MEDICREA Group: Record Business Activity in 2009

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LYON, France–(BUSINESS WIRE)–The MEDICRA Group (Paris:ALMED), listed on Alternext by NYSE – Euronext Paris, a specialist in the design, manufacture and sale of spinal implants, is publishing its annual sales for 2009.

RECORD BUSINESS ACTIVITY IN 2009

  • Sales of €13.1 million rose 45 % from 2008
  • Growth accelerated in the second half of the year, with record sales of €3.9 million in the fourth quarter
  • Triple-digit growth in the U.S. market, which now accounts for nearly 50 % of Group sales
Sales in € millions 2008 2009 Change
1st half 4.6 6.1 + 32 %
2nd half 4.4 7.0 + 59 %
Total 9.0 13.1 + 45 %
incl. U.S.A 2.5 5.7 + 128 %

GROWTH GATHERS PACE

MEDICREA had record growth in 2009, with sales up 45 %. Since 2006, sales growth amounted respectively to 27 %, then 29 % and 45 % this year. After a very strong summer, sales reached yet another milestone in the fourth quarter, at close to €4 million.

The three Group distribution subsidiaries (U.S., French-speaking European countries, and U.K.) now contribute to 65 % of sales. These subsidiaries have been operational only since the beginning of 2007.

Development of MEDICREA in the U.S., the world’s biggest market for spine implants, has been successful. MEDICREA USA Corp. sales came to $8 million in 2009, compared with $3.6 million in 2008. MEDICREA EUROPE FRANCOPHONE (French-speaking European countries) had annual sales growth of 40 %, even though the new and very innovative GRANVIA® cervical disk prosthesis has just been launched. MEDICREA UK, which had got off to a slow start, underwent a complete turnaround in 2009 under the leadership of a new management team. Sales rose an astounding 700 %, to €800,000.

Denys Sournac, Chairman and CEO of MEDICREA, stated that “most Group sales today are made with the PASS-LP® thoraco-lumbar fixation system, which is acknowledged as one of the best surgical implants in the world for the reduction of major spinal deformations.

The Group has also a pipeline of innovative products, particularly the GRANVIA® cervical disc prosthesis and the X-JAWS® and L-JAWS®, the lumbar versions of the K-JAWS®, the cervical compressive staple, that will strengthen the product range and provide significant new growth in the months ahead.”

THE U.S. REMAINS THE NUMBER ONE PRIORITY

In just three years, the Group’s U.S. operation has made remarkable inroads. However, the growth potential is still very high, and in 2010 MEDICREA USA Corp. expects to once again double its size in this strategic market. The Group is focusing its efforts on major spinal deformities and complex spine surgeries, which represent a market segment of some $430 million in sales. The sales team has recently welcomed two new regional sales directors. In addition, MEDICREA USA is progressively implementing a local sales team structure to complement the current organization of commission-based sales agents. This is being done to improve technical support to surgeons who specialize in severe spinal deformities. To achieve this, three sector managers were hired in Q4 2009, a model that will be progressively expanded in 2010. This strategy should strengthen MEDICREA USA ‘s penetration of this market segment and give a noticeable boost to the subsidiary’s profitability. Denys Sournac stated that “MEDICREA also intends to grow in other market segments on which the Group’s innovative products, such as the K-JAWS®, should be successful. These developments will occur mainly through exclusive distribution licensing agreements with American groups which are dominating spine surgery.”

OUTLOOK FOR 2010

Group sales in 2010 should at least equal those of 2009, aided by the results of the development strategy in the U.S. and the launch of new products, particularly the GRANVIA® cervical disc prosthesis and several other innovative products that will complete the range of implants.

MEDICREA will also continue its geographic expansion, with new European operations planned in countries where the Group is currently absent, most likely in Italy, and German speaking countries. This will be achieved through new sales subsidiaries and through exclusive distribution agreements.

“The MEDICREA Group enjoys what is considered as probably the most efficient R&D team of its sector in Europe. This allows the Group to put into action ideas and innovative concepts developed with surgeon-partners in very short time frames. New products launched in 2010 will contribute to establish MEDICREA on the most dynamic market segments of spinal surgery,” Denys Sournac concluded.

COMING UP

2009 annual results will be published on April 19, 2010, after market close.

ABOUT MEDICREA

MEDICREA specializes in the design, development, manufacture and distribution of orthopedic implants dedicated to spinal surgery. In an $8 billion market, which is growing at a rate of 10 to 15 % per annum, MEDICREA is a small to medium sized business of 90 employees, which enjoys an excellent reputation and benefits from unique relationships with the most visionary and creative spine surgeons in France, the U.K. and the U.S.A.

Products developed and patented by MEDICREA provide surgeons with new and less invasive surgical solutions, which are faster and easier to implement than traditional techniques. The Group operates from its headquarters based in Lyon, France with a manufacturing facility located in La Rochelle, France and three distribution subsidiaries in the U.S.A., U.K. and France.

ISIN code : FR 0004178572

MNEMO code : ALMED

For more information, visit www.medicrea.com

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