Integrum AB (publ)

Hello, and welcome to today's presentation, where we have Integrum presenting their Q2 report. With us presenting, we have Acting CEO, Scott Flora, and CFO, Juergen Svonström. If you have any questions, please use the form located to the right, and we'll take that up during the Q&A after the presentation. And with that said, please go ahead with your presentation.

Juergen? Yeah, here we can see the agenda for today. We will have a brief introduction from Scott and then a business update. And myself, I will do a financial update. And after that, a summary and some Q&A at the end. So with that said, over to you, Scott.

Thanks. Thanks, Jorgen, and good morning. if you're here in the East Coast US and good afternoon to all of you in Sweden. And I'm very happy to present this Q2 report today and spend a little more time on what we think are the critical things the company needs to do. First, why do I get involved with Integra and why am I here? This is a phenomenal product. If you look at the orthopedic marketplace, hasn't been a lot of true innovation and a lot of PMAs that have been done that really impact patients lives the way we do. And, and therefore I think this is a real game changing device. Now with that, we're on a, we're on a market adoption journey. And with that market adoption journey, there's some key levers that we need to execute better on. The team here at Intagram, we're really not very happy with the, our second quarter results with the exception of the bright spot in the S1 surgeries returning in the US. But we know we've got to execute better against driving market adoption. And what that means for the team, it's not an easy thing. We're changing how we think around just being a science company to transitioning to more of a commercial execution company. And that requires some funding changes and that requires some people thinking differently. And I'll tell you that for the first quarter in, I think the team has done a great job of getting their head around the mission at hand because they also buy into the fact that this is a tremendous game-changing technology. So let me take you through what we're focused on and what we think is going to drive what I call tangible, real change. market adoption results, which is getting more patients implanted and those patients being happy and becoming, um, mission, mission referrers of ours, and then having more prosthetists and surgeons, um, also, uh, driving and adopting this procedure. So, like I said, you know, the financial summary, uh, um, we're disappointed, uh, uh, you know, and we think the, uh, but the S1 focus, I think has, has paid off and I'm going to talk some more about that. Um, And, you know, if you talk about the highlights from Q2, we did rebound in S1s. And, you know, there's a process that we're driving now on a monthly basis where we review the patients in the pipeline. And it's a standard commercial activity that's done, you know, across any company where you look at your leads, you look at what's going on and how do you push those? How do you get those leads and get them into revenue faster? So we've, we're doing that with the patients and with the prosthetists and education. We also, uh, purchased some new software that helps us read CT scans faster and help the surgeons identify what's the right implant to use. So that's, that's been a key focus. Salesforce productivity, you know, getting the team focused on the critical activities that meet the needs of the customers that drive revenue and then, um, fighting, um, Defending our on-label use in the U.S., we have a PMA for above the knee in the U.S. That is a huge tamp, and we're not even close to being 1% penetrated. We would be a very decent-sized company if we could achieve that. We have got to laser focus on driving our FDA-approved product and getting more patients done with that surgery. Yes, there's a lot of things in the pipeline. There's humerus, there's all this other stuff, but all that can be defocusing and it, and all of it needs to be in the right queue at the right time. But we really need to drive our, our PMA approved product in the U S there's other products we can, driving the EU. And we'll talk about that later. So we are also, we also have some people in the U.S. that have seen this opportunity and they drive, they try to get creative and use different regulatory paths. And we've been defending and we're out there educating patients and surgeons about why this PMA procedure is the one to use. It's the one that invented this technique and it's why it's the market leading procedure and implant in the U.S., Around portfolio and product launch, we've done a rebalancing activity with the team, and we now have prioritized all the R&D projects on importance, and we're using time-tested measurements like time to revenue, does it support the strategy, size of market, ROI, those types of measures that say this product should be focused on. We cannot work on all We got to work on the critical few at our size company because that's the best use of our cash. So our focus strategy to accelerate commercialization and win is all about Salesforce productivity, defending our PMA, marketing our PMA, thinking through our leadership portfolio and product launches more thoughtfully, and then focus growth. So I've had a lot of questions that came in about ecosystems and things, and I'm going to share that in a second with you, but we're focused. You know, every, in the last 40 years, every company I've been with, it's all about focus and you got to focus on a few critical markets that you think you can win in. And right now we're focused on three markets in Europe, one in the U S and that's where we're going to spend our money. And we're going to go deep. Um, and we've got to, um, we've got to fight the temptation of wandering off the trail. And we've got to stay very focused and win in those markets. And then developing a strategic, that's why I just talked about the key U.S. and European partners. And we'll talk about that in a second. Jorgen? So if you talk to any large strategic company or any acquirer, they look at what is a company's penetration in critical accounts? And the one thing that we've identified here is that we need a playbook. So in the U.S., we're going to partner with two large users of ours, and we're going to create a playbook on how do you create an osteointegration center of excellence. And then we'll take that playbook, and then we can partner that playbook across the country. Now, currently, we've got 18 to 20 centers that are well-trained on osteointegration, know how to use our implant. But what we have to do is then partner with those hospitals and those surgeons and connect those to the right certified prosthetists so the flow of patients goes into those centers. And that's what we're going to work on this playbook about. And I've seen early traction that I'm pleased with. You know, it's nothing to share or forecast with you, but I'm pleased early days on how that playbook is working. Jorgens? So this is the sort of the roadmap for the team as they think about what they're supposed to do every day. You know, how do we get patients through the pipeline? How do we defend our market position? We are the market leader. We, we, we, we need to reinforce that and defend that project portfolio management. We're working hard as a team around what are the right projects to spend money on and a partnership with specific clinics. And then the last one is the XR experience for patients, you know, in, in, When we do surgery on a patient, that patient becomes ours for life. And we have an opportunity to delight them with our axor. We just announced that we're going to start doing axor repair in the US for faster turnaround. And we are thinking about new axors and we're thinking about lifestyle axors. And that's a patient strategy that we think is going to help differentiate us in the future. Juergen? So just a reminder, We've got Jorgen as our interim CFO, and Jorgen has been a great partner in this. Inger Ryden is running the operations for me in Europe. And then Jeff Zani, president of the U.S., he runs the commercial activities. And our board of directors over there have been good partners through this transition. These transitions are, you know, they're never easy. And there's a lot of things that need to be done, and they've been good partners in guiding me through it. Jorgen? So I'll turn it over to Jörg and take you through the numbers.