TIDMCREO
RNS Number : 1378I
Creo Medical Group PLC
03 August 2023
Creo Medical Group plc
("Creo" the "Company" or the "Group")
Half Year Trading Update
Core technology revenue in the first six months of 2023 to equal
Core technology revenue for the twelve months of FY 2022; trading
in line with expectations and Management confident of achieving the
Company's objectives
Creo Medical Group plc (AIM: CREO), the medical device company
focused on the emerging field of minimally invasive surgical
endoscopy, provides an unaudited trading update for the six months
ended 30 June 2023.
Trading update
Creo made significant progress during the first half of 2023
("H1-2023") with a step change in commercial activity and
considerable strides made in all facets of the business. Boosted by
the launch of a slimmer Speedboat Inject in late 2022, trading
across the business has tracked in-line with management's
expectation during H1-2023 and the Company expects to report:
-- Total revenue in H1-2023 of GBP15.7m, a 15% increase vs H1-2022 : GBP13.6m;
-- H1-2023 r evenue from Creo's core technology of GBP0.9m
(H1-2022 : GBP0.4m), equal to like for like revenue for FY 2022
(GBP0.9m);
-- Endotherapy consumable revenues of GBP14.3m, representing
growth of c. 12% vs H1-2022 (GBP12.8m);
-- Kamaptive revenue of GBP0.5m (H1-2022 : GBP0.5m) in respect
of development work undertaken with robotic partners in H1-2023;
and
-- A continued focus on cost control, with underlying OPEX
remaining flat over H1-2023. U nderlying administrative expenses in
the period of GBP18.0m (H1-2022 : GBP19.7m) reflecting the
reduction in R&D spend and strict cash control by management as
Creo transitions into a commercial and operational based business
with a clear path towards break even.
The increase in revenue from Creo's core technology has been
driven by an increase in new and high-volume users, global cases, a
strengthened pipeline of interested clinicians and Creo's
technology being introduced into new territories.
Looking forward, the pipeline of users and prospective users for
Creo's core technology continues to grow. Multi-national and
bespoke regional training and mentoring events, held during
H1-2023, have resulted in 115 confirmed users at the end of the
period, an increase of 44% over the 80 confirmed users as at
December 2022, and 30% over the 91 as at 31 March 2023. Cases using
Speedboat Inject in Q1 and Q2-2023 were both 50% higher than the
FY-2022 quarterly average. Management is confident of this
significant growth continuing through the remainder of 2023 and
beyond.
Creo's Endotherapy consumable business also continued to grow
during H 1- 2023, with the Company now having implemented a sales
and distribution structure in the US to replicate its European
success. First sales were achieved during H1-2023 and growth
expected in H2-2023.
Creo's Kamaptive Licensing partnerships with Intuitive and CMR
have progressed well during the first half of 2023. The team
continues to explore expanding the scope and reach of partnerships,
as the potential for the wider use of Creo's technology presents
itself. The investment made in FY-2022 in the next generation CROMA
platform is paying off, enabling not only the scaling and scope of
the Company's product range organically over the coming years but
also facilitating the development and expansion of its partnerships
and licensing programs.
The Company expects a combination of all these factors, together
with the introduction of an even slimmer Speedboat device which is
currently under FDA review, to result in continued growth in its
Core technology and increased utilisation by users over the
remainder of 2023 and beyond, validating the Board's confidence in
Creo's long-term growth plans.
Significant growth in the use of Speedboat Inject
Speedboat Inject (targeting gastrointestinal ("GI") lesions
(including Bowel and Upper GI cancer) and swallowing disorders) is
a flexible endoscopic device which delivers both advanced bipolar
radiofrequency and microwave energy through a single device. By
bringing advanced energy precision to endoscopic procedures in the
entire GI tract, it can curatively and safely resect lesions in the
colon, stomach and oesophagus, avoiding the need for surgery.
