Figures in parentheses refer to results during the corresponding period of the previous year

• The Group’s sales amounted to 64.8 (61.2) MSEK for the third quarter of the year.
• The Group’s net result totalled 5.0 (7.4) MSEK for the period July-September.
• EBITDA amounted to 11.8 (13.0) MSEK for the quarter.
• Earnings per share were 0.26 (0.39) SEK for the period.
• Net cash flow positive for the quarter 2.9 (-2.7) MSEK.
• Cash flow from operating activities amounted to 1.1 MSEK (133 TSEK) for the quarter.
• Cash on hand totalled 36.3 MSEK at the end of the period.
• A total number of 484 (444) scalp cooling systems were installed around the world in the first nine months of the year, with the order book containing an additional 121 (153) systems.
• Average Daily Treatment Revenue (ADTR) amounted to 54.5 TUSD (568.5 TSEK) for Q3 2024, corresponding to an increase of 26.2% compared to 43.2 TUSD (467.0 TSEK) for Q3 2023. The figures in SEK have been converted from USD according to the average exchange rate during each period.
• Recurring income increased from 28.1 MSEK in Q3 2023 to 41.4 MSEK for the same period in 2024.

Significant events during the reporting period

In July, it was announced that Paxman had secured a contract for the provision of scalp cooling systems to the U. S. Department of Veterans Affairs (VA) for the National Precision Oncology Program (NPOP). Paxman is partnering with Capri Construction 426 LLC, who were awarded an Indefinite Delivery, Indefinite Quantity (IDIQ) contract, with Paxman as the sole subcontractor. It is projected to be worth $2.7 million over the contract period which has a base year and our option years spanning 1st July 2024 to 30th June 2029.

In August Paxman won the SMART award from Innovate UK for its work on a device for the prevention of chemotherapy-induced peripheral neuropathy (CIPN). The project will build on previous highly successful collaborations, between Paxman and the University of Huddersfield whilst also integrating expertise from University of Leeds, extending the collaboration network and strengthening Paxman’s developing R&D team. The project started successfully on 1st October 2024.

Paxman attended the ESMO Congress 2024 & EONS17 along with 34,000 participants from 149 countries in September. As part of EONS17, Paxman sponsored a symposium on ‘Achieving successful scalp cooling – the importance of nursing in chemotherapy side effect management’. Filled to capacity, the auditorium heard from nursing professionals, scalp cooling expert Dr. Corina van den Hurk, and Paxman’s regional representative in Spain, Begoña Parrado.

In the same month, the CEO, Richard Paxman OBE, was interviewed by Analyst Group discussing where the company stands today. It included an introduction to the company, financial performance, Paxman’s work in the U. S. and his expectations for the next few years of the business.

Significant events after the reporting period

In October, Paxman successfully passed its recertification audit. The dedication of Paxman’s quality team plays a pivotal role in ensuring we remain compliant with global regulatory standards. This thorough audit assessed our documented management system processes, as well as documents and records related to the design, development, manufacture, inspection, and servicing of our Scalp Coolers, aligning with key standards such as ISO 13485, MDSAP, and EU MDR.

In the same month, CEO Richard Paxman joined the West Yorkshire Combined Authority and Mayor of West Yorkshire, Tracy Brabin, on a historic US Trade Mission to shine a spotlight on the incredible strength and enormous opportunities present within the transatlantic marketplace. A landmark partnership agreement to establish a ‘Healthtech Bridge’ with the regions of West Yorkshire and Nashville, Tennessee, was signed boosting the regions health technology sector with the aim of creating new jobs, more investment and greater collaboration.

Later in October the American Medical Association (AMA) issued 3 CPT® Category I codes for mechanical scalp cooling, effective from January 1st, 2026. This issuance of a permanent CPT® I codes is one of the most significant breakthroughs in Paxman’s efforts towards widespread adoption of Paxman’s insurance based billing model.

On November 1st, CMS published the OPPS Final Rule, this is the Hospital Outpatient Prospective Payment System. Based on the updated claims data available since the proposed rule earlier in the year, the payment rate calculated using their methodology falls within the cost band for New Technology APC 1519 (New Technology - Level 19 ($1701-$1800)). Therefore, they are assigning CPT code 0662T to APC 1519 for 2025 as opposed to APC 1515, which was $1350.50.