Equity Research Nosa Plugs: First possible acquisition announced

On June 16, 2025, NOSA announced the intent to acquire PharmaCure, the original distributor of Nozoil, for a price of SEK 27.2 million on a debt and cash, free basis. The acquisition is pending approval of a Foreign Direct Investment (FDI) application as well as sufficient money being raised through an Accelerated Book Building (ABB) scheme. 

The directed share issue

NOSA intends to raise capital to fund the acquisition using an ABB scheme. In total, NOSA intends to raise up to SEK 30 million, directed at both Swedish and international investors. The process is in motion following the release of the PM, with price, conditions, and allocation expected to conclude before market open on Tuesday, June 17. However, as stated in the press release, the process can be extended if necessary. The funding will be used to pay for the acquisition of PharmaCure, the development of drug delivery, the expansion of the sales and marketing team, as well as general development. As of the end of Q1 2025, NOSA had just over SEK 4.7 million in cash on the balance sheet.

The acquisition and new financial goals

NOSA announced an agreement to distribute NOSA Nozoil to select geographies in January of 2025, and now, 6 months later, NOSA intends to acquire PharmaCure, the company behind Nozoil. The product, made from sesame oil, is used for dry mucous membranes and itching in the nose. According to the press release, in 2024, Nozoil achieved sales of SEK 12.8 million, with the company PharmaCure reaching sales of just under SEK 20 million in total, according to their annual report. Furthermore, also in 2024, PharmaCure achieved a positive EBITDA of SEK 900 thousand. NOSA intends to buy PharmaCure for SEK 27.2 million, corresponding to an EV/Sales multiple of just under 1.4x. For the transaction, 47.5% of the purchase price will be paid out in conjunction with the closing of the deal, with the remainder being paid out over the following 27 months. A smaller part, around SEK 394 thousand, will be paid through new shares in NOSA. A lockup agreement will be in place for 12 months following the transfer of money and shares.

As we have discussed in previous research updates, we expect Nozoil to become a significant part of the NOSA product portfolio. In conjunction with the announcement of the acquisition, NOSA also announced new financial goals, pending the successful completion of the ABB. For the full year 2026, NOSA now aims for SEK 50 million in turnover, with a positive EBITDA from Q4 2025 onward and with a 15% margin for 2026. Further out, in 2027-2028, the company aims to reach, at minimum, an organic yearly sales growth of 25% on average, an EBITDA margin of at least 18%, a net-debt to EBITDA ratio under 3x, and, finally, that the surplus shall be distributed to shareholders when free cash flow exceeds available investments in profitable growth. The dividends to shareholders are conditional upon the capital structure target being met.

Taken together, the news is not entirely unexpected, but nonetheless has a significant impact on the case. It is as of yet unclear what investors NOSA will get through the ABB, but hopefully the new investors will be able to support NOSA in more activities in the future as well, whether they be related to M&A, capital raises, or business development. We believe that NOSA will unlock significant synergies from sharing customers and distribution networks with PharmaCure, possibly improving the presence of NOSA products in the USA. We note that PharmaCure, in 2024, had 2 employees according to their annual report. This means that, with the sales force of NOSA, the products of PharmaCure could reach higher sales figures.

We expect the market to react positively at open tomorrow. We intend to include the recent news in a coming research update.

Read our latest update (21 May) covering Q1 here.

Disclaimer

Carlsquare AB, www.carlsquare.se, hereinafter referred to as Carlsquare, conducts business with regard to Corporate Finance and Equity Research in which areas it, among other things, publishes information about companies, including analyzes. The information has been compiled from sources that Carlsquare considers to be reliable. However, Carlsquare cannot guarantee the accuracy of the information. Nothing written in the analysis should be regarded as a recommendation or invitation to invest in any financial instrument, option, or the like. Opinions and conclusions expressed in the analysis are intended only for the recipient.

The content may not be copied, reproduced, or distributed to another person without the written approval of Carlsquare. Carlsquare shall not be held responsible for any direct or indirect damage caused by decisions made on the basis of information contained in this analysis. Investments in financial instruments provide opportunities for value increases and profits. All such investments are also subject to risks. Risks vary between different types of financial instruments and combinations of these. Historical returns should not be considered as an indication of future returns.

The analysis is not directed to U.S. persons (as defined in Regulation S of the United States Securities Act and interpreted in the United States Investment Company Act 1940), nor may it be disseminated to such persons. The analysis is also not directed to such natural and legal persons where the distribution of the analysis to such persons would result in or entail a risk of a violation of Swedish or foreign law or constitution.

The analysis is a so-called Commissioned Research Report where the analyzed Company has signed an agreement with Carlsquare for analysis coverage. The analyses are published ongoing during the contract period and for a usually fixed remuneration.

Carlsquare may or may not have a financial interest in the subject of this analysis. Carlsquare values the assurance of objectivity and independence and has established procedures for managing conflicts of interest for this purpose.

The analysts Herman Kuntscher and Niklas Elmhammer, do not own and are not allowed to own shares in the Company analyzed.