The launch of Creo's slimmer Speedboat Inject in late 2022,
supported by Creo's Pioneer training programme, boosted use of the
device in H1 2023. The slimmer device is compatible with the
working channel of most major endoscopes which allow clinicians to
gain deeper access into the GItract and have increased
manoeuvrability, facilitating easier retroflection techniques.
Speedboat Inject is now CE marked according to the Medical
Device Regulation ("MDR") for use throughout the entire GI tract
(as is already the case in the US and APAC region). Over 40% of
global cases performed with Speedboat Inject to date are in the
upper GI across multiple indications. Upper GI clearance in the UK
and Europe significantly increases the number of procedures for
which the device can be utilised. This has been supported by the
number of doctors attending Creo's Pioneer training programme and
post-clearance upper GI case numbers. Management expect that the
wider clearance will continue to increase Creo's potential user
base and their usage substantially.
The results seen by The Royal Oldham Hospital during H1-2023
illustrates the positive impact of adopting Speedboat Inject and
launching a Speedboat Submucosal Dissection ("SSD") service on
patient outcomes, waiting lists and the prevention of bowel cancer.
Having attended Creo's Pioneer training programme and installed
devices across multiple endoscopy rooms immediately post training,
the hospital was able to perform five SSD cases in its first
afternoon, with dozens more patients successfully treated in short
order.
During H1-2023, Speedboat Inject has been used for the first
time in Croatia, Slovenia, Malaysia and in the United Arab
Emirates. The increased pace of adoption can also be seen in India,
where one of the world's premier healthcare settings, AIG Hyderabad
Hospital, quickly became the first in Asia to treat 50 patients
using Speedboat Inject, less than a year after Creo officially
opened its APAC regional hub. The progress across APAC has been
particularly significant, with Covid-19 restrictions all but
dropped during H1-2023 and management seeing potential for greater
increases as Creo launches more products in APAC during
H2-2023.
Elsewhere Professor Fatih Aslan, based in Istanbul, successfully
performed four SSD procedures over a single day. Importantly, one
of these cases was completed in under 15 minutes - a key
illustration of how efficiently Speedboat Inject can be used by
clinicians, allowing them to tackle more cases in a shorter period
of time. Further case examples can be seen at
https://www.linkedin.com/company/creo-medical/posts/ .
Finally, the validation of Creo's technology has gathered
further momentum with the selection of Speedboat Inject by the
National Institute for Health and Care Excellence ("NICE") to be
scoped and routed for guidance, and by an ongoing collaboration
with NHS Supply Chain.
Creo expects to announce its unaudited results for H1 2023
during September 2023.
Craig Gulliford, Chief Executive Officer of Creo, commented:
"Creo has made considerable strides across all areas of the
business over the past six months, not only in terms of attracting
the necessary funding to provide us with a clear path towards break
even, but also in terms of the rapid pace of adoption and
recognition that the Company is now achieving globally. This has
been reflected in the significantly improved performance in both
our core technology revenues and our number of confirmed users.
"The slimmer Speedboat Inject device (with an even slimmer
version currently under FDA review), MicroBlate Flex trial, NICE
recognition and quicker adoption of the technology have all been
milestones we've been working towards for some time and so to see
them begin to bear fruit is testament to the relentless hard work
across the business.
"Our Kamaptive programme continues to progress, and we continue
to look to expand the scope and reach of our potential partnerships
and the wider use of our technology.
"Our technology is beginning to have the impact we knew it
could, and the path ahead is a clear one thanks to what has already
been achieved. It's incredibly rewarding to see patients now
treated on a daily basis across all corners of the globe with our
game-changing technology."
Enquiries:
Creo Medical Group plc 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 (Sales)
Numis Securities Limited (Joint
Broker)
Freddie Barnfield / Duncan Monteith
/ Euan Brown +44 (0)20 7260 1000
Walbrook PR Tel: + 44 ( 0)20 7933 8780 or creo@walbrookpr.com
Paul McManus / Sam Allen Mob: +44 (0)7980 541 893 / +44 (0)7502
Phillip Marriage 558 258
+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
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