor sales in our q one report.

Oscar Bergmann, Analyst, Redeye: Okay. All right. And then the conversion of distributor markets to direct markets markets. Can you just elaborate on how this has progressed in in q one and how you expect this to be developing for the for the rest of 2025?

Fredrik Dahl, Interim CEO, Devicer: Thijs, you can take that.

Thijs Kipling, Chief Commercial Officer, Devicer: Yeah. I mean, we we have markets in scope that could be converted, but right now, we’re not making any active changes. We are doubling down on on the the markets we have already made that conversion into direct and have put our own team on the ground. We wanna see that we apply the necessary focus to truly deliver and double down before we we add more markets. But there is a nice tail of additional markets where we certainly could and we will, in time, convert, but not in the in the, you know, soon future in any way.

Oscar Bergmann, Analyst, Redeye: Okay. And would you say, you know, with the transportation tests and an increasing focus on on that part of your business that that the conversion of distributor markets to direct markets in in Europe is something that would be less prioritized going forward?

Fredrik Dahl, Interim CEO, Devicer: Yeah. Thijs, please continue.

Thijs Kipling, Chief Commercial Officer, Devicer: No. I would I would I would answer no. I mean, we we we we focus on on the all the strategic imperatives that we have and directs you know, converting markets is a is a very it’s it’s a it’s it’s a growth in April also for us. Right? But we wanna make sure that we have the right onset for doing it.

And we’ve just taken some rightsizing in the organization. We’re really focusing on on doubling down on growth, and that’s the focus before we start expanding further.

Oscar Bergmann, Analyst, Redeye: Okay. Alright. And I promise this is my my last question. Is there any reason to sort of be prepared for any risk of a negative impact on sales and increasing costs in the short term due to this updated strategy? Anything that can help selling activities and marketing activities and so on?

Fredrik Dahl, Interim CEO, Devicer: I’m not sure I’m answering the question, but we are looking at our business today with the adjustments we have made. We feel we’re building a very solid foundation for further growth. I think we have Mhmm. Done the great majority of the the changes that we have planned when we started this year, And we have started to execute as a company much more efficient efficiently, and I’m very confident that this is a trend that that will even be stronger going forward. So I’m not sure I I answered the question correctly, but

Oscar Bergmann, Analyst, Redeye: I think you did. And just to to be sure, I think Filip asked previously in this call about your expectations of your sales target. And it seems like you’re very confident that you will be able to deliver on the 30% organic growth targets for 2025 also.

Fredrik Dahl, Interim CEO, Devicer: Yeah. I mean, if you look at the history of the company, you have seen fluctuations during the year. Right? And we we are seeing a a a a good solid funnel going forward. We have new, very exciting new releases of new products.

We have the MoldDX application that’s gonna be submitted within weeks that we expect to go live after the summer. So we have so many exciting opportunities here in addition to thermal picking up speed that we’re we’re we think we’re in a very good shape.

Oscar Bergmann, Analyst, Redeye: Okay. And I know I know that this target was set before the Thermo Fisher deal. So if the Thermo Fisher deal will not be in place, would you be as confident in in this sales target as you seem to be today?

Fredrik Dahl, Interim CEO, Devicer: So if the thermal was not in place, is that the question?

Oscar Bergmann, Analyst, Redeye: Yeah. Yeah. Because the sales target was was put before the Thermo Fisher deal was was a fact.

Fredrik Dahl, Interim CEO, Devicer: Well, look. The I think the, if you’re looking at how to commercialize transplantation products, you can either do that direct or by partners. And we made a strategic decision that at the point at the time, we believe that partnering with Thermo would be, sort of, make make most sense and then has the lowest risk Mhmm. To, get to the targets.

Oscar Bergmann, Analyst, Redeye: Okay. Well, thank you. Very happy with those answers.

Conference Moderator: If you wish to ask a question, please dial pound key

Fredrik Dahl, Interim CEO, Devicer: Okay. There is no more questions

Conference Moderator: at this time. So I hand the conference back to the speakers for any closing comments.

Fredrik Dahl, Interim CEO, Devicer: Alright. Okay. No more questions. So, again, thank you everyone for joining our our call today. We certainly feel a very good momentum and energy in the company today and look to continue to deliver on all our initiatives that we recently initiated.

So thank you, everyone.

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