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Irras: Accelerating commercialization - Redeye

Redeye returns with a reinforced view on the longer-term commercial outlooks for IRRAS, given its strengthened foundation for future growth and increased initial focus on clinical validation. We have long had a positive take on its sales prospects, though having been affected by external drawdowns and the Coronavirus, this has been held back. Yet, its operational achievements still bode for an attractive high sales growth case ahead.

We raise our Base Case to SEK 13 following a review of IRRAS long-term potential with its EVD and ICP systems which soon should be scaled up. We expect sales to grow with a CAGR of c.100% from 2021 until reaching positive cash flow in 2025, requiring a capital injection of SEK 270-300m until so (Base Case unadjusted at current). We expect an equity issue and eventual non-diluting financing to attract investor interest, boosted by anticipated revenue growth during the year.
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