Artimplant AB (Artimplant), a Sweden-based biomaterials company, has announced its full year 2008 results. It has reported net sales of SEK12.1 million for the year 2008, compared to net sales of SEK16.27 million in the prior year. Loss for the year 2008 was reported to be SEK22.63 million, compared to loss of SEK13.45 million in the year 2007.
Net revenue for the fourth quarter amounted to SEK4.6 million (5.0) and for January-December to SEK12.1 million (16.3)*
The net loss for the fourth quarter totaled SEK6.0 million (2.1) and for January-December SEK22.6 million (13.5)
Earnings per share for the fourth quarter amounted to SEK-0.10 (-0.04) and for January-December SEK-0.38 (-0.23)
Sales of Artelon Spacer to end-customers totaled approximately 3,500 (3,900) units, of which 900 (1,100) were during the fourth quarter
Sales of Artelon Tissue Reinforcement to end-customers totaled approximately 1,000 (600) units, of which 300 (200) were during the fourth quarter
An exclusive distributor agreement for the US regarding Artelon CCL for cruciate ligament reconstruction in dogs has been signed with BioMedtrix
Proof-of-concept animal study commenced for treatment with Artelon of osteoarthritis in the knee
Over 11,000 patients have been treated with Artelon implants up to and including December 2008
EVENTS AFTER THE PERIOD-END
Spacer agreements with Small Bone Innovations have been made non-exclusive and Artimplant’s margin per unit sold has been increased significantly
Financial results
Net sales for the fourth quarter amounted to SEK4.6 million (5.0) and for the full year SEK12.1 million (16.3). Net sales derived primarily from product sales with associated license revenue and during the period January-December, 79% of
revenue originated from Artimplant’s two US licensees, Small Bone Innovations (SBi) and Biomet Sports Medicine.Product sales for the whole year were on a par with the preceding year and consequently the reduction in turnover compared with the preceding year refers primarily to one-off and projectmilestone income. The net sales for the fourth quarter include a positive
effect of SEK1.3 million from a transition to reporting license revenue in the quarter during which it is generated instead of with a delay of one quarter as was the case previously.
The gross margin for the third quarter was 80% and 65% for the full year. The low production volume had a negative impact. Production capacity was scaled up during 2007 and has been adapted to higher production volumes.With an increase in volume the gross margin will improve considerably.
The operating loss for the fourth quarter was SEK6.0 million (2.7) and for the full year SEK24.3 million (15.6). Operating expense, excluding the cost of goods and services sold, was slightly higher than the preceding year, for both the fourth
quarter as well as for the full year. It is mainly investments in sales and marketing, which for the full year have driven up costs by SEK2.6 million
compared with the same period last year.
The net loss for the fourth quarter amounted to SEK6.0 million (2.1) and for the full year SEK22.6 million (13.5). The net loss for the full year has not been materially affected by currency exchange fluctuations. Earnings per share for the
third quarter amounted to SEK-0.10 (-0.04) and for the full year SEK-0.38 (-0.23).
Investments and cash position
Investments during January-December 2008 totaled SEK0.6 million (3.8) with SEK 0.5 million (3.2) attributable to investments in intangible assets.
The total cash flow for the year was SEK-17.9 million (-19.5). The deterioration in results compared with the preceding year was compensated for by a change in operating capital, which in the main was affected positively by an advance royalty payment from SBi and lower investments. At the end of the period cash and cash equivalents amounted to SEK31.4 million (49.2). Artimplant’s board of directors and executive management are continually reviewing the company’s liquidity situation and are currently examining the possibility of securing an operating capital credit facility.