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Word from the CEO

Dan Pitulia vd Coala

During the spring and summer we have continued to work towards a profitable business in the US market. Our venture into Managed RPM, under the name Qorum Partners, has strengthened its position and business is picking up momentum, largely due to an investment in clinical staff. Coala Heart Monitor received an additional FDA 510k clearance in the US, for remote lung auscultation and new ECG analysis algorithm, and, in Sweden, the Medical Technology Product Council (MTP Council) recommended the use of Coala Heart Monitor in Swedish healthcare for patients with symptoms of atrial fibrillation. Shortly before the release of this report, we were also able to complete the acquisition of Vitrics in the US.

“During the spring and summer we have continued to work towards a profitable business in the US market.

Coala Life’s main focus is the US market,where over 120 million Americans are affected by chronic cardiovascular diseases. To qualify as an RPM patient,a patient must have an acute or chronic medical condition,which applies to almost half of the US population.

In late 2021, we launched a full service for remote monitoring of chronically ill patients in the home in the US,Remote Patient Monitoring (RPM), and we signed a total of 5 new agreements with clinics in the quarter. The target is to have connected 50 clinics in the US by the end of 2024. The clinics are expected to generate USD 1.0 million each for Coala Life annually, once full patient connection has been achieved over the course of the first twelve months.

In the US, clinics are increasingly demanding “managed RPM”, where remote monitoring of patients is handled by external companies. We have established our Managed RPM monitoring center under the name Qorum Partners. This business model allows for improved margins when we manage the patient monitoring, maintain ongoing patient contact, and ensure correct and regular monitoring. Quorum Partners follows patients 24/7 and reports any abnormalities directly the healthcare provider. We also handle administration and invoicing to the insurance system, which allows clinics to focus on their core business.

Since QorumPartners is in direct contact with both clinics and patients, during the spring we have also been able to identify some challenges in getting patients to start and use the Coala Heart Monitor correctly. These included shortcomings in the distribution of monitors to patients, and also that patients need hands-on instructions from medically knowledgeable staff to get them started with their regular use. Therefore, we have increased our clinical staff and, at the time of writing, have contracted approximately 40 clinical staff. For more information on how Qorum Partners operates, visit

In June, we announced that we had entered into an agreement to acquire 100 percent of the shares of Vitrics Management Group Inc. (“Vitrics”), a fast-growing US company engaged in managed RPM, for a purchase price of USD 4.5 million. Following due diligence and further negotiation, we were able to close the deal on August 15,as announced, for a purchase price of USD 3.5 million, based onVitrics’ adjusted revenue recognition.Vitrics has currently 8 active clinics connected. The acquisition is fully in line with Coala Life’s strategy, has clear sales and operational synergies, and is expected to contribute positively to results in the first year.

The rights issue completed at the beginning of the quarter contributed approximately SEK 150 million to the company before deduction of transaction-related costs. This money was a precondition for the offensive investments we are now making in the US. Once again, I would like to thank our shareholders for the confidence they have shown in Coala Life.

Our financial target, to reach sales of SEK 250 million by 2024 with a positive operating result and a maintained gross margin of over 80 percent, remains unchanged. I am pleased to report that so far we continue to deliver according to plan to achieve these goals.

Coala’s Board of Directors was strengthened at the Annual General Meeting on May 30 with the election of Christian Jørgensen. Christian has long and valuable experience in the medical device sector, with leading roles in Hill-Rom, Baxter and Coloplast, and as CEO of mobile operator 3 in Denmark.

Overall, this quarter we have also had a strong market presence and we remain in line with our targets. Through the capital raised we have secured our intensified market penetration in the US, where the acquisition of Vitrics creates additional opportunities in managed RPM. I look forward to keeping you updated about our continued journey.

Dan Pitulia, President and CEO, Coala Life AB
August 2022

Comments from the CEO can be found in the most recent Interim report from Coala Life AB. For more information about the company operations and figures from the recent quarter see the full Interim report.

See full Interim report