Implanet Announces H1 2017 Revenue

BORDEAUX, France & BOSTON–(BUSINESS WIRE)–Regulatory News:

IMPLANET (Euronext: IMPL, FR0010458729, PEA-PME eligible) (Paris:IMPL) (OTCQX:IMPZY), a medical technology company specializing in vertebral and knee-surgery implants, today announces its revenue for the second quarter and first half to June 30, 2017.

In € thousands – IFRS*   2017   2016   Change
Total 1st quarter revenue   2,048   1,988   +3%

2ndquarter

     
Spine (JAZZ)   1,337   1,175   +14%
Knee + Arthroscopy   734   932   -21%
Total 2ndquarter revenue   2,071   2,107   -2%

1sthalf

Spine (JAZZ)   2,404   2,012   +19%
Knee + Arthroscopy   1,716   2,082   -18%
Total 1sthalf revenue   4,119   4,094   +1%

*Unaudited data

In H1 2017, Implanet recorded stable revenue (+1% growth) of €4,119 thousand.

JAZZ® sales were up 19% to €2,404 thousand, and now account for 58% of total revenue (vs. 49% in 2016), offsetting the 18% decrease in sales of the Knee/arthroscopy range to €1,716 thousand.

JAZZ® sales increased by +24% to €790 thousand in France and +101% to €553 thousand in the rest of the world over the first six months of the year.

In the rest of the world, sales were strong – buoyed by the impact of continued strength in Italy, the UK and in Spain, by the Q1 launch of JAZZ® in Australia, as well as initial sales in Germany, the largest European spine market.

In the USA, sales were stable at €1,059 thousand. Continued recruitment and training of larger and more experienced sales agents and distributors (longer than initially planned) will help us resume growth in the upcoming quarters.

In markets where the Company operates directly, the adult degenerative bone disorder segment – now a priority segment – saw sales increase by +34% to €695 thousand, thus accounting for 38% of usage (vs. 31% in H1 2016).

Altogether over the first half of the year Implanet sold 4,641 JAZZ® implants (vs. 3,118), a volume growth of 49% representing 66% of total number of JAZZ® implants sold in 2016.

As anticipated, arthroscopy sales continued to decrease, as a result of the decision to gradually cease the distribution of these products, along with persistent difficulties with the Brazilian distributor. However, the Madison sales (total knee prosthesis developed by Implanet) were stable.

Ludovic Lastennet, CEO of Implanet, says: “We are continuing to refocus on our core business, as shown by the growth in JAZZ® sales in spine surgery. We accelerated our penetration of the degenerative bone disorder market in France and in the United States, larger and less seasonal, which should gradually enable us to better smooth out our sales quarter by quarter. Overall, during the first six months of this year we have already sold more than 66% of the total number of JAZZ® implants sold in 2016. Regarding our Knee activity, as mentioned in our first-quarter revenue release, we expect activity to stabilize during the second half of 2017, the gradual end of the distribution of Arthroscopy implants having been finalized. Confident in our ability to continue expanding our JAZZ® technological platform on all our markets over the coming quarters and costs savings, we should observe an improvement in our operating profit from the next financial publication.

As a reminder, IMPLANET will host a Conference Call in French at 12 :30pm EST. To access the Conference Call, you need to dial-in the following number: + 33 (1) 70 77 09 30 and follow instructions thereafter.

Next financial press release: results for the 1st half of 2017, on September 19, 2017

About IMPLANET
Founded in 2007, IMPLANET is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its flagship product, the JAZZ® latest-generation implant, aims to treat spinal pathologies requiring vertebral fusion surgery. Protected by four families of international patents, JAZZ® has obtained 510(k) regulatory clearance from the Food and Drug Administration (FDA) in the United States and the CE mark. IMPLANET employs 48 staff and recorded 2016 sales of €7.8 million. For further information, please visit www.implanet.com.
Based near Bordeaux in France, IMPLANET established a US subsidiary in Boston in 2013.
IMPLANET is listed on Euronext™ Growth market in Paris.

Disclaimer
This press release contains forward-looking statements concerning Implanet and its activities. Such forward looking statements are based on assumptions that Implanet considers to be reasonable. However, there can be no assurance that the anticipated events contained in such forward-looking statements will occur. Forward- looking statements are subject to numerous risks and uncertainties including the risks set forth in the registration document of Implanet registered by the French Financial Markets Authority (Autorité des marchés financiers (AMF)) on April 26, 2016 under number R.16-035 and available on the Company’s website (www.implanet-invest.com), and to the development of economic situation, financial markets, and the markets in which Implanet operates. The forward-looking statements contained in this release are also subject to risks unknown to Implanet or that Implanet does not consider material at this time. The realization of all or part of these risks could lead to actual results, financial conditions, performances or achievements by Implanet that differ significantly from the results, financial conditions, performances or achievements expressed in such forward-looking statements. This press release and the information it contains do not constitute an offer to sell or to subscribe for, or a solicitation of an order to purchase or subscribe for Implanet shares in any country.