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1 Interim report Q1 2019

2 Summary of the interim report A flying start in 2019 with two important pharmacy agreements FIRST QUARTER (January - March 2019) The company’s sales amounted to 117 (0) KSEK. ∞ Work capitalised by the company for its own use amounted to 0 (173) KSEK. ∞ Operating costs amounted to 3,090 (2,467) KSEK. ∞ ∞ Result before and after tax amounted to -2,973 (-2,294) KSEK. ∞ Result per share amounted to -0.29 (-0.25) SEK. Results in brief 2018 2018 2019 2017 KSEK Jan – Dec Jan – Dec Jan-Mar Jan-Mar 117 41 Sales income 0 0 847 444 173 0 Other operating income -8,995 -9,795 -2,467 -3,090 Operating costs -2,973 -2, 294 -9, 310 -8,148 Operating result -8,148 -9, 311 -2, 294 -2,973 Result for the period 2 Interim Report January – March 2019 Invent Medic Sweden AB

3 CEO summary and important events CEO Karin Bryder summarizes the quarter During the first quarter of 2019, we took large steps forward in our process to strengthen our marketing and sales side for the first Arcamea product Efemia. Kerstin Wäborg, with comprehensive industry and sales experience from companies including Novo Nordisk, Abbot and GlaxoSmithKline, was recruited as sales manager and will become an important asset for our sales efforts. Agreements were signed with Sweden’s two largest pharmacy chains, Apoteket AB and Apotek Hjärtat, to include Efemia in their assortments. Additionally, marketing and sales activities were initiated in Denmark through the distribution partner Props & Pearls. It was also satisfying that our aftermarket study with Efemia, that was conducted together with the journal Femina, was able to show a significant improvement in quality of life for the participants. On February 19, it was announced that Kerstin ∞ Important events during the first Wäborg has been recruited as Head of Sales of quarter of 2019 Wäborg has extensive Invent Medic and Arcamea. experience from positions as Product Specialist, Head On February 4, it was announced that Invent ∞ of Sales and Head of Products at the Nordic part of Medic has signed an agreement with Sweden’s Novo Nordisk, Abbott, GlaxoSmithKline and most largest pharmacy chain, Apoteket AB, that has recently at Enzymatica. In addition to a very broad agreed to include the company’s product Efemia industry experience from both pharmaceutical and Initially, Efemia bladder support in its assortment. medical technology companies, including products will be available in Apoteket’s nationwide webshop in diabetes, neurology, gynaecology, venereology, Apoteket.se. The inclusion of Efemia in Apoteket’s dermatology and most recently respiratory tract assortment is an important milestone for the infections, Kerstin Wäborg also brings a strong company as the product will now retain a much business network from working with pharmaceuticals better exposure towards broad customer groups in and other important health care entities. She has an Sweden. An approved review by Apoteket is also an excellent clinical understanding as a licensed nurse import validation of the product. and authorized pharmaceutical consultant. 3 Interim Report January – March 2019 Invent Medic Sweden AB

