On August 18^th, Fluicell published the company’s quarterly report for Q2-23.

Development of Revenue during the Quarter

During Q2-23, the revenue amounted to SEK 1.1m, compared to SEK 0.5m in Q2-22, which corresponds to a YoY increase of 119%. Compared to the previous quarter of Q1-23 where the revenue amounted to SEK 1.8m, a decrease of 41% was observed. Total revenue amounted to SEK 1.4m (0.8), corresponding to a YoY increase of 70%. The top-line results were lower than our expectations, where we had estimated higher sales from research instruments. In the CEO letter, the explanation for the slowdown was attributed to decreasing activity levels within the research instrument market where sales and purchasing decisions are being postponed by many key players, which has affected the sales growth adversely. However, it was also mentioned that the lowered investment appetite in research instruments was observed as a broad trend that affects the entire sector and not only Fluicell. Based on information from the report, the following potential revenue generating events were observed: (1) Fluicell renewed a contract with Oregon Health and Science University regarding Biopixlar, (2) renewed a contract with Genentech regarding Dynaflow Resolve Silver, and (3) received an order from Washington University regarding Dynaflow components.

Operating results

The operating result during Q2-23 amounted to SEK -7.3m, compared to SEK -7.2m in Q2-22, corresponding to an increased loss of SEK 0.1m. As Fluicell continues with R&D in new areas to build assets and create growth for long-term deliverables, it will be necessary to keep investing in the current clinical programs to reach necessary milestones and in employees to retain talent. As a result, we expect that the cost base will increase going forward. Overall, we see that Fluicell is continuing to do well operationally while maintaining adequate financial discipline.

Income Opportunities in Tissue-Based Disease Models

In our previous comment, we mentioned that Fluicell extended the collaboration with Roche involving Biopixlar to create bioprinted cardiac models for use in safety pharmacological screening. This is an area where the state of the art is still cells grown on plastic in two dimensions and where Fluicell’s engineered tissues could make a tremendous impact, moving the entire field forward. The current research project was initiated in March this year and is expected to be finalized by the end of 2023 in December. The collaboration is proceeding according to plan, and Fluicell has so far successfully delivered on the first project milestone. A key part of the project is to enable integration of the company’s printed cardiac tissues within existing workflow, a critical aspect to facilitate actual implementation of the technology within pharmaceutical development. The fact that the project with Roche, a giant within pharma and diagnostics, is continued validates the great interest in Fluicell’s unique Biopixlar-technology. Analyst Group views this project as one of Fluicell’s main value driving activities, where in a successful scenario, the company will be able to out-license the IP portfolio which has potential to create substantial revenue streams.

Cash Position and Burn Rate

At the end of Q2-23, Fluicell’s cash balance amounted to SEK 14.4m, compared to SEK 15m at the end of Q1-23, corresponding to a net change in cash of SEK -0.6m. Fluicell burn rate during Q2-23 amounted to SEK -2m per month, compared to SEK -3.2m in the previous quarter where an unfavorable change in working capital contributed to a high burn rate. In June, it is worth noting that Fluicell also received SEK 3.5m net of fees in cash from the TO4 warrants. Given the current cash position of SEK 14.4m, and an assumed burn rate of SEK -2.0m per month, which Analyst Group believe is fair to assume going forward, Fluicell is estimated to be financed until the beginning of Q1-24, all else equal. The company is evaluating different financing options to enable a stronger development capacity and accelerate the clinical programs. Given that Fluicell increases sales, reduces costs, and/or secures additional funding, either from investors or through research grants, the company could strengthen its cash position and be financed longer than estimated.

In conclusion, we believe that Fluicell is going in the right direction despite an overall market slowdown which is not specifically attributed to the company itself. Given that that the company continued to increase sales and/or have access to capital, interesting times and triggers are ahead regarding Fluicell’s various research projects within tissue-based disease models and tissue therapeutics.

Analyst Group will publish an updated analysis in conjunction with the report.

