Preliminary Results for year ended 31 December 2008
London, UK, 1 April 2009 – Lombard Medical Technologies PLC (“Lombard Medical”, “LMT” or “the Company”), the specialist medical device company, today announces its results for the year ended 31 December 2008.
Operating Highlights
• Number of patients treated with Aorfix™ more than doubled to 347 in 2008 (2007: 163)
o Total worldwide implantations now exceed 800
• 500 commercial cases in voluntary registry (RADAR) show:
o Positive clinical results even in challenging patients
• Growing key opinion leader support in the medical community
• Good progress made with pivotal US trial for Aorfix™:
o FDA grant approval to increase the number of trial centres and implement an improved training programme
o 77 patients recruited into the trial during 2008
o 38 centres trained and qualified to treat high-angle neck aneurysms
• European Aorfix™ trial in high-angle neck aneurysms completed and data submitted to regulatory authority
• Aorfix™ launched in Russia
• Restructuring plan implemented:
o Headcount reduced to 88 at 31 December 2008 (2007: 109) and reduced further in 2009 to 58
o US trial for EndoRefix™ suspended pending further funding
Financial Highlights
• £8.1 million (£7.3 million net of expenses) raised in October 2008 and January 2009 in addition to £7.6 million (£7.1 million net of expenses) fundraising completed January 2008
• Revenues increase by 94% to £1.95 million (2007: £1.0 million)
• Significant improvement in gross margin to 43% (2007: 21%)
• Investment in R&D increased to £7.5 million (2007: £6.4 million)
• Other operating expenses excluding investment related items reduced by 10% to £4.7 million (2007: £5.2 million)
• Year-end cash balance of £0.8 million (2007: £2.7 million)
• Current cash balance £4.8 million after £0.3 million restructuring costs in Q1 2009
Brian Howlett, Chief Executive of LMT, commented:
“Despite challenging market conditions we succeeded in raising more than £15 million which is testament to the growing clinical support for our lead product, the Aorfix™ stent graft. We also filed the ARBITER II trial data and significantly increased the number of patients recruited into the Aorfix™ US trial. Additionally, we made significant financial progress with revenues nearly doubling, improved margins and a reduced cash burn.”
Enquiries:
Lombard Medical Technologies PLC Tel: +44 (0) 1235 750 800
Simon Neathercoat, Non-executive Chairman
Brian Howlett, Chief Executive Officer
Tim Hall, Finance Director
Financial Dynamics Tel: +44 (0) 20 7831 3113
Jonathan Birt / Susan Quigley
Nomura Code Securities Limited Tel: +44 (0) 20 7776 1200
Juliet Thompson / Richard Potts
Notes to editors
About Lombard Medical
Lombard Medical Technologies PLC is a medical devices group developing stent grafts and other medical products for use in the treatment of vascular disease. The Company’s lead product, Aorfix™, is an endovascular stent graft for the treatment of abdominal aortic aneurysms (AAAs), a balloon-like enlargement of the aorta which, if untreated, may rupture and cause death. Approximately 1.7 million people have AAAs in the US where it is the 13th largest cause of death. The market for endovascular stent grafts for the treatment of AAA is currently worth over $600 million and is expected to grow to around a $1 billion by 2010. Aorfix™ is currently being commercialised in the EU, with a pivotal clinical trial ongoing in the USA.
The Company’s Polymer Coatings Division has developed a novel hydrophilic surface treatment to reduce friction on catheters called GlideMax™, which is available for licensing, and is using its polymer coating technology in a number of research collaborations developing novel products for the $5 billion drug-eluting stent market.
The Company is headquartered in Oxfordshire, with operations in Yorkshire, Ayrshire and Boston, USA.
Further background on the Company can be found at www.lombardmedical.com.