Paxman aktie (PAX)

VD:s kommentar

This really must be a year to remember. Not only have we continued to perform, delivering another year of consistent growth both organically and through acquisition, but we have also raised a significant amount of capital supporting investment in our future growth and expansion, acquired Dignitana – our only true competitor – and submitted our 510K regulatory package to the FDA for our latest development. This translates into real impact, supporting more patients now and in the future. The team, both Paxman and Dignitana have outdone themselves, demonstrating our values throughout a year of new challenges and opportunities and much change. The new group achieved net revenues for the quarter of 84.4 MSEK, compared to 66.2 MSEK for the same period in 2024 – a growth of 27%. Although we have seen significant growth for the quarter, this is primarily driven by revenue acquired through the acquisition, with the Paxman entities seeing revenues of 65.8 MSEK and Dignitana 18.6 MSEK. Reduced revenues from Q3 2025 primarily relate to foreign exchange across the group along with reduced sales in Dignitana. For true indicators of performance, it is important to look at the revenue streams separately: • Paxman US Inc achieved revenues of 38.2 MSEK ($3.95m) compared to 34.4 MSEK ($3.2m) for same quarter in 2024 and 34.1 MSEK ($3.6m) in Q3 2025 demonstrating a period of significant growth driven through our insurance-based billing model. • Income generated from rest of world activities, including sales in the UK, to our global partners and Canada reached 27.5 MSEK compared to 31.8 MSEK for the same quarter in 2024 and 31.7 MSEK in Q3 2025, affecting overall growth performance. This was primarily affected by difficultly in dispatching equipment during the holiday shut down. For the year, rest of world sales are up by over 10%. • Just looking at Dignitana since acquisition, sales in Q4 were 18.6 MSEK compared to 21.1 MSEK for Q3 2025. This slow down should not provide any concern. It was partially affected by limited sales to global partners following terminations. We are confident in the strong US customer base. Overall, I am very pleased with performance, with a 10% growth in the USA quarter on quarter driven by insurance-based billing. Integration and CIPN commercialisation activities continue to weigh on margins. The company delivered an EBITDA of 5.8 MSEK, an EBITDA margin of 6.8% with an operating loss of 3 MSEK for the quarter. Profit and loss affect associated with both the acquisition and CIPN for the quarter equates to 9.2 MSEK, which included 5.6 MSEK for Dignitana, of which 3.7 MSEK is goodwill amortisation. All restructuring costs of the new group have been accounted for in the year positioning us well for 2026 onwards. Cashflow, of course, has been affected by the acquisition and restructuring however we saw a positive operating cashflow of 5.6 MSEK. Investments totalled 16.6 MSEK for the period, of which 8.8 related to Dignitana, 2.8 MSEK related to CIPN, and the remainder to scalp cooling installs in the USA, amongst other typical capital investments. The overall cash outflow equated to 8.7 MSEK. The quarter closed with cash and cash equivalents of 120.8 MSEK, a solid base for CIPN commercialisation and working capital for growth through 2026. Looking at Financial Year 2025, the company had its most impressive year to date, setting new records in terms of revenues and investments. Net revenues of 313 MSEK were achieved for the year, compared to 253 MSEK in 2024, a 24% growth, 13.4 MSEK in organic and 46.6 MSEK through acquisition. The year-over-year reduction in EBITDA reflects a deliberate investment phase - primarily consisting of one-time acquisition costs such as advisory fees, due diligence, and integration redundancies to unify our operations. These have temporarily affected margins in 2025 but are necessary for achieving the ‘One Company’ structure, supporting rapid growth and operational leverage expected in 2026. We see this as a strategic move toward a more scalable and profitable future. I am proud of the results our team have delivered taking in to account the pressures of the acquisition and preparation for commercialisation of our new product. Profit and loss for the year has not only been affected by the acquisition and CIPN investments but also foreign exchange losses of 15.1 MSEK in the first half of the year and a deferred tax charge of 6.3 MSEK. As of the 1 July, the board determined that intercompany balances are not expected to be settled in the short term therefore leading to a change in accounting treatment, meaning these future forex losses and gains are reported directly