REG - Creo Medical Group - H1 2022 Trading Update

Creo MedicalAnnouncement

03/08/2022 07:15

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RNS Number : 6982U  Creo Medical Group PLC  03 August 2022

Creo Medical Group plc

("Creo" the "Company" or the "Group")

 

H1 2022 Trading Update

 

·    Increased revenues

·    Over 20% reduction in underlying EBITDA loss vs H2 2021

·    New revenue streams added

·    Commercialisation of core technology enabling Creo to take
significant steps forward to profitability

 

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"

 

Enquiries:

 

 Creo Medical Group plc                              www.creomedical.com (http://www.creomedical.com)
 Richard Rees (CFO)                                  +44 (0)1291 606 005

 Cenkos Securities plc                               +44 (0)20 7397 8900
 Stephen Keys / Camilla Hume (NOMAD)
 Michael Johnson / Russell Kerr (Sales)

 Numis Securities Limited (Joint Broker)             +44 (0)20 7260 1000

 Freddie Barnfield / James Black / Duncan Monteith

 Walbrook PR Ltd                                     Tel: +44 (0)20 7933 8780 or creo@walbrookpr.com
 Paul McManus / Sam Allen /                          Mob: +44 (0)7980 541 893 / +44 (0)7502 558 258 /

 Phillip Marriage                                    +44 (0)7867 984 082

 

 

About Creo Medical

 

Creo Medical is a medical device company focused on the development and
commercialisation of minimally invasive electrosurgical devices, bringing
advanced energy to endoscopy.

 

The Company's vision is to improve patient outcomes through the development
and commercialisation of a suite of electrosurgical medical devices, each
enabled by CROMA, powered by Kamaptive. The Group has developed the CROMA
powered by Kamaptive full-spectrum adaptive technology to optimise surgical
capability and patient outcomes. Kamaptive is a seamless, intuitive
integration of multi-modal energy sources, optimised to dynamically adapt to
patient tissue during procedures such as resection, dissection, coagulation
and ablation of tissue. Kamaptive technology provides clinicians with
increased flexibility, precision and controlled surgical solutions.  CROMA
currently delivers bipolar radiofrequency ("RF") energy for precise localised
cutting and focused high frequency microwave ("MW") energy for controlled
coagulation and ablation via a single accessory port. This technology,
combined with the Group's range of patented electrosurgical devices, is
designed to provide clinicians with flexible, accurate and controlled clinical
solutions. The Directors believe the Company's technology can impact the
landscape of surgery and endoscopy by providing a safer, less-invasive and
more cost-efficient option for procedures.

 

For more information, please refer to the website www.creomedical.com
(http://www.creomedical.com)

 

 

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