Fubotv earnings beat by $0.10, revenue topped estimates
Photocure (market cap: $2.05 billion) reported its first-quarter 2025 financial results, revealing a revenue miss against forecasts, which contributed to a 4.58% decline in its stock price. The company achieved a total revenue of 125 million SEK, falling short of the 133.35 million SEK forecast. Despite a significant improvement in net loss and continued positive EBITDA, the market reacted negatively, with shares trading close to their 52-week low. According to InvestingPro data, the company maintains an EXCELLENT financial health score of 4.28, suggesting strong fundamental stability despite current challenges.
Key Takeaways
- Revenue for Q1 2025 was 125 million SEK, a 7% increase year-over-year but below the forecast.
- Photocure’s stock price fell by 4.58%, reflecting investor concerns.
- Net loss improved to 2.4 million SEK from 7.9 million SEK last year.
- Flexible cystoscopy kit sales in the US declined by 71%.
Company Performance
Photocure demonstrated growth in certain areas, with a 7% year-over-year increase in total revenue. The company saw a 2% increase in North American revenue and an 11% rise in European revenue. Despite these gains, the revenue miss and a significant decline in US flexible cystoscopy kit sales contributed to a negative market reaction. Currently trading at $65.41, the stock has seen a modest year-to-date decline of 0.43%. Photocure maintained positive EBITDA for the eighth consecutive quarter, indicating ongoing operational improvements.
Financial Highlights
- Revenue: 125 million SEK, 7% increase year-over-year
- Net loss: 2.4 million SEK, improved from 7.9 million SEK last year
- Cash balance: 259.5 million SEK
Earnings vs. Forecast
Photocure’s actual revenue of 125 million SEK fell short of the forecasted 133.35 million SEK. This revenue miss, coupled with a decline in US kit sales, likely contributed to the negative market sentiment and subsequent stock price decline.
Market Reaction
Following the earnings announcement, Photocure’s stock price decreased by 4.58%, trading close to its 52-week low of $57.11. This decline reflects investor concerns over the revenue miss and significant drop in US sales. The stock currently trades approximately 15% below its 52-week high of $72.59. For deeper insights into Photocure’s valuation and growth potential, InvestingPro subscribers have access to over 30 additional financial metrics and exclusive analysis.
Outlook & Guidance
Photocure maintains its guidance for 11% product revenue growth and expects further year-over-year EBITDA improvement. The company continues to invest in growth initiatives and is advancing FDA reclassification efforts.
Executive Commentary
Dan Schneider, CEO, highlighted the company’s strong position in blue light cystoscopy, stating, "Blue light cystoscopy is cited for its ability to assure a more complete TRBT, which leads to more accurate pathology, staging, and risk stratification." He also expressed confidence in the company’s trajectory, noting, "We feel like the trend winds are in our favor."
Risks and Challenges
- Potential impact of pharmaceutical tariffs on operations.
- Decline in US flexible cystoscopy kit sales poses a challenge.
- Competitive pressures from new scope manufacturers entering the US market.
Q&A
During the earnings call, analysts inquired about the ongoing FDA reclassification efforts and the potential impact of tariffs. Management indicated minimal expected impact from tariffs and highlighted the growing presence of mobile blue light cystoscopy in the US market. Gain comprehensive insights into Photocure’s performance with InvestingPro’s detailed research report, featuring expert analysis, Fair Value estimates, and growth projections. This is one of 1,400+ US stocks covered by Pro Research Reports, designed to help investors make informed decisions through intuitive visuals and actionable intelligence.
Full transcript - Photocure (PHO) Q1 2025:
Dan Schneider, CEO and President, PhotoCare: Alright. Well, good afternoon and good morning. This is Dan Schneider, c CEO and president of PhotoCare. With me today is Eric Dahl, CFO, and welcome to the first quarter twenty twenty five results. Just a reminder, the usual disclaimers are in place for today’s presentation.
So let’s just first start with our strategic priorities and initiatives to make sure everyone’s well grounded. We plan on delivering on our financial guidance for growth and revenue and EBITDA this year and continue generating operating income. We are driving the mobile strategy. We’ll get into that today and its success so far, and also increasing our penetration, our priority growth markets, and we have some recent developments to talk about there as well. And then continue to expand our geographic footprint and leverage our distribution partnerships.