4 CEO summary and important events On February 19, Invent Medic announced ∞ Important events after the end of that the company has signed an agreement with the period Copenhagen-based Props & Pearls. The agreement covers the right to market and sell the Arcamea- On April 4, Invent Medic announced that both ∞ product Efemia bladder support to health care users and gynaecologists in Germany gave overall entities and end-customers in Denmark. The product positive feedback on Efemia in a recently completed will be launched in Q1 2019. Invent Medic had earlier evaluation by a potential distributor in Germany. planned to launch Efemia in Denmark on its own, Based on the results, it was decided that the but to instead use Props & Pearls as a distributor company needs a distributor with a stronger focus on comes with several advantages. These include being the retail market in Germany. Invent Medic will take associated with a well-respected local partner and the conclusions from the evaluation into account access to important health care actors. when continuing to search for an optimal distribution partner in Germany. The information is also relevant for additional European markets. ∞ On March 1, it was announced that a post-launch study with Invent Medic’s medical technology product Efemia Bladder Support showed a ∞ On April 30, it was announced that Invent significant improvement in quality of life in women Medic’s innovative medical technology product with self-diagnosed stress urinary incontinence. The Efemia Bladder Support was shown to significantly study was conducted together with Aller Media. 83 improve quality of life for 75% of the participants percent of the participants stated that Efemia made in a follow-up study with women that participated their everyday life easier. In total, the study included The follow-up study in the company’s clinical study. 40 women with an average age of 58 years, that was conducted to improve the knowledge on how were recruited among female readers of the Swedish Efemia effects self-reported quality of life in women lifestyle magazine Femina. Of these, 30 participants with clinically diagnosed stress urinary incontinence. completed the whole study. Professor Aino Fianu Jonasson, specialist in urogynecology at the Karolinska University Hospital, was the principal investigator of the study. On March 15, it was announced that Invent ∞ Medic has signed an agreement with Apotek Hjärtat for the inclusion of the company’s product Efemia bladder support in the assortment. Initially, Efemia will be available via the nationwide webshop apotekhjartat.se. Apotek Hjärtat is Sweden’s largest privately-owned pharmacy chain with around 390 pharmacies throughout the country. The company is owned by the grocery retailer Ica Gruppen. With this agreement, Efemia will now be available via the two largest pharmacy chains in Sweden. 4 Interim Report January – March 2019 Invent Medic Sweden AB

5 A word from our CEO Karin Bryder A flying start in 2019 uring the first quarter of 2019, we took several important steps forward in our process to strengthen the marketing and sales of Efemia. D The most positive news item for Invent Medic as a company was that we were able to present Kerstin Wäborg as our sales manager. Kerstin has comprehensive industry and sales experience from companies including Novo Nordisk, Abbot and GlaxoSmithKline, and she will become an important asset as we are now increasing our focus on the marketing and sales side for our first product Efemia. Kerstin has started her work in a very positive way, and it is clear that she has achieved significant trust from important entities in both the public and private health care sector. In addition to reaching out to health care entities and organizations with members within the product’s main target groups, we are also aiming to market Efemia through printed, electronic and social media. We are primarily working with targeted campaigns aimed at specific target groups, but we are also using more traditional channels. It is of course also important that the product is easy to find and buy through well-recognized channels. This represents a group of women that could receive During the quarter, we took a big step forward in Efemia through the health care system. Both studies this regard by signing distribution agreements with showed a significant improvement in quality of life Sweden’s two largest pharmacy chains, Apoteket AB when the women used Efemia. It is satisfying that and Apotek Hjärtat. This is expected to drive sales as there is a positive will to recommend the product, well as the awareness of the product. and that the majority will continue to use Efemia. Additionally, we were able to sign a distribution During this stage, it is important to highlight that agreement with Danish Props & Pearls. We are many women take some time before they decide already seeing that they are starting to establish to use a product like Efemia, but a significant share Efemia at public health care entities, indicating a of those who take this step becomes recurring positive outlook for this market. customers. Based on this, I have a very positive outlook on our possibility to continuously build an The process to establish Efemia in the rest of increasing cashflow as we broaden the visibility Europe is also ongoing, and it is clear that there and availability of the product in the Nordic region is a substantial demand. This was confirmed in an and the rest of Europe. We will also be able to use evaluation by a potential German distributor that the distribution network for Efemia for additional was completed shortly after the end of the period. products when we broaden our offering. The evaluation also confirmed that we should focus on sales efforts aimed directly at consumers on large European markets. We have completed two user studies with very satisfying results. The first was aimed at readers of the Swedish journal Femina. This represents a consumer group that does not primarily seek professional medical advice, and instead try Karin Bryder, CEO Invent Medic Sweden AB Efemia on their own to address their stress urinary incontinence. The second study (that was completed after the end of the period) was aimed at women who Lund, May 3, 2019 participated in the first clinical study. 5 Interim Report January – March 2019 Invent Medic Sweden AB

