Peptonic Medical publishes an operational update

Today, Peptonic Medical AB (“Peptonic”) publishes an operational update outlining the strategic actions and initiatives implemented and planned for the year. These efforts are expected to position the company to achieve positive cash flow in the second half of 2025.

Expansion in the USA. After more than six months of preparation, including the development of a new e-commerce platform, the creation of sales and marketing strategies, and initiating influencer partnerships, Peptonic is set to launch an extensive digital marketing campaign for VagiVital in the U.S. in November. This campaign marks the start of a full-scale launch of the company’s intimate self-care products in the world’s largest market for over-the-counter intimate care products, valued at approximately SEK 70 billion annually.

This initiative represents a significant milestone in Peptonic’s growth journey and signals the beginning of an expansive phase where the company takes full control of its U.S. sales operations and reduces its dependence on partners. With the support of its subsidiary, Common Sense Marketing, and marketing agency, 1DS, Peptonic has the infrastructure needed for a successful launch.

Operational Efficiency. Peptonic has implemented several structural and cost-saving measures to reduce the company’s cost base and improve operational efficiency, with full impact expected by year-end. Earlier this year, Peptonic divested its Finnish subsidiary, Lune Group Oy, and is currently in the process of closing its self-diagnostic test manufacturing unit in Israel. Both Lune and the Israeli manufacturing unit have faced significant profitability challenges and operating conditions in Israel have become increasingly difficult given the current circumstances.

In 2023, Lune generated approximately SEK 11.3 million in revenue but reported an operating loss of around SEK -4 million. The manufacturing unit in Israel has also reported negative operating results, with monthly losses of approximately SEK 1 million, driven by high operating costs and a decline in order volume. These factors have placed a strain on the company’s cash flow and require substantial time and resources for ongoing management.

By phasing out these subsidiaries, Peptonic is strengthening its cash flow and improving liquidity. While the divestments will have a direct impact on earnings through write-downs of receivables and shares in the subsidiaries, Peptonic is now better positioned for profitable growth. The company is now fully focused on its core operations and on areas that drive profitability.

Established Success. Peptonic has built a strong position in the Nordic market, demonstrating impressive sales growth. In the first nine months of the year, revenue in the Nordics amounted to approximately SEK 8.0 million, reflecting a 40 percent increase compared to the same period last year.

Outlook and Break-even Target. Peptonic is now fully focused on its U.S. launch, ramping up efforts across all marketing channels, and is set to launch four additional self-care products in near future. The company has made significant cost savings and operational improvements this year, reducing its dependence on external partners and strengthening its control over operations. These strategic initiatives and efforts are expected to drive revenue growth and improve operating margins. The company anticipates achieving positive cash flow in the second half of 2025.

For further information, please contact:                                                                                        
Anna Linton, CEO Peptonic Medical AB                                                                                      
Email: anna.linton@peptonicmedical.se                                                                                                         
Phone: +46 70-244 92 07

About Peptonic                                                                                                                      
PEPTONIC medical AB (publ) is a cutting-edge Swedish biomedical company, dedicated in the development and distribution of clinically proven self-care treatments and self-diagnostic tests in intimate women’s health. The portfolio is sold under the brands Vagivital and Vernivia.

The company’s vision is to revolutionize intimate health by empowering women to diagnose, treat, and prevent intimate medical conditions independently and effectively. Intimate health shall be natural, safe, and easy for women to manage on their own.

Central to Peptonic’s growth strategy is the geographical expansion of VagiVital and Vernivia through local partners. Peptonic Medical also intends to continuously broaden its product portfolio through acquisitions and the development of innovative and competitive products in-house.

The company is headquartered in Stockholm, Sweden, and has subsidiaries Common Sense Marketing Inc in the USA and Peptonic Medical Ltd in Israel. Peptonic Medical was founded in 2009, and the company’s shares have been listed on the Spotlight Stock Market since 2014.