“The revenue potential a buyer sees in the Ozilia treatment technology will determine the price they are willing to pay, likely in competition with others aiming to add Ozilia to an existing product portfolio,” says Anders Weilandt, CEO of Chordate Medical.

Chordate Medical holds 79 granted patents across 9 patent families, spanning 32 countries. These patents provide intellectual property protection for the inventions underlying the company’s products for treating chronic migraine and rhinitis. Each family includes one or more patents, registered in the EU and several other key markets, collectively describing various unique aspects and potential variants of the company’s technology and clinical efficacy. Currently, one patent application is in the review phase and has yet to be granted.

“It’s reasonable to assume that a potential buyer of the business will want to establish a global product sales strategy under patent protection for quite some time. The patents are a fundamental factor in the company’s sales value when a buyer calculates how long they can invest in sales growth with minimal disruption from direct competition,” says Anders Weilandt.

Chordate’s exit strategy focuses on demonstrating market penetration in selected markets. The company’s value is built on three pillars: robust scientific evidence from clinical studies, demonstrating sales success in a number of selected markets, and a comprehensive portfolio of intangible assets, such as patents and trademarks. Since October 2024, Chordate has engaged Partner International Switzerland GmbH as an advisor to find an international buyer for its operations.

“The availability of Ozilia as a treatment option for chronic migraine and chronic rhinitis in these markets adds significant value to the business for a potential acquiring company,” says Anders Weilandt, CEO of Chordate.

Chordate's focus markets stand out in two distinct ways. First, they have a well-developed private healthcare sector with an insurance system that, over time, could allow treatments like Ozilia to secure reimbursement codes. Second, the regulatory pathway for obtaining market approval for medical devices like Ozilia is considered favorable.

Germany

Ozilia is currently offered as a migraine treatment at six clinics in Germany.

In November 2023 and January 2024, Chordate Medical signed agreements with two specialist clinics in Hamburg and Munich for Ozilia. In addition to these two clinics, Ozilia is available as a migraine treatment at four other clinics, including those in Freiburg and Frankfurt.

Since August 2022, Chordate has been in partnership with MedTech Innovation Germany (MTIGER) to introduce Ozilia to key opinion leaders in neurology across both private and public healthcare sectors in Germany.

Saudi Arabia

Ozilia is currently offered as a rhinitis treatment at nine clinics in Saudi Arabia.

In September 2024, Chordate received its first order for Ozilia migraine treatment in Saudi Arabia. Shortly thereafter, the Saudi Food and Drug Authority (SFDA) approved the market authorization application for the migraine indication. This enabled Chordate and its partner, Janin Medical, to commence a broad market launch of Ozilia as a migraine treatment in the country. Clinical evaluation with patients is currently ongoing or scheduled at three public hospitals and a major private clinic.

In mid-2023, Chordate received its first order for Ozilia for chronic rhinitis via its new distributor in Saudi Arabia, Janin Medical. The customer was the private healthcare company Nahdi Care Clinics, which operates four hospitals in the country’s second-largest city, Jeddah. Altogether, Ozilia is offered as rhinitis treatment at six clinics in Jeddah and three in Riyadh. Clinical evaluation with patients is also underway at two additional public hospitals, and a demonstration has been scheduled at a private hospital chain in Jeddah.

Italy

Ozilia is currently offered as a rhinitis treatment at eleven clinics in Italy.

Since 2019, Chordate Medical's distributor, Vedise Hospital, has been treating patients with chronic rhinitis using Ozilia. While Ozilia has been in use as a rhinitis treatment for five years, Vedise is actively working on introducing the migraine treatment to the Italian market.

Switzerland

Ozilia is currently undergoing clinical evaluation for migraine treatment at three clinics in Switzerland.

In June 2024, Switzerland was added to the list of focus markets. At the same time, Chordate signed a partnership agreement with Neurolite AG. Neurolite has specialized for many years in delivering cutting-edge medical technology solutions in neurology to hospitals and private clinics. Shortly after the signing of the partnership agreement, Neurolite placed its first order for Ozilia products with a value of approximately SEK 370,000.

Finland

As four of the nine trial clinics in the pivotal PM007 registration study for migraine were located in Finland, it has also been designated a focus market. Chordate is working to initiate clinical use at three of the trial clinics and believes this is likely to happen.

"Securing global trademark protection is valuable and important for creating long-term opportunities, even though Japan is not currently one of our focus markets. Having registered trademarks in key markets makes the business more attractive to potential buyers," says Anders Weilandt, CEO of Chordate Medical.

Ozilia was introduced in September 2023, replacing K.O.S as the brand name across all markets where Chordate operates. The rebranding aimed to simplify and harmonize the company's global market presence while enhancing awareness of its technology and treatments.

The registration in Japan is part of Chordate Medical's ongoing efforts to safeguard intellectual property rights in strategic markets worldwide.

Chordate's exit strategy involves demonstrating clear market penetration in selected markets. The company’s value is built on three pillars: robust scientific evidence from clinical studies, demonstrable sales success in several selected markets, and a comprehensive portfolio of intellectual property assets such as patents and trademarks. Since October 2024, Chordate has engaged Partner International Switzerland GmbH as an advisor to identify an international buyer for the business.

These four of the ten largest shareholders, together with the company’s management team, control approximately 40 percent of the shares in Chordate.

It is possible to redeem TO8 for subscription of new shares from November 4, 2024, until November 18, 2024, or to sell the options before November 14, 2024. If all TO8 series warrants are exercised, the company will receive approximately 6.1 MSEK before issuance costs.

“The support from our largest shareholders – and my colleagues in the management team – is a very important vote of confidence in achieving a positive outcome from TO8. It is crucial that we secure as much capital as possible from the options, and every shareholder's contribution is equally important,” says Anders Weilandt, CEO of Chordate.

The presentation can be viewed through the following link: https://www.finwire.tv/webcast/chordate-medical/q3-2024/

Following the presentation, there will be a Q&A session where viewers can submit questions.

A recording of the presentation will be made available afterwards on the company’s website www.chordate.com and on Finwire TV’s YouTube channel.