SpineGuard Posts H1 2020 Revenue
09 Luglio 2020 - 8:00AM
Business Wire
- Robust resuming of sales in June
- DSG Connect pre-launch in Europe
- Secured cash runway with new equity line
Regulatory News:
SpineGuard (Paris:ALSGD) (FR0011464452 – ALSGD), an
innovative company that deploys its DSG® (Dynamic Surgical
Guidance) sensing technology to secure and streamline the placement
of bone implants, announced today that its first half 2020 revenue
was € 2.3 M.
Pierre Jérôme, Co-founder, Chairman and CEO of SpineGuard,
declared: “As all the orthopedic industry, SpineGuard has
significantly been impacted by the COVID-19 pandemic since
mid-March. During this particularly challenging period, the entire
team has demonstrated strong resilience and we managed to secure
our cash runway thanks to a tight control of the company’s
expenses, a renewed equity line agreement and under the protection
of the voluntarily filed ‘sauvegarde’ procedure in France and
Chapter 11 in the USA. Sales volumes went back up these last weeks
with the gradual resuming of elective surgeries. The context
remains uncertain but feedbacks from the first surgeries performed
with our new DSG Connect platform and the ongoing discussions with
potential strategic partners leave us with interesting
prospects."
H1 and Q2 2020 revenues
€ thousands – IFRS (Unaudited)
2020
2019
Variance
First Quarter
1,376
1,692
-17%
Second Quarter
902
1,797
-50%
Of which April
82
582
-86%
May
272
503
-46%
June
548
712
-23%
Half-Year
2,278
3,445
-34%
In the United States, the revenue of the second quarter 2020
decreased by 50% to $ 862 K from $ 1,688 K. Volumes were
significantly impacted by COVID-19 since mid-March as elective
surgeries were postponed. The activity was close to zero in April,
resumed in May and accelerated in June. The momentum appears to
continue early July. Despite the resurgence of the pandemic in
several states, particularly in the south of the country and the
fear of certain patients of contracting the virus at the hospital,
financial analysts covering our sector such as Michael Matson
(Needham), Kyle Rose (Canaccord Genuity) or Ryan Zimmerman (BTIG)
anticipate the continuation of the resumption of elective surgeries
and a gradual catching up of postponed cases, most of the patients
affected by these postponements being in great pain.
In the rest of the world, all areas are affected by the pandemic
with time lags. Like the United States, Europe has rebounded in
recent weeks while the situation remains difficult in Latin America
and Asia.
2,422 DSG units were sold in the first half of 2020 (from 3,875
units in 2019) of which 1,508 units (62%) were sold in the United
States.
Status of the French ‘Sauvegarde’ and Chapter 11
procedures
Assisted by the French Trustee (‘administrateur’) Maître
Thévenot, the Company is currently drafting its safeguard plan and,
depending on the hearing schedule, should be able to present it by
the end of September. This presentation must be made in
coordination with the American procedure which already had several
hearings in March and June. This phase will enable to formalize a
proposal for debt restructuring.
SpineGuard is therefore continuing its discussions with its main
creditors to arrange the "venture" debt and the FEI Innovation loan
respectively. The current procedure does not exclude the
possibility of a pre-packed agreement which would shorten it.
Pending the finalization of the safeguard plan, the payment of
debts prior to the opening of the procedure is frozen. It should
also be remembered that the safeguard procedure freezes any ability
to exercise existing securities or collateral. As a reminder, as at
January 31, 2020, the outstanding capital amounted to € 3.8 M
compared to € 4.5 M at the conclusion of the 'venture' bond debt
and of € 0.9 M against € 1.5 M for the FEI Innovation loan.
PERSPECTIVES
The cash position as of June 30, 2020 of € 1.2 M plus the
secured equity line facility for € 2.4 M means that the total cash
available to the Company is € 3.6 M. Considering the current cash
position, the secured convertible bond facility and the recurring
expected business, the Company estimates that it can fund its needs
until mid-2022.
The Company remains focused on the following objectives for the
second half of 2020:
- Continue the pre-launch in Europe of the new generation of
PediGuard equipped with the DSG-Connect module, a wireless
interface which adds the visual signal to the audio to optimize
signal processing, allowing data recording as forensic evidence
perform clinical studies on bone quality.
- Obtain DSG-Connect US clearance and initiate its pre-launch
there before the end of 2020.
- Continue to provide scientific evidence of the value of DSG for
surgical robotics.
- Maintain, as much as possible, the course of operational
profitability in the context of COVID 19.
- Intensify collaboration with ConfiDent ABC on dental
applications with the co-development of a new generation of
products incorporating DSG technology.
- Close other industrial and strategic partnerships, in
particular for the robotic application, assisted by the investment
bank Healthios Capital Markets.
Next financial press release: 2020 Half-year financial
results on September 15, 2020
About SpineGuard®
Founded in 2009 in France and the USA by Pierre Jérôme and
Stéphane Bette, SpineGuard is an innovative company deploying its
proprietary radiation-free real time sensing technology DSG®
(Dynamic Surgical Guidance) to secure and streamline the placement
of implants in the skeleton. SpineGuard designs, develops and
markets medical devices that have been used in over 75,000 surgical
procedures worldwide. Fifteen studies published in peer-reviewed
scientific journals have demonstrated the multiple benefits DSG®
offers to patients, surgeons, surgical staff and hospitals.
Building on these solid fundamentals and several strategic
partnerships, SpineGuard has expanded its technology platform in a
disruptive innovation: the « smart » pedicle screw launched late
2017 and is broadening the scope of applications in dental
implantology and surgical robotics. DSG® was co-invented by Maurice
Bourlion, Ph.D., Ciaran Bolger, M.D., Ph.D., and Alain Vanquaethem,
Biomedical Engineer.
For further information, visit www.spineguard.com
Disclaimer
The SpineGuard securities may not be offered or sold in the
United States as they have not been and will not be registered
under the Securities Act or any United States state securities
laws, and SpineGuard does not intend to make a public offer of its
securities in the United States. This is an announcement and not a
prospectus, and the information contained herein does and shall not
constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of the securities referred to herein in
the United States in which such offer, solicitation or sale would
be unlawful prior to registration or exemption from
registration.
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version on businesswire.com: https://www.businesswire.com/news/home/20200708005583/en/
SpineGuard Pierre Jérôme Chairman & CEO Tel: +33 1 45
18 45 19 p.jerome@spineguard.com
Manuel Lanfossi CFO Tel: +33 1 45 18 45 19
m.lanfossi@spineguard.com
Europe / NewCap Investor Relations &
Financial Communication Mathilde Bohin / Pierre Laurent Tel: +33 1
44 71 94 94 spineguard@newcap.eu
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