Figures in parentheses refer to results during the corresponding period of the previous year. Note that the result for Q4 2022 were impacted by large year end forex adjustments.

• The Group’s sales amounted to 55.6 (40.7) MSEK for the fourth quarter of the year.

• For the full year, sales were 210 (146) MSEK

• The Group’s net result totaled -1.6 (-9.8) MSEK for the period October-December, which results in an accumulated net result of 8.3 (-10.3) MSEK for the full year.

• EBITDA amounted to 9.5 (12.8) MSEK for the quarter and to 31.2 (16.2) MSEK for the year.

• Earnings per share were -0.09 (-0.51) SEK for the fourth quarter of the year and 0.44 (-0.54) for the year.

• Net cashflow positive for the quarter 722TSEK (-10.5MSEK).

• Cash flow from operating activities amounted to 7.8 MSEK (- 932 TSEK) for the quarter. For year, the corresponding figure is 15.6 (1.7) MSEK.

• A total number of 601 (528) scalp cooling systems were installed around the world in the year, with the order book containing an additional 154 (217) systems.

• Average Daily Treatment Revenue (ADTR) amounted to 35.2 TUSD (377.0 TSEK) for Q4 2023, corresponding to an increase of 23.6% compared to 28.5 TUSD (306.1 TSEK) for Q4 2022. The figures in SEK have been converted from USD according to the actual exchange rate during each period.

• Recurring income increased from 22,7 MSEK in Q4 2022 to 28.1 MSEK for the same period in 2023.

Significant events during the reporting period

In early October Paxman passed its Medical Device Single Audit Program (MDSAP) surveillance audit with BSI, The British Standards Institution. The Medical Device Single Audit Program allows an MDSAP recognized Auditing Organization to conduct a single regulatory audit of a medical device manufacturer that satisfies the relevant requirements of the regulatory authorities participating in the program.

At the beginning of October Paxman announced that the Palmetto GBA Medicare Administrative Contractor (MAC) has issued a Local Coverage Determination (LCD) to provide coverage guidance for Scalp Cooling for the Prevention of ChemotherapyInduced Alopecia. According to the final LCD guidance from Palmetto GBA, “the use of a scalp hypothermia device that has been approved by the United States (U. S.) Food and Drug Administration (FDA) for the prevention of chemotherapy-induced alopecia (CIA) shall be considered reasonable and necessary for patients with solid tumors.” In addition, there were no changes between the Proposed LCD and the Final LCD. This is the first LCD that has been approved for scalp cooling and is a result of a request made to Palmetto GBA in February 2023 by PAXMAN. This important Palmetto LCD provides a pathway for reimbursement of Medicare scalp cooling claims for patients in the seven-state service area, effective November 12, 2023. PAXMAN currently serves 55 locations within the Palmetto GBA jurisdiction.

On the 10th October our CEO, Richard Paxman, attended his OBE Investiture ceremony. Richard was presented with his OBE insignia award (medal) for services to international trade by Her Royal Highness The Princess Royal in the Grand Reception Room at Windsor Castle.

In early November Paxman announced that the US Centers for Medicare & Medicaid Services (CMS) had published the OPPS Final Rule, which continues to support scalp cooling but decreases the average rate from $1850.50 to $1250.50 under the Hospital Outpatient Prospective Payment System (OPPS) and the Ambulatory Surgery Center (ASC) payment system for Calendar Year (CY) 2024.

In early November, Paxman’s Regional R&D Manager, Dr Aishwarya Bandla, was awarded 1 of 12 Outstanding Young Alumni Awards from the National University of Singapore, honouring her achievements and contributions in her field and recognising the impact of her work on society and the world.

Paxman conducted its annual employee engagement survey in November 2023 with a 95% completion rate, making it one of the most engaged employers on the survey platform. Survey results were highly positive, with 98% of respondents proud to work for Paxman and 97% would recommend Paxman as a great place to work. The employee engagement survey helps Paxman to gauge the internal success of its company initiatives and culture overall.

On 23rd November, Paxman, alongside 40+ Nordic companies in the life sciences sector attended Redeye Life Science Day 2023. CEO, Richard Paxman, introduced the company in a live broadcast to investors, businesses, and experts in the industry. The live stream included an initial pitch followed by an interview with Redeye research analyst, Mats Hyttinge.

Richard Paxman then visited Stora Aktiedagen in Stockholm on November 28th, where he gave a presentation to stakeholders with updates on the company’s operations and development in addition to an overview on finanicals, global adoption, reimbursement, and research and development. Richard then answered questions on the company in a live Q&A session.

At the end of November, the 2023 Forward Ladies Leadership Summit and Awards brought together some of the country’s most successful and influential businesswomen for a celebration of remarkable leadership and impact across the UK and the globe. Claire Paxman was awarded the Disruptor/Innovator of the Year Award.

On the 6th December, Paxman attended the Franco-British Trade & Innovation Awards in Paris, winning SME of the Year 2023 in recognition of our growth in France. The award was presented to the company by His Majesty’s Ambassador to France, Dame Menna Rawlings. Charlotte Fraser, Head of French-speaking markets, and Clément Achard, User Development and Training Officer for France received the award.

From 5th to 9th December, Paxman attended the SABCS conference in San Antonio. The San Antonio Breast Cancer Symposium is designed to provide state-of-the-art information on the experimental biology, aetiology, prevention, diagnosis, and therapy of breast cancer and premalignant breast disease. With an international audience of academic and private physicians and researchers, Paxman was able to reinforce established relationships and forge new ones.

Significant events after the reporting period

In February 2024 the Paxman Group has increased its investment from 20% to 49% in Paxman GmbH, working our Partner Novidion to relaunch Paxman in the German Direct market. The German market is a excellent opportunity for the company and with the UK company’s increased involvement traction is expected to improve through 2024.