Neem's Hill AB (publ) publishes Interim report Q3 2026

 January - September 2026           

• Net sales amounted to 9,466 kSEK (9,637)
• Profit/loss after financial items amounted to -5,486 kSEK (-5,532)
• Earnings per share amounted to -0,21 SEK (-0,24)
• Cash flow from operating activities amounted to -5,393 kSEK (-3,406)

July - September 2026

• Net sales amounted to 3,376 kSEK (3,324)
• Profit/loss after financial items amounted to -1,291 kSEK (-1,267)
• Earnings per share amounted to -0,05 SEK (-0,05)
• Cash flow from operating activities amounted to -2,470 KSEK (-1,663)

Events during the reporting period

• ChemoTech's TSE Reports 97% complete remission and stronger than expected clinical results in Equine
• Scandinavian ChemoTech AB changes name to Neem's Hill AB

Events after the reporting period

• -

 Word from the CEO

The third quarter of 2026 brought continued growth in treatment kit sales within Neem's Hill's Animal Care business, reflecting greater clinical use of installed vetIQure-TSE systems and a stronger recurring revenue base. September was one of our strongest sales months to date. We continue to see significant potential to expand our customer base while helping existing clinics increase their use of TSE. 

As Animal Care develops a more stable sales base, we are moving closer to a position where we can consider renewed investment in the Group's Human Care business. Our primary focus is India, where we are evaluating opportunities to advance clinical development in head and neck and breast cancer, with the pace determined by available resources and clinical partnerships. 

Growing recurring revenue

Total Animal Care revenue reached kUSD 360 in the third quarter. The period included the summer months, with the majority of sales generated toward the end of the quarter. This strong finish indicates encouraging commercial momentum as we enter Q4. 

Revenue from treatment kits continued to grow during the year, reflecting increased clinical use of installed vetIQure systems. As clinics gain experience with TSE and integrate it into their treatment offering, repeat kit purchases strengthen our recurring revenue base. 

With more than 60 systems installed globally and over 4,500 Animal Care treatments sold since commercialization, we have an expanding foundation for further growth. Our focus remains on helping existing customers increase treatment activity while bringing TSE to new clinics. 

Device sales within key accounts depend partly on the timing of larger negotiated orders, and ongoing discussions have yet to translate into the volumes we believe these relationships can generate. We continue to see substantial opportunities to expand installations within these groups, although the timing and scale of individual orders remain uncertain. 

Strengthening sales and clinical support

Despite the encouraging growth in recurring revenue, we are not satisfied with the pace of sales development in either the US or our newer European markets. Our commercial results remain well below what we believe our technology and market opportunity can support. We are addressing this through sharper account prioritization, more direct engagement with clinicians and closer follow-up of sales activity, with a clear focus on translating our increased commercial capacity into new customers and sales. 

The additional sales and marketing capacity introduced since June strengthens our ability to pursue new customers across North America and Europe. This includes greater coverage of major US markets and regions such as the Midwest, alongside a dedicated sales representative for Germany, Austria and Switzerland. As these representatives develop their territories and customer relationships, we expect their contribution to sales growth to increase. 

Our commercial strategy combines relationships with larger veterinary groups with direct engagement at individual clinics. We are placing greater emphasis on identifying suitable customers, establishing clinical needs and helping veterinarians integrate TSE into their standard offering. 

During the quarter, our new US Product and Application Specialist began supporting customers with training and clinical implementation. She brings practical experience from more than 100 TSE procedures. A small but growing group of highly active clinics provides valuable experience that we can share with other users through training and ongoing support. 

Building clinical evidence

In July, the retrospective equine study from the Norwegian University of Life Sciences was presented at the European College of Veterinary Surgeons' scientific meeting in Liverpool. The study involved 26 horses with 66 sarcoid lesions and reported 97% complete remission at eight-month follow-up. Twenty-three horses were treated with standing-sedation rather than general anesthesia. 

Product development guided by clinical needs

Shelf-life testing has been completed, supporting a validated 36-month shelf life for treatment kits. This gives clinics greater flexibility when planning purchases and managing inventory. Our hardware upgrade program is also nearing completion, supporting longer treatment sessions and providing capacity for future software functions. 

We are working to expand our range of probes and electrodes to improve access to tumors in anatomically difficult locations, including the nose, tongue and deeper parts of the oral cavity. This includes evaluating smaller instruments and potential supplier collaborations, with compatibility, quality and clinical usability guiding the work. 

Across our R&D activities, we remain committed to the safety and quality standards that guide our Human Care development. These same principles underpin our work in Animal Care, and we will not compromise them as we develop new instruments and expand the platform. 

Continued development in Human Care

Human Care remains part of the Group's long-term value potential, with India as the principal market for clinical development. Recruitment in the ongoing study has progressed more slowly than expected. We continue to discuss additional clinical work with Tata Memorial and evaluate a focused, sponsored study, subject to funding and an agreed clinical plan. 

Priorities for the coming quarters

Our immediate priorities are to turn our expanded commercial reach into new installations and help more clinics develop regular treatment activity. We are also assessing how to strengthen technical services, logistics and administration in North America, our largest commercial market. Any expansion will be pace to available funding. 

Careful cost control and financing remain central to our planning. We continue to evaluate funding options to support commercial development and a selection of clinical projects. Achieving positive cash flow at Group level remains a key objective. 

The growth in treatment kit sales gives me confidence in the value that clinics see in TSE. Together with our expanded sales capacity and ongoing key account discussions, this provides a foundation for further growth.

I would like to thank our employees, clinical partners, customers and shareholders for their continued commitment and support.

Mohan Frick - CEO Neem's Hill AB (publ)