In positioning and access, it’s really key here that we don’t become the next Kodak film. And by that, I mean, we need to remain relevant in the marketplace and strengthen our position as the primary diagnostic for precision diagnostics in bladder cancer care as we see the new emerging non muscle invasive bladder cancer therapies come to market. In addition, we wanna support the continued entrance of high def blue light machines into The US market and also globally, including Canada and Europe. And we do this through both, the pressure we’re putting in and on the system’s petition as well as alternative ways. And thirdly, our our partnership with Richard Wolff in, one, the launch of this interim solution for Europe, to keep flexible blue light cystoscopy alive as well as collecting data.
And then also, most importantly, advancing the development of a fully optimized high def system that we intend to launch in the coming years. And then finally, the acquire and transform block. You know, looking for opportunities in non muscle invasive bladder cancer and other uro oncology indications with a focus on rapidly growing interest on precision diagnostic indications, things in biomarker, artificial intelligence, and other new technologies. And real time examples of our our our work in this area is really the Rich and Wolf and the VorTeq deals, which continue to strengthen our global commercial, footprint. So let’s get into the q one highlights.
Product growth, overall, had a 7% revenue growth. We delivered 11% growth on our European business, which I’m very pleased with, and a 2% product growth on The U. S. We’ll get into explaining that later today. We installed the base of Saphira, has now added eight new tower placements and 13 upgrades, bringing a total, up to 377, and the number of active accounts increased by 17% year over year to 337.
We continue to execute on the European side with strong growth from Germany and Austria and also France with a 10% growth in the quarter. The Nordic region began to show signs of momentum as we expected with the Olympus upgrades and launch of the Viscera three system, and we expect that to continue to play out throughout this year and into the future. We generated positive EBITDA growth, our eighth quarter in a row, and continue to build operating leverage and expect to continue to grow operating leverage throughout 2025. We also completed a buyback program of approximately 500,000 shares. We ended 2024 with approximately 260,000,000 NOK in cash and no long term debt or no term debt.
And also on the important news flow, the Richard, Wolfe interim solution is intended for Europe and rest of world right now. And our intention here is to optimize the system and to collect data and build interest ahead of our future high def system that we intend to launch in the coming years. And on the data pubs, presentation, and abstract side, there were seven very active quarters this year through AUA and EAU. Clearly, blue light cystoscopy is having a strengthening position as the need for precision diagnostics is becoming greater and greater in the marketplace for non muscle invasive bladder cancer patients. Let’s get specifically into some of the segments.
So when we look at The U. S, we estimate that our unit volume growth from Rigid Tower continues to grow in line with prior quarters in the mid teens. This more than offset the ongoing decline of Flex sales, which took a deeper dive in q one of minus 71%, with 18 counts remaining using blue light very success selectively. Flex roughly is less than 3% of our of our total market sales in The US. We also saw a change in buying patterns from some key accounts that affected the 2020 that were affected by 2024 price increases and changed the buying patterns, but we expect no change on the year to the year totals and expectations on the year.
In Europe, we had strong growth this quarter. It came from Germany, Austria and France. We continue to expect to see good growth in Germany and other European territories. Given the initiatives with the KOLs, there’s some guideline updates, which I’ll speak about momentarily, especially in the priority markets and the general market trends. We have undertaken to effectively relaunch Blue Light onto the continent, and we we intend to leverage the recent Blue Light system upgrades of both Olympus, the Vistra three system with 30 installed to date and a pipeline behind it.
Turning to North America. Sales were heavily impacted by the downturn of flex of minus 71%. And as I mentioned, flex is roughly 3% or less of our total sales in The US. There’s also an of the timing of customer purchase, reacting to 2024 price increases, and we’ll get into more of that detail in a moment. Despite this, we did see an adjusted rigid unit growth in line with prior quarters.
21 new Safibra were installed, 13 upgraded, eight new, adding to the active blue light account growth of roughly 17%. And this bodes well for future quarters ahead as they act as annuities in building our blue light footprint in North America. The Fortech mobile solution is well above what we expected. We now have 57 accounts. It’s up 13, and there have been over 100 different physicians who have used the system and are getting experience with it.