On May 12^th, Fluicell published the company’s quarterly report for Q1-23.

The Highest Revenue to Date on a Quarterly Basis

During Q1-23, the revenue amounted to SEK 1.8m, compared to SEK 0.8m in Q1-22, which corresponds to a YoY increase of 113%. Compared to the previous quarter of Q4-22 where the revenue amounted to SEK 1.3m, the increase corresponded to 36%. The top-line results were relatively in line with our expectations, and it is assuring to see that Fluicell is keeping up the momentum in sales. According to CEO Victoire Viannay, the revenue has not reached the company’s internal goals quite yet, but with further efforts, there is potential to reach higher levels. For example, in March, Fluicell launched the upgraded version of their ion channel screening platform Dynaflow Resolve, and additionally, Fluicell released Dynascout, a lighter version of the platform. Focusing on development of new products and services is of paramount importance since it will assist the company to attract new customers and drive the revenue further.

Operating Results

The operating result during Q1-23 amounted to SEK -5.4m, compared to SEK -4.9m in Q1-22, corresponding to an increased loss of SEK 0.5m, QoQ, the operating result improved with SEK 1.3m compared to Q4-22. We have previously mentioned that the cost base is higher than what we would like to see in relation to the revenue, as Fluicell continues with R&D in new areas to build assets and create growth for long-term deliverables. However, it a positive sign that Fluicell has managed to slim down the cost base while increasing the revenue during this quarter. The company mentioned in the report that the EBITDA was SEK 0.9m better than estimated, and that the development is successfully continuing with more controlled cost levels. Overall, we see that Fluicell are continuing to do well operationally while maintaining a greater financial discipline.

Extended Collaboration with Roche regarding Heart Tissue Models for Drug Safety

In February 2023, Fluicell announced that the company has extended the collaboration with Roche involving Biopixlar. The project spans over ten months where the aim is to investigate optimization of bioprinted heart tissues for drug safety. The project is a continuation of the pilot project that was completed at the end of year 2022, where an important part of the continued project is to integrate the bioprinted tissues directly into already establish laboratory workflows. The project will be divided into several milestones where the estimated completion date is December 2023. The material expenses during the project are going to be financed by Roche (approximately SEK 0.5m) while Fluicell will perform testing and studies, which means that the project is of low economic risk for Fluicell, but the potential reward is high if the company can demonstrate clinically significant results. The fact that the project, with the leading pharmaceutical company Roche, is continued validates the great interest in Fluicells unique Biopixlar-technology. Analyst Group views this project as one of Fluicells main value driving activities, where in a successful scenario, the company will be able to out-license the IP portfolio which has potential to create substantial revenue streams.

Important Milestones Reached in the In-Vitro Development Program for Type I-Diabetes

In March, Fluicell announced that the company reached important milestones regarding the in-vitro development of tissue therapeutics against type I-diabetes. Fluicell are now able to print up to 200 insulin producing islet tissues in the same trial, this corresponds to the number of transplanted islets of Langerhans that has been shown to have a beneficial effect in mice based on scientific literature. The milestones are a step towards generating candidates for in-vivo testing which is estimated to be initiated in 2024. Tissue therapeutics is one of Fluicell’s highest potential areas and something that should be observed closely by investors. For example, Aspect Biosystems, a Canadian bioprinting and tissue therapeutic company, recently entered a partnership with Novo Nordisk where the total deal value is worth up to USD 650m, additionally, Aspect Biosystems received USD 75m upon signing. This is one of the largest deals of the year and illustrates what Fluicell could achieve in a successful scenario.