6 Business activities Vision and business activities Invent Medic’s vision is to offer new and innovative products to women with the aim to improve their health and quality of life. The product portfolio shall include safe, effective and dependable products that are easy to use in everyday life. Invent Medic owns the women’s health brand Arcamea, and the first CE approved medical technology product Efemia was launched as an Arcamea product during the fall of 2018. Efemia targets the millions of women around the world that are being limited in their everyday life by stress incontinence (SUI). SUI is defined as involontary urinary leakage when experiencing increased abdominal pressure. The product has in clinical studies proved to be as effective as a surgical procedure without requiring any operation. Efemia is easy to carry around and can be used when needed. Efemia is being offered directly to consumers via Arcamea’s online store, www.arcamea.se, and the product is also available to purchase online through Sweden’s two largest pharmacy chains, Apoteket When selling via external entities in the healthcare AB and Apotek Hjärtat. In Denmark, consumers will and women’s health space, including pharmacies, be able to purchase Efemia through shops and on Invent Medic functions as a distributor with its propsandpearls.com. Discussions are ongoing with own warehousing. Price levels and other terms additional health care and women’s health entities, are negotiated separately with each entity, and including additional pharmacy chains the product can be included in their existing marketing activities. Thanks to procured, flexible manufacturing capacity, the company is able Business model to minimise its warehousing costs. Important Invent Medic can develop products and services professional categories within healthcare to contact with no or low licensing costs to the immaterial include urotherapists, midwives, gynaecologists and rights owners by utilising internal development or urologists, and the company will focus on reaching acquisition of immaterial rights. In line with this them via industry events and personal meetings strategy, the company owns all immaterial rights to build relations, trust and knowledge about the to Efemia, and the sales work can therefore be product. If an entity does not want to set up its done efficiently, either independently or through own sales operation, the personnel can recommend licensing. Arcameas online store instead. When Invent Medic sell the product directly to In 2018, Efemia was launched and sales activities consumers via Arcamea’s online store, the company in Sweden were initiated. In 2019, the company is receives all the revenue, but at same time there intensifying its marketing and sales activities on are additional costs for running the online store its home market Sweden with the aim to increase and customer service as well as marketing costs. the demand from both consumers and health care Arcamea plans to market the brand and the product entities. The process to launch the product in the via social media as well as activities that caters to rest of Europe and thereafter in the USA, through women’s health and an active life style, such as distributors or via license agreements, is ongoing at exercise events. the same time as the activities in Sweden. 6 Interim Report January – March 2019 Invent Medic Sweden AB

7 Business activities Market estimate and economic potential Around 50 million women globally suffer from stress The results from a follow-up study to the clinical incontinence according to the company’s estimation, study was presented in April 2019. 75% of the which means that the potential market for a non- participants stated that Efemia improved their surgical aid like Efemia is substantial. The target quality of life, and 68% stated that they will use the group consists of women who are having problems product after the end of the study. The results were but for different reasons are not able to or do not presented at the end of April 2019. want to undergo surgery, and those who are waiting for an operation. In an post-launch study with Efemia Bladder Support that was conducted together with Aller Media, Today, around 400,000 women (in the ages Sweden’s largest publisher of popular journals, 83% 45-75 years) in Sweden are using some kind of of the participants stated that Efemia made their protection against urine leakage and are thereby everyday life easier. potential regular users. According to the company’s assessment, the main target group are women who are having daily or weekly problems, which are Existing and future development around 300,000 women in Sweden. During regular projects use, the product should be replaced every three months, which means that a user needs four units Invent Medic is cooperating with experienced per year. people and teams in medical research, innovation and product development to develop products and Clinical studies and post-launch services in areas where the company identifies a substantial need combined with the possibility study to launch a product with unique advantages. The In a randomized, controlled multi-center study company is continuously evaluating new potential with 97 women, Efemia was shown to reduce development projects. urinary leakage with 77% on average.The study was coordinated by Aino Fianu Jonasson (senior scientist at Karolinska University Hospital). Patents Invent Medic owns the rights to the patents that describe the Efemia product and its potential use cases in Europe and the USA. The company is not dependent on patents owned by any third party, licenses, industrial, commercial or financial contracts or new manufacturing processes to be able to implement the planned successive global market launch of the product. Region/Country Status Europe Approved, valid through December 17, 2029. Approved, valid through December 29, 2030. USA Supplementary application submitted in the first quarter of 2018; approval if received will Sweden be valid until 2038. Applications submitted in Australia, Canada, China, South Korea, Russia and the USA in Design registration October, 2018, based on the application in Europe that was submitted in April, 2018. 7 Interim Report January – March 2019 Invent Medic Sweden AB

