Artificial heart maker Carmat could run out of cash after sales miss (updated)

Carmat SA

25/09/2023 17:43

(Adds details)
       Sept 25 (Reuters) - French artificial heart maker Carmat
 ALCAR.PA  said on Monday supply issues meant it would miss its
full-year sales target and warned it could run out of cash by
the end of October.
    "During the first half of 2023, the production ramp-up we
were anticipating was significantly disrupted by supply issues,"
CEO Stephane Piat said in a press release after the market
close. "Due to the lack of a sufficient number of devices, we
were late in generating the demand from hospitals." 
    Carmat said in February it was targeting full-year sales of
between 10 million and 13 million euros ($10.6 million to $13.8
million).
    The company reported first-half sales of 600,000 euros on
Monday and forecast a further 4 million to 6 million euros in
the second half. While the company did not explicitly say by how
much it could miss its target, the second-half forecast points
to full-year sales of between 4.6 million and 6.6 million euros.
    Carmat said it had a cash position of 23.8 million euros at
the end of June and was exploring a number of financing options
as it might run out of cash at the end of October. 
    It received non-dilutive financing of 13.2 million euros,
consisting of a 7.9 million euros grant and a 5.3 million euros
repayable advance, in April within the 54 billion euros “France
2030” national investment plan, at which time the company said
it had sufficient cash through mid-October. 
    "If the company is unable to secure the funds it needs, it
may not be able to pay its debts and realize its assets in the
normal course of its business," Carmat said in a separate
financial report. 
    ($1 = 0.9425 euros)

 (Reporting by Michal Aleksandrowicz in Gdansk
Editing by Kirsten Donovan and Mark Potter)
 ((gdansk.newsroom@thomsonreuters.com; +48 58 769 66 00;))