Cash Position and Burn Rate

At the end of Q1-23, Fluicell’s cash balance amounted to SEK 15m, compared to SEK 24.5m at the end of Q4-22, corresponding to a net change in cash of SEK -9.5m. Fluicell burn rate during Q1-23 amounted to SEK -3.2m per month. The burn rate was exceptionally high due to a one-time expense related to deferred tax, which affected the change in working capital with SEK -3m. Adjusted for the one-time item, the burn rate would amount to SEK -2.1m and SEK -1.9m on an LTM basis. Moreover, Fluicell has warrants outstanding of series TO 4 that are due to strike in June 2023 and have the potential to extend the cash runaway. The outstanding warrants are estimated to generate up to SEK 16.4m before expenses, which is estimated to 10%, given full subscription, which equals approximately SEK 14.8 in net proceeds. Given the current cash position of SEK 15m, assumed net proceeds of SEK 14.8 from TO4 warrants in June 2023, and an assumed burn rate of SEK -2.0m per month which Analyst Group believe is fair to assume going forward, Fluicell is estimated to be financed until the end of H1-24, all else equal.

In conclusion, we believe that Fluicell delivers a strong quarter operationally as well as financially. Given that that the company continued to increase sales and/or have access to capital, interesting times and triggers are ahead regarding Fluicells various research projects within tissue-based disease models and tissue therapeutics.

Analyst Group will publish an updated analysis in conjunction to the report.

On February 24^th, Fluicell published the company’s quarterly report for Q4-22.

Finishes the Year with Strong Sales Momentum 

During Q4-22, the revenue amounted to SEK 1.3m, compared to SEK 0.55m in Q4-21, which corresponds to a YoY increase of 140%. Compared to the previous quarter of Q3-22 where the revenue amounted to SEK 0.51m, the increase corresponded to 158%. The revenue was mainly driven by product sales, where Fluicell, for example, received purchase orders for Biopixlar AER and Biopen. For the full year of 2022, revenue amounted to SEK 3.3m (2.6), an increase of 25 % compared to year 2021. The total revenue, including other operating income, increased with 77% to SEK 7.0m (4.0) which is the largest total revenue the company has generated to this date. The top-line results were relatively in line with our expectations as we had forecasted approximately SEK 3.6m in net revenue, and SEK 7.5m in total revenue. The operating result during Q4-22 amounted to SEK -6.8m, compared to SEK -5.7m in Q4-21, where the increase in the loss was attributed to increased expenses related to R&D and the organization compared to the same period previous year. Overall, Analyst Group believes that Fluicell delivers results in line with expectations. On the positive side, the company has managed to gain traction in the product sales which was slowed down by the pandemic and the inability to travel since Fluicell has a global distributor network. Going forward, the company has already booked SEK 1.5m in revenues for Q1-23 and expects to initiate new services within microfabrication to companies and researchers which will become another source of revenue. Although Fluicell has a strong cash position, the cost base is higher than what we would like to see in relation to the revenue as Fluicell is spending in new areas to build assets and create growth for long-term deliverables, but given that Fluicell can keep up the momentum with the sales activities as well as leveraging the company’s IP portfolio to get into licensing deals, the cost base should become less of a concern over time.

Extended Collaboration with Roche regarding Heart Tissue Models for Drug Safety

In February 2023, Fluicell announced that the company has extended the collaboration with Roche involving Biopixlar. The project spans over ten months where the aim is to investigate optimization of bioprinted heart tissues for drug safety. The project is a continuation of the pilot project that was completed at the end of year 2022, where an important part of the continued project is to integrate the bioprinted tissues directly into already establish laboratory workflows. The project will be divided into several milestones where the estimated completion date is December 2023. The material expenses during the project are going to be financed by Roche (approximately SEK 0.5m) and Fluicell will perform testing and studies. The fact that the project is continued validates the great interest in Fluicells unique Biopixlar-technology. Analyst Group views this project as one of Fluicells main value driving activities, where in a successful scenario, the company will be able to out-license the IP portfolio which has the potential to create substantial revenue streams.

