Financial

Implanet announces 2020 revenue of €6 million

byChris Stewart

January 19, 2021

Annual revenue impacted by the health crisis associated with the pandemic
Fourth quarter JAZZ^® sales up 9% compared with the fourth quarter of 2019, with 34% growth in the United States

January 19, 2021

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

IMPLANET (Euronext Growth: ALIMP, FR0013470168, eligible for PEA-PME equity savings plans) (Paris:ALIMP), a medical technology company specializing in vertebral and knee-surgery implants, today announced its provisional unaudited fourth-quarter revenue, annual revenue and cash position at December 31, 2020.

Ludovic Lastennet, Implanet’s Chief Executive Officer, commented: “Although down versus prior year, our revenue totaled €6 million in 2020, illustrating our ability to remain resilient in a period heavily impacted by the public health crisis and the cancellation or postponement of surgical operations. In the fourth quarter, the decrease in Knee activity in France was partly offset by significant growth in JAZZ® sales, notably in the United States, both directly and through our partnership with SeaSpine. We made the most of an atypical year to examine external growth opportunities. The acquisition initiative we recently announced would enable us to reach critical mass in terms of revenue with the goal of breaking even in terms of operating cash¹ in 2022, now a priority objective. With the pandemic resolution on the horizon, we are positioned to rapidly return to our late 2019 growth rate and are more focused than ever on sustained commercial development”.

Revenue (€ ‘000s – IFRS)*	2020	2019	Change
First-quarter revenue	1,567	1,904	-18 %
Second-quarter revenue	1,029	1,915	-46 %
Third-quarter revenue	1,749	1,739	+1 %
Spine (JAZZ®)	1,063	979	+9 %
Knee	604	871	-31 %
Total fourth-quarter revenue	1,667	1,850	-10 %
Spine (JAZZ®)	3,768	4,552	-17 %
Knee	2,244	2,855	-21 %
Total full-year revenue	6,012	7,407	-19 %

* Unaudited data

In the fourth quarter of 2020, Implanet accelerated JAZZ® deployment in the United States and recorded substantial growth. Direct sales and those associated with SeaSpine grew 34% compared with Q4 2019. This performance offset the 18% decrease in sales in France and Germany, due to the second containment, and led to a 9% increase in JAZZ® revenue to €1.06 million.

Sales of the MADISON^TM knee range fell by 31%, primarily as a result of the decrease in activity in France starting in early November and the postponement of scheduled surgeries, scheduled for the end of 2020, to the first few months of 2021.

Over 2020 as a whole, Implanet recorded revenue of €6.01 million, a decrease of 19% over prior year (€7.41 million in 2019). Activity, which had resumed in June 2020 with a return to 2019 revenue levels, again slowed significantly in France and across Europe in early November with the announcement of a second lockdown. Knee activity in France was more impacted by the situation than the rest of the world. In the United States, the public health situation forced Implanet and KICo to postpone to 2021 the first MADISON^TM surgical procedures originally scheduled for October.

Regarding JAZZ® activity, revenue totaled €3.77 million in 2020, down 17% compared with 2019.

In 2020, Implanet sold 7,712 JAZZ® units compared with 9,171 in 2019, a decrease of 16% by volume, notably as a result of the public health crisis associated with the COVID-19 pandemic. The solid upturn in international sales in Q4 2020 (+45% in the United States and +23% in the Rest of the World by volume) compared with Q4 2019 offset the fall in sales in France (-21% by volume).

Knee activity recorded a 21% decrease in annual revenue to €2.24 million, primarily impacted by the lockdown periods in France.

Cash position

At December 31, 2020, Implanet had a cash position of €1.1 million. The Company has set up a €5 million bond financing line, via the issuance of 500 convertible bonds, in addition to the €0.9 million remaining balance on the previous financing program signed in February 2020. Within the framework of the acquisition project announced on January 13, 2021, Implanet has agreed this new financing line with Nice & Green SA that will enable it to finance the acquisition and the new entity’s operating cash requirements through 2021 and 2022.

Key 2020 highlights

Strengthening of the development of the direct sales model in key European markets, such as Germany, led by the appointment of Stephan Collarday as Country Manager Germany;
CE marking extended to 2024 by the European authorities for all Implanet ranges;
JAZZ Cap® intellectual property extended to Japan;
FDA clearance for the Mariner Cap System in the United States, which combines SeaSpine Mariner®’s pedicle screw system and Implanet’s unique JAZZ Cap® technology;
Extension of the distribution network with the signing of a marketing partnership in Mexico for products based on its JAZZ® platform.

2021 strategy and outlook

In 2021, Implanet will focus its strategy on:

Continued development of the direct sales model in its key markets, in order to immediately benefit from the effects of the post-health-crisis recovery;
Capitalize on the recent approvals granted and partnerships signed to develop activity in new countries;
Documented clinical evidence for every Implanet range, in order to respond to the strengthening of regulatory requirements in coming years;
The digitalization of training tools in order to respond to continued clinical changes resulting from the health crisis;
The integration of a new company, enabling us to reach a critical mass in terms of revenue from 2021;

The execution of this strategy will be dependent on the evolution of the health situation over the first months of 2021.

Upcoming financial event:
2020 annual results, Tuesday February 16, 2021 after market close

About Implanet
Founded in 2007, Implanet is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its activity revolves around two product ranges, the latest generation JAZZ® implant, designed to improve the treatment of spinal pathologies requiring vertebral fusion surgery, and the MADISON implant designed for first-line prosthetic knee surgery. Implanet’s tried-and-tested orthopedic platform is based on product traceability. Protected by four families of international patents, JAZZ® and MADISON have obtained 510(k) regulatory clearance from the Food and Drug Administration (FDA) in the United States, the CE mark as well as the ANVISA authorization in Brazil. Implanet employs 36 staff and recorded 2019 sales of €7.4 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.

The Company would like to remind that the table for monitoring the equity line (OCA, OCAPI, BSA) and the number of shares outstanding, is available on its website: http://www.implanet-invest.com/suivi-des-actions-80

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 forwardlooking 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 16, 2018 under number D.18-0337, as well as in the annual financial report of December 31, 2019 and the half-yearly financial report of June 30, 2020 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.

¹ Corresponding to cash flow plus or minus the change in working capital requirements.