Q3 Interim report – Launch in US with own CLIA laboratory

SEK 000s Q3
21/22
Q3
20/21
May-Jan 21/22 May-Jan 20/21 Full year
20/21
Net sales 314 1,376 963 1,759 2,077
Operating profit (loss) -14,417 -11,062 -40,970 -28,012 -40,181
Profit (loss) for the period -14,334 -10,909 -40,947 -27,491 -39,482
Earnings per share, after dilution -0.50 -0.38 -1.44 -0.97 -1.39

Significant events during the third quarter

  •  Article on the DiviTum®TKa Budget Impact Model published in the Journal of Medical Economics.
  • Three studies with DiviTum®TKa presented at SABCS 2021.
  • Start of TK IMPACT study at Washington University in St. Louis.

Significant events after the end of the period

  •  Updated timetable for supplementation of the FDA submission.
  • DiviTum®TKa results from the PYTHIA study published in EJC.
  • Decision to set up own CLIA laboratory in San Diego, USA.

Audiocast:
When: 15 March 2022 at 3 PM CET
Where:  https://tv.streamfabriken.com/biovica-international-q3-2021-2022
Phone numbers: SE: +46850558356, DK: +4582333194, UK: +443333009266, US: +16467224904
Broadcast language: in English
 
CEO’s comments
In February, just after the end of the quarter, we received feedback from the FDA, which means that we have a plan for our continued application process. Now, with the FDA’s feedback, we know what information we need to supply in order to answer their last remaining question and we feel certain that we will be able to provide them with the information they are asking for.
 
We believe that the interactive process we have had with the FDA will be to our advantage during their review (once we have submitted the supplement) since we will have answered all questions that arose during the process.
 
Our work to provide the information requested by the FDA has progressed well. Hence, we feel confident that we can reach the previously communicated goal to provide FDA with the information during May 2022.
 
During the quarter, we also continued our preparations for the upcoming launch. Warren Cresswell, President of the Americas, now will be joined by Kendon Richard, who has been recruited as the new Head of Sales. Kendon has more than 25 years of experience in sales. Most recently, he held the position of Senior Director National Sales at the diagnostics company, Prometheus Laboratories, where he built up and developed the sales organization. He also has many years of experience working with sales, primarily at Procter & Gamble.
 
By building up the organization and processes, we will be prepared to start selling as soon as possible after we receive market approval. Under the surface, much work is being done to prepare our marketing and sales material and we hope to be able to present our new material later this spring. We are also working with the plan for market access and reimbursement.
 
One important decision that our Board of Directors has made is to offer DiviTum®TKa in the USA by setting up a wholly-owned laboratory in San Diego. It will serve the entire country and there are major benefits associated with this solution. It enables us to have direct contact with our customers and payers, along with better circumstances for being able to establish a price for DiviTum®TKa that reflects the significant benefits it can offer to both payers and patients. We will also improve our margins with this solution.
 
With our laboratory, we can also build a biobank of patient samples that we will be able to use in the development of new products. It will enable us to more quickly add new biomarkers for new applications and improved performance. It will become a valuable asset to the company.
 
We are expecting to receive the CLIA laboratory certification during the third quarter 2022.
 
One important cornerstone for a successful launch is strong scientific support. It was therefore very encouraging to see recognition that DiviTum®TKa received during the last quarter. For example, the results from three studies with DiviTum®TKa, including a budget impact model, were presented at the world’s largest breast cancer conference, San Antonio Breast Cancer Symposium (SABCS), in December. The results of the budget impact model were also published in the Journal of Medical Economics and subsequent to the end of the quarter, positive results from the PYTHIA study were published in the European Journal of Cancer (EJC).
 
Although publications of prior study results are important, we must continue our efforts to strengthen the clinical evidence for DiviTum®TKa even more by initiating and supporting more studies. One example is the TK IMPACT study, which began during the last quarter. It is an investigator initiated prospective trial at Washington University of St Louis to evaluate the clinical utility of DiviTum®TKa on monitoring practices in the care of metastatic breast cancer patients. The study will examine care over time of 55 patients that will be tested regularly with DiviTum®TKa. Our vision is to change the standard of care in monitoring to easy, quick and safe blood-based TKa testing that benefits patients.

We have an intensive period ahead of us to supplement the last remaining information to the FDA, obtain 510(k) clearance, set up our CLIA laboratory and then launch DiviTum®TKa in the US market. I’m looking forward to it all with great enthusiasm!