Cash Position and Burn Rate

At the end of Q4-22, Fluicells cash balance amounted to SEK 24.5m, compared to SEK 8.6m at the end of Q3-22, corresponding to a net change in cash of SEK 15.9m. The net increase in cash was mainly due to the recent rights issue in Q4-22 which provided the company approximately SEK 24.4m net of fees. Additionally, Fluicell has warrants outstanding of series TO 4 that are due to strike in June 2023 and have the potential to extend the cash runaway. The outstanding warrants are estimated to generate up to SEK 16.4m before expenses, which is estimated to 10%, given full subscription, and equals to approximately SEK 14.8 in net proceeds. The company’s burn rate per month during Q4-22 amounted to SEK -1.1m and SEK -1.9m on an LTM basis. Adjusted for changes in receivables of SEK 2.3m during Q4-22, the LTM burn rate per month corresponds to approximately SEK -2.0m, which Analyst Group believe is reasonable to assume going forward. Given the current cash position SEK 24.5m, assumed net proceeds of SEK 14.8 from TO4 warrants in June 2023, and an assumed burn rate of SEK -2.0m, Fluicell is estimated to be financed until the beginning of Q3-24, all else equal.

In conclusion, with a strengthened balance sheet, momentum in sales activities, and interesting high-value projects ongoing, Analyst Group believes that year 2023 has the potential to become a breakthrough year for Fluicell.

Analyst Group will publish an updated analysis.

On November 30^th, Fluicell published the company’s quarterly report for Q3-22.

Summary of Operating Activities

During Q3-22, the revenue amounted to SEK 0.51m, compared to SEK 1.1m in Q3-21, which corresponds to a YoY decrease of 52%. Compared to the previous quarter of Q2-22 where the revenue amounted to SEK 0.49m, the increase corresponded to 5%. The revenue is lower than we estimated, where it is likely that the effects from the pandemic are still posing challenges to regain the historical growth rates observed prior to the pandemic regarding Fluicell’s top line. This was confirmed in the CEO comment, where CEO Victoire Viannay mention that there are still efforts to be made to return to pre-pandemic growth levels, but Fluicell is moving forward steadily by regaining the capacity to travel to Asia, Europe, and Australia meeting customers. However, the revenue does not include the Biopixlar AER sales order from the Australian distributor AXT Pty Ltd, as well as orders of other products amounting to a total of SEK 0.94m, which is estimated to show in the Q4-report. Total revenue, which also includes other operating income of SEK 2.9m, amounted to SEK 3.4m in Q3-22, compared to SEK 1.4m in Q3-21, corresponding to a YoY increase of 138%. SEK 2.5m of the other operating income was related to a non-recurring item that Fluicell received as a repayment from a previous patent agent, and SEK 0.4m was attributed to grants. Going forward, the company expects a total accumulated revenue of minimum SEK 6.2m, including the orders announced at the end of Q3-22. The operating result during the third quarter amounted to SEK -2.8m, compared to SEK -4.7m in Q3-21. The substantial improvement of the operating loss was attributed to the non-recurring item received from the previous patent agent.

Progress in the BIRDIE-Project and Projects Related to Regenerative Medicine

In the CEO comment, it is mentioned that Fluicell has provided several important contributions to the ongoing BIRDIE-project funded by the EU, including the Biopixlar Switching Head which is a new add-on to Biopixlar that was developed specifically for the BIRDIE-project to enable virological research with high precision and gives the user more control of the microenvironment. The project, which aims to developed bioprinted kidneys-on-a-chip in-vitro models for pharmaceutical testing and kidney diseases, is progressing well where Fluicell is estimated to receive another grant payment of SEK 1m. Additionally, Fluicell aims to publish further technical progress in regards to the project soon. The increased focus on kidney models for drug testing and diseases is an interesting opportunity for Fluicell to expand the company’s value proposition as well as total addressable market in Analyst Group’s view. Together with the advances recently made in the diabetes and cardiovascular therapeutic programs, Fluicell is making progress in the business areas of human tissue-based disease models and human tissue-based therapies. Going forward, we will monitor the developments regarding kidney diseases as it could lead to new partnerships in pharmaceutical research and is well in phase with the growing interest in the pharmaceutical industry for non-animal research models based on human cells.