8 Development during the period Income and result from business Cash flow activities Cash and cash equivalents at the end of the period amounted to 9,651 (3,407) KSEK. The cash flow Up until September 2018, Invent Medic was a from the operating activities during the first quarter development company and did not generate any amounted to -3,199 (-2,561) KSEK. income from sales activities. From October 2018, Invent Medic is a commercial company with sales Numbers in parentheses are from the corresponding period last year. activities. The sales income for the first quarter amounted to 117 (0) KSEK and the net result amounted to -2,973 (-2,294) KSEK. 2017 2018 2018 2019 KSEK Jan-Mar Jan-Dec Jan-Dec Jan-Mar -3,199 Cash flow, operating activities -2,561 -8,273 -9,976 -502 -924 -59 -39 Cash flow, investment activities 9,169 Cash flow, financing activities 0 0 17,762 394 -2,620 -3,238 Cash flow for the period 6,862 6,027 5,633 Cash and cash equivalents, opening balance 12,889 6,027 6,027 Cash and cash equivalents, closing balance 9,651 3,407 12,889 Assets Invent Medic’s assets consist of patents, development costs and production tools as shown in the table below. 2017 2019 2018 2018 KSEK Jan-Mar Jan-Dec Jan-Mar Jan-Dec Capitalised development expenses 0 173 427 694 495 502 Patent, brand 39 59 0 Equipment and furnishing 0 0 429 1,351 232 1,196 Total investments 39 8 Interim Report January – March 2019 Invent Medic Sweden AB

9 Development during the period Equity The tables below show information regarding Invent Medic’s equity. The company’s equity per March 31, 2019 amounted to 13,481 (5,709) KSEK, of which share capital amounted to 1,031 (902) KSEK. 2017 2018 2019 2018 KSEK Jan-Mar Jan-Dec Jan-Dec Jan-Mar 6,983 Equity at the beginning of the period 16,454 8,003 8,003 10,225 19, 3 3 4 0 New share issue 0 Emisson costs 0 0 -1 , 572 -1 , 0 57 -9, 311 -8,148 Result for the period -2,973 -2, 294 16,454 5,709 8,003 13,481 Amount at the end of the period -0.29 Earnings per share, SEK -0.94 -0.94 -0.25 Personnel and organisation The Share Invent Medic’s organisation consists of five The result after tax divided by the number of shares at the end of the report period amounts to employees including the CEO. Invent Medic is managed in a virtual organisation model where -0.29 (-0.25) SEK. Invent Medic has around 2,000 the hired employees have the core competence shareholders. while additional competence that is required during specific circumstances is acquired through consultants. During the development of the company, additional core competence will be included by hiring additional employees in the company when needed. 2017 2018 2018 2019 Jan-Dec Jan-Mar Jan-Mar Jan-Dec Average number of shares 10,311,428 8,688,333 9, 8 81 ,785 9,022,500 -0.94 -0.94 -0.25 Result per share, SEK -0.29 Number of shares Quota value per share 10,311,428 Number/value at the start of the year 0.1 Number/value per 2019-03-31 0.1 10,311,428 9 Interim Report January – March 2019 Invent Medic Sweden AB

10 Development during the period Risks and uncertainties Accounting principles for the interim report Apart from the general uncertainties related to market launches and sales growth, there are no For the interim report, Invent Medic applies the known tendencies, uncertainties, potential factors accounting principles of the Swedish Annual or other demands, commitments or events that Accounts Act and the Swedish Accounting Standards is expected to have a substantial impact on the Board (BFN) general rules. More information on company’s outlook. additional accounting principles used can be found in the company’s annual report for the period 2018-01-01 – 2018-12-31. Affirmation by the board The board and the CEO assure that this interim Auditor review report gives a true and fair view of Invent Medic’s operations, financial position and performance The interim report has not been reviewed by the and that it describes the important risks and company’s auditor. uncertainties that the company is subject to. LUND, MAY 03, 2019 THE BOARD OF INVENT MEDIC SWEDEN AB Lars Persson | Helena Liljedahl | Lars Wilander Gun-Britt Fransson | Johan Wennerholm 10 Invent Medic Sweden AB Interim Report January – March 2019