This is a key driver to The US business as it opens up access to otherwise inaccessible patient and hospitals in The US. And access to The U of blue isosophic in The US remains our top priority, and we have ongoing efforts with the FDA, on the reclassification efforts and entrance of other manufacturers into the market. The picture you see on this slide is a picture of the booth at AUA Congress. Carl Storrs sponsored two tech talk presentations specifically on blue light, which were heavily attended. We had three posters highlighting data from The US Registry.
And in addition, post UA post AUA, Euro Today had an interview with KOLs Deshmann and Kurt Gershmann, and they concluded, and I quote, diagnostic tools like blue light cystoscopy enhance risk stratification and emphasizing a shift towards precision medicine and non muscle invasive bladder cancer management. It’s our growing belief that blue light cystoscopy ability to see more assures physicians the ability to perform a more complete TRBT, which leads to more accurate pathology, staging and risk stratification, and ultimately choosing the right precision medicine for that patient. As I mentioned, there has been significant growth in active accounts. We define active accounts as both reactivations of accounts that may have upgraded and now back on blue blue light that maybe prior had not, had old systems. In addition, the four tech mobile accounts.
And as I mentioned, we’re now at 57 mobile accounts that have are hospitals that have used the mobile system. That’s up 13 from quarter four, which had 44. And we continue to see momentum with new accounts, which is important to the overall adoption of blue light cystoscopy and cyst view in The US. Turning to Europe. The q q one marks the highest revenue quarter ever supported by continued solid growth in Germany, Austria, and France despite the tough 2024 comparator.
If you look back to q one twenty twenty four, that was our largest quarter in 2024. So we’re quite pleased with the events that are taking place in Europe. Olympus officially launched and installed 30 Viscera three BLC equipment systems across Europe in q one, and it has a healthy pipeline for the rest of the year. Olympus has had significant share in parts of Europe, like The Nordics and parts of Dock, and this would help us unlock what has been a difficult past. A very important barometer of efforts and results, and I think this is a really important point to make, there were two guideline updates in priority markets this quarter.
First, French. And, basically, to summarize, it’s used blue light cystoscopy in all first resections. When available, bladder, photodynamic diagnostic diagnosis using hexamcinolone leviluminate is recommended for the first resection as a diagnostic tool for non muscle invasive bladder cancer and for the detection of carcinoma in situ with level one evidence. And second, in Italy, for the first time, we have a national recommendation on blue light cystoscopy recommended for the first TRBT, second resection, and recurrent non muscle invasive bladder cancer in high risk populations. And I think that’s a testament to the hard work the medical team has put in to the European guideline authorities.
We expect these to pay out over time. In addition, the EAU Congress had over 11,000 attendees. It was the largest in in recent years, and bladder cancer was a primary interest. It was very well attended. We had two posters, two joint events with industry partners, MEDEC and Olympus.
We had KOL k o l interviews at our photo care booth, all all, summarized with a hundred and fifty fifth 55, direct physician engagements from photo care with sponsored initiatives. And, again, the sort of the general theme throughout EAU, which is very similar to a AUA, is BLC is cited for its ability to assure a more complete TRBT, which leads to more accurate pathology, staging, and risk stratification. And it keeps coming back, as this fast moving, fast evolving market around non muscle invasive bladder cancer continues to evolve. Blue light cystoscopy has taken center stage. So let’s get into some growth initiatives.
Two key updates for this. As I mentioned, there are 57 VorTeq accounts. It’s up from there. Obviously, we’re halfway through, May. There are over 100 different physicians who gained experience and whose patients otherwise would not have had access to blue light cystoscopy.
The Richard Wolff interim solution for flex efforts have been initiated, reminding you this is a $1,300,000,000, and that’s US numbers, total addressable market in The US and The EU 5. Our intent here with the interim solution is to build and continue to build experience, keep it relevant in the market, and get the data in in anticipation of our launch of the high def system that we are codeveloping with Richard Wolff. And final comment in the third box, as mentioned earlier, AUA and EAU, the trends are clearly blowing in favor of blue light cystoscopy. The momentum and pressure continues to build behind the notion of accurate diagnosis in line with the precision pathway for bladder cancer patient care. We believe blue light cystoscopy can play a central part in that precision medicine to be used in that pathway.
It all starts with a a precision pathway begins with a precision diagnostic like blue light cystoscopy. Going to some of our value generating OSIRIS programs, I think, most recently, I’ll go to Survivor first. Two three news updates here. We’ve mentioned that they intended to meet with the European authorities and the FDA. They did both of those in the fourth quarter of last year.
