Release Date: July 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Cosmo Pharmaceuticals NV (CMOPF, Financial) reported a significant increase in revenue for the first half of 2024, reaching EUR136.2 million compared to EUR43.7 million last year.
- The company has a strong financial position with no debt and a cash position of EUR133.4 million at the end of June.
- The partnership with Medtronic has been strengthened, resulting in a EUR100 million upfront payment and an expected additional EUR100 million by the end of the year.
- Winlevi, a dermatology product, achieved a remarkable 58.5% growth due to its continued global expansion.
- The company has a promising pipeline with advancements in AI technology and new product developments in gastroenterology and dermatology.
Negative Points
- Net expenses increased to EUR49.2 million from EUR36.5 million in the same period last year, driven by higher personnel and production costs.
- The company faces challenges in selecting a replacement commercial partner for Ncolo in the United States.
- There is uncertainty regarding the timing and magnitude of revenue impact from new GI Genius applications and the pricing strategy for these products.
- Winlevi's prescription growth in the US has been relatively flat over the last 12 to 18 months, indicating potential market penetration challenges.
- The company has not provided specific guidance for 2025 revenue, creating some uncertainty about future financial performance.
Q & A Highlights
Q: When should we expect the new GI Genius 300 module to influence revenue, and what is the pricing strategy for these new applications?
A: The GI Genius 300 approval is expected in the next month or month and a half. Mass production will start afterward, with Medtronic planning to launch the technology at the beginning of next year. Pricing will vary based on the application and the clinical unmet need it addresses. Existing Genius subscribers will be able to access new applications quickly, supporting a scalable software-as-a-medical-device business model. β Giovanni Di Napoli, CEO
Q: Do you expect to receive the second payment from Medtronic this year?
A: Yes, we expect to receive the second payment by the end of the calendar year. We are working on additional services, products, and features, and aim to close the year with the payment completed. β Giovanni Di Napoli, CEO
Q: When do you expect a regulatory decision in Europe for Winlevi?
A: We anticipate EMA approval by the end of this calendar year. The team is working hard to meet upcoming deadlines, and we expect to receive approval by the end of December. β Giovanni Di Napoli, CEO
Q: What are the key competitive advantages of the GI Genius model 300?
A: The GI Genius model 300 is the only computing edge platform approved for endoscopy in the US. It offers flexibility and the ability to receive multiple AI algorithms simultaneously, allowing for faster development. The integration of Nvidia's IGX platform enables third-party developers to create applications, positioning us uniquely in the market. β Giovanni Di Napoli, CEO
Q: What is your strategy for Cosmo's future pipeline and R&D focus?
A: Our R&D will focus on large markets with unmet needs, particularly in gastroenterology and dermatology. We aim to develop unique solutions for these areas, and our AI applications will also play a significant role in the endoscopy space. We are open to opportunities and will analyze them to determine the best options for Cosmo's success. β Giovanni Di Napoli, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
