Thank you. My name is then Peter Forsell. I will tell you a little bit about Implantica. It's all about, as you know, bringing advanced technology into the body. We had a successful journey previous to this business where we developed a nice business around adjustable gastric band. The funding we have used to create the new business is coming from a sale to Johnson & Johnson of this gastric banding business. We have two platform technologies, one wireless energizing platform and one eHealth platform. To be able to really bring advanced technology into the body, you soon realize that you need more power than you can use for small batteries for. You really need to be able to send energy wirelessly through intact skin. You need to be able then to measure important health parameters inside the body, measure your treatment, how it's going, measure parameter from the implant, and you need to be able to send that to the caregiver so the caregiver then could look at his different patients and also adjust the treatment. If you should have very cost-effective treatment, you need to have really advanced treatment that you can regulate from distance without the patient laying at the hospital or coming back and forth very often to the hospital. This is what we have developed as a platform here. We have also spent quite some time to go through the whole body and see how could we now improve healthcare with these two platform technologies. We find out that it was like a blue ocean market. You can do patent of the patent of the patent. We are systematically going through every treatment field, existing patents, existing treatments, and we created several thousand patent cases, more than 300 inventions. After three years of market analysis, product analysis, production analysis, and prototyping within total 70 people for three years, we have selected 40 implant product candidates, which we think are really strong products going forward. That's sort of the background of this company. We have done, of course, very serious patent work, and we are focusing all the main market like U.S., Europe, Canada, Australia, Mexico, Brazil, China, and Japan, and so on. We have a very advanced way of working with patents. We are using a company called AWA since many years. We have a very high mission in this company. We should become the world leader in smart medical implants. We should provide solutions to millions of patients. That's our goal. We have actually both the patents and the possible pipeline to become a really large company. It's all about execution and funding and other parameters, of course. We have a little business update. We are now focusing, of course, on eHealth because the future of healthcare will be involving lots of eHealth. We have tried now to increase the functionality of our eHealth platform. We are trying to get more treatment fields that could use our eHealth technology and to accelerate the integration of the eHealth platform in the pipeline products. Our target is to be in the forefront of the eHealth transformation. We have a patent portfolio of 48 applications just regarding our eHealth system. We are also working on the expansion of the eHealth platform with different new technologies, one is a stimulation training technology who is performed from inside the body. Here you can train, for example, the food passageway. If you have a dysfunctional food passageway, you can, for example, if you have problem with your anal sphincter because you are incontinent, you can train the anal sphincter. If you, for example, have a stoma, you can instead train the small intestine. The same with the urinary tract. You have urinary leakage. You can support the urinary sphincter or the pelvic floor for different treatment. I will give you one example here. This is a product called StomaRestore who is using this or will be using this new stimulation technology. In this case, we talk about patients who for some reason have taken away maybe the large intestine, maybe they have a disease there, maybe was colitis or other diseases, and they collect the fecal matter in a plastic bag. The business only for plastic bags is $3 billion. SEK 25 billion only for plastic bags, which is rather incredible. We have a solution here now together with our new stimulation technology, so we can open and close the intestine from inside the body. We can create the reservoir, and we can connect directly to anus, so these people don't need these plastic bags anymore, and they will be normal. One of the key features here is that when you close an intestine, it's like you put a plaster on your arm because you have maybe broken your arm. You find when you take the plaster away that nearly all your muscles have disappeared. The same happens when you try to close an intestine, that the muscular, nice, healthy wall of the intestine, that just diminishes, and you get a thin, fragile intestinal wall that doesn't work. If you use our stimulation technology, you can every day train your muscular wall and keep it in a healthy and good shape. That's why an invention like this will work. We are today focusing on not less than five products. It's actually four products which is under development and one product which already is on the market. I will guide you through this a little bit. RefluxStop is in the