They now have clear pathways as what it will take to get approvals in those regions. In addition, they also expressed interest in pursuing a secondary indication. If they pursue this secondary indication, that will bring additional milestones upon approval for photo care. So this we watch actively. And I think the other point to make about Savira, as we’ve kind of realized, is that Savira may be one of the first, if not the first, Chinese approved product before rest of the world.
In other words, most products are approved somewhere else in the world, and then they come to China. This may be the first time or one of the first times a drug device has been approved in China First before going to the rest of the world. So Osiris is very, very proud of this. Again, they’re a public company. We get our information the same way everyone else does.
It’s on the public wires, after it’s been made public by them and their and their, their management teams. On the HEXFIX side, we still await the approval of a Richard Wolff blue light system, which is expected in the second half of this year, and they’ll launch, HEXFIX in China upon approval. And now I’ll hand it over to Eric for the financials. Eric?
Eric Dahl, CFO, PhotoCare: Thank you. Thanks, Dan. And well, within the financials, we will review the consolidated income statement. We’ll look at the segment report for our two main segments and finally, deadline or headlines from the cash flow and balance sheet. But first, a few words about foreign exchange.
Norwegian kroner weakened in the first quarter year over year and measured by unweighted quarterly average. The U. S. Dollar increased 5.3% and euro increased 2.1%. Measured in Norwegian kroner, the year over year foreign exchange impact for Q1 was for revenue positive approximately SEK 4,400,000.0 and for operating expenses negative approximately SEK 3,900,000,000.0.
And then EBITDA is practically zero impact. One final comment before we look at the numbers. Please keep in mind that unless other currency is specified, all amounts that I mentioned in this presentation are in Norwegian kroner. Next slide, please. So now we’re looking at the consolidated income statement.
And total HEX VIX SYSVUE revenue was SEK 125,000,000 in Q1, which is an increase of SEK 8,500,000.0 or 7% from Q1 last year. The revenue growth was negatively impacted by an expected decline in kits used for flexible cystoscopy in U. S. As well as a negative impact of timing of sales of rigid kit orders of major accounts in U. S.
Excluding flexible and adjusted for fluctuations in ordering, Q1 Rigid sales in U. S. Increased 13% year over year. We will talk more about this in the segment section of the presentation. Total operating expenses, including business development expenses, was SEK 114,000,000 compared to SEK 102,000,000 Q1 last year.
The increase is mainly within sales and marketing, reflecting timing of expenses related to congresses and business meetings and expenses related to FTE adjustments. Furthermore, total expenses were driven by merit and inflation as well as 3,900,000.0 impact of FX foreign exchange. The main drivers to the cost increase in addition to FX are the timing impact of SEK 2,600,000.0 as EAU was moved from Q2 last year to Q1 this year as well as increased personnel spending of about $1,400,000 which is a mere 3% increase. Sequentially, however, compared to Q4 last year of 125,700,000.0 we had an OpEx reduction of 11,000,000 or 9%. I think as a reflection, we have many times said that our operating expenses, business development, foreign exchange and inflation have been stable since we acquired the European business in 2020.
And it still is. It still is relatively stable. Looking at EBITDA. After business development expenses, it was 1,800,000.0 compared to SEK 7,900,000.0 last year. The decline is driven mainly by the expected decline in kits used for flexible cystoscopy in The U.
S. As well as the negative impact from of timing sales of rigid kit orders from to major accounts in U. S. Depreciation and amortization, 7,400,000.0 in Q1. Main cost item is the amortization of the tangible asset related to the return of the European business for MiPSEN.
Net financial items in Q1 were a net cost of SEK 3,800,000.0 compared to a net cost of SEK 4,800,000.0 in Q1 last year. After net financial items and tax, we have for Q1 a net loss of SEK 2,400,000.0 compared to a net loss of SEK 7,900,000.0 same period last year. And now to the segment performance. Next slide, please. Thank you.
In the segment reporting, we will focus on the two main segments, namely North America and Europe, starting with North America. And revenue for North America increased 2% in Q1. The revenue growth was negatively impacted by an expected decline in kits used for flexible cystoscopy in U. S. As well as the negative impact of timing of sales of rigid kit orders on major accounts in U.
