SciBase enters UAE through a sales and distribution partnership
SciBase’s new partner, Al Shirawi Healthcare solutions, is a Dubai-based distributor of medical technologies focusing on multiple specialties including dermatology. The announced partnership gives SciBase a distribution and sales channel in the United Arab Emirates (UAE). According to SciBase, the partnership enables them quick market access at a low investment cost.
In practice, the announcement should help SciBase open a new market and is likely a tradeoff with long-term sales margins and up-front investments. We see partnering as clearly the right choice for entry into the UAE at this stage. In our view, SciBase’s main short-term priority is to secure progress toward cash flow neutrality and to do this while strictly prioritizing cash burn to the most impactful initiatives. In this case, if successful, the UAE entry through a partner could support achieving cash flow neutrality faster without any significant up-front investments.
We did not have UAE entry in our books for SciBase yet but given the partnership setup, we see the news as positive for the company. The news do not have an immediate effect on our estimates or view of the company. Our estimates already include the assumption that SciBase has clear success in winning and ramping up several new customers, especially within the skin cancer usage area (2023-2026 annual revenue growth ~40-60 % p.a.), and continuous signs of customer wins and their ramp-ups progressing are needed to support our estimates.
Scibase Holding
SciBase Holding is a medical technology company. The Group specializes in the management of cancer diagnostics, mainly focused on the treatment and detection of various melanomas. The company has developed an electric handheld probe that analyzes the measurement signal to detect specific changes in the body's skin tissue. The head office is located in Stockholm.
Read more on company pageKey Estimate Figures18.04
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 23.2 | 31.9 | 50.4 |
growth-% | 29.94 % | 37.33 % | 57.94 % |
EBIT (adj.) | -53.9 | -56.1 | -46.9 |
EBIT-% (adj.) | -232.04 % | -175.89 % | -93.11 % |
EPS (adj.) | -0.51 | -0.24 | -0.20 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | - | - |
EV/EBITDA | - | - | - |