Implanet Revenue Grew 18 Percent Last Year

IMPLANET, a medical technology company specializing in vertebral and knee-surgery implants, experienced a banner year in 2016.
 
The company’s revenue, up 18 percent last year compared with 2015, totaled 7.825 million euros, driven by a 46 percent increase in JAZZ activity. The segment’s solid growth was a result of the growing adoption of JAZZ technology in markets in which the company operates directly (up 70 percent in the United States and 33 percent in France), with staggering growth of 142 percent in the high-potential degenerative bone disorder segment (surgical treatment of elderly patients).

The strong increase in JAZZ activity in France and the United States, where spinal implant pricing is higher, had a positive impact on Implanet’s gross margin. It improved by 12.1 percentage points to 50.9 percent of sales in 2016 vs. 38.8 percent in 2015.
 
The company chose to focus on direct distribution in its priority markets through a network of independent sales agents, resulting in a variable cost increase of €550,000 euros (including 464,000 euros in commissions), in line with the growth in JAZZ revenue.
 
IMPLANET held the remaining operating expenses at a stable level (0.9 percent), despite a 19 percent increase in R&D, mainly due to the cost of protecting its intellectual property. These costs should remain stable, as the executives believe the firm has an adequate structure to cope with its medium-term growth.
 
Implanet thus recorded a 10 percent improvement in its operating loss to 6.881 million euros as of Dec. 31, 2016 (compared with 7.632 million euros in 2015), and a 9 percent improvement in its net loss to 7.288 million euros vs. 8 million euros in 2015.

“2016 sales growth, notably with +70 percent in the U.S. market, combined with diligent cost control enabled us to improve our gross margin and operating results. We are confident in our ability to record further strong growth in JAZZ sales in 2017 by continuing to focus on clinical benefits for the patient, making JAZZ technology a benchmark in spine surgery,” said Ludovic Lastennet, CEO of Implanet. “The company’s structure is optimized for future growth, we should continue to realize a significant reduction in our cash requirements.”
 
2016 cash burn (free cash flow minus loan repayments) improved by 28 percent, to 6.3 million euros versus 8.8 million euros in 2015. As of Dec. 31, 2016, Implanet had cash and financial placements of 7.4 million euros vs. 7.1 million euros as of Dec. 31, 2015. Implanet also has the option of exercising, under certain conditions, 340 convertible bonds coupled with equity warrants (OCABSA) with L1 EUROPEAN HEALTHCARE OPPORTUNITIES FUND for 3.4 million euros.
 
Throughout 2016 and early 2017, Implanet experienced substantial growth in its primary development focus, the JAZZ technology platform. This continued growth was driven by conclusive results, notably in the United States and France.
 
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 U.S. Food and Drug Administration and the CE mark. Based near Bordeaux in France, IMPLANET established a U.S. subsidiary in Boston, Mass., in 2013. IMPLANET is listed on Compartment C of the Euronext regulated market in Paris, France.