Intrasense: 2023 sales down on China

(CercleFinance.com) - On Thursday evening, Intrasense reported a 12.
8% drop in sales for 2023, penalized by the situation in China.

The medical imaging software developer said it generated annual sales of 3.3 million euros last year, compared with 3.8 million euros in 2022, a figure deemed 'very disappointing' by analysts at Invest Securities.

In the second half of the year alone, sales fell by over 40% as a result of the freeze on invitations to tender on the Chinese market, a direct consequence of Beijing's implementation of anti-corruption measures.

"This campaign (...) has considerably reduced the activity of all manufacturers in the healthcare sector in this zone, negatively impacting the company's sales dynamic in China", explains Intrasense in a press release.

The Group also considers that the war in Ukraine is keeping the European region in a climate of instability, disrupting the predictability of commercial operations.

The persistent uncertainty has led to the postponement of certain calls for tender expected at the end of 2023, affecting the Group's growth.

Although the difficulties in China seem to be gradually easing at the start of 2024, Intrasense stresses that 2024 represents a crucial milestone, with the regulatory approval of Myrian scheduled for the beginning of the second quarter.

This qualification should enable the group to market an AI-powered, high value-added solution in growth markets.

The company also says it is preparing the launch of its new software solution dedicated to oncology for mid-2024, which again should be a factor in accelerating growth.

Despite all these announcements, the share price fell by over 7% on the Paris Bourse on Friday.

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