PAXMAN publishes its year-end report for 2020

October–December 2020
The Group’s total sales amounted to 18.2 (22.8) MSEK for the period October–December. The EBITDA for Q4 amounted to -3.3 (-0.3) MSEK, and for the same period the PAXMAN Group achieved a negative net result of -11.0 MSEK (compared to last year’s 2.1 MSEK) which was affected by a decision to write off obsolescent service stock related to the older generation systems. The corresponding earnings per share were -0.69 (0.13) SEK. Cash flow before financing activities totalled -2.7 (-2.1) MSEK for the period October–December, of which investments in fixed assets -1.0 (-7.3) MSEK.

January–December 2020
Total 2020 sales were 78.0 (85.3) MSEK, a decrease of 8% compared to previous year but despite the slowdown the US entity provided a healthy growth of 9.4% from 2019. EBITDA amounted to -1.0 (2.4) MSEK. Net result for the year reached -19.2 (2.8) MSEK, and earnings per share were -1.2 (0.17) SEK. Cash flow before financing activities totalled -14.8 (-22.8) MSEK, of which investments in fixed assets -6.3 (-20.8) MSEK.

In 2020 a total of 345 scalp cooling systems were installed around the world, with an additional 126 systems in the order book as of 25 February 2021. The first half of Q1 2021 shows an overall promising start, with orders from Italy, Russia, Brazil, France, Poland, India, the Netherlands, Norway and the UK.

Significant developments in Q4

• In October, The South Korean Ministry of Food and Drug Safety (MFDS) granted approval for an open label randomized controlled trial of Paxman’s PSCS system with chemotherapy-induced alopecia in breast cancer patients in South Korea at the prestigious Samsung Medical Center.

• In late October, Paxman announced that the American Medical Association (AMA) CPT (Current Procedural Terminology) Editorial Panel has decided to establish a category III code for mechanical scalp cooling.

• In the beginning of December, Paxman announced that the company’s distributor in Italy, Praesidia s.r.l., has placed an order for 10 PSCS2 model Paxman Scalp Cooling systems to fulfil demand for scalp cooling from Institute G. Pascale in Naples.

• In mid-December, it was announced that the leading European professional organisation for medical oncology, ESMO, has updated its clinical practical guidelines to include a category IIB recommendation for scalp cooling to prevent hair loss in chemotherapy patients.

Significant developments after year-end

• At the beginning of January, PAXMAN announced that the American Medical Association (AMA) has issued two separate CPT® codes for the “mechanical scalp cooling”.
• At the beginning of February, PAXMAN announced that the company’s Board of Directors, based on the authorization from the annual general meeting on 27 May 2020, has resolved on a directed issue. The company received approximately SEK 59 million before transaction costs.

Interview with the CEO in the next month’s newsletter
A follow-up interview with CEO Richard Paxman answering questions about the Year-end report, the recently conducted directed share issue and the global commercial strategy will be included in the newsletter for March. The company kindly asks shareholders to send in questions they have to emelie.gustafsson@paxman.se no later than March 12, 12.00 CET.