Koite Health Oy

Company profile

Koite Health was established in 2018 in Espoo, Finland and is a fast growing medical technology company.

The company was founded to respond to the growing need for new treatment solutions against dental bacterial infections.

PROBLEM: 95% of oral diseases are caused by harmful bacteria in dental plaque, a sticky film of bacteria that constantly forms on teeth. Unfortunately, daily brushing and flossing only remove about 50-65 % of dental plaque, which results in 80% of adults suffering from some level of gum disease at some point in their lives. The total cost to society is estimated at $470bn annually.

SOLUTION: Koite Health has developed and commercially launched Lumoral, which kills 99.99% of the harmful bacteria in the mouth.  The entire Lumoral treatment process can be done at home and takes less than 15 minutes.

Since the market entry in 2020, more than 10,000 Lumorals have been sold and Koite Health has doubled its revenues every year. The technology is patented and is based on strong scientific evidence and support.

Koite Health is now growing globally in the €31bn home dental care market and has this spring signed distribution and partnership agreements with the leading companies in Germany, Italy, UK and Denmark. Negotiations are also underway with France, Poland, and Portugal, and even the FDA process for entry into the US was initiated last year.

Business model

Koite Health focuses on product development and the production of clinical proof for new treatment areas for the Lumoral method. Koite also handles the marketing and distribution of Lumoral products in our home markets Finland and Sweden. Products are marketed and promoted through dental professionals and directly to consumers. 

LOCAL DISTRIBUTION PARTNERS 

Outside Finland and Sweden, Lumoral will be marketed and distributed by local distribution partners, which already have existing workforce and networks to distribute oral care products to dental professionals and consumers. These carefully selected partners sign exclusive agreements on their market(s) and bear all the costs for the launch and promotions. All manufacturing has been outsourced. 

NEW MARKETS START ALWAYS WITH PROFESSIONAL MARKETING 

At each new market, Lumoral is first marketed and promoted through dental professionals and the scientific community/key opinion leaders. At a later stage there will also be some level of consumer marketing and campaigns. 

INITIAL SALES AND RECURRING REVENUES 

Koite Health earns revenues on the sales of Lumoral start-packages and recurring revenues on the sale of Lumorinse tablets, needed in the treatment. More information about the business model and the recurring revenue can be found in the Information Memorandum, included in the Documents section. 

Market

Total cost of bacteria-related dental diseases is estimated to be $544b, of which $356b is direct and $187b is indirect costs. Periodontitis costs $54b in direct treatment costs and an additional $25b in indirect costs.

There is nothing similar to Lumoral on the market. Lumoral treatment vastly outperforms all current methods in terms of treatment efficiency, usability and cost-effectiveness.   

• 80% of adult population has prevalence of gingivitis.
• 50% of over 30 year old adults have some form of periodontal disease.
• >20m dental implants placed per year and 20% of patients face some level of infection complications.
• +1000m people suffer from severe gum disease (periodontitis).
• > €8.4b addressable market for Lumoral in prevention and treatment of severe periodontal and peri-implant diseases.
• €10b addressable: The market for Lumoral improvement of oral hygiene (electric toothbrush and mouthwash market).

• No new solutions or innovations for oral hygiene and dental plaque control in the last 50 years.

Management

Distribution of company shares

Use of funds

Investment related documents

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Update 19.10.2023

Q&A - Koite Health's answers to investors' questions

1. How will Koite Health monitor and evaluate the long-term impact of Lumoral on patients' oral health?

The therapeutic effects of Koite Health's treatment are being monitored in more than 15 ongoing clinical trials, with the longest treatment period now lasting six months. At six months, Lumoral treatment achieved healthy gums in 76% of chronic gingivitis patients compared to only about 30% of patients with the current best treatment. The six-month treatment results were therefore excellent. In addition to this, we are also collecting feedback from our customers who have reported cleaner teeth and less tartar build-up. We are closely monitoring patient feedback and experiences in our research and aftermarket monitoring, which will be used in the further development of the product.
 
