Interim report January - September 2010

Interim report January - September 2010


  · LinkMed decided to change the strategic focus of its operations,
putting further focus on the transplantation sector, while intensifying
and accelerating efforts to harvest the value of its associated
companies. The change in strategy resulted in restructuring costs of SEK
6.3 million, charged to earnings in the third quarter. The restructuring
carried out so far will result in an annual decrease in costs of SEK 7
million.
  · Net sales for the period amounted to SEK 60.6 million (64.1).
Currency effects had a negative impact on sales of SEK 7 million.
  · Net sales for the third quarter amounted to SEK 19.1 million (21.1).
The lower sales figure is to a large part due to exchange rate effects.
Furthermore, comparative figures for 2009 include a sales peak in Olerup
SSP due to inventory build-up in the U.S. company, Olerup Inc.
  · Operating loss (EBIT) for the period was SEK 4.1 million (18.2). In
addition to one-off costs and currency effects, the results are impacted
by the cost of establishing Olerup Inc. Neither AbSorber nor Olerup Inc
was part of the group in the corresponding period last year.
  · Net loss after tax was SEK 8.4 million (10.8).
  · Loss per share, basic and diluted was SEK 0.33 (0.75).
  · Equity per share was SEK 33.54 (38.77).
  · The equity/assets ratio was 68 (80) percent.

 KEY EVENTS IN THE THIRD QUARTER

  · In August, AbSorber filed an application with the FDA for clearance
of a new innovative version of XM-ONE®.
  · BioResonator received CE approval and several new orders in
conjunction with new distribution agreement.

KEY EVENTS AFTER THE PERIOD END

  · LinkMed changes classification on NASDAQ OMX to Life Sciences Tools
& Services.
  · LinkMed implements organizational change in conjunction with the new
strategy.
  · The PatLog® patient logistics system from ONCOlog Medical will be a
part of a proton therapy facility that the Belgian company IBA is
providing to a new center in Dimitrovgrad, Russia.

CEO Ingemar Lagerlöf's commentary on the third quarter 2010:
“LinkMed commenced implementation of sweeping changes to our operations
during the quarter in conjunction with the decision to further focus our
efforts on the transplantation business. As a result of the new
strategic direction, we are now working to accelerate exits from
associated companies. The changes also impact the parent company
organization in the form of cutbacks, which led to one-off costs in the
quarter. Going forward, costs in the LinkMed parent company will be
significantly reduced. Olerup SSP sales continue to increase in volume,
but the currency effect worked against us this quarter again. Our
endeavors in the U.S. are beginning to show results with solid sales
growth, and we expect even stronger growth ahead".

For more information, please contact:
Ingemar Lagerlöf, CEO, cell +46 (0) 70 873 2733 or email
ingemar.lagerlof@linkmed.se
Okee Williams, Portfolio Manager, cell + 46 (0) 70 600 5364 or email
okee.williams@linkmed.se