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OssDsign

OssDsign

Regenerative implant technology

OssDsign is a Swedish medtech company that offers novel regenerative implants for improved healing of bone defects. The current product portfolio targets cranial and facial reconstruction and has regulatory approvals and reimbursement in place across its target markets in Europe, the US and Japan. With >800 patients treated successfully to date, we conclude that OssDsign’s technology platform is not only clinically validated, but also shows significant commercial promise. OssDsign is based in Uppsala, Sweden and had 34 employees in 2019.

OssDsign has made significant commercial progress since its IPO in mid-2019. With improved market access, commercial infrastructure, and broadened product portfolio, the company targets rolling 12-month sales to exceed SEK 200m in early 2023 (sales CAGR >75% Q1’20-Q1’23). The US and Japan will be key growth drivers, as OssDsign’s best-in-class implants are the catalyst behind continuously taking market share from existing alternatives. We note that the company’s USD 565m addressable market excludes sales potential from defects relating to congenital diseases.

OssDsign faces a crowded and tough competitive landscape. Large medtech players Stryker, DePuy Synthes and Zimmer Biomet hold a ~65% market share, and each company is likely to fight to protect its market share. Even if only a fraction of the global addressable market would mean significant revenues for OssDsign, there is still risk that the company will fail to break through the entrenched market status of its competitors. Other risks relate to its financial targets, scaling up production and sales organisations, and market acceptance.

