Strategy and Business Model

Development Strategy of the SDS Optic Capital Group

The SDS Optic Capital Group is engaged in the development of advanced medical technologies at the intersection of fiber-optic optoelectronics (photonics), molecular biology, immunochemistry, and modern medical bioengineering techniques. The company designs, develops, and aims to commercialize innovative diagnostic and monitoring devices intended to support the daily work of medical professionals.

The objective of SDS Optic S.A. is the commercialization of the inPROBE^® technology as an innovative method within the standard of molecular diagnostics. The technology is intended to offer a faster, more precise, and better-suited solution to the needs of modern personalized medicine. The company aims to establish a stable market position in both the US and the EU, while simultaneously developing new business lines to enhance operational resilience and investment appeal.

The Group's main project is inPROBE^® – a fiber-optic biosensor for detecting HER2 receptor expression in breast cancer. The device under development consists of a fiber-optic biosensor, an analyzer, and dedicated software. As a diagnostic system, the solution holds potential for application in the diagnosis of HER2-positive breast cancer and, in the future, may also serve as a platform for the biological measurement of other biomarkers in different medical indications.

As part of the development pathway for this application, the Issuer has also initiated research and development activities aimed at exploring the potential for detecting other types of molecules. The technology being developed by SDS Optic may serve as a complementary diagnostic tool to the methods currently used in medical practice, which are often considered insufficient.

The overarching objective of SDS Optic is the consistent implementation and optimization of its adopted strategy, which encompasses both the development of innovative diagnostic tools and the commercial utilization of the Company’s competencies—such as the production of monoclonal antibodies and the manufacturing and provision of services related to optical coatings. The Company regularly monitors the market and scientific developments to respond proactively to changes and appropriately adjust its business model.

In the first quarter of 2025, the Company informed the market about the commencement of the process to update selected elements of its strategy (ESPI report no. 4/2025).

Business Model

The adopted business model of the Capital Group is founded on two main pillars within the preclinical domain. The first involves the in-house production and sale of the system, while the second focuses on establishing partnerships with global companies in the MedTech and Pharma sectors. These partnerships are intended to support the joint development of the inPROBE^®technology and its scaling for use in other applications.

During the development of the inPROBE^® project, the company has acquired additional competencies which it intends to commercialize prior to the completion of the main project. The biological-chemical team is exploring the potential for the production and sale of monoclonal antibodies. The optoelectronics team, with support from EU funds obtained through the Lublin Agency for Enterprise Support, is working on preparations for the commercialization of optical coating production services and other services related to thin-film technologies. Meanwhile, the Business Development team is assessing the commercial application potential of the inPROBE^® technology at the preclinical research stage, primarily within the pharmaceutical and biotechnology industries.

Upon obtaining certification for its first medical device, the Company plans to expand its business model to include clinical and commercial areas in its offering.

Business Model before certification

1. Sale of the inPROBE^® system (analyzer, software, and biosensors) – preclinical research
2. Sale/licensing of designated applications of the technology (preclinical research)
3. Manufacturing of monoclonal antibodies
4. Optical coatings (products and services)
5. Commercial Applications of inPROBE^® – Drug Probe

Additional segments of the business model following certification

1. Sale of the inPROBE^® system (analyzer, software, and biosensors)
2. Companion diagnostics
3. Sale or licensing of designated applications of the technology