- 2020 was a year of audacity, determination, and transformation
- Expertise has been strengthened by a refocused Executive Committee and by establishing an Advisory Board
- The financial performance was characterised by the shift of strategy from fintech to healthtech
- Restatement of 2019 Annual Financial Statements
Zurich, 28 April 2021 – Achiko AG (SWX: ACHI, ISIN CH0522213468) announces its financial results for the year ended 31 December 2020, and progress since then. The Annual General Meeting of shareholders will take place 26 May 2021.
The year 2020 was one of audacity, determination, and transformation. The relocation in June 2020 from the Cayman Islands to Switzerland, a leading country in the sectors of health and medical technology, was a significant decision for the Company, beyond the operational changes.
With the emergence of Covid-19, Achiko saw the need for a diagnostic testing and management system that would work on a daily and regular basis. The Company moved quickly on the opportunity presented to help control the spread of the virus, allowing people to return to their pre-pandemic lives as quickly as possible. Leveraging its fintech knowledge, Achiko has transformed to a healthtech company. The creation of AptameX to focus on the development of a low cost, non-invasive saliva-based diagnostic test for the detection of Covid-19 and other pathogens has been realised through best utilising and redeploying its mobile app platform technology, the digital passport service, Teman Sehat (Health Buddy).
AptameX is an affordable and easily scalable diagnostic test based on DNA aptamer technology that provides rapid results with the testing experience being comparable to brushing one’s teeth. The Company is currently completing regulatory approvals, enabling the commercialisation of the AptameX technology for later this year and is progressing forward with PT Achiko Medika Indonesia, a joint venture company that will produce and distribute AptameX in Indonesia.
Teman Sehat was launched in June 2020 in the areas of South Tangerang and Pekanbaru, Indonesia, as approved by the Indonesian government and has 200,000 registered users as at 31 December 2020. Achiko has filed a provisional patent and holds sole commercialisation rights to the underlying technology.
Achiko strengthened its expertise with a refocused Executive Committee and by establishing an Advisory Board with international experts in the field of medtech, biotech and innovation. The Executive Committee was strengthened by Dr Morris S. Berrie, who joined on 1 January 2021 as President to support Steven Goh in his role as CEO with a strong focus on commercialisation and financing.
The financial performance was characterised by the shift of strategy. In 2020, no revenue from the new business opportunities was realised and the existing payment service business was affected by the overall market uncertainty. Achiko generated revenue of USD 2.9 million in 2020, a decline of 57% compared to USD 6.5 million in the same period last year. Despite the revenue decline, gross profit increased to USD 0.4 million compared to USD 0.3 million in 2019, mainly driven by a one-time special effect.
Operating expenses increased in 2020 due to higher administrative expenses (i) in accordance with the expected transformational realignment in becoming a healthtech company and (ii) the impairment of goodwill. Administrative expenses increased to USD 11.7 million compared to USD 6.2 million in 2019 because of higher (i) share option expenses of USD 3.4 million due to an increased number of vested shares, (ii) professional fees and (iii) salaries and wages due to the organisational build-up to strengthen the Group’s competencies for the transformation. The Company fully impaired the goodwill of USD 1.6 million of the payment service businesses reflecting the strategic shift.
The higher operating expenses resulted in a loss of USD 14.1 million in 2020 compared to a loss of USD 7.3 million in 2019.
In 2020, the Company ensured its financing with (i) two capital increase of USD 4.2 million, (ii) an executed convertible note with Negma Group Ltd in an amount of USD 1.7 million and (iii) a convertible subordinated loan facility with US-based fund manager Yorkville Advisors Global LP of up to USD 12 million with a received amount of USD 2.5 million in 2020.
Looking forward, the Company is well positioned to continue developing its joint venture strategy and is currently in advanced talks with a number of additional regions. The expected scientific results, to be released shortly, will show the Company in an advantageous position. Development and manufacturing operations have commenced in Taiwan and the Company expects to ship a first-generation product early in the third quarter.
In addition, AptameX is securing and developing technologies that will be applicable to further therapeutic indications. These include (but are not limited to): dengue fever, various cancers and other pathogenic diseases. Currently, there is excitement in the development of a lateral flow diagnostic that shows promise in allowing for the identification of neutralising antibodies for Covid-19; this has tremendous potential for use post-vaccination. The technology enables specific identification of the antibodies that are present, i.e. IgG, IgA or IgM.
Restatement of 2019 Annual Financial Statements
The Consolidated Financial Statements for the year ended 31 December 2019 are restated to correct the disclosures of non-cash issuance of share capital, calculation of employee share options, and reversal of a share subscription in accordance with IFRS. The correction of the unintentional violations of IFRS requirements has been concluded in an agreement with SIX Exchange Regulation AG. As part of the agreement, Achiko corrected and disclosed the errors of 2019 in the 2020 Financial Annual Statements. In addition, the disclosures with regards to continuing as a going concern is prepared in line with disclosure in the Half-Year results 2020. The Company is in a build-up phase and the ability to continue as a going concern depends materially on (i) the implementation of the Group’s strategy to transform into a healthtech company with the development of its operation and build-up of its distribution, and (ii) additional successful fundraising.
The Annual Report is available for download at: https://www.achiko.com/financials/.
About Achiko AG
Achiko creates and develops new innovations in healthcare technology through its biotechnology division, AptameX, and its sister digital mobile health technology division, Teman Sehat. The Company has created a unique telehealth capability that provides user-friendly diagnostic testing integrated with a digital passport solution for the management of Covid-19.
AptameX comprises DNA aptamer-based technology that is cost-effective, chemically synthesised and widely applicable to the evolving diagnostic field of healthcare. Together with the digital mobile health app Teman Sehat, Achiko is developing potential technologies that seek to deliver rapid, affordable diagnostic testing for a range of pathogenic diseases and therapeutic indications. The AptameX technology is licensed from Regenacellx.sl and Achiko has exclusive commercialisation rights.
Headquartered in Zurich, Achiko has offices in Hong Kong, Jakarta, Seoul and Singapore.
Further information can be found on www.achiko.com.
If you have any questions regarding the Company, please contact us.
Farner Consulting Ltd.
T: +41 44 266 67 67
Germany and Austria
Axel Mühlhaus / Dr Sönke Knop
T: +49 69 90 55 05-51
This communication expressly or implicitly contains certain forward-looking statements concerning Achiko AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Achiko AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Achiko AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.