TIDMAMS
RNS Number : 8067Z
Advanced Medical Solutions Grp PLC
15 January 2020
15 January 2020
Advanced Medical Solutions Group plc
("AMS" or the "Group")
Year End Trading Update
Winsford, UK - 15 January 2020: Advanced Medical Solutions Group
plc (AIM: AMS), the surgical and advanced woundcare specialist
company, today announces a trading update for the year ended 31
December 2019. The Group intends to publish its preliminary results
for the year ended 31 December 2019 on 11 March 2020.
AMS announces that its financial results for the year are in
line with revised consensus forecasts, with profit slightly above
consensus and sales, impacted by Sterling appreciation in the
fourth quarter, slightly below consensus.
The third-party sterilisation issue, announced in November, is
resolved, with the plant now fully operational and no further
impact expected. Due to the actions taken to mitigate this issue,
the impact in 2019 was less than our initial worst-case forecast
and we are progressing with additional contingency plans to
minimise the risk of any future disturbance in the event of a
similar breakdown.
Surgical Business Unit
- As previously reported, revenue for the year was impacted by a
downturn in US LiquiBand(R) sales and by the unexpected failure at
one of our third-party sterilisation facilities.
- Good growth was delivered across the rest of the Surgical
business unit, particularly LiquiBandFix8(R) and the RESORBA(R)
portfolio.
- US LiquiBand(R) performance is expected to recover over the course of 2020, based on:
o FDA approval of LiquiBand(R) Rapid(TM), which is expected
imminently and will allow one of our main partners to regain ground
with an improved product.
o The launch of LiquiBand(R) XL, which will allow us to compete
in the treatment of large wounds and unlock further growth
potential in our LiquiBand(R) business. Our clinical trial will be
completed in February and subject to a successful outcome and FDA
filing, approval is expected in H2 2020.
- The US clinical trial to support the Premarket Approval (PMA)
for LiquiBandFix8(R) is progressing well in terms of surgeon
feedback although patient recruitment is slower than anticipated.
As a result, an additional clinical site has been added to the
trial.
Woundcare Business Unit
- Growth has been delivered with Antimicrobial (Silver and PHMB)
dressings and with ActivHeal(R) , despite the continued challenges
facing the woundcare market.
- Exudate Management (standard foams and fibres) declined in the year.
- There is significant partner interest in our new Surgical High
Performance Dressing (HPD), which we are on track to launch in H1
2020.
M&A
- The successful 2019 acquisitions of Sealantis and Biomatlante
demonstrate our strategy of acquiring strategically-aligned
businesses in adjacent spaces with significant commercial
synergies. The integration of both is progressing to plan and our
strategy continues to be to grow AMS both organically and through
appropriate acquisitions.
Outlook
- Supported by new product approvals, the Group expects to
deliver approximately 10% organic growth in 2020, with the
Biomatlante acquisition delivering additional revenue.
- The Board continues to believe that the Medical Device
Regulation (MDR) will generate further growth opportunities in the
coming years, as AMS is well placed to address the new, higher
standards.
Chris Meredith, Chief Executive Officer of AMS, commented: "I am
pleased to report that despite the significant challenges in 2019,
the Group is expected to report financials in line with revised
consensus forecasts. The acquisitions of Sealantis and Biomatlante
have provided substantial new product opportunities for the Group
and increased our investment in exciting new areas of R&D with
significant commercial benefits expected in both 2020 and 2021. We
look forward to regaining positive momentum in our US LiquiBand(R)
business in 2020 once our new products are approved and the Board
is optimistic about our long-term growth prospects."
- End -
For further information, please visit www.admedsol.com or
contact:
Advanced Medical Solutions Group plc Tel: +44 (0) 1606
545508
Chris Meredith, Chief Executive Officer
Eddie Johnson, Chief Financial Officer
Consilium Strategic Communications Tel: +44 (0) 20 3709
5700
Mary-Jane Elliott / Matthew Neal / Nicholas
Brown / Olivia Manser
Investec Bank PLC (NOMAD & Broker) Tel: +44 (0) 20 7597
5970
Daniel Adams / Patrick Robb / Gary Clarence
About Advanced Medical Solutions Group plc - see
www.admedsol.com
AMS is a world-leading independent developer and manufacturer of
innovative and technologically advanced products for the global
surgical and woundcare markets, focused on quality outcomes for
patients and value for payers. AMS has a wide range of surgical
products including tissue adhesives, sutures, haemostats, and
internal fixation devices, which it markets under its brands
LiquiBand(R) , RESORBA(R) , and LiquiBandFix8(R) . AMS also
supplies wound care dressings such as silver alginates, alginates
and foams through its ActivHeal(R) brand as well as under white
label. In 2019, the Group made two acquisitions: Sealantis, an
Israeli medical device company with a patent-protected sealant
technology platform; and Biomatlante, an established developer and
manufacturer of innovative surgical biomaterial technologies based
in France.
AMS's products, manufactured in the UK, Germany, France, the
Netherlands, and the Czech Republic, are sold globally via a
network of multinational or regional partners and distributors, as
well as via AMS's own direct sales forces in the UK, Germany, the
Czech Republic and Russia. The Group has R&D innovation hubs in
the UK, Germany, France and Israel. Established in 1991, the Group
has approximately 700 employees. For more information, please see
www.admedsol.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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