MEDICREA Group: Strong Sales Growth in the First Half

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LYON, France–(BUSINESS WIRE)–The MEDICREA Group (Paris:ALMED)(listed on Alternext by NYSE Euronext Paris), a specialist in the design, manufacture and sale of spinal implants, is publishing its sales figures for the first half of 2010.

  • Sales up 32% from Q1 2010
  • Sales up 36% from Q2 2009
  • Q2 2010 was highest quarterly revenue since the company was founded
  • Record month in June, with sales of €1.9 million
  • Excellent outlook for the second half of 2010, with strong growth expected to be higher than H2 2009
Sales in € millions 2009 2010 Change
1st quarter 2.8 3.4 + 21%
2nd quarter 3.3 4.5 + 36%
Total 1st half 6.1 7.9 + 30%

RECORD BUSINESS IN THE SECOND QUARTER

Sales in Q2 2010 were significantly greater than those in Q4 2009 – the quarter when business is the strongest. This increase was due to the combined performance of the Group’s three subsidiaries (Medicrea USA, Medicrea Europe Francophone, and Medicrea UK), which have been steadily improving since the beginning of 2010. As of June 30, 2010, the subsidiaries contributed 75% of Group sales, compared with 65% for FY 2009.

In the American market, which represents the leading growth opportunity for the Group, Medicrea USA passed yet another milestone, with sales of $1.5 million for the month of June alone. The specific strategy for this market, which aims to focus efforts on major deformations and complex surgeries of the spine with the PASSLP® thoraco-lumbar fixation system, which is recognized as one of the best products in the world for the treatment of these pathologies, is gradually being implemented. Since the beginning of 2010, 15 new US surgeons have become PASSLP® users, which brings the total to over 50 surgeons using the system regularly for the treatment of severe deformations, amongst a community of around 7,000 specialists in the U.S. This conversion of new surgeons using the PASSLP® system should continue at a steady rate in the second half of 2010.

PROMISING OUTLOOK FOR THE SECOND HALF

The record sales in June should be followed by more success in the second half of 2010, both in the U.S. and in other markets where the Group is established. Denys Sournac, CEO of Medicrea, added that “thanks to the distinctive nature of our distribution model and to new-product launches and innovations carried out in recent months, sales growth in the second half should continue to rise by around 40 to 50 percent.”

The GRANVIA® cervical disc prosthesis, widely recognized as a highly innovative product with a technological advantage over the current competitive landscape is progressively being launched throughout the European market. Surgeons and other sector professionals have demonstrated a keen interest in the product, which should have noticeable commercial success in the second half of the year and even greater success in 2011, when the product is expected to start making a dramatic contribution to Group sales.

Denys Sournac stated that “the Group intends to develop its distribution model via standalone subsidiaries in markets considered as strategic or in which high sales prices allow a quick return on investment after the first year of activity. To this end, it is likely that one or two new subsidiaries will be opened before the end of 2010.”

A STRONGER FINANCIAL STRUCTURE

The Group’s commercial success has also heightened investor confidence in the Company. Medicrea raised €2.5 million in the second quarter of 2010, which brought in new high profile investors and allowed existing shareholders to add to their positions.

COMING UP

Q3 sales will be published on October 14th, after market close followed on October 21st with the publication of the half year results.

ABOUT MEDICREA

MEDICREA specializes in the design, development, manufacture and distribution of orthopedic implants dedicated to spinal surgery. In an $9 billion market, growing at a rate of 10 to 15 % per annum, MEDICREA is a small to medium-sized business of 90 employees with an excellent reputation and unique relationships with the most visionary and creative spine surgeons in France, the U.K., and the U.S. 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., U.K., and France.

ISIN code: FR 0004178572

MNEMO code: ALMED

For more information, visit www.medicrea.com

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