TIDMCREO
RNS Number : 0640Z
Creo Medical Group PLC
19 May 2021
Creo Medical Group plc
("Creo" the "Company" or the "Group")
Trading update
Q1 trading ahead of management's expectations
Increase in elective surgeries driven by need to reduce case
backlogs
Creo Medical Group plc (AIM: CREO), a medical device company
focused on the emerging field of surgical endoscopy, provides an
update on progress and Q1 2021 trading, which is ahead of
management's expectations. As a result, the directors have upgraded
guidance for year-end revenue performance by at least 10%.
As previously stated, trading for the year ended 31 December
2020 was ahead of management's expectations, and the Company
expects to report revenues of over GBP9m (2019: GBP0.01m) when it
publishes its Audited Report and Accounts in early June.
The current year has started well; trading in the three months
ended 31 March 2021 was ahead of management's expectations. There
has been an increase in commercial activity from Creo's core
products together with strong contributions from Albyn Medical and
Boucart Medical, which were acquired during 2020. Creo's sales
teams have worked hard throughout the COVID-19 pandemic to ensure
that customer relationships are maintained, and that hospitals are
being supported when needed. The Group's long-standing clinical
relationships have resulted in a quick return to pre-COVID levels
of activity as elective procedures have opened up. In particular,
the UK and French markets have rebounded more strongly than the
Company expected during Q1, with many hospitals now starting to
focus efforts on clearing the backlog of cases, which have been
delayed over the last 12 months.
As a result, the Directors expect that the Group's revenue
performance for the year ending 31 December 2021 will be at least
10% ahead of current market expectations of GBP20.1m.
The strengthening of the Company's commercial team, both
organically under the direction of David Woods, and through
acquisitions made by the Group during 2020, has been highly
successful. The Company now has a well-established commercial,
marketing and distribution footprint across five European
countries, four regions of the US and a centralised hub in APAC. To
further support the Company's reach into the key US market, Creo
expects to open its US headquarters in Danbury, CT before the end
of Q2.
In addition, Creo is starting to benefit from its sales team's
efforts during the last 12 months with new placements of CROMA
Advanced Energy Platforms and a strong book of clinicians trained
and waiting to be trained and mentored on the safe use of its
Speedboat Inject device. Creo's Clinical Education Programme
remains a crucial part of its commercial strategy with new clinical
adoption of the Speedboat Inject device facilitated through
multiple training centres of excellence. The Company continues to
support a robust programme of training, mentoring and early case
supervision globally and, at the end of last year, the first
clinical use of the latest GI products took place. Innovation and
adoption of the Company's technology continues, with the first
clinical procedure using the MicroBlate Flex device, being a near
term goal.
In June last year, Creo announced that data showed that
Speedboat Inject could save NHS hospitals nearly GBP5,000 per
procedure versus traditional open surgery. Whilst the Company
expects full data on this to be published shortly, the initial
signs are that this could show possible savings significantly
higher than GBP5,000 per procedure.
The Board continues to explore high-quality prospective
acquisition candidates to facilitate the build out of a direct
presence in the US and accelerating its route to market. In
addition and as previously mentioned, the Board continues to
explore possible applications for Creo's Kamaptive technology in
the adjacent fields of laparoscopic and robotic assisted surgery
together with third parties.
As such, the Board looks to the future with confidence as the
Company continues to build on its current momentum and commercial
infrastructure to generate increasing revenues and develop wider
commercial opportunities.
Craig Gulliford, Chief Executive Officer of Creo, commented: "
The worldwide uncertainty created by COVID-19 continues; however,
the team at Creo has delivered exceptional results across many
fronts including, making significant clinical and technical
advances, building a global commercial team, finding innovative
ways to train clinicians and continuing to deliver revenue ahead of
management's expectation into the new financial year. We are
delighted with the progress that has been made and believe our
products will have a big part to play in reducing costs associated
with traditional open surgery, reducing the huge backlogs for
elective surgery that have built up during the pandemic, and most
importantly providing better outcomes for patients globally."
This announcement contains inside information
Creo Medical Group plc investors.creomedical.com
Richard Rees (CFO) +44 (0)1291 606 005
Cenkos Securities +44 (0)20 7397 8900
Stephen Keys / Camilla Hume (NOMAD)
Michael Johnson / Russell Kerr (Sales)
Walbrook PR Ltd Tel: +44 ( 0)20 7933 8780 or creo@walbrookpr.com
Paul McManus / Lianne Cawthorne Mob: +44 (0)7980 541 893 / +44 (0)7515
909 238
About Creo Medical
Creo Medical, founded in 2003, is a medical device company
focused on the development and commercialisation of minimally
invasive surgical devices, bringing advanced energy to endoscopy.
The Company's mission is to improve patient outcomes by applying
microwave and RF energy to surgical endoscopy. Creo has developed
CROMA, an electrosurgical Advanced Energy Platform that delivers
bipolar radiofrequency for precise localised cutting and microwave
for controlled coagulation. This technology provides clinicians
with flexible, accurate and controlled surgical solutions.
The Company's strategy is to bring its CROMA Advanced Energy
Platform powered by its full spectrum Kamaptive Technology to
market, enabling a suite of medical devices which the Company has
designed, initially for the emerging field of GI therapeutic
endoscopy, an area with high unmet needs. The CROMA Advanced Energy
platform will be developed further for bronchoscopy and laparoscopy
procedures. The Company believes its technology can impact the
landscape of surgery and endoscopy by providing a safer, less
invasive and more cost-efficient option of treatment. An overview
of the Creo Medical device technology portfolio can be seen
here:
https://www.rns-pdf.londonstockexchange.com/rns/8918P_1-2020-6-14.pdf
For more information about Creo Medical please see our website,
www.creomedical.com
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