treatment of acid reflux, so acid coming up from the stomach and then terrorizing the tissue in the esophagus. We have two products in the urological field. We have one treatment for people who leak urine, where you can have a remote control and open and close your urethra. We know that 10% of all women, all grown-up women, are leaking urine. We also know that men who is operated for prostate cancer, they also leak urine in 20% of the cases. We also have a product for the opposite, people who can't urinate at all. In this case, they maybe have a multiple sclerosis disease, or they are maybe paraplegic, maybe they have a spinal cord injury. Here you need then to put in a catheter into your own bladder every time you need to urinate. Maybe five times per day, you put in a catheter yourself to empty the bladder. This is a quite burdensome life. We have a treatment where they can instead urinate with the remote control. Every single one of these 100 million people who has this problem would really do anything on Earth to get such a device. We have a treatment for obesity. I will talk a bit more about this today. We have also this StomaRestore we discussed. I will guide you a little bit through this also in a little while here. If we start with acid reflux, it's actually a disease that is affecting one out of five people. 17% of the European population has weekly acid reflux. If we talk about daily sufferers, that's pain every single day, it's 400 million people. I will just shortly try to repeat a little bit how this device functions, because this is a real invention, because it's extremely simple, and it's extremely effective too. A totally new way of handling this problem. Existing technology was all about trying to compress the food passageway. It's very logical. You have acid in your stomach, and you avoid it to come up into esophagus, and therefore, you believe you should try to close here, put pressure on the closing muscle here, either in an old method called Nissen fundoplication, where you take a part of the stomach here, and you wrap it around, or a magnetic band that do the same thing from Johnson & Johnson, which is our main device competitor. They try to help this ring muscle here to close. The problems you have now is that because this is people's food passageway, they get problem to swallow. They can get swallowing problems, and they can't get nothing up. They can't belch. They can't vomit. They can't get the gas up here anymore. Therefore, they get so-called gas bloating. They get swollen and distended in the abdomen. This type of surgery is not well-liked. It has been decreased the last two decades, and it's rather small amount of surgeries done because patients are not happy with this type of treatment. We instead had a completely different approach here because we have found out the reason why you get acid reflux. We can treat the cause of acid reflux. Because of that, we don't need to affect the food passageway at all. You see on the drawing here to the left how this works. You have the diaphragm. That's a big muscle that divides the chest from abdomen. This moves up and down when they breathe. In the chest, the lungs, it's coming and going, the pressure, because you compress and breathe in and out, and therefore, pressure variation coming and going into the chest. Then you have a hole for esophagus passing through this diaphragm, and therefore, it's leaking pressure variations out of this opening here. You can imagine that you have a harbor with a stone wall protecting the boats, and then you have an opening in the stone wall where the boats going in and out, and there you always get really nasty streams through that opening. What you need to do is just to restore the position of this closing muscle. It's called LES, lower esophageal sphincter. You have a large distance between this diaphragm and its opening and the closing muscle. That you keep in place with our little device, which is then put parallel to the food passageway, just invaginated in the top part of the stomach. You sort of reinforce the stomach top part. You create a mechanical stop. When this diaphragm comes moving up and down because of the breathing, it will hit this part of the stomach with the reinforced RefluxStop, and you can always ensure that you have the healthy distance between the ring muscle and the diaphragm. When you do this, suddenly all patients are treated. I will give you one example from our three-year results that we actually presented already previous quarter, but it is so fantastic, so I wanted to tell it again. Actually, when you look at the three-year results of our study of 50 patients, you can see that all patients took PPI drugs before surgery. 