Financial Position and Burn Rate

At the end of Q3-22, Fluicells cash balance amounted to SEK 8.6m, compared to SEK 15.8m at the end of Q2-22, corresponding to a net change in cash of SEK -7.2m. The change in cash was mainly due to negative changes in working capital, namely, an increase in receivables as well as a decrease in payables. After the end of Q3-22 however, Fluicell received approximately SEK 19m in net proceed from an earlier announced rights issue. The company’s burn rate per month during Q3-22 amounted to SEK -2.4m and SEK -2.2m on an LTM basis. Adjusted for changes in other payables of SEK -2.6m during Q3-22, the LTM burn rate per month would correspond to SEK -2.0m, which Analyst Group believe is reasonable to assume going forward. Given the current cash position, the net proceeds from the rights issue, and an assumed burn rate of SEK -2.0m, Fluicell is estimated to be financed until the end of Q3-23, all else equal. However, Fluicell has additional warrants outstanding of series TO 4 that are due to strike in June 2023 and have the potential to extend the cash runaway. The outstanding warrants are estimated to generate up to SEK 16.4m before expenses, given full subscription.

In conclusion, we see that Fluicell are taking the right steps to become a leading player in single-cell biology, bioprinting and regenerative medicine. Despite setbacks in the macro environment slowing down the expected growth, Fluicell is participating in several interesting projects and keeps developing the product portfolio which should present interesting opportunities to drive growth going forward.

On the 6^th of October 2022, Fluicell (“Fluicell” or the “company”) announced that the company has received an order regarding Biopixlar AER in Australia from the Australian distributor AXT Pty Ltd with an order value of approximately SEK 500k.

Fluicell recently announced that the company has received an order regarding Biopixlar® AER in Australia from the Australian distributor AXT Pty Ltd, with an order value of approximately SEK 500k. AXT is Australia’s leading distributor of high technological scientific equipment for sampling and analysis within academic and industrial applications. AXT distributes Fluicell’s platform products BioPen®, Biopixlar® and Biopixlar® AER in Australia and New Zealand. Analyst Group see that the order of Biopixlar® AER is not only a strong value driver in terms of revenue, but also as a validation of the product per se, since customers have been requesting a more compact bioprinter, which shows that Fluicell has a sound market understanding when it comes to developing complex products where there is a great market need.

Moreover, Fluicell recently announced that the company has sold a Biozone 6® platform to the prominent Ludwig-Maximilian University in Munich, one of the world’s top universities and ranked number one in Germany, with an order value of approximately SEK 300k.

To summarise, Analyst Group see that Fluicell has started to gain momentum in the sales where the last couple of weeks have been productive in terms closing new orders. Furthermore, with SEK 500k from the sale of Biopixlar® AER, SEK 300k from the sale of Biozone 6®, and an additional other income of SEK 2.5m that was announced recently in a press release on the 1^st of October, we forecast that Q4-22 will become a strong quarter in terms of total revenue of at least SEK 3.3m, beating the previous high of SEK 2.0m in Q2-20. Although most of the total revenue is attributed as a one-off item, it strengthens Fluicell’s financial position to accelerate the clinical development of tissue therapeutics and invest further in sales of the research platform products. With almost three months left of the year and a steady sales momentum, we see that there is plenty of room for Fluicell to deliver on the set sales and development agenda, which is by expanding product sales, licensing income and contract research while also receiving research grants.

Today, 18^th of August, Fluicell released its quarterly report for the second quarter 2022. Our thoughts about the development during the quarter is presented below:

Statement of Operations at a Glance

During the second quarter of 2022, the revenue amounted to SEK 0.49m (0.39), corresponding to a growth of 26% compared to the same quarter previous year. The revenue originated from both old and new customer orders of different products. The revenue is lower than we expected but it seems that the effect from the pandemic is still affecting the revenue, which is mentioned in the report, i.e., there is a lagging effect in which greater revenues should occur in the later quarters.

