Inhalation Sciences published their Q3 report on Friday. Joining me to discuss this report in more detail, I have the company's CEO, Manoush Masarrat. Manoush, can you start with summarizing the key highlights of this report, please?
Absolutely. We started our planned communication campaign through LinkedIn. The purpose of this campaign is to increase the awareness for ISAB and its unique technology. We are monitoring the activities closely and obviously following up with the leads that are being generated by this process. We have also received the acceptance of the two submitted abstracts for the upcoming DDL, which is the Drug Delivery to the Lungs conference in December in Edinburgh. This is a great opportunity and confirmation of our focused work in the inhalation science, where our data for both in vitro, which is the DissolvIt study supported by FDA, as well as the in vivo, the multicenter European study, APRINHA, being presented for the first time to the public. Last but not least, we have started the collaboration with PharmaVentures to initiate the contact for a potential M&A process.
Can you also comment on the revenues as well and the operating expenses compared to last year?
The revenues in Q3 and year- to- date are lower than the same period last year. In terms of sales and our activities, we are having several discussions with potential customers on a weekly basis. Even though there is still a lot of interest in the market, the conversion rate is lower than what we expect and need. The common reasons are either financing of the projects that are taking longer than expected, the timing of the projects, which in some cases can be delayed with several months, and the changes driven by the new U.S. admin, which in some cases have delayed the projects that have been approved. In some cases, it has been withdrawn with some projects that have been approved, and that is affecting us and many other companies.
Having that said, we continue our efforts on commercial activities and investments where we have hired a new chief commercial officer in June, as well as our communication campaign that I mentioned earlier. From a cost point of view, we have actually reduced operating expenses by SEK 3 million year-to-date versus same period last year. The low revenue during the same timeline has affected the results negatively.
You mentioned the M&A collaboration with the PharmaVentures. Can you tell me more about this collaboration and what kind of business and partner you're looking for here?
We have been discussing this process with several companies and chose PharmaVentures for their great reputation and their track record of over 1,000 transactions within our field. What we are looking for is an organization that can take on our unique technology under their umbrella and complete it with our products and/or services. This could be anything from a pharmaceutical company to a CRO organization who already offer services within inhalation, in which we can be of a great add-on to their existing portfolio of services.
Can you mention anything about the timelines and the status of the process with PharmaVentures?
The timeline can be anything between nine to 12 months to conclude the process, i.e., during the first half of 2026, we should know about the outcome. We are currently working to identify the potential partners and dividing them in different tiers, collecting all the relevant and needed information in a data room, and planning on how to reach out relevant parties in a most efficient way.
Final question. What would you say are the most important takeaways from this report for investors?
We will be presented at DDL, which is the most important and relevant conference of the year. With two accepted abstracts and fantastic data, we should be presented for the first time. We're really looking forward to meeting the industry and have fruitful discussions. Even though with the streamlined organization and reduced OpEx, we are continued our commercial efforts at full speed, working to increase conversion rates from lead to orders. As announced, we already have received a rather big IRS order for an in vivo study in late October from a new customer and working on additional orders from our existing pipeline. Last but not least, the collaboration with PharmaVentures is a strategic decision from the board of directors and the management team.
Our aim is to conclude the process within the first half of 2026 by latest and make sure that this great and unique technology can continue together with a trusted partner, adding value to the research, the inhalation science, as well as our shareholders.
Thank you so much, Manoush, for taking the time, and good luck here going forward.
Thank you.