Creo Medical Group plc (AIM: CREO), a medical device company focused on the emerging field of surgical endoscopy, announces a trading update for H1 2022 and confirms that it expects to publish its unaudited interim results for the six months ended 30 June 2022 in September 2022.
Building on the momentum seen in the final quarter of 2021, Creo had a strong first half of 2022 and is expecting to report an increase in revenue of over 10% against H2 2021 revenues; with the growth driven by Creo’s core technology, including first revenues from the Company’s Kamaptive licensing programme. Increases in revenue and gross margins, coupled with a reduction in underlying operating costs, means that Creo expects to report a reduction of over 20% in underlying EBITDA loss for H1 2022 compared to H2 2021. The commercialisation of the Company’s products has also led to a reduction in the Group’s cash burn, with the Company having taken positive steps towards being cashflow positive. Creo continues to be engaged with other licensing partners as well as potential strategic investors.
During H1 2022 the number of clinicians able to provide training on Creo’s technology has doubled compared to the previous 6 months, contributing to a 100% increase in both the volume of procedures and regular users of Speedboat Inject internationally over the same period.
Having forged an excellent reputation for training, mentoring and supporting clinicians, the international relaxation of COVID-19 restrictions has seen the take-up of the Company’s recently branded and expanded Pioneer training programme increase considerably. This expansion has allowed Creo to hold regional and large-scale simultaneous multinational events, utilising international facilities and local key opinion leaders. In June alone, Creo held three multi-national training courses across three continents, training clinicians from France, the US, South Africa, Chile, India and elsewhere. This, in turn, has quickly opened new territories for Creo’s products and resulted in a rapid conversion from trainee to regular user.
One notable example is Israel, where during July, Creo’s Speedboat Inject device was used at the Assaf Harofeh Medical Centre to successfully remove a GIST (Gastrointestinal stromal tumour – a nerve cell originating GI tumour) in a patient for the first time anywhere internationally. The procedure was undertaken by Dr. Sergei Vosko, a clinician whose first Speedboat Inject case was only in May 2022.
In APAC, as the region outside of China emerges from COVID restrictions faster than anticipated, quick progress has been made following the opening of Creo’s regional hub in Singapore in April. In Thailand, for example, Creo has established centres of excellence providing quicker, locally led pathways to support the transition from trainee to independent user undertaking multiple clinical cases.
Alongside a sharp uptick in Speedboat Inject usage for both upper and lower GI procedures in the US, Creo has also recently launched a number of additional complementary products, which it currently sells in the UK and Europe. The addition of these products widens the Group’s US offering and is expected to significantly increase Creo’s revenues per procedure in the US.
Finally, and significantly, as reported in May, progress was made in the Company’s Partnering strategy in H1 2022, as Creo announced its first Kamaptive licensing agreement; a long term, multi-year collaboration agreement with Intuitive to optimise certain Creo products to be compatible with Intuitive’s robotic technology.
Craig Gulliford, Chief Executive Officer of Creo, commented:
During H1 2022, we have seen new indications being treated with our technology, a collaboration with a robotics giant and a truly global take up of our Advanced Energy technology resulting in an increase in revenues versus each half in 2021. It’s been an excellent period for the business, and we look forward to using this as a springboard for the second half of the year, which promises to bring further progress.
“The commercialisation steps achieved so far in 2022 mark an inflection point for the business, revealing Creo as a global MedTech player with innovative and unique products supported by world class multijurisdictional training. This is a key milestone for Creo, as the business grows towards profitability evidenced by our significant reduction in underlying EBITDA loss. Having revenue streams across multiple facets of the business only strengthens this.
“Our clear pipeline and strategy to enhance each one of our revenue streams puts us in a very healthy position to continue to drive the business forward and ensure that our advanced technology makes a difference to the lives of as many people as possible, saving healthcare providers time and money in the process.
“As ever, I’d like to thank the whole Creo team across the world who continue to step up as we help more doctors treat more patients every week.
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