S. As we already have mentioned. We estimate that flexible BLC unit sales in U. S. Declined year over year by 71%.
However, the negative impact from Flex will reduce the next quarters as we estimate that we had in Q1 had a total Flex volume of only 120 to 100 and yes, around 110 to 120 kits. Timing of sales of rigid kits was driven by two price increases last year, the first one in March 2024 and the second in December 2024. And several customers moved their ordering due to this, And one of these customers moved deliveries to Q1 last year as high as 7.6% of total U. S. Sales in the quarter.
So one customer can move a big portion of the total. Excluding flexible and adjusted fluctuations ordering in ordering, Q1 rigid kit sales in U. S. Increased an estimated 13% year over year. Revenue for North America increased 2% in Q1, negatively impacted by flex and timing of orders and positively impacted by a 4% increase of average sales price.
In general, we have a positive development within the Rigid market with growth in number of accounts as well as installed base of towers. Q1 direct cost increased 6% year over year. However, foreign exchange alone was 5% out of the six. The contribution was SEK 2,000,000 in Q1, down from last year SEK 4,300,000.0, and EBITDA was negative SEK 10,600,000.0 in the quarter. European region had year over year revenue increase of 11%.
The increase was driven by in market unit sales growth of 1% year over year as well as by rebalancing of inventory levels at wholesalers. Revenues were also impacted by a SEK 1,800,000.0 benefit from foreign exchange. Direct cost increased year over year with 4,300,000.0 or 16% in Q1, driven by timing of expenses related to EAU by merit, inflation and also foreign exchange. We ended Q1 with a contribution of 38,200,000.0 compared to SEK 36,100,000.0 in Q1 last year. The improvement is revenue driven.
EBITDA for Q1 was 19,000,000, reflecting an EBITDA margin of 25. Now let’s look at the cash flow and balance sheet. Next slide, please. Net cash flow from operations was SEK 4,100,000.0 in Q1 compared to SEK 8,400,000.0 last year. The reduction was mainly driven by lower EBITDA.
Cash flow from investments was in Q1 positive SEK 700,000.0 and cash flow from financing in Q1 was negative SEK 39,000,000, driven by share buyback programs and the Ipsen earn out payment. This gives us a net cash flow in Q1 negative SEK 34,300,000.0 compared to negative SEK 2,000,000 Q1 last year. The significant change is driven by the share buyback programs. In total, we paid SEK 29,600,000.0 for the 500,000 shares we acquired. With this net cash flow, we end Q1 twenty twenty five with a cash balance of 2 and 59,500,000.0.
The balance sheet at the end of the quarter, we had total assets of SEK $7.00 8,000,000. Non current assets was SEK $316,000,000 at the end of Q1, and this included customer relationship with SEK ninety one point seven million. Customer relationship is the tangible assets identified in the purchase price allocation for the Ipsen transaction. The non current assets also include goodwill from the Ipsen transaction of SEK 144,000,000 and a tax asset of SEK 47,000,000. Inventory and receivables were SEK 132,000,000 at the end of Q1.
The increase from last year is mainly driven by increased inventory. Long term liabilities of SEK 133,800,000.0 include the earn out liability related to the Ibsen transaction of SEK 113,000,000. And finally, equity at the end of the quarter, $471,000,000 or 67% of total assets. And this concludes the financial section. Thank you.
Back to you, Dan.
Dan Schneider, CEO and President, PhotoCare: Alright. Thank you, Eric. Alright. Let’s go to the summary of q one twenty twenty five results. So overall, we believe a solid quarter given the puts and takes of 7% top line growth despite some timing challenges and flex rapid decline.
We had positive EBITDA again, eighth quarter in a row. In addition to the positive EBITDA, we continue to invest in growth initiatives that we believe will generate future revenue growth and increase our operating leverage. We grew rigid tower growth an estimated 13% in q one as we continue to outperform the phase down of SISU usage in the flexible blue light cystoscopy setting. VorTeq is building momentum. It’s outpacing our expectations currently, and it’s helping support the increasing demand and adoption of blue light cystoscopy in The US.
Richard Wolff and PhotoCure’s joint development program is on track to bring FLEX back to the surveillance market both in Europe and also The US. And in in the near term, the great news is that the interim solution, which is now available in Europe and rest of world, and we’ll, look for opportunities to roll that out where, the the systems are available, System Blue. We grew our active accounts, both new and reactivated by upgrades, for example, by 17% over the last year, and we believe this is a great indicator of our performance. This is up from 11% growth in q four twenty twenty four. We continue to work with Carlstorst to grow the installed base of blue light cystoscopy equipment in The US.
