Safe Orthopaedics Reports Strong Growth of 37% in Its 2017 Adjusted Revenues

• Strong increase in sales across all geographical regions
• Growth rate in France doubled
• Expansion of the distribution network and international sales force
• €3.7 million in net cash at December 31, 2017

ERAGNY-SUR-OISE, France--(BUSINESS WIRE)--Regulatory News:

SAFE ORTHOPAEDICS (Paris:SAFOR) (FR0012452746 – SAFOR), a company specialized in the design and marketing of single-use implants and instruments facilitating the minimally invasive treatment of spinal fracture conditions, is today announcing its revenues for the fourth quarter of 2017 and for the financial year ended to December 31, 2017, together with its cash position at December 31, 2017.

“In 2017, we successfully continued our commercial realignment to focus on both the fastest-growing regions, such as France and Germany, and on the most promising technologies, such as the minimally invasive treatment of spinal fractures”, said Pierre Dumouchel, Chief Executive Officer and co-founder of Safe Orthopaedics. “Our adjusted¹ revenues recorded strong growth of 37%, while the steady pace of additions to our sales and marketing teams, which now account for 45% of our headcount, continues to pay off handsomely. Following on recent recruitments, we expect to maintain this strong growth momentum during 2018, as well as launching new technologies to provide even safer treatment options for vertebral fractures.”

in thousands of euros	2017 (12 months)	2016 (12 months)	Change
France	1,582	1,182	+34%
Rest of the world (excluding United States)	1,528	1,083	+41%
Total adjusted^1revenues	3,110	2,265	+37%
United States (discontinued operations)	0	100	n/a
Total revenues	3,110	2,365	+32%
in thousands of euros	Q4 2017 (3 months)	Q4 2016 (3 months)	Change
France	443	327	+36%
Rest of the world (excluding United States)	336	313	+7%
Total revenues	780	640	+22%

Adjusted revenues¹ in the financial year to December 31, 2017 came to €3,110 K, representing a strong increase of 37% compared to the previous year.

The robust top-line growth continued in France, with sales totaling €1,582 K versus €1,182 K in 2016. That represents an increase of 34% over the full year and of 36% in the fourth quarter of 2017. In the second half of 2017, Safe Orthopaedics hired two new sales representatives, who will have a positive impact on business in 2018.

Sales in the Rest of the world (excluding United States) continued to grow, with the top line advancing 41% to €1,527 K in 2017. High growth was mainly generated by longstanding distributors and rapid expansion in Latin America. Following very strong revenue growth in the third quarter, orders were affected by a minor catch-up effect in the fourth quarter due to a business contraction in the Middle East. As a result, Safe Orthopaedics decided together with its distributor to respond by introducing fresh commercial initiatives to revitalize sales in the region in 2018. During the fourth quarter of 2017, Safe Orthopaedics also hired a 25year experience sales manager covering export markets.

Safe Orthopaedics expanded into Germany during 2017, and the company intends to extend its French in selling its products on this territory. A team of sales Director and two sales representatives was hired to develop business in Germany. Their knowledge of the local market and their long experience in the spinal surgery sector will be valuable assets for its development. Safe Orthopaedics also attended the DWG German Spine Congress, during which the company presented its innovative product ranges and comforted its position on the German market.

Safe Orthopaedics reinforced its marketing team and implemented a European action plan. Plan will be mostly focused on boosting sales support and provide surgeons with a number of training courses to treat vertebral fractures.

Cash position

At December 31, 2017, Safe Orthopaedics had €3,725 thousands in available cash, compared with €3,664 thousands at December 31, 2016. Its cash position was strengthened by the successful completion in June 2017 of a €5.8 million rights issue. The capital it raised gave Safe Orthopaedics the requisite additional resources to bolster its French and international sales teams and to convince surgeons of the benefits of single-use instruments in each market segment.

Next report:

• Full-year 2017 results on Monday, April 30, 2018 (before the market opening)
• First-quarter 2018 revenues: Monday, May 14, 2018 (after the market close)

About Safe Orthopaedics

Founded in 2010, Safe Orthopaedics is a French medical technology company that offers the safest technologies to treat spinal fracture. Delivered sterile, all implants and respective disposable instrumentation are available to the surgeon at any time, any place. These technologies enable minimally invasive approaches, reducing risks of cross contamination and infection in the interest of the patient. Protected by 17 patent families, the SteriSpine™ Kits are CE marked and FDA cleared. The company is based at Eragny-Sur-Oise (France), and has 34 employees.
For more information, visit: www.SafeOrtho.com

¹ Revenues adjusted for operations discontinued in the United States since March 1, 2016