PNV - Banter and General Comments, page-11347

For anyone interested in more detail on Kerecis, the link below is to the transcript of the Coloplast Business Update Call held on the completion of the Kerecis acquisition last September. It’s a worthwhile read.

Some key points made:

• There’s no concern of the fish supply running out! Currently, Kerecis is using <1% of the fish skin available in Iceland “and we could have 100% market share just by using a small, tiny portion of the fish skins that are available in Iceland.”
• Kerecis is now the fifth largest and fastest growing company in the US biologics market.
• 2022/23 sales were ~US$112m and the ambition is to reach annual sales of US$500m within 3-5 years.
• The intention is to expand globally now under Coloplast, which already has sales in 140 markets.
• Coloplast is aiming to achieve ~30% EBIT margin for Kerecis in the long-term.
• The current breakdown of sales is 50% in surgical applications, 40% in chronic wounds and 10% in burns. The hospital setting accounts for 80% of sales with 20% of sales in the private office setting.
• Product price wasn’t disclosed. Like other products, it’s more expensive per cm in the smaller size devices. It was simply said to be more expensive than some products and less than others.
• Analysts asked about competition, one particularly asking about similar stage companies. PolyNovo wasn’t mentioned as a competitor, nor was the existence of “synthetic” products. Identified competitors were Integra, Organogenesis, MIMEDx and Smith and Nephew.