Implanet: First-Half 2018 Revenue

  • Jazz® revenue up 10% in France and up 14% in the USA (at constant exchange rates)
  • First-half revenue down 9% (at constant exchange rates)

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BORDEAUX, France & BOSTON--()--Regulatory News:

IMPLANET (Paris:ALIMP) (OTCQX:IMPZY) (Euronext Growth: ALIMP, FR0010458729, eligible for PEA-PME equity savings plans), a medical technology company specializing in vertebral and knee-surgery implants, is today announcing its revenue for the second-quarter and first-half periods ended June 30, 2018.

Ludovic Lastennet, Implanet’s Chief Executive Officer, said: “During the first half, the French Jazz® business performed well (+10%), including a record June, and the US business continued to grow (+14% at constant exchange rates). Despite this performance, the first half of 2018 was affected by the commercial reorganisation in Europe that we started early in the year. As previously announced, we now want to duplicate our proven direct sales model in France and the USA based on close ties with surgeons, to achieve growth in other key European markets such as the UK and Germany. We started to roll out our direct sales model by opening a branch in the UK in June, targeting the promising adult degenerative market. To support our development, we maintained the pace of innovation at a rate of one product per quarter, launching Jazz Evo® in the degenerative market in May. As a result, our sales reorganisation is likely to pay off soon. In the current context, we remain confident about our growth prospects and about our ability to improve our recurring operating income, due in particular to ongoing cost control.”

In thousands of euros – IFRS*   2018   2017   Change  

Change at constant
exchange rates

Total first-quarter revenue   1,867   2,048   -9%   -6%

Second quarter

       
Spine (Jazz®) 1,148 1,337 -14% -10%
Knee + Arthroscopy   617   734   -16%   -16%
Total second-quarter revenue   1,765   2,071   -15%   -12%

First half

Spine (Jazz®) 2,197 2,404 -9% -3%
Knee + Arthroscopy   1,434   1,716   -16%   -16%
Total first-half revenue   3,632   4,119   -12%   -9%

*Unaudited

In the first half of 2018, Implanet’s revenue fell 12% to €3.6 million, or 9% to €3.8 million at constant exchange rates.

Jazz® sales fell 9% to €2.2 million (down 3% at constant exchange rates). That decline was mainly caused by disappointing sales in the rest of the world region. Jazz® sales now account for 61% of revenue (vs. 58% in 2017).

In markets in which Implanet operates directly, it continued to perform well, with revenue up 10% to €0.9 million in France and up 14% (at constant exchange rates) to €1.1 million in the USA. Despite the exchange-rate impact, US Jazz® sales continued to grow as surgeons implanted these products more frequently.

In the rest of the world, Jazz® sales fell 56% to €0.2 million, mainly because of the Company’s shift away from its distributor-based sales model. As the Company announced when reporting first-quarter revenue, it now wants to roll out its direct sales model, which has proven successful in France and the USA, to achieve growth in other key European markets such as the UK and Germany. This strategy, which began with the opening of a UK subsidiary in June, is likely to pay off soon.

Overall, Implanet sold 4,270 Jazz® units in the first half.

Revenue in the Knee/Arthroscopy business fell 16% to €1.4 million after distribution of arthroscopy implants came to an end.

Next press release: first-half 2018 results, September 19, 2018

About IMPLANET
Founded in 2007, IMPLANET is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its flagship product, the JAZZ® latest-generation implant, aims to treat spinal pathologies requiring vertebral fusion surgery. Protected by four families of international patents, JAZZ® has obtained 510(k) regulatory clearance from the Food and Drug Administration (FDA) in the United States and the CE mark. IMPLANET employs 46 staff and recorded 2017 sales of €7.8 million. For further information, please visit www.implanet.com.

Based near Bordeaux in France, IMPLANET established a US subsidiary in Boston in 2013.

IMPLANET is listed on Euronext™ Growth market in Paris. The Company would like to remind that the table for monitoring the BEOCABSA, OCA, BSA and the number of shares outstanding, is available on its website: http://www.implanet-invest.com/suivi-des-actions-80

Disclaimer
This press release contains forward-looking statements concerning Implanet and its activities. Such forward looking statements are based on assumptions that Implanet considers to be reasonable. However, there can be no assurance that the anticipated events contained in such forward-looking statements will occur. Forward- looking statements are subject to numerous risks and uncertainties including the risks set forth in the registration document of Implanet registered by the French Financial Markets Authority (Autorité des marchés financiers (AMF)) on April 16, 2018 under number D.18-0337 and available on the Company's website (www.implanet-invest.com), and to the development of economic situation, financial markets, and the markets in which Implanet operates. The forward-looking statements contained in this release are also subject to risks unknown to Implanet or that Implanet does not consider material at this time. The realization of all or part of these risks could lead to actual results, financial conditions, performances or achievements by Implanet that differ significantly from the results, financial conditions, performances or achievements expressed in such forward-looking statements. This press release and the information it contains do not constitute an offer to sell or to subscribe for, or a solicitation of an order to purchase or subscribe for Implanet shares in any country.

Contacts

IMPLANET
Ludovic Lastennet, Tel. : +33 (0)5 57 99 55 55
CEO
investors@implanet.com
or
NewCap
Investor Relations
Julie Coulot, Tel. : +33 (0)1 44 71 20 40
implanet@newcap.eu
or
NewCap
Media Relations
Nicolas Merigeau, Tel. : +33 (0)1 44 71 94 98
implanet@newcap.eu
or
AlphaBronze
US-Investor Relations
Pascal Nigen, Tel.: +1 917 385 21 60
implanet@alphabronze.net

Contacts

IMPLANET
Ludovic Lastennet, Tel. : +33 (0)5 57 99 55 55
CEO
investors@implanet.com
or
NewCap
Investor Relations
Julie Coulot, Tel. : +33 (0)1 44 71 20 40
implanet@newcap.eu
or
NewCap
Media Relations
Nicolas Merigeau, Tel. : +33 (0)1 44 71 94 98
implanet@newcap.eu
or
AlphaBronze
US-Investor Relations
Pascal Nigen, Tel.: +1 917 385 21 60
implanet@alphabronze.net