LYON, France & NEW YORK--(BUSINESS WIRE)--The Medicrea Group (Euronext Growth Paris - FR0004178572 - ALMED; OTCQX Best Market – MRNTF), pioneering the digital transformation of spinal surgery through artificial Intelligence, predictive modeling and patient specific implants with its UNiD ASI™ (Adaptive Spine Intelligence) proprietary software platform, services and technologies, publishes sales for the third quarter of 2019.
(€ millions) |
YTD September 2018 |
YTD September 2019 |
Variation |
Variation at Constant Exchange Rate |
USA Rest of the world |
11.5 9.9 |
13.7 10.6 |
+19% +7% |
+12% +7% |
Total Sales – Comparable basis Discontinued activities Total Sales |
21.4 2.8 24.2 |
24.3 - 24.3 |
+13% - +0% |
+10% - (3)% |
Sales for the third quarter of 2019 amounted to 8.2 million euros, up 20% (+17% at constant exchange rates) compared to the third quarter of 2018, on a comparable basis. The Company concluded a very dynamic quarter, the 2nd highest quarter in its history just after Q2 2019, despite the usual summerseasonality effect. Growth in the United States accelerated to +22% at constant exchange rate over the period. The Group's other main markets are also showing strong growth: In Belgium, where the Group opened a direct sales subsidiary at the beginning of 2018, sales increased by +15% compared to the same quarter of the previous year. In France, the historical market, impaired by strong pricing pressures, sales grew by +9%. In Australia, the commercial efforts deployed since the subsidiary's launch in the second half of 2018 are beginning to bear fruit with an acceleration in the number of surgeries performed.
Cumulative sales at the end of September 2019 amounted to 24.3 million and increased by +13% on a comparable basis compared to the same period last year (+10% on a constant currency basis).
UNiD ASI™, the strategic activity of preoperative surgical planning and patient-specific implant design, is experiencing very strong growth: 500 personalized surgeries were performed in the 3rd quarter alone, +18% compared to the previous quarter and +57% compared to the 3rd quarter of 2018, for a total of 4,500 surgeries since the launch. In the United States, the trend is even better with an increase in the number of surgeries of +77% over the first 9 months of the year. The objective of 5,000 surgeries performed cumulatively by the end of 2019 will be exceeded.
Outlook
Sales generated by the United States increased significantly in the third quarter of 2019 (60% compared to 54% in the first half of 2019) due to the increase in sales of UNiD™ patient-specific rods and the pre-commercial launch of the new Tulip screw FDA approved last May. As a result, gross margin should reach 80% in the third quarter hence hitting the target set at the beginning of the year.
« Q3 is promising for both our revenue and gross margin thanks to our performance in the United States. The double-digit sales growth and the threshold of 200 UNiD™ personalized surgeries to be reached monthly soon offer solid prospects. Through the continuous enhancement of our service offering grouped within the UNiD ASI™ platform and the power of the data analysis and artificial intelligence tools we have developed, we are constantly improving the success of surgical procedures and patient outcomes. Many surgeons rely on our technological advances and are increasingly opening up to the Company's other cutting-edge thoracolumbar fixation systems. If we can accelerate this conversion to all our products by strengthening our leadership in personalized spine surgery, looking for opportunities that would allow us to quickly make further technological leaps, we will experience a strong growth phase in the coming quarters », commented Denys Sournac, President and CEO of Medicrea.
Next publication: Results for the Third Quarter of 2019: Tuesday, November 19th, 2019, after-market.
About Medicrea (www.medicrea.com)
Through the lens of predictive medicine, Medicrea leverages its proprietary software analysis tools with big data and machine learning technologies supported by an expansive collection of clinical and scientific data. The Company is well-placed to streamline the efficiency of spinal care, reduce procedural complications and limit time spent in the operating room.
Operating in a $10 billion marketplace, Medicrea is a Small and Medium sized Enterprise (SME) with 180 employees worldwide, which includes 40 who are based in the U.S. The Company has an ultra-modern manufacturing facility in Lyon, France housing the development and production of 3D- printed titanium patient-specific implants.
For further information, please visit: Medicrea.com.
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Medicrea is listed on
EURONEXT Growth Paris
ISIN: FR 0004178572
Ticker: ALMED
LEI: 969500BR1CPTYMTJBA37
Medicrea is traded on
OTCQX Best Market
Ticker: MRNTF
