Lifecare's Q2 report showed revenues of NOK6.4m (1.2) and EBIT of NOK-18.6m (7.8). The cash position amounted to NOK101.3m following the rights issue concluded in the quarter. While revenues exceeded our estimates, the EBIT loss was also higher than anticipated. The deviation from our estimate is primarily due to higher personnel expenses, governmental subsidies, and the reversal of the earn-out agreement related to Lifecare Laboratory.

The company has had a high activity in the quarter and among other things it has reported that the Sencell sensor has achieved 9 weeks of longevity in the ongoing trials on dogs. The study protocol permits a total observation period of 12 weeks, and discussions with regulatory authorities are in progress to potentially extend the implant duration to 24 weeks. Additionally, Lifecare has announced a strategic partnership with OneTwo Analytics to develop a mobile application for the Sencell sensor. It has also filed a new patent application to the EPO related to a potential expansion of biomarkers measureable by Sencell - which could provide an interesting opportunity in the future.

We update our base case to NOK3.6 (4.2) following adjustments to our valuation model on the back of recent newsflow and the Q2 report. Following some new guidance on the video conference we also postpone launch in the human market from H2 2025 to H1 2026, in addition to slightly increased OPEX assumptions 2024e-2026e and some general model fine-tuning.