Where is the record-breaking NewIcon heading?

The 4.999 million euros collected by NewIcon through its share issue is the largest amount of funding ever raised by crowdfunding for an unlisted growth company in Finland. However, this is not NewIcon’s first record. In 2017, the health technology company raised 4.4 million euros through share issue. Share issues have been a part of the company’s growth strategy.

NewIcon is preparing leaps of growth to the global market and using the funds received from the share issue mainly for sales, marketing and building a strong network of distributors.

The goal is to launch pilots with distributors in Thailand, Indonesia and Sweden, and to make a market launch into three to four new countries each year. In five years, the target is to reach a turnover of 60 million euros, with plans to enter the market in North America.

“We will collect market information in local teams and investigate patterns, needs and problems in the target countries. We will make the work of our salespeople and distributors easier and more effective through training and sales support tools, for example. We will also harness the expertise and product information within the company for the use of our entire sales organisation,” says Ossi Parviainen, CEO of NewIcon.

There is also growth in product development at NewIcon. New, market-scalable products are planned and old ones are constantly updated. The baseline in design is that existing systems and software, in particular, can be updated throughout their lifecycle.

“Our pharmacy automation systems are world-class, and successful rounds of financing show that others, too, believe in our products. Our next step is to demonstrate our expertise in different market areas. Our aim is not be a mere supplier of systems; we want to be a specialist in pharmacy automation, and an expert partner who knows its customers, is keen to learn about the pharmaceutical service processes in different countries, and is able to help with issues such as software integration and procurement processes,” says Parviainen.

What is the secret to breaking records?

Two global megatrends have influenced NewIcon and the records it has been breaking: digitalisation of hospitals and ageing populations. Hospitals and pharmacies around the world look for new solutions to improve the efficiency of health care and are ready to make significant investments in automation.

The current market value of the pharmacy automation market, 5.5 billion euros, is forecast to increase, on average, more than of 7%, while in China, the estimated annual growth rate is as much as 13%. In 2025, the total market value is estimated to be around 9 billion euros.*

Growth efforts at NewIcon have played a part in the company’s success. After the round of financing in 2017, NewIcon has made several international market launches and distributor agreements and concluded significant framework agreements both in Finland and internationally. The 4.5 million euro investment made by the Chinese, and the partner company General Icon established with Shanghai General Healthy Information Technology Co. Ltd. opened the market in China. In 2018, the company’s turnover also grew by 65% to 7.3 million euros.