within reserves on the balance sheet as opposed to the profit and loss for the period. The Dignitana acquisition has progressed well. As we enter 2026, we can begin to enjoy the synergistic value of the investment. I have said this before, but I am incredibly grateful for our new colleagues and appreciate their continued support as we navigate the changes in people, technology, and process. November and December saw three major milestones for our neuropathy product commercialisation and expansion. Firstly, we submitted to the American Medical Association (AMA) for Category III CPT® coding, a key pathway for future reimbursement; secondly, we submitted our 510K regulatory package to the FDA; and finally, we received planning permission for our new premises. Our Simple Switch – the campaign to switch existing self-pay scalp cooling facilities in the US to the insurance-based billing model (IBBM) – has been and will continue to be a key focus. With Q4 2025 performing strongly, it provides confidence as we enter into 2026 with the launch of our long-awaited Category I CPT® codes. Moving away from typically investigational and temporary codes to permanent coding means stronger, better coverage and ultimately payment for our partners. Coinciding with this shift in attitudes towards scalp cooling, the US has continued to experience a wave of legislative movement across a significant number of states to mandate insurance coverage for the treatment. Less than 2 months into 2026, Kentucky, Virginia and California have joined 7 other states considering such measures, hoping to follow in the footsteps of New York and Louisiana, where bills were passed and took effect on January 1, 2026. These changes reflect increasing recognition of scalp cooling as a clinically meaningful and patient-valued intervention, which drives further patient access and therefore market growth. In Q4, 867 caps were sold under our IBBM compared to 672 in Q3 2025, representing 37% of the caps sold in total, with average income per patient being $1,900 vs. $1,479. We plan to provide utilisation tracking through 2026 onwards as a new KPI. Now looking into 2026, this is set to be our most exciting year. Our plans are around 5 keys themes with our priority being the simple switch: capitalising on our Category I CPT® codes, driving stronger coverage, better payment and increased utilisation. Other key themes include commercialisation of the new Paxman Neuropathy product, revenue growth in rest of world markets, and investment into operational and clinical excellence throughout the group. For our neuropathy product, our regulatory package is now under substantive review, and our timelines are still looking positive with clearances expected in April 2026. We were also incredibly excited to announce following the summary of the AMA panel actions that three Category III CPT® codes were approved for chemotherapy-induced peripheral neuropathy. For me, this is such a positive step forward. With appropriate coding prior to regulatory clearances, this represents a far stronger starting position compared to the beginning of our scalp cooling commercialisation efforts. In the summer, the Center for Medicare Services (CMS) will look to propose a new technology APC rate, setting us up to launch in the USA with an insurance-based billing model from the beginning. Further commercialisation plans will begin to be unveiled over the coming months for both the UK, a European market, and the USA. Throughout the years, our vision has remained steadfast. We are dedicated to ensuring that everyone—regardless of background or location—has access to scalp cooling. Today, that commitment translates into tens of thousands of patients receiving treatment to reduce hair loss during cancer treatment supported by an extraordinary network of clinical partners and our Paxman team. This growth reflects what is possible with long-term partnerships and patient-centred decision making leading the way. The result is not just growth, but real impact measured in lives supported. As we enter a new chapter, our vision shifts now to a world where CIA & CIPN are no longer an issue. Where everyone – regardless of geography, ethnicity, financial situation, gender, or treatment regimen – has access to the effective, trusted cryotherapy solutions they need to help prevent the side-effects of chemotherapy. Thank you to my colleagues and all our partners for your trust and partnership throughout the year. We are incredibly excited for the future and the year ahead, not only supporting chemotherapy-induced hair loss but also peripheral neuropathy. Huddersfield, February 2026, Richard Paxman OBE, CEO Paxman AB (publ)