SEKm 2019 2020e 2021e
Sales 17 20 66
Sales growth (%) 27,2 18,6 232
EBITDA -79 -78 -72
EBITDA margin (%) -470,7 -388,1 -109
EBIT adj -84 -83 -80
EBIT adj margin (%) -495 -417,2 -120,2
Pretax profit -84 -84 -80
EPS rep -5,45 -3,68 -3,52
EPS growth (%) 50,4 32,5 4,3
EPS adj -5,31 -3,55 -3,37
DPS 0 0 0
EV/EBITDA (x) -2 -3,6 -3,1
EV/EBIT adj (x) -1,9 -3,4 -2,8
P/E (x) -3,2 -4,3 -4,5
P/E adj (x) -3,2 -4,4 -4,7
EV/sales (x) 9,3 14 3,3
FCF yield (%) -32,7 -24,2 -27,1
Dividend yield (%) 0 0 0
Net IB debt/EBITDA 1,4 1 1,9
SEKm 2019 2020e 2021e
Other operating items -88 -91 -116
EBITDA -79 -78 -72
Depreciation on tangibles -1 -1 -1
Depreciation on intangibles 0 0 0
EBITA -81 -81 -77
Goodwill impairment charges 0 0 0
Other impairment and amortisation -2 -3 -3
EBIT -84 -83 -80
Other financial items 0 0 0
Net financial items 0 0 0
Associated income 0 0 0
Other EO items 0 0 0
Pretax profit -84 -84 -80
Tax 0 0 0
Net profit -84 -84 -80
Minority interest 0 0 0
Net profit discontinued 0 0 0
Net profit to shareholders -84 -84 -80
EPS -5,45 -3,68 -3,52
EPS Adj -5,31 -3,55 -3,37
Total extraordinary items after tax 0 0 0
Tax rate (%) 0,6 0 0
Gross margin (%) 51,6 66 65,7
EBITDA margin (%) -470,7 -388,1 -109
EBITA margin (%) -482,1 -402,6 -115,2
EBIT margin (%) -495 -417,2 -120,2
Pretax margin (%) -496,4 -418,2 -120,5
Net margin (%) -499,3 -418,2 -120,5
Growth rates Y/Y 2019 2020 2021
Sales growth (%) 27,2 18,6 232
EBITDA growth (%) -70,8 2,3 6,7
EBIT growth (%) -66,6 0,1 4,3
Net profit growth (%) -50,4 0,7 4,3
EPS growth (%) 50,4 32,5 4,3
Profitability 2019 2020 2021
ROE (%) -92,2 -70,6 -58,6
ROE Adj (%) -89,8 -68,2 -56,2
ROCE (%) -86,4 -67,9 -56,6
ROCE Adj(%) -84,2 -65,5 -54,2
ROIC (%) -255,3 -328,3 -262,2
ROIC Adj (%) -255,3 -328,3 -262,2
Adj earnings numbers 2019 2020 2021
EBITDA Adj -79 -78 -72
EBITDA Adj margin (%) -470,7 -388,1 -109
EBITA Adj -81 -81 -77
EBITA Adj margin (%) -482,1 -402,6 -115,2
EBIT Adj -84 -83 -80
EBIT Adj margin (%) -495 -417,2 -120,2
Pretax profit Adj -82 -81 -77
Net profit Adj -82 -81 -77
Net profit to shareholders Adj -82 -81 -77
Net Adj margin (%) -486,4 -403,7 -115,5
Sales 17 20 66
COGS -8 -7 -23
Gross profit 9 13 44
SEKm 2019 2020e 2021e
EBITDA -79 -78 -72
Net financial items 0 0 0
Paid tax 0 0 0
Non-cash items -14 0 0
Cash flow before change in WC -94 -78 -73
Change in WC 7 -6 -19
Operating cash flow -87 -85 -92
CAPEX tangible fixed assets 0 -1 -3
CAPEX intangible fixed assets 0 -1 -3
Acquisitions and disposals 0 0 0
Free cash flow -87 -86 -97
Dividend paid 0 0 0
Share issues and buybacks 199 50 150
Other non cash items -6 6 7
Decrease in net IB debt 101 -32 58
Balance Sheet (SEKm) 2019 2020 2021
Goodwill 0 0 0
Indefinite intangible assets 0 0 0
Definite intangible assets 26 24 24
Tangible fixed assets 2 2 3
Other fixed assets 0 0 0
Fixed assets 30 28 28
Inventories 2 2 7
Receivables 5 6 21
Other current assets 3 3 3
Cash and liquid assets 114 82 140
Total assets 153 120 198
Shareholders equity 135 102 172
Minority 0 0 0
Total equity 135 102 172
Long-term debt 2 2 2
Pension debt 0 0 0
Convertible debt 0 0 0
Deferred tax 0 0 0
Other long-term liabilities 0 0 0
Short-term debt 1 1 1
Accounts payable 3 3 11
Other current liabilities 11 11 11
Total liabilities and equity 153 120 198
Net IB debt -109 -77 -135
Net IB debt excl. pension debt -109 -77 -135
Capital invested 26 25 36
Working capital -4 -3 8
EV breakdown 2019 2020 2021
Market cap. diluted (m) 266 357 357
Net IB debt Adj -109 -77 -135
Market value of minority 0 0 0
Reversal of shares and participations 0 0 0
Reversal of conv. debt assumed equity 0 0 0
EV 157 280 222
Capital efficiency (%) 2019 2020 2021
Total assets turnover (%) 15 14,6 41,7
Capital invested turnover (%) 51,3 78,7 218
Capital employed turnover (%) 17,5 16,3 47,1
Inventories / sales (%) 9,2 9,6 6,8
Customer advances / sales (%) 46,9 41,5 12,5
Payables / sales (%) 20,6 15,9 11,2
Working capital / sales (%) 7,7 -16,9 4
Financial risk and debt service 2019 2020 2021
Net debt / equity (%) -80,6 -75,8 -78,8
Net debt / market cap (%) -34,4 -21,6 -37,9
Equity ratio (%) 88,3 84,6 86,6
Net IB debt adj. / equity (%) -80,6 -75,8 -78,8
Current ratio (%) 837,9 607,2 731,3
EBITDA / net interest (%) -35144,2 -37324,3 -34816,8
Net IB debt / EBITDA (%) 137,2 99,2 186,7
Interest cover (%) -35994,2 -38725,3 -36780,9
SEKm 2019 2020e 2021e
Shares outstanding adj. 15 23 23
Fully diluted shares Adj 15 23 23
EPS -5,45 -3,68 -3,52
Dividend per share Adj 0 0 0
EPS Adj -5,31 -3,55 -3,37
BVPS 8,76 4,47 7,55
BVPS Adj 7,05 3,4 6,51
Net IB debt / share -7,1 -3,4 -5,9
Share price 20,54 15,7 15,7
Market cap. (m) 317 357 357
Valuation 2019 2020 2021
P/E -3,2 -4,3 -4,5
EV/sales 9,28 13,99 3,34
EV/EBITDA -2 -3,6 -3,1
EV/EBITA -1,9 -3,5 -2,9
EV/EBIT -1,9 -3,4 -2,8
Dividend yield (%) 0 0 0
FCF yield (%) -32,7 -24,2 -27,1
P/BVPS 1,96 3,51 2,08
P/BVPS Adj 2,44 4,62 2,41
P/E Adj -3,2 -4,4 -4,7
EV/EBITDA Adj -2 -3,6 -3,1
EV/EBITA Adj -1,9 -3,5 -2,9
EV/EBIT Adj -1,9 -3,4 -2,8
EV/cap. employed 1,1 2,6 1,3
Investment ratios 2019 2020 2021
Capex / sales 1,9 8 8
Capex / depreciation 48,3 137,3 357,6
Capex tangibles / tangible fixed assets 11,7 49,9 95,8
Capex intangibles / definite intangibles 0,4 3,3 11,2
Depreciation on intangibles / definite intangibles 0 0 0
Depreciation on tangibles / tangibles 34,3 72,7 53,6

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Main shareholders - OssDsign

Main shareholders Share capital % Voting shares % Verified
SEB Venture Capital 15.5 % 15.5 % 31 Dec 2019
Karolinska Development 14.7 % 14.7 % 30 Jun 2020
Fouriertransform AB 12.3 % 12.3 % 30 Jun 2020
Eiffel Investment Group SAS 3.3 % 3.3 % 31 Mar 2020
Avanza Pension 2.4 % 2.4 % 30 Jun 2020
Nordic Cross Asset Management 2.1 % 2.1 % 31 Jul 2020
ALMI 1.9 % 1.9 % 30 Jun 2020
Theodor Jeansson 1.7 % 1.7 % 30 Jun 2020
Christian Kinch 1.3 % 1.3 % 30 Jun 2020
Håkan Engqvist 1.3 % 1.3 % 30 Jun 2020
Source: Holdings by Modular Finance AB