Recurring Consumables Revenue ModelChemoTech’s business model generates recurring revenue from single-use consumables and procedure items tied to installed IQwave systems. As installed base grows, recurring consumable sales create a durable, high-frequency revenue stream that can stabilize cash flows and margin profiles over time.

Improving Gross MarginsA material gross margin improvement to ~73% in 2024 indicates better unit economics and pricing or mix improvements. Sustained higher gross margins increase operating leverage potential, meaning revenue growth can more effectively translate into reduced losses and eventual profitability as scale builds.

Very Low Leverage / No DebtThe absence of debt lowers fixed financial obligations and interest risk, preserving cash flow for R&D, commercial expansion, and working capital. Structurally, a clean balance sheet improves strategic flexibility and reduces insolvency risk while management executes growth plans.

Bears Say

Persistent Negative Free Cash FlowLarge negative free cash flow (~-13.1M in 2024) shows the company is burning cash despite revenue gains. Over the medium term this creates dependence on external financing, increases execution risk, and may force tradeoffs between growth investments and capital preservation if cash burn does not decline.

Deep Ongoing Net LossesExtremely negative net margins (~-209%) indicate operating costs far exceed current revenue. Persisting large losses erode shareholder equity, constrain reinvestment capacity, and make it difficult to reach self-sustaining profitability without substantial scale or structural cost reductions.

Eroding Equity BaseA sharp decline in equity from ~11M to ~6M signals cumulative losses are depleting the capital buffer. This reduces balance-sheet flexibility, raises the likelihood of future dilution or financing constraints, and limits the company’s ability to absorb setbacks while scaling commercial operations.

Scandinavian ChemoTech AB Class B News

Is 8V6 a Buy, Before Earnings?

Scandinavian ChemoTech AB Class B (8V6) is scheduled to report 4th quarter earnings on 03/05/2024. Regarding Q4 estimates,...

2y ago

8V6

CMOTEC.B FAQ

What was Scandinavian ChemoTech AB Class B’s price range in the past 12 months?

Scandinavian ChemoTech AB Class B lowest stock price was kr0.92 and its highest was kr7.76 in the past 12 months.

What is Scandinavian ChemoTech AB Class B’s market cap?

Scandinavian ChemoTech AB Class B’s market cap is kr80.77M.

When is Scandinavian ChemoTech AB Class B’s upcoming earnings report date?

The company’s upcoming earnings report date is not yet available.

How were Scandinavian ChemoTech AB Class B’s earnings last quarter?

Currently, no data Available

Is Scandinavian ChemoTech AB Class B overvalued?

According to Wall Street analysts Scandinavian ChemoTech AB Class B’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Scandinavian ChemoTech AB Class B pay dividends?

Scandinavian ChemoTech AB Class B does not currently pay dividends.

What is Scandinavian ChemoTech AB Class B’s EPS estimate?

Scandinavian ChemoTech AB Class B’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Scandinavian ChemoTech AB Class B have?

Scandinavian ChemoTech AB Class B has 21,692,312 shares outstanding.

What happened to Scandinavian ChemoTech AB Class B’s price movement after its last earnings report?

Currently, no data Available

Which hedge fund is a major shareholder of Scandinavian ChemoTech AB Class B?

Currently, no hedge funds are holding shares in SE:CMOTEC.B

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Scandinavian ChemoTech AB Class B

Scandinavian ChemoTech AB (publ) provides cancer care and pain management solutions. Its product, IQWave, is an electroporation device, which combines short electric pulses with chemotherapy administrated locally or intravenously used for treating head and neck squamous cell carcinoma, malignant melanoma, basal cell carcinoma, adenocarcinoma of the breast and salivary gland, hypernephroma, kaposi sarcoma, and transitional cell carcinoma. The company markets its products through distribution channels and a network of opinion leaders in South East Asia, India, and the Philippines. Scandinavian ChemoTech AB (publ) was incorporated in 2013 and is headquartered in Lund, Sweden.