Safe Orthopaedics: First-half 2015 results

  • Strong increase in the use of our products (number of surgeries up 223%)
  • Significant revenue growth of 30% to €1.3 million
  • Controlled increase in operating expenses

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

SAFE ORTHOPAEDICS (Paris:SAFOR) (FR0012452746 – SAFOR), a company offering innovative ranges of sterile implants combined with their single-use instruments for back surgery, announces today its interim 2015 results for the six months to June 30, 2015, as approved by the Board of Directors on September 25, 2015.

Yves Vignancour, Chief Executive Officer of Safe Orthopaedics, commented: “During the first-half of 2015, we actively pursued our products development and innovation strategy with the launch of two new implants – the fenestrated screw and the Auto-Adjust screw. The success of the initial surgeries using these new implants combined with Safe Orthopaedics’ single-use instruments is a testament to the effectiveness and quality of our products. The number of surgeries performed using our products during the first half more than tripled compared with the equivalent period of 2014, demonstrating their market penetration and take-up by surgeons.”

Expansion strategy continued

During the first-half of 2015, Safe Orthopaedics continued to pursue its strategy of extending its range of products for back surgeries. The Company launched and successfully completed the initial surgeries using the two new products – the fenestrated screw for patients with osteoporosis and the breaktrhough Auto-Adjust screw for vertebral fractures.

Strong increase in revenue

In the six months to June 30, 2015, 1,143 surgeries were performed using Safe Orthopaedics’ single-use instruments, compared with 354 in the first half of 2014. This tripling in the number of surgeries reflects the strong increase in the use of our products by the market.

First-half 2015 revenue grew by 30% to €1.3 million, including an increase of 97% in the United States and 84% in France, Safe Orthopaedics’ two main markets. This solid performance was achieved, despite an unfavorable base effect in the rest of Europe during the second quarter as a result of the high level of initial orders under the new distribution agreements signed a year ago.

Controlled increase in operating expenses

Safe Orthopaedics continued its development and its R&D spending, while managing its costs and its operating expenses. External costs were stable at €1.14 million. With 32 employees at June 30, 2015, compared with 26 at June 30, 2014, personnel expenses rose to €3.02 million from €2.41 million in the year-earlier period as the operational headcount grew to support the expansion drive.

Taking these factors into account, the Company posted an operating loss of €3.02 million in the first half of 2015, compared with a loss of €2.41 million in the same period of 2014.

The first-half 2015 net loss came to €2.73 million, compared with a loss of €2.38 million in the first half of 2014.

         
(in thousands of euros)   H1 2015   H1 2014
Revenue   1,307   1,007
Cost of goods sold and inventory variations   (894)   (635)
External costs (1,141) (1,085)
Personnel costs (1,983) (1,324)
Other operating expenses   (308)   (376)
Core operating loss   (3,019)   (2,414)
Operating loss   (3,019)   (2,414)
Financial profit / loss   301   (12)
Net income   (2,727)   (2,375)

Cash position

Last July, a fund raising of €3.2 million from Idinvest Partners, Company’s longstanding shareholder, enabled Safe Orthopaedics to finance acceleration in its commercial expansion and R&D efforts.

At August 31, 2015, Safe Orthopaedics had €8.1 million in cash, compared with €6.0 million at June 30, 2015 and €8.0 million at March 31, 2015.

Availability of the Interim Financial Report

The Interim Financial Report for the six months to June 30, 2015, as approved by the Board of Directors on September 25, 2015, is now available for download from the Company’s web site: www.SafeOrtho.com.

Next financial release: Sales of the 3rd quarter of 2015 on Wednesday October 14, 2015 (after market close)

About Safe Orthopaedics

Founded in 2010, Safe Orthopaedics is a French medical technology company that develops and markets an innovative range of sterile implants and associated single-use surgical instruments, with the aim of facilitating safer, optimized and lower-cost spinal surgery. By avoiding the reuse of surgical instruments, Safe Orthopaedics reduces the risk of infection, avoids the cumbersome and unreliable logistics of instrument sterilization, and limits hospital costs. Protected by 17 patent families, the Company’s CE-marked and FDA-approved SteriSpineTM kits are already being marketed in 12 countries, in Europe and the United States. They are being rapidly adopted by surgeons throughout the world, with nearly 1,000 procedures performed in 2014 and 1,143 in the first half of 2015 alone. The Company is based at Eragny-sur-Oise (France), and has 32 employees and a US subsidiary.

For more information, visit: www.SafeOrtho.com

Contacts

SafeOrthopaedics
Yves Vignancour
CEO
Thierry Lambert
CFO
+33 (0)1 34 21 50 00
investors@safeorthopaedics.com
or
NewCap
Julien Perez / Valentine Brouchot
Investor Relations
Nicolas Merigeau
Press Relations
+33 (0)1 44 71 94 94
SafeOrtho@newcap.fr

Contacts

SafeOrthopaedics
Yves Vignancour
CEO
Thierry Lambert
CFO
+33 (0)1 34 21 50 00
investors@safeorthopaedics.com
or
NewCap
Julien Perez / Valentine Brouchot
Investor Relations
Nicolas Merigeau
Press Relations
+33 (0)1 44 71 94 94
SafeOrtho@newcap.fr