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The share Arjo B 18 Juni 2024 17:29 3,94 EUR (-0,63%)
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Arjo not extending distribution agreement for Provizio® SEM scanner – no impact to the Group’s 2024 outlook

Arjo has decided not to extend the distribution agreement for Bruin Biometrics’ Provizio SEM scanner. The reason is that the parties are too far apart in terms of expected commercial development. Arjo’s outlook of 3-5% organic net sales growth for 2024 stands firm.  

The exclusive distribution agreement of 4+2 years was part of a deal that Arjo and Bruin Biometrics (BBI) made in 2020. For some time, the companies have negotiated about the extension of the agreement but since the parties are too far apart in i.e. expectations on commercial development, the decision has been made to cancel the negotiations and to not extend the agreement. The distribution agreement will end no later than December 31, 2024, according to the agreement terms.

”It is unfortunate that we have not been able to reach an agreement with BBI, however this also means that we can now fully focus on further developing our own business within pressure injury prevention, where we see healthy demand globally and significant opportunities moving forward”, says Joacim Lindoff, President & CEO at Arjo.

Arjo has extensive experience within the area of Pressure Injury Prevention and has in recent years seen a growing interest for the Group’s pressure injury solutions. However, the pressured situation within healthcare has led to significantly longer lead-times for implementing new methods and procedures than expected. Hence the sales ramp-up of the SEM scanner, which measures sub-epidermal moisture levels, has been slower than projected.

The decision does not impact Arjo’s outlook of 3-5% organic net sales growth for 2024 and onwards, and Arjo sees continued healthy possibilities to strengthen the Group’s profitability long-term.

“The positive profitability trend during 2023, and the start of 2024, relates in all material aspects to our core business, with only marginal impact from the SEM scanner. We see good opportunities to further strengthen our profitability going forward”, says Joacim Lindoff.

Discussions between Arjo and BBI around how to best terminate the distribution agreement are currently ongoing, therefore a number of related details are still under negotiation. Arjo will give an update when there is more information to share.

For additional questions:

In case of additional questions regarding the above, President & CEO Joacim Lindoff will host a short telephone conference today, May 16 2024 at 08.00 CEST.

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.

https://conference.financialhearings.com/teleconference/?id=5009779

If you wish to participate via webcast please use the link below:

https://ir.financialhearings.com/press-conference-may-16-2024

 

Contact information:

Maria Nilsson, EVP Communications & Public Relations
Tel: +46 734 244 515
Email: maria.nilsson@arjo.com  

Sara Ehinger, VP Investor Relations & Corporate Communications
Tel: +46 723 597 794
Email: sara.ehinger@arjo.com

This information is information that Arjo AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 07.00 CEST on May 16, 2024.

 

About Arjo

At Arjo, we believe that empowering movement within healthcare environments is essential to quality care. Our products and solutions are designed to promote a safe and dignified experience through patient handling, medical beds, personal hygiene, disinfection, diagnostics, and the prevention of pressure injuries and venous thromboembolism. With 6,500 people worldwide and over 65 years caring for patients and healthcare professionals, we are committed to driving healthier outcomes for people facing mobility challenges. www.arjo.com

Arjo not extending distribution agreement for Provizio® SEM scanner – no impact to the Group’s 2024 outlook