PAXMAN publishes its interim report for Q2 2023

The Group’s total sales amounted to 50.9 (35.9) MSEK for the second quarter of the year, with EBITDA reaching 6.1 (0.3) MSEK. The net result totalled 5.1 (0.6) MSEK in Q2, and earnings per share were 0.27 (0.03) SEK.

Cash flow from operating activities amounted 9.4 (9.2) MSEK in the second quarter of the year.

A total number of 276 (240) scalp cooling systems were installed around the world January-June 2023, with the orderbook containing an additional 191 number of systems.

Average daily treatment (ADTR) amounted to 37.1 TUSD for Q2 2023, corresponding to an increase of 44.4% compared to 25.7 TUSD for Q2 2022. Recurring income increased from 18.0 MSEK in Q2 2022 to 27.3 MSEK for the same period in 2023.

Significant events during the reporting period

• Paxman attended its first exhibition in relation to the promotion and marketing of the company and its products in China. Paxman, along with it’s partner Concord Medical was exhibiting at BEYOND 2023 International Technology Innovation Expo in Macau. The exhibition took place at the Venetian Macao Convention and Exhibition Centre for 3 days from May 10-12 2023.
• Paxman have shipped its first clinical trial Paxman Limb Crycocompression Systems (PLCS) to the USA in the months of April and May for the initiation of the ICE COMPRESS: Randomized Trial of Limb Cryocompression versus Continuous Compression versus Low Cyclic Compression for the Prevention of Taxane-Induced Peripheral Neuropathy. Sites among the first to participate include Columbia University Medical Center, University of Washington Medical Center and Caromont Regional Medical Center.
• In June Paxman announced that the Palmetto Medicare Administrative Contractor (MAC) had issued a Proposed Local Coverage Determination (LCD) to provide coverage guidance for Scalp Cooling for the Prevention of Chemotherapy-Induced Alopecia. The draft policy recommends coverage be considered reasonable and necessary for FDA cleared devices as long as the patient does not have any of the listed contraindications. This is the first LCD that has been proposed for scalp cooling. The proposed scalp cooling LCD was discussed at two open meetings of the Palmetto GBA in July. Palmetto GBA is soliciting comments on these proposed LCDs from physicians, manufacturers, suppliers and other professionals involved in the ordering and/ or provisioning of these items. If approved, the Palmetto LCD would provide a pathway for successful reimbursement of Medicare scalp cooling claims for patients in the seven-state service area early in 2024.
• In June Richard Paxman was Honoured in the British King’s first Birthday Honours list. Richard has been honoured with an OBE for services to International Trade. Special honours such as OBE, MBE and CBE are given to recognise people’s amazing achievements and service to the country. The awards are handed out twice a year in the UK. It is the second highest ranking Order of the British Empire Award and stands for Officer of the Order of the British Empire, awarded to someone for making a great impact in their line of work.

Significant events after the reporting period

• In August Paxman signed a further agreement with Concord Medical, China. Both parties have decided to cooperate in introducing the scalp cooling system before it officially obtains the medical device registration license issued by NMPA, in order to facilitate market research, customer interest data collection, and product promotion in the early stages. A further step in developing the company’s profile in Asia.
• Also in August Paxman signed an agreement with TACRO in China. TACRO provides medical device manufacturing companies with NMPA registration services and is headquartered in Wuhan, with branches in Beijing, Suzhou, Shenzhen, and Shanghai. Now, the total employee number is 170+. They have more than 30 regulatory consultants assisting companies to access China’s fast growing market.
• Later in August Paxman signed its first Buy & Bill agreement in the state of New York, which adds a further 12 locations to its newest business model. A large initial order for cooling caps was received equating to over 2.5 MSEK.