2. Does the company have any plans to collaborate with dental chains or clinics?

We have already started collaborating with several dental clinics and chains. In Finland, Lumoral is usually recommended by dentists and sold through pharmacies/net shops, but several dentists have already sold dozens of units to clinics. Our partner clinics include Aqua Dental and Södertandläkarna in Sweden and in Finland Kotihammas, Kruunu Hammasklinikka, Hygga, Smilespa, Miunpaikka, Zahnaslääkärikeskus Jouheva, and several dentists at Oral and Mehiläinen dental clinics recommend Lumoral to their patients. Internationally, our partners in Germany have trained over 30% of all German oral hygienists, in Italy our partner is a highly respected dental implant provider and in Denmark our partner is a specialist dental surgery equipment distributor with a desire to bring Lumoral into local specialist dental care.
 
3. Does the company have any plans to collaborate with other oral health technology companies? Are there plans to partner with insurance companies?

We are also actively discussing with global dental companies and looking for collaboration opportunities, especially in the area of treatment monitoring and measuring treatment outcomes. We have already established excellent relationships with key players in this field. We have already been in discussions with several insurance companies and these discussions will progress further as more information from our ongoing studies becomes available, allowing for cost calculations of treatment effects.
 
4. Is it possible to publish Koite Health's September sales performance to support the investment decision?

Monthly sales vary by a few tens of thousands depending on the month in which retailer orders fall. Monthly sales for September were €113,000 and cumulative sales for 01-09/2023 reached €986,695. We expect Q4 to be the best in Koite Health Ltd's history and to reach our €1 500 000 turnover target for this year. The end of the year is historically good for Lumoral and Koite Health and our partners are investing heavily in increasing sales of the product in Europe.

Update 4.10.2023

Webinar recording and Q&A - Koite Health's answers to investors' questions

1. How does the method target only harmful bacteria?

With Lumoral, Lumorinse mouth rinse is mainly attached to the dental plaque and the Lumoral light applicator is used to direct the light onto the tooth surface. The antibacterial effect is thus focused on the tooth surface and the gum line where bacteria that cause dental disease can develop. Healthy bacteria elsewhere in the mouth do not receive antibacterial treatment and thus maintain the normal bacterial balance in the mouth.

2. What is the revenue stream from Lumorinse tablets?

The revenue stream from tablet sales was already €23,000 in August and is growing strongly as the Lumoral user base expands.

3. Is it possible that someone else will start selling tablets or a similar product at a lower price?

It is very difficult to bring a Lumoral-compatible mouthwash to the market because the product has to be clinically proven and registered as a medical device. Lumoral is protected by patents and trademarks, which prevents a competitor from bringing a clinically equivalent product to market. Lumoral and Lumorinse trademark protection also prevents a competitor from mentioning Lumoral and Lumorinse in their product and marketing.

4. Dental caries (tooth decay) is a disease caused by microbial dysbiosis, like periodontitis, and globally even more common than periodontitis. You say that Lumoral also has beneficial effects in the treatment of caries. Is there any research data to support this claim?

Lumoral treatment is highly effective against the caries-causing bacteria Streptococcus mutans. This antibacterial efficacy has been verified by thousands of bacteriological tests and the results have been published in the peer-reviewed scientific journal Plos One. In clinical trials, we have also found that Lumoral treatment reduces the amount of dental plaque and the amount of cariogenic bacteria present in dental plaque.

Update 26.9.2023

Q&A - Koite Health's answers to investors' questions
 

3. How are sales currently distributed among the different countries?

Update 15.9.2023

August sales figures for Lumoral

August sales were €150 780, which was clearly above the 8-month average of €110k 460. Growth came from home markets and especially from European partners. In August, European partner sales accounted already for 32% of month’s sales.