Bordeaux, Boston, March 30, 2016 – IMPLANET (Euronext: IMPL, FR0010458729, PEA-PME eligible), a medical technology company specializing in vertebral and knee-surgery implants, today announces its annual results for the financial year ending December 31, 2015, as approved by the Board on March 24, 2016.
Ludovic Lastennet, CEO of Implanet, says: “We are continuing the sales deployment of our JAZZ technological platform. The buoyant growth in our sales is the result of a direct access strategy in our two main markets, France and the United States, where the adoption of our technology accelerated over the second half of 2015. This growth should continue in 2016, notably thanks to the growing use of the JAZZ platform in the treatment of adult degenerative spine disorders. However, the strong growth of the spine business only partially offset the effect of stopping the Hip activity in 2014. On the financial front, we have carried out planned investmentsthat should enable us to achieve significant growth while limiting operating expenses. The steady increase in the number of surgeon users allows us to be more confident than ever in the JAZZ technological platform’s clinical value and in our sales growth over coming quarters”.
2015: JAZZ growth acceleration
The Company recorded another excellent annual performance in Spine (JAZZ), Implanet’s core activity, thanks to further market share gains in pediatric scoliosis (with market share already exceeding 10% in France1 ) and to the growing use of the JAZZ platform in the treatment of adult degenerative spine disorders, a market accounting for 80% of vertebral fusion surgical procedures worldwide2.Record sales in the Spine activity in 2015, up +45% to €2,806 thousand, enabled Spine activity to account for 42% of total sales, versus 27% in 2014.
Operating expenses accompany growth
The Company’s expansion investments, were principally focused on developing the US market. The spending of €1.5 million allowed the Company to expand its US sales coverage with a sales network of 30 sales agents as of December 31st 2015, and to undertake a major medico-economic study demonstrating JAZZ technology’s clinical results for patients, as well as its cost benefits for healthcare facilities. The Company also strengthened its commercial coverage for the distribution of its JAZZ technological platform in Europe and in Latin America, now with a network of fourteen distributors. With operating expenses, which increased by €640 thousand to €10,215 thousand vs. €9,575 thousand in 2014, taken into account, Implanet recorded an operating loss of -€7,632 thousand (vs. -€6,637 thousand) and a net loss of -€8,008 thousand (vs. -€6,872 thousand) over the year to December 31, 2015.
Cash position and financial investments As of December 31, 2015, Implanet had cash and financial investments of €7.1 million (versus €5.2 million as of December 31, 2014). The Company also has the possibility of obtaining additional funding of €4.0 million from L1 EUROPEAN HEALTHCARE OPPORTUNITIES FUND in the form of convertible bonds coupled with equity warrants (OCABSA) .
Significant milestones and breakthroughs in 2015
Clinical and training
- Publication of the results of a comparative study showing JAZZ’s efficacy in the treatment of idiopathic scoliosis by Professors Mazda and Ilharreborde’s teams (APHP – Robert Debré Hospital);
- Preliminary results of the biomechanics study undertaken by the Mayo Clinic demonstrating JAZZ’s efficacy in the protection of screws implanted in poor-quality bones;
- Training of 58 surgeons, sales agents and distributors in 10 sessions of the “Jazz Academy”. The training of these worldwide experts should enhance the JAZZ platform’s adoption rate in the near term.
Intellectual protection and regulatory approvals
- Intellectual property on JAZZ technology definitively granted in Europe until 2031;
- CE mark in Europe and 510(k) clearance in the United States for the marketing of all JAZZ diameters and their use with 100% of existing thoraco-lumbar posterior fixation systems (screws and hooks);
- Regulatory approval from the Brazilian health authority (ANVISA) to market the JAZZ technological platform.
About IMPLANET
IMPLANET is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its flagship technology, the JAZZ latestgeneration platform, is a range of implants that aim to treat spinal pathologies requiring vertebral fusion surgery. Implanet’s established orthopedic platform, based on perfect control of the traceability of its products, provides it with a proven ability to enhance this innovation. 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, the CE mark in Europe and ANVISA approval in Brazil. IMPLANET employs 48 staff and recorded 2015 sales of €6.7 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 Compartment C of the Euronext™ regulated market in Paris.
Implanet Complete Press Release.pdf