11 Financial statements Income statement 2018 2017 2019 2018 KSEK Jan-Mar Jan-Dec Jan-Dec Jan-Mar 0 41 0 117 Sales 0 0 17 153 Additional operating income Work performed by the company for its own 173 427 694 0 use and capitalized 117 173 847 Total operating income 485 Goods for resale -18 0 -16 0 Additional external costs -1 , 2 0 8 -1 , 4 3 9 -4,339 -6,213 Personnel costs -1 , 017 -5,179 -2,750 -1 ,715 Depreciation -149 -8 -170 -32 Additional operating expenses 0 -3 -91 0 Total operating expenses -3,090 -2,467 -9,795 -8,995 -8,148 Operating result -2,973 -2, 294 -9, 310 0 0 -1 0 Result from financial items -2 ,973 Result before tax -2 , 294 -9, 311 -8,148 -8,148 Result for the period -2 ,973 -2 , 294 -9, 311 Balance sheet KSEK 2019-03-31 2018-12-31 2018-03-31 ASSETS Intangible fixed assets 1,765 1,706 1,863 Development costs Patents and brands 1,668 1,253 1,659 3,433 Total intangible fixed assets 3,522 2,959 Furnishings and equipment 386 101 408 Total tangible fixed assets 386 101 408 Total fixed assets 3,819 3,060 3,930 Total current assets 535 19 433 Inventory Current receivables 789 626 575 Cash and bank 9, 651 3,407 12,889 Total current assets 10,975 4,052 13,897 TOTAL ASSETS 14,794 7,11 2 17, 8 27 11 Interim Report January – March 2019 Invent Medic Sweden AB

12 Financial statements EQUITY AND LIABILITIES 2019-03-31 2018-03-31 2018-12-31 Equity 13,481 5,709 16,454 Current liabilities 1,313 1,403 1,373 17, 8 27 TOTAL EQUITY AND LIABILITIES 14,794 7,11 2 Cash flow analysis 2017 2018 2018 2019 KSEK Jan-Dec Jan-Dec Jan-Mar Jan-Mar -2,561 -3,199 -8,273 Cash flow, operating activities -9,976 -39 -59 -924 -502 Cash flow, investment activities 0 9,169 17,762 Cash flow, financing activities 0 Cash flow for the period 394 -2,620 6,862 -3,238 Changes in equity 2017 2018 2018 2019 KSEK Jan-Mar Jan-Mar Jan-Dec Jan-Dec 6,983 8,003 Equity at the start of the period 16,454 8,003 New share issue 0 0 19, 3 3 4 10,225 0 -1 , 0 57 -1 , 572 0 Issuing costs -8,148 Result for the period -2,973 -2, 294 -9, 311 8,003 16,454 5,709 13,481 Amount at the end of the period Financial ratios 2019 2018 KSEK 31-Mar 31-Dec Working capital¹, KSEK 12,524 9, 6 62 2 795% , % 984% Cash liquidity 3 92% , % 91% Solidity 4 Debt-to-equity 0% 0% , % 5 Number of employees 6 1 Total current assets minus current liabilities 2 Total current assets excluding inventory in percent of current liabilities 3 Equity in percent of the balance sheet total 4 Interest bearing liabilities in percent of equity 12 Interim Report January – March 2019 Invent Medic Sweden AB

13 Upcoming financial information and events Interim report Q2 2019 | 2019-08-22 Interim report Q3 2019 | 2019-10-31 Year-end report 2019 | 2020-02-24 For additional information, please contact: Karin Bryder, CEO Invent Medic Sweden AB Medicon Village Telephone: +46 (0)723 811 710 Scheelevägen 2, 223 81 Lund, Sweden [email protected] 13 Invent Medic Sweden AB Interim Report January – March 2019

14 Invent Medic Sweden AB Interim Report January – March 2019

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