IRRAS AB (publ) announced that it will shift the Company's commercial strategy to prioritize the launch of its IRRAflow system in the United States and will focus its resources accordingly. As part of this shift, IRRAS is planning to consolidate its operations within the US and begin the process to close its wholly owned commercial subsidiaries in Europe. Due to the extended impact of COVID-19 pandemic restrictions and the evolving regulatory landscape, the commercial launch of IRRAS' products in Europe has developed more slowly than in the United States, and the US market now accounts for more than 80% of the Company's revenue.

As a result, IRRAS will now focus its commercial investments on the US market, which has a shorter path to profitability due to the advanced nature of the product launch, the ongoing commercial partnership with Medtronic, and the market's more attractive price points. In relation to the restructuring, IRRAS will incur non-recurring one-time costs of SEK 3 million, which will impact the Company during the third quarter of this year. The restructuring is projected to result in cost savings amounting to approximately SEK 17 million on an annual basis.

The table below summarizes the financial performance of IRRAS from 1 April to 31 May 2023. IRRAS estimates that net sales for Second Quarter will amount to approximately SEK 8.5 - 11.5 million. The Company will continue to serve physicians and patients across the world via its network of distribution partners and will also ensure that its current regulatory activities remain active, including the transition of the IRRAflow system's CE mark to Europe's upgraded Medical Device Regulations (MDR).

IRRAS plans to begin the process of closing its wholly owned commercial subsidiaries in Europe to focus its commercial investments on the US market. IRRAS will continue to strengthen its direct sales and education team in the United States, but, as part of this shift in commercial strategy, IRRAS plans to no longer employ a direct sales and education team in Europe and will prioritize key markets where it currently has active and engaged distribution partners in place. With the Company's focus now prioritized on US operations, IRRAS also plans to not draw upon its 10 million EUR loan facility with the European Investment Bank (EIB).

IRRAS is still actively exploring alternatives to secure the long-term financing of the Company.