47 still in the study after three years, none of them took PPI, and that the three patients that quit the study, no one took PPI when they quit the study. This is a rather exceptional result. If you compare, for example, to the standard Nissen fundoplication, you can see that it is a really big difference in terms of complications and outcome. When you look at it from a statistical point of view, you can see that this is all statistically significant. We have proven that we are much better than the existing treatment. That means that we have all the attributes to really become the new standard of care in this acid reflux treatment field. As you know, this is probably the largest treatment field in the world. If you calculate only the daily sufferers, then it's maybe the second-largest treatment field after obesity. If we then look, what are we then doing today? We are, of course, then working on regulatory approval and reimbursement. It's many countries where we now need to be allowed to sell. We are allowed to sell in Europe today, but we don't even have reimbursement in all countries in Europe. Far, in Europe, we can sell in Germany, and we can sell in U.K., and Sweden, Norway, Italy, Spain. For the regulatory approval, we are working on 30 countries or so in parallel. We have lots of Far East countries, Latin America countries, Australia, Canada, United States, Japan. In all these countries, we have a full team of people to try to expand the marketplace where we are allowed to sell. As you understand, COVID today has made it a bit difficult to really get a good expanding business. When COVID phases out, we, of course, want to be prepared in as many markets as possible. Here you have a nice map of a little bit the reimbursement situation in Europe. The blue countries here you see we can start to sell with reimbursement. Of course, in Germany, we even have our own designated OPS code, also our own specific number for the RefluxStop procedure, which, of course, tells you that the InEK, the healthcare government in Germany, they think this will be a treatment going forward. In Germany, before we received the OPS code, we had 87 hospitals who applied for extra money to be able to operate with RefluxStop. There is something called NUB money in Germany, where before reimbursement code is obtained, the one we already have now, you can apply for extra resources. It was 87 hospitals, and that's quite astonishing. In Germany, we are in a good shape to really get going with this. We are then building up sales organization, and we have realized that even if we don't have reimbursement in a specific market, it's good to start to build up a smaller sales force anyhow to try to get hold of all the key opinion leaders, to train the key opinion leaders and get them on board because they will sell the product, surgeons to surgeons. That's how you sell a medical implant today. We are reinforcing now our sales force in the U.K., in Sweden. We are looking Spain, Italy. We have a new employee now in France, and we are working to be prepared for when COVID finally will phase out in a way that you can start with more electives type of surgery. We are, of course, doing marketing activities, so we are working with special homepages directly linked to the hospitals so patient could weigh in. They could fill in a little formula, and they get directly contacted by the hospitals who is connected to our system here. We will do some interactive homepage for reflux, organize some marketing campaigns through Facebook, and search engine optimization to be on top of the search results, which today is quite important. Here you see some of our key targeted demonstration centers. Actually, the hospital you see here in Switzerland, they have actually been doing surgery with RefluxStop all of the COVID situation. It's, of course, not a lot of surgeries, but still has been ongoing, and especially, Inselspital, that's the largest university clinic in Switzerland. They are promoting this, and they will be the leader of our new clinical trial we have going forward. Also in Germany has been a couple of hospitals that have been able to do some surgeries. We have Charité, which is one of the most well-known hospital as a university hospitals in Germany, and also Siegen, Professor Stephan, has doing some surgeries. In Germany, has been even more shut down than maybe in Switzerland. We also have Professor Schoppmann in Vienna. This is actually the largest clinic in whole of Europe for anti-reflux surgery, and he is now starting and have ordered 25, 30 RefluxStop, and that is really a milestone in conquer the European surgical world, so to say. I will guide you a little bit also through the obesity product, because this product is so fascinating because we are able to control appetite. That, of course, has been a dream scenario for all this research that's been going on obesity for a very long time. The reason for that is, of course, that obesity is the largest market in the world, maybe except reflux. If you just look at overweight, it is 1.9 billion overweight people on this planet. If you look at them, who is really super obese, we have 650 million people. This is substantial of lots of people. Furthermore, today, it is proven that societies save money by operating obese people. When we started with the gastric banding business some time back and we tried to get people to pay, for example, in U.K., NHS is the organization there, National Health Service, they said, "They should have diet, these obese people. We have no money for obesity surgery." Today, the same NHS organization has made 2 million Britons eligible for obesity surgery for GBP 12 billion. That tells you that the obesity surgery has a really high potential today because all over the world, everybody understands that you save money by operating obese because they get so many kind of diseases. Then you should know that the rest of