Equity Research Nosa Plugs: Cash flow in the black, goal achieved

Carlsquare Equity Research is positive regarding the recent news that Nosa Plugs managed to achieve their goal of having a positive cash flow by the end of the first quarter. This highlights that the company is able to maintain its cost control while also maintaining its growth.

Positive cash flow in the first quarter

NOSA announced on the morning of April 2 that the company has been able to become cash flow positive, in alignment with their financial goals of reaching a positive cash flow by the end of the first quarter. The company cites strong growth in the core product portfolio as well as for the smell training plugs as key drivers behind the achievement. While 2024 saw big investments in R&D, patents, and operational efficiency, the start of 2025 has, according to the company, seen reduced costs. Furthermore, the company again cites that the cash can be used for inorganic growth through acquisitions in Ear-Nose-Throat (ENT). The topic of acquisitions was discussed in our interview with the CEO, Adrian Liljefors, and in the following capital markets day (Both in Swedish).

As for drug delivery, the press release mentions that an in vivo study will conclude in June, with the result expected to be pivotal in locking down licensing agreements with pharmaceutical/biotech companies in the second half of the year. This is significant news, as not only is the company able to reach positive cash flow while conducting a study, but it also expects licensing agreements before year-end. Licensing agreements of this kind tend to have features such as upfront payments, milestone payments, and, eventually, royalties later down the line as sales start to come in.

Taken together, Carlsquare Equity Research views the news positively. It remains to be seen how factors such as operating capital and currency fluctuations played into the achievement, nonetheless, positive cash flow lays the foundation for acquisitions and continued development of drug delivery. In our view, the bigger and more important news was regarding drug delivery, with a study conclusion just a few months away.

We expect to include this information in our coming research update for Q1 in May.

Read our latest update (20 February) covering Q4 here.

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