Exercising of TO3 warrants in Prostatype Genomics
Exercising period for TO3 warrants prior to US market entry
2024 has the potential to become a transformative and highly value-creating year for Prostatype Genomics. The company expects to reach the US market with its gene test Prostatype® in Q2, submit an application for reimbursement from Medicare in Q3, and obtain Medicare approval in Q4. When this happens, it opens up a market currently valued at around 2 billion SEK (200 million USD) annually, with a total potential to grow to about 6 billion SEK annually. The reimbursement rate from Medicare is currently approx. 3,800 USD per test.
Prostatype Genomics expects to maintain a gross margin of over 95% also in the United States, and the company also has a very cost-effective structure for the testing chain that makes it possible to reach breakeven at a group level with as few as 30-50 included American urologists. Compared to existing tests used as a supplementary basis for decision-making for patients with prostate cancer in the US market, Prostatype® is the only one with a focus on three embryonic cancer stem cells, a scientifically proven and highly accurate method that Prostatype Genomics has patented.
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The company’s potential in the United States
The US market for prognostic gene tests for prostate cancer is currently valued at approximately 2 billion SEK per year, and the market opportunity in the United States for next-generation gene tests such as Prostatype® is estimated by Prostatype Genomics to be worth at least 6 billion SEK per year. The company aims to achieve a significant double-digit market share in the US market during 2025-2026, with a maintained gross margin of over 95% and an attractive industry-relevant operating margin.
Prostatype Genomics is experiencing a great deal of interest from potential commercial partners, especially in the United States, and is continuously evaluating possible collaborations or a sale of the entire company, taking into account the interests of its shareholders and the patient group.
Use of proceeds from exercised TO3 warrants
The proceeds from exercised TO3 warrants will primarily be used for the company’s work to achieve expected future milestones in the US market, while the establishment and sales will continue in focus markets in Europe and Asia. From a patient perspective, it is extremely important to be able to offer Prostatype® to men also in these regions in the long term: here, too, around one in eight men is affected by prostate cancer, and approx. 30-60% of these undergo radical treatment which could have been avoided.
Expected milestones in 2024 – 2025
Q2 2024
- US lab validation completed, Prostatype® allowed to be sold in the US market
- Initiated market launch in the United States
- First US patients using Prostatype®
- Topline results from the validation study in Spanien
Q2-Q3 2024
- Completed interim data with African American patients from the US study
- Submitted application to Medicare for reimbursement in the US market
Q4 2024
- Medicare approval for reimbursement in the US market (current reimbursement level is approx. 3,800 3 800 USD per test)
- Initiated comprehensive US market launch
- First sales income based on reimbursement in the US market
- Data from the US study published in a scientific journal
Q1 2025 and thereafter
- Upscaling of sales in the US market with significant recurring income
- Continued rising recurring income from focus markets in Europe and Asia
Timeline for the exercise period
2024
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Summary of warrant terms and conditions
Exercise period
April 5–19, 2024
Exercise price
0.04 SEK
Last day of trading for TO3 warrants
17 april 2024
Number of outstanding shares before exercise of warrants
788,286,450 shares
Issue size
If all outstanding TO3 warrants are exercised, the company will receive approx. 10.0 MSEK before issuing costs.
ISIN-code for TO3 warrants
SE0021150794
Do I have TO3 warrants to use?
The company’s warrants of series TO 3 were issued in connection with the company’s rights issue of units that took place in December 2023 – January 2024. If you participated in this rights issue, you thus received warrants that can now be used to subscribe for shares at a price of SEK 0.04 per share.
Press releases and news
Press release April 5, 2024: The exercise period for Prostatype Genomic’s warrants of series 3 begins today
Send a question about the exercise period to Prostatype Genomics
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