the market as a number of surgeries for obesity surgery is forecasted to grow to 3.8 million by 2026. How is then our product working? It's simply controlling appetite the same way as the body's controlling appetite. When you eat, you fill the stomach with food. When the stomach start to be full, it start to stretch the stomach wall, and the top part of the stomach, its stretch receptors. They send a signal to the brain, and the brain tells you, "Now you are full." Of course, if you have a fantastic dessert, your favorite dessert, you can still continue to eat a little bit, but you then stretch the stomach wall a little bit more, and you feel even more full. That's how it works in real life. We are imitating this by our device. We have a device like a little octopus with five arms. We place it on the outside of the stomach. You don't open anything or the food passages where you don't damage anything. You just place it nicely on the outside, this procedure that maybe take half an hour, a very low-risk procedure. You put through a little bit of stomach tissue over each arm, and the arm could move in relation to others to stretch the stomach wall on command. That means that we can control appetite when we want. People can have a remote control in a lifestyle product, and they think, "I'm eating too much. This doesn't work. I get too fat." You press the remote, and you feel full, and you don't want to eat anymore. For the super obese people here, we are integrating, and that work heavily ongoing right now in our eHealth setup. We are integrating this product. Together with this device, who is super intelligent and has a food sensor. Here you can recognize what people are eating, how they are eating. All this information, weight of the patient and so on, is sent to our database. The doctor could log in with a bank type of login. He can look at his patients maybe once per month. We see here [Dan Fora nderson]. I met [Foranderson] one year ago. We agreed that in three years' time, she should have weighed to 65 kg. I see here she doesn't lose maybe enough weight. I reprogram [Foranderson's] device. Let's say the doctor can then decide, I allow [Foranderson] to swallow solid food seven times for lunch. [Foranderson] is then sitting, having her lunch, swallow solid food seven times. Suddenly the smart device will keep track of everything, stretch the stomach wall, goes a signal to the brain. The brain tells [Foranderson], "Stop. You are full. Don't eat anymore." This way, people will always be happy, satisfied with the low-risk procedure, and they will get any kind of weight they want in this system. That's the target of this device. When GfK helped us to do surgical interviews, basically surgeon says, "Wow, we believe this will be 100% of obesity surgery if this will work long term." That means that this is a really good example of the future of eHealth, how you can integrate an eHealth system with a smart treatment device to make more advanced treatment that has been available since before. Of course, this could be the future of obesity surgery, and it tells you a little bit of the potential and the potential future of Implantica. We should also tell a bit about the finances for this new quarter, and I will give the word to our CFO, Andreas Öhrnberg. Many thanks, Peter. I think we are on slide 30. Here you can recognize the slide from earlier periods. We focus on three key financial metrics, net sales, gross margin, and EBIT. We start with sales. We are in the early stage of commercializing our initial product, RefluxStop. Over Q1, we experienced continued tight restrictions on elective surgeries, which we also are experiencing over Q2. Still, the team was able to generate EUR 82,000 of revenues, being more than three times the year-on-year and the quarter-on-quarter comparable. The gross margin for a period was 92%. Even though our operations is subscale, we are able to achieve a high gross margin. Given the modest volumes, we will continue to see some volatility in the gross margin number. Operating loss increased to EUR 2.3 million. This driven by significantly higher activity levels, which you can see reflected through the research and development and the general admin expense. Turning to slide 31. Looking at our balance sheet, as you're aware, it's very solid. End of March, we kept EUR 93 million of cash. As one can tell from the graph, the quarterly cash burn amounted to EUR 4.2 million, which also includes a certain FX effect. Over the year, we will see the cash consumption increasing. This as we strengthen the management bench with some seasoned industry professionals, as well as we continue to scale the sales team and the R&D work stream getting further pace. COVID will have an impact on the investment pace. Hence, we will see some more investment in Q3 and Q4 than we will see in Q2. As the private placement of SEK 4.9 million receipts was executed in April, we will only see the cash injection being reflected in the Q2 balance sheet. With that, I would hand it back to you, Peter. Yes. As you understood from Andreas Öhrnberg's presentation here, we have also raised an additional SEK 600 million. We have a substantial amount of cash in this company. As you see, we have today EUR 93 million, sorry. That is not including the SEK 600 million, which will