- Revenue : €1,4m
- Strongly impacted by COVID-19 in March
- Annual Shareholders Meeting scheduled on May 14 in a closed
virtual session
Regulatory News:
SpineGuard (Paris:ALSGD) (FR0011464452 – ALSGD), an
innovative company that deploys its DSG® (Dynamic Surgical
Guidance) sensing technology to secure and streamline the placement
of bone implants, reported today its first-quarter 2020
revenue.
Pierre Jérôme, Chairman & CEO of SpineGuard, said: «
Our smart drilling instruments being mainly used to secure elective
spine surgeries, SpineGuard sales, since March, have been
significantly impacted by the postponement of those interventions
due to the massive influx of COVID-19 patients in European and
American hospitals in particular. Before that we had well started
the year, ahead of plan by the end of February. Given the current
trend, analyst reports and customer feedback, our Q2 revenue will
be soft. However, we anticipate a strong catch-up effect in the
coming months as patients, whose surgery has been postponed, are in
pain and will be operated on. The simplicity and autonomy of our
PediGuard single use sterile devices as well as the innovative
nature of the recently CE marked DSG Connect interface will be real
assets when the backlog of elective spine surgeries will resume.
For now, to face the crisis triggered by the virus outbreak, our
priority is to protect the team and preserve cash in the context of
the Safeguard procedure initiated in France and the Chapter-11
proceedings initiated in the USA in mid-February to amend our debt.
We are working on both processes while preparing the launch of DSG
Connect and advancing discussions for the set-up of structuring
strategic partnerships. »
Global revenue in the first quarter of 2020 was €1,376k vs.
€1,692k in Q1 2019, a 16.5% decrease.
SpineGuard sold 1,536 DSG units in the first quarter of 2020 vs.
2,028 units in Q1 2019.
871 units were sold in the USA vs. 1,056 units during the same
period in 2019. The COVID-19 impact on the second half of March was
significant with quasi complete stop of orders and shipments.
Overall, US revenue decreased 20% as reported (-23% cc) at €1,088k
vs. €1,365k.
Outside the USA, revenue grew 2% at € 288k vs € 283k in the
first quarter of 2019. The solid start of the year allowed for this
performance. However, the activity also strongly dropped during the
second half of March in the vast majority of the areas covered by
our distributors. Notably, there was no revenue recorded for China
or the Middle-East over the quarter.
In order for the company to protect the team and manage its cash
in the best possible way during this unprecedented crisis and, at
this point, with very scarce visibility about its duration and
magnitude, the Company took the following steps:
- Work from home and partial activity for most of the workforce
in France and the USA.
- In France, as allowed by the government, differed payments of
social benefits to the public agencies.
- Anticipated filing requesting the payment of the R&D tax
credit scheme (CIR) for an amount of €174k.
- Cost saving programs: the company has taken various measures to
reduce its costs while reinforcing it rules of engagement policies.
Many congresses and events have been cancelled or postponed and all
travel has been suspended.
Safeguard procedure in France and Chapter 11 proceedings in
the US
SpineGuard’s Board of directors and management deem that the
safeguard proceedings will allow for negotiation of the repayment
of its debt and thus decrease its burden on the company. This
protection, effective both in France and in the United States,
grants the company the possibility to focus more effectively on its
activities, its customers and to conduct successfully its strategy
centered on its DSG technology deployment through industry
partnerships.
The safeguard proceedings in France is now in the so-called
“observation” phase awarded by the French Court of commerce. The
observation phase lasts 6 months and can be extended by the Court.
Its main purpose is to prepare a safeguard plan enabling the
amendment of the company’s debt. At the end of this observation
phase, the French Court of commerce will review the safeguard plan,
hopefully validate it and enforce its execution according to a
defined schedule.
In the United States, the Chapter 11 case filed by SpineGuard,
Inc., the Boulder, Colorado based subsidiary, is also in its
initial phase. The company will present a preliminary Chapter 11
plan on June 15, 2020 to the US Court of commerce.
The same plan will be proposed by SpineGuard in France and in
the USA. Both the parent and the subsidiary company wish to
negotiate a consensual and coordinated amendment of the debt in
these parallel proceedings.
Now assisted by Maître Thevenot, the trustee designated by the
French Court of commerce, SpineGuard is in discussions with its
main creditors to amend the venture debt and FEI Innovation loan
from Bpifrance and more generally propose a safeguard plan.
It is reminded that both the ‘sauvegarde’ and Chapter 11
processes have frozen the possibility to exercise pledges and
warranties allowed to creditors. The ongoing safeguard proceedings
do not exclude an agreement that could shorten the process.
Reminder of the 2020 perspectives
The collaboration with our industry partner Adin Dental Implant
Systems / ConfiDent on the dental application will intensify in
2020 as soon as the COVID-19 pandemic decreases with the
co-development of a next generation DSG embedded product, fruit of
the feedback on the first generation tested in 2019.
The search for strategic alliances with industry players notably
for the robotic application continues, despite the crisis, led by
venture bank Healthios Capital Markets.
Lastly, the DSG Connect platform is now CE Marked cleared and
the FDA filing is progressing. We are preparing for its European
launch. This strategic high-value innovation is already used
experimentally by the company to guide surgical robots. It will be
deployed to the full PediGuard range and Smart Screw products. The
company believes that it will bring a renewed sales momentum in
particular in Europe and the USA, but also in other high potential
geographies such as Brazil, Saudi Arabia and Turkey. Of course, the
pace will highly depend on the containment of the COVID-19 outbreak
and the resuming of a normal activity in the hospitals.
Annual Shareholders Meeting of 14 May 2020
In compliance with recent legislation (bill of 23 March 2020 to
respond to COVID-19 and decree dated 25 March) and per the
recommendations of the French SEC (Autorité des Marchés Financiers
or AMF), SpineGuard confirms that the Annual Ordinary and
Extraordinary Shareholders Meeting will take place on May 14, 2020
at 8:45 am (CET), yet it will not be held in public. It is hereby
reminded that AMF strongly encourages the shareholders to vote,
such right being a fundamental prerogative of each shareholder.
Such right shall be exercised through a vote by proxy in case of a
non-publicly held shareholders meeting and, except for particular
cases, prior to the said shareholders meeting.
As of the date of this news release, the logistics details are
being worked out for the Shareholders meeting to be held in perfect
conditions with the on-going pandemic situation. The Shareholders
Meeting will be held via web conference. The shareholders
presentation will be released on the company’s web site at 8:45 am
(CET) on the day of the meeting at
https://www.spineguard.com/fr/investisseurs/documentation/
Connection details to the web conference will be provided at a
later date.
Questions will be possible using the available chat during the
conference or be sent in advance at either of
investors@spineguard.com or spineguard@newcap.eu
About SpineGuard® Founded in 2009 in France and the USA
by Pierre Jérôme and Stéphane Bette, