Peptonic Medical AB (“Peptonic”) today announces its decision to discontinue its Israeli subsidiary, a contract manufacturing organization (CMO) specializing in self-diagnostic tests. The decision will result in significant cost savings. Acquired in 2021 alongside the U.S.-based company Common Sense Marketing Inc. (“Common Sense”), the Israeli manufacturing organization has encountered profitability challenges and increasing operational complexities in Israel. Going forward, Peptonic plans to partner with an external contract manufacturer, while retaining Common Sense as a strategic asset to drive growth in the U.S. market.
The Israeli subsidiary has served as a manufacturer for the self-diagnostic tests AL-Sense and VS-Sense during the acquisition period. An external contract manufacturer is now intended to be contracted for the production of its self-diagnostic tests, increasing flexibility and reducing production costs. The closure of the subsidiary is expected to have a minor negative impact on Peptonic’s results due to the write-down of receivables and shares in the subsidiary. At the same time, closing the manufacturing unit will lead to significant cost savings starting in the first quarter of 2025, thereby strengthening Peptonic’s cash flow and liquidity.
Peptonic will retain key assets from the acquisition, including the U.S.-based Common Sense. The U.S. remains Peptonic’s most important market for driving sales growth of its portfolio of intimate self-care products, positioning Common Sense as a central element in Peptonic’s growth strategy. Through its established platform, Common Sense supports Peptonic’s direct sales strategy for VagiVital and maintains valuable partnerships with major partners such as Bayer, CVS, Walgreens, Walmart, and Paladin Labs.
For further information, please contact:
Anna Linton, CEO Peptonic Medical AB
Email: anna.linton@peptonicmedical.se
Phone: +46 70-244 92 07
About Peptonic
PEPTONIC medical AB (publ) is a cutting-edge Swedish biomedical company, dedicated in the development and distribution of clinically proven self-care treatments and self-diagnostic tests in intimate women’s health. The portfolio is sold under the brands Vagivital and Vernivia.
The company’s vision is to revolutionize intimate health by empowering women to diagnose, treat, and prevent intimate medical conditions independently and effectively. Intimate health shall be natural, safe, and easy for women to manage on their own.
Central to Peptonic’s growth strategy is the geographical expansion of VagiVital and Vernivia through local partners. Peptonic Medical also intends to continuously broaden its product portfolio through acquisitions and the development of innovative and competitive products in-house.
The company is headquartered in Stockholm, Sweden, and has subsidiaries Common Sense Marketing Inc in the USA and Peptonic Medical Ltd in Israel. Peptonic Medical was founded in 2009, and the company’s shares have been listed on the Spotlight Stock Market since 2014.
This disclosure contains information that PEPTONIC Medical AB is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on November 12, 2024, 19:30 CET.
