The global launch has begun
Today, Senzime has taken another big step toward reaching the market. We have begun the commercialization of our product portfolio and we aim to build a world-leading company in the perioperative patient monitoring arena. We will help decrease complications associated with surgery, increase patient safety, and lower health care costs. As a major step in this effort, we are conducting a rights issue that will provide growth capital and accelerate the global commercialization of our product portfolio.
Senzime has developed products to meet medical demand for solutions that can reduce complications associated with surgery, increase patient safety, and lower health care costs. The next exciting chapter begins for Senzime. Our competitive set of patient monitoring products is ready for global market launch. The strategic acquisitions we made in 2015 and 2016 have strengthened our portfolio, and now we can offer a number of medical devices that make it possible to monitor patients’ biochemical and physiological processes before, during and after surgery.
The acquisition of Acacia Designs in 2016 opened the door to new markets, international collaborations with leading hospitals, and to a portfolio of solutions that solve critical clinical problems. Acacia has developed the TetraGraph, a completely new system to monitor the progress of neuromuscular block during anesthesia that will reduce complications in surgical patients. The system was unveiled at a trade show in late 2016, and received a very positive market response.
The introduction was followed by signing of an exclusive licensing agreement with the Japanese firm Fukuda Denshi, one of the global leaders in patient monitoring. The agreement means that Fukuda will license and commercialize Senzime’s TetraGraph system in the Japanese market, with launch expected by the end of 2017. The agreement is in force for 10 years; Senzime’s management anticipates that the agreement will generate more than 100 million SEK in license revenues in Japan alone, which accounts for about 2 percent of the total world market. This agreement represents a commercial breakthrough for Senzime – and since then, we have continued our market penetration by signing another distribution agreement in early 2017.
To further strengthen our market offering, we also have initiated study partnerships with two of the world’s top hospitals – the Mayo Clinic and the NorthShore University Hospital, USA. The studies are intended to evaluate the clinical use of the TetraGraph system, and the first positive results from these studies were obtained in January 2017. The results will be presented in more detail during the first half of 2017.
We have also started a Swedish registry study in collaboration with Skåne University Hospital in Lund, University of Gothenburg, Swedish Medtech, and the National Registry of esophageal and gastric cancer. In Lund, a clinical study is being conducted with OnZurf Probe, our product for continuous, organ-specific measurement of lactate after surgery in patients with cancer of the esophagus, a disorder that affects approximately 500,000 patients worldwide, every year. This study has now been expanded in cooperation with other stakeholders to also evaluate healthcare economic issues. Results from this study are expected to be available in the second quarter of 2017.
We remain confident that we have highly attractive products and that we are in the right market at the right time. In recent months, we have signed a breakthrough agreement for the Japanese market, strengthened our organization, we are in discussions with potential license partners in additional markets; we expect several CE mark approvals, followed by a broad market introduction in 2017. Growth capital will create conditions to accelerate the global commercialization of our product portfolio and generate value in line with our vision – Monitoring for Life.
We look forward to a continued eventful development in 2017!
Uppsala in February 2017
Lena Söderström, CEO of Senzime AB (publ)