- Global, unaudited sales of HEMOBLAST™ Bellows for the first half of 2019 were €1.4 million – on track to achieve 2019 revenue guidance range of €4.0-4.5 million; projection for 15% market share in the US and main European countries remains a long-term goal •
- Operating expenditures for 2019 expected to reach circa €30 million, a significant decrease versus 2018
- Upgrades at manufacturing facility in Saint-Priest will now provide sufficient capacity to meet HEMOBLAST Bellows demand through 2021, pushing out the need for a new facility at least 24 months
- Consolidated, unaudited cash position as of June 30, 2019 at €8.5 million
Saint-Priest, France, July 10, 2019 – 8h00 (CET) – Biom’up SA (the « Company »), specializing in surgical hemostasis, announced unaudited sales of HEMOBLAST Bellows for the first half of 2019 ended June 30th totaled €1.4 million, a sequential month-over-month growth rate of 23% since global launch in July 2018. HEMOBLAST Bellows sales for 1H 2019 were more than twice as much as the €627 K recorded for the previous six months. The revenue recorded for HEMOBLAST Bellows during 1H 2019 is also in line with the full-year 2019 guidance for global sales in the range of €4.0-4.5 million. US orders already represent close to 2/3 of total orders, demonstrating HEMOBLAST Bellows’ potential in the strategic US market.
In terms of operational expenditures, and as previously communicated, following the significant commercial, manufacturing and R&D investments of 2018, the Company now foresees operating expenditures at the Group level to be limited to €30 million. The Company will continue to manage its cost base efficiently and maintains its objective of an EBITDA break-even in 4Q 2021 despite a loss-making full-year.
Finally, the Company has conducted an extensive review of its manufacturing options and has determined that the ongoing improvements at its existing facility in Saint-Priest will increase capacity a further 100% by the end of 2020 over that estimated for the end of 2019. Implementation of this plan will enable the Company to comfortably meet the increasing demand for HEMOBLAST Bellows through 2021 while significantly reducing capital expenditures. Biom’up will thus postpone commencement of construction on a new factory in the Lyon area by at least two years.
Dr. Jan Ohrstrom, Chairman & CEO, said: “The first half of 2019 was a success from a commercialization perspective, with the US in particular delivering excellent results. We look forward to meeting our full year objectives for 2019. On the cost side, we continue to manage actively and efficiently our cost base while supporting the continued robust adoption of HEMOBLAST Bellows. Finally, I wanted to thank our manufacturing engineers for their innovative work in further increasing capacity at our existing factory, enabling us to face greater demand under tight deadlines.”
The Company reiterates its revenue guidance in the range of €4.0 to 4.5 million for 2019 as announced on May 20, 2019. The Company remains convinced that HEMOBLAST Bellows has the potential to capture a 15% market share in the US and main European countries in the long term but cannot commit to a precise year in which such level of revenues may be achieved.
The consolidated unaudited cash balance at June 30, 2019 stood at €8.5 million, compared to €44.2 million at June 30, 2018 and €30.6 million at December 31, 2018. The Company will continue to need important financial resources to cover its planned operating and investing activities in light of a liquidity shortfall as from September 2019 and is actively looking at available options. In this context, the Company obtained from Athyrium a reduction from €8 million to €2 million until July 31, 2020 of the minimum liquidity ratio under the bond financing entered into in March 2018.
Annex 1: Definition of alternative performance measures
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