We now have over 50% of the accounts that are Saphira upgraded and is a key priority for Carl’s stores in 2025, and we expect this continued, upgrade expansion. The four tech national rollout, as I mentioned, continues to grow traction and contribute to our growth, creating new business by expanding access to otherwise inaccessible accounts with a novel mobile business model. There are 57 accounts and over 100 users currently enjoying the use of blue light cystoscopy for their patients, and we expect that to continue to gain momentum. In Europe, we continue to facilitate image quality upgrades in nearly in our nearly 600 target accounts, and we believe that the Olympus blue light upgrade will help us strengthen this initiative, particularly in The Nordics. Germany had a continued solid growth of roughly 5%, and we felt the growth in Germany, Austria, and France was the key drivers for this quarter, but some of it’s timing with some of the other markets in terms of how this rolls out through the rest of the year.
And we’ve also begun reintroducing the interim flex of Richard Wolff into the European market. We had strong presence at AUA and EAU, and the topic of conversation and still is post these congresses is blue lysosomescopy as the key cornerstone of precision diagnostics in non muscle invasive bladder cancer for more accurate staging and decision making. And, again, we ended the cash balance with a very strong balance of 294, Norwegian kroner, up from 260 at the year end of, I’m sorry. Not up from 260 at the year end ’23. Misspoke there.
Alright. And finally, anticipated milestones and corporate objectives. Financial guidance, we’re gonna maintain 11%, product revenue growth year over year. We believe while the year might have started off a little bit soft, we know what’s how things are gonna develop for the year, so we feel very good about this. Year over year EBITDA improvement in 2025, we also expect continued operating leverage in the commercial business while we invest in the business.
We expect increasing HEXFIX and SYSVU throughput through tower upgrades and installations in addition to the VorTeq mobile tower rollout as well as the launch of the Olympus Viscera three system throughout Europe. We continue to advance our partnership with Richard Wolff, not only with the interim solution, but also the development and commercialization of the next generation high def flexible blue light system for the global market. We present and we continue to present and publish additional data. Tremendous amount of data went out this quarter, more coming, that support the use of BLC, particularly as demand for precision diagnostic, continues to increase. We’ll continue to support the system’s petition and any other pathways to get additional equipment manufacturers into The US market.
And we continue to monitor the Osiris progress, particularly for Savira, as it progresses through the Chinese authorities and MPA. So I feel very good about the quarter. I feel even better about how the year is going to transpire. And I think at that, we can
Eric Dahl, CFO, PhotoCare: go to Q and A.
Moderator/Questioner: We have a number of questions here, and we can start with a question to Dan. Can you give an update on when you expect reclassification to happen? Does the cuts in the U. S. Government affect the time frame?
Dan Schneider, CEO and President, PhotoCare: You know, it’s it’s a good question. First of all, we gotta remember it’s no statutory requirement for the FDA to act upon this reclassification request from Carl Storrs. However, having said that, we have put tremendous effort and pressure. The FDA is fully aware. This isn’t like a one off, request for a reclassification, and it just sort of sits in a, you know, a public comment box on their website.
In fact, there’s been tremendous groundswell from, manufacturers of the equipment, patients, key opinion leaders, etcetera, supporting, this and underscoring the need for access to blue light cystoscopy. As you think about the trends in the bladder cancer market, this need for more of a precision diagnostic with blue light cystoscopy, you know, being that cornerstone in the diagnosis staging and ultimately, you know, treatment decision pathway, we feel like we’re in a good position. We’ve put congressional support behind this, CMS I mean, FDA pressure. There’s no telling, but I do feel like, you know, we have done and will continue to do everything we can to push forward on this. In addition, you know, we look for alternative ways to bring additional manufacturers or help additional manufacturers into the marketplace.
So more to come. I think this year, there’ll be more, news in this front.
Moderator/Questioner: Given that The US will implement high tariff on pharmaceuticals and that production is in Europe, how does that impact Fotocure? And what will be the feasibility of producing in The U. S?
Eric Dahl, CFO, PhotoCare: A good question. I actually think about this every day waiting for a final decision from U. S. However, I’m not particularly worried about this. And the reason is that the transfer price and the cost of goods sold we have for for for our products for US is less than 5%.