The operating result during the second quarter amounted to SEK -7.2m (5.9) which is an increase of 20%. The increase of the operating loss was a consequence of the pandemic as well as increases in staff costs and scaling up the development of the company’s services and products. Bear in mind, the Biopixlar AER was launched earlier this year, which is in line with our expectations as Fluicell is continuing to focus heavily on growing their sales activities as well as regenerative medicine projects for human and in-vitro tissue therapeutics.

Financial position and burn rate

At the end of Q2-22, Fluicells cash balance was SEK 15.8m, compared to SEK 14.8m the previous quarter at the end of March Q1-22, corresponding to a net change in cash of SEK 1m. The increase in cash was mainly due to increases in working capital (account payables), as well as the warrants (series TO2 and TO3) that brought in SEK 7.2m in May. The company’s burn rate per month amounted to SEK -1,9m. Given the present cash position and an assumed burn rate of SEK -1,9m, which is in line with the last 12 months, Fluicell is financed until the end of Q1-23, all else equal.

CEO Newsletter – Fluicell Advancing in Multiple Areas

On June 30^th, Fluicell’s CEO newsletter was, released where CEO Victoire Viannay raised a couple of interesting points. What stood out to us was the following excerpt:

“In our work together with the leading pharmaceutical company in Switzerland, we have successfully completed all our milestones in dialogue with them and we hope to be able to present further updates later this year:”

The 23^rd of September 2021, Fluicell announced that a deal was signed with Roche, which we assume could be the leading Swiss pharmaceutical company referred to in the quote. The deal included a project to evaluate how Biopixlar can be used to develop in-vitro bio composite heart tissue for drug safety studies where Fluicell conducted the studies and Roche reimbursed Fluicell for the material costs incurred. The project was spanning over six months according to the press release. The quote from the CEO newsletter suggests that updates about the results is about to come in the second half of the year if everything goes according to plan, and in today’s Q2-report it was mentioned again on page 7 in the paragraph regarding cardiovascular diseases. Analyst Group believes that the if the results are positive, this could potentially lead to new deals with substantial income from licensing/research services which will improve Fluicell’s operational and financial outlook.

In conclusion, we see that Fluicell is progressing well operatively where there is a great interest for their products and services. We believe that the discussions with the leading pharmaceutical company in Switzerland related to the tissue therapeutic program may yield news, potentially in H2-22, and is interesting for investors to keep an eye on.

On June 22, 2022, Fluicell announced that they have been selected as one out of ten most innovative companies within 3D printing by the industry magazine All3DP.

Fluicell AB (“Fluicell” or the “Company”) announced last week that the web-based industry magazine for 3D printing, All3DP, has selected Fluicell as one out of ten most innovative companies in the 3D printing industry for 2022. The selection of companies was done by an independent expert committee, consisting of leading stakeholders within additive manufacturing and bioprinting. In the motivation, All3DP specifically mentions Fluicell’s recently launched Biopixlar AER, the market’s first compact 3D bioprinter, as an important breakthrough. No other bioprinting company made it to the list except Fluicell.

Here is what Analyst Group’s Fluicell analyst had to comment about the news:

“Receiving an award like this further validates Fluicell’s technological progress within the 3D bioprinting field, increases the awareness and cements their status as a leader in microfluidic high precision bioprinting. Moreover, one of the committee members, Amy Alexander, is a well-known additive manufacturing industry figure and key opinion leader affiliated with the Mayo Clinic in Rochester. She has authored several research papers on 3D printing in hospital settings and made scientific contributions in surgical planning with 3D printing. By catching the attention of magazines like All3DP and increasing the awareness of microfluidic bioprinting to industry figures such as Amy Alexander, as well as other prominent individuals in the committee from other industries, we see that Fluicell is taking the right steps to increase the adoption of their technology and gain acceptance from a broader audience.”