be added on. We are really prepared to get going with our very intensive development plan and commercialization of RefluxStop. As you know, we have really fantastic shareholders. We managed to get all the big banks and both Handelsbanken, Swedbank, Nordea, the important insurance companies, Skandia, If. We have TIN Fonder. Yeah, we have as good shareholders that you really can wish for that is supporting us during this journey to build a large company going forward. We have added a little bit of slide here just based on third-party forecast how the market should develop. This is just so you can get a little bit feeling of the potential of these products we have here. If we talk about, let's say we should take 10% market share at 2026, for example, then you have EUR 500 million for RefluxStop in sales, you have EUR 900 million of UriControl, and you have EUR 2.6 billion of AppetiteControl. Then it's possible to look what kind of target you have here in terms of market share. Of course, COVID has affected us as well as everything else, but we have been using the time to create webinar trainings for the surgeons, connecting, doing all this groundwork with reimbursement, regulatory approval, and so on. We believe that we have a good position when things starting to be more clear. We are also trying to reinforce our team. We have been looking for really top class people to build an even stronger team going forward so we can build this company to something important that we and all our shareholders are waiting for. Thank you for listening, and we give it open for any questions. Thank you. Ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone keypad now. Just as a reminder, that was zero one if you wish to ask a question. We have one question from Christian Lee from Pareto Securities. Please go ahead. Thank you for taking my questions. My first question, I think is for Andreas. You mentioned that the investments in Q3 and Q4 would probably increase compared to Q2. Could you please give some color on what kind of investment levels we could expect in Q2? Will it be in line with Q1? Thank you very much, Christian. Yes. Plus minus, I would expect Q2, given the current COVID situation, it's not materially different from Q1. We will see similar levels slightly north of that, but that will accelerate over Q3 and Q4. That's our current expectations. Yes. How much should the investments increase in Q3 if markets normalize, of course? I don't think we will give any specific guidance, right? Period on period, there will be initial investments, both on OPEX side and the CapEx side. It will not be significant jumps. I think it will be in a fairly systematic manner. It will be levels that can be 25%, 30% higher than today. Depending on how the COVID situation develops, then it might be slightly earlier or slightly later that we see the pickup. Hopefully that give you some kind of indications of the pace. Yes. Thank you. During Q1, most of the R&D investments were driven by UriControl and AppetiteControl. During the second half of the year, what kind of investments would drive the increased R&D expenditures? Will you still focus on UriControl and AppetiteControl, or will you be able to? Peter? Yeah, in total for the moment, we have seven work streams of development. One is the eHealth integration. We have a special eHealth group that is working on a multipurpose, multi-product approach to try to get the integration of the different products into the eHealth market. Of course, we have the AppetiteControl work stream, as you noticed. In combined with that, we also have a separate team who is analyzing the results of the food sensor. That's a separate group just for the food sensor. Of course, we have the UriControl group, where we are doing both an eHealth integrated and a more primitive UriControl device. It will be two versions of that product. We have the UriRestore that we have started up now to also develop. In parallel to that, we have a group who is looking into how we can combine people who want more than one device. If you want treatment for both reflux and obesity, for example, and how do we do an integration and adapting the technology, so it will be possible to, first of all, maximize the eHealth functionality so it fits as many products as possible. Then also focus on. Yeah. Be prepared for that people could use more than one product. Great. You mentioned that you will enhance the functionality of your eHealth platform, for example advanced control of drug delivery inside the body and the development of stimulation training technology. Will you be able to focus a little bit on these two areas during the second half, you believe? Exactly. That's what we are trying to do. We will focus on this. Start with this stimulation technology. That will be a new work stream for us too, that will then build a platform for products like StomaRestore, maybe even going forward for people with anal incontinence. Maybe it could be used to improve the outcome for the urinary sphincter as well, and so on. Excellent. Thank you very much. As there are no further questions, I will hand it back for any closing remarks. Yeah. We just want to thank our listeners and hope you would like to continue this exciting journey with us, and we wish you a really good afternoon.
Loading workspace