In the autumn of 2019, we communicated for the first time that our underlying strategy is to build up the value of our company and eventually divest it. For some initiated investors, this strategy may have seemed obvious from the start, but we wanted to make it clear to everyone that we are aiming for a divestment, and thus provide our shareholders with a safer, and more transparent, investment horizon.
In addition, we are completely focused on one single technology which is used within two large and promising areas of use. It would be impossible to disregard the fact that the risk of offering just one single product increases over time, and often leads to business projects like ours to result in more or less technical expansions - through acquisitions or other means which may be difficult to keep a track of as a shareholder.
Our ambition is that the Chordate project will be easy for our investors to keep a track of, and that it will be perceived as logical step when we begin to approach an exit opportunity.
Clinical study of chronic migraineIn the spring of 2019, an interim analysis of the ongoing international multicenter study for the preventive treatment of chronic migraine was carried out. The analysis recommended that we continue the study without changing the number of patients taking part. We interpret this recommendation as a clear signal that the study is correctly designed and is likely to achieve the desired results.
We now forecast that the last patients will be treated in the study during the third quarter of 2021, after which study data will be analyzed. After that, the results can be adapted into a scientific article during the second quarter. However, the time schedule may be further delayed by Covid-19 and the impact the pandemic has had on healthcare facilities worldwide. Once the article has been approved to be published by a scientific journal, we can publish the study results ourselves. The statistical outcome of the interim analysis made it possible to actually obtain the right to CE-mark the indication for prophylactic treatment of adults with chronic migraine already in May 2021, more than a year before our initial plan. A most valuable addition to our therapeutic offering.
Chronic rhinitisIn 2020, the University of Amsterdam published a study analyzing data material taken from an older study from 2013-14 and which focused on chronic rhinitis. The new study concluded that K.O.S. treatment had had a significantly better effect on patients in per-protocol analysis than placebo. This confirms our view that the market for K.O.S. treatment has great potential in the rhinitis area.
Today, it is far more difficult for a small medtech company to build international sales success than it was 20 to 30 years ago. In the 1990s, it was relatively easy to register products and get a permit to sell them all over the world. Deals were struck directly with doctors, or wards. Today, there are increasing obstacles to overcome, in the form of, for example, regulatory requirements and structural resistance in the clinical market. As a result, only large global companies have the muscle and expertise to successfully establish new products globally today.
At the same time, the willingness of large companies to invest has decreased when it comes to internal technical research and development. In large organizations, the risk is simply considered too high, and the efficiency too low. This has led to a kind of symbiosis, where small, fast and risk-taking companies can deliver proven and relatively cheap medtech projects for the large companies to acquire. Chordate's goal is to be considered to be such a project.
The table * below lists a number of minor acquisitions made by Medtronic (US), Boston Scientific (US) and LivaNova (UK) over the past five years. These three companies count among the five largest within nerve stimulation that have carried out company acquisitions. The table shows that, in addition to larger transactions – in which BigMedtech groups acquire and divest business areas in between themselves - they also acquire smaller specialized firms. Chordate's goal is to be such a company.
* Source: CrunchBase
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