OssDsign AB (publ) announced a strategic shift to focus its operations on the orthobiologics business in the U.S, in order to increase shareholder value. The new strategy means that OssDsign will become a pure play orthobiologics company focusing on the nanosynthetic bone graft OssDsign Catalyst, an off-the-shelf product characterized by high scalability and high gross margins at 90% or above. All activities pertaining to the company's patient-specific cranial implant business will be discontinued in a responsible manner by the end of December 2023, resulting in a substantial cost base reduction going forward.

As a result, the future capital requirement ahead of becoming cash flow positive will be significantly decreased. Based on the revised strategy, OssDsign's financial target is to reach sales of SEK 150-200 million in the medium-term, at which point the company also expects to become cash flow positive. The strategic shift announced now will potentially affect approximately 25 positions in the company and is expected to reduce annual operating expenditures by approximately SEK 30-40 million, leading to an approx.

30% improvement in cash flow. One-off restructuring costs are estimated to have a SEK 10-15 million negative cash impact. In addition, there will be other, non-cash, restructuring costs related to the discontinuation of the cranial implant business.