So even if trans even if a tariff of, let’s say, 25% was implemented, it would only be, let’s say, one and a quarter percent of revenue. It it that’s an impact, but it’s kind of it’s not enormous. It’s nothing that we kind of need to change our business for and probably also don’t need to move our production to US for. Moving production is a time consuming thing to do, and it’s a very expensive thing to do. So it really has to be a significant tariff hike for us to move production out of, out of Europe.
But, you know, I think about this every day. I still sleep well, but it’s in my thoughts. Thank you.
Dan Schneider, CEO and President, PhotoCare: And I I might also add, in in anticipation of these tariffs, I have to give credit to my manufacturing supply organization who worked very, very hard to make sure we had inventory in The US landed and through customs and ready for sale, carries through this year. So I think we’re in a in a great position. Even so, as Eric said, an impact on a tariff on a low cost of goods sold is de minimis from our point of view.
Moderator/Questioner: Weaker volume development in The U. S, how have the growth developed into Q2?
Dan Schneider, CEO and President, PhotoCare: Erik, do want say again? Yeah.
Eric Dahl, CFO, PhotoCare: I can’t I don’t want to give you any details about the q two development, but, it’s okay. It meets our expectations.
Dan Schneider, CEO and President, PhotoCare: I think the the fact that we’re holding, firm on our, guidance is probably a clue to how you choose kicked out. So
Moderator/Questioner: Do you have any indicative timelines of when one or two additional scope manufacturers could reach the market in The US?
Dan Schneider, CEO and President, PhotoCare: I’m hopeful. Perhaps could be by the end of this year. Could be into early next year. Again, there could be an approval, but that doesn’t mean the the scopes are gonna be in the in an account the very next day. There’s a process that goes with it in launching these, but, I feel I feel like that’s a a potential for this year, certainly, as we look into 2026.
And I just thought about something, on the prior two prior questions on, you know, the the geopolitical, impacts on the FDA, etcetera. We don’t we don’t really know. It could go both ways. It could be, you know, the anti bureaucracy and the demands for streamlining might speed the FDA up. On the other hand, the fear of losing your job could slow the FDA up.
So we don’t know the full impact of that. You could argue both sides of that one. That’s why we stand with sort of a neutral view on it at this point.
Moderator/Questioner: And a question to you, Eric. Will you do more buybacks given the low share price?
Eric Dahl, CFO, PhotoCare: I can blame the compliance and say I cannot comment on that. But obviously, I mean, buyback is a good thing to do and the right thing to do, but it has to be kind of discussed internally and it has to be approved by the board. So I I can’t I can’t I can’t tell you if yes or no, but I can tell you that we we do think buybacks are a good it’s a good thing to do.
Moderator/Questioner: Are you able to provide a rough estimate on the percentage contribution of mobile BLC by Fortet?
Dan Schneider, CEO and President, PhotoCare: I think it’s approaching roughly 10% in The U. S. Units and growing.
Moderator/Questioner: Also, is there any update you can share on the progress of the BLC reclassification in The U. S?
Dan Schneider, CEO and President, PhotoCare: I think that question might have come after we’ve already kind of talked about it. There’s we’re kind of that goes back to the first question I even mentioned in the presentation. We continue to put pressure. We have bipartisan support from Congress in this issue as well. We have had interactions, with the FDA.
They’re well aware of this. They’re well aware of the importance of it, and and what it means to patients and bladder bladder cancer patients throughout The U. S. So we remain hopeful, remain confident, and, we remain focused on making this happen if it can.
Moderator/Questioner: That concludes the questions we have received. And Dan, up to you to wrap it up.
Eric Dahl, CFO, PhotoCare: All right.
Dan Schneider, CEO and President, PhotoCare: Great. Well, thank you. Thank you, everyone, for joining us. Looking forward to Q2. I believe it’s towards the July.
And, yeah, I think the market’s in a really interesting place. And like I said, if you attend AUA, EAU or any or ASCO GU, there’s a lot of emphasis on precision diagnostics, and it seems to keep going back to a cornerstone diagnostic like blue light cystoscopy. So we feel like the wins the trend wins are in our favor, and we’ve got a lot of good things going on. A lot of inflection points we’re waiting on this year and growth drivers. So looking forward to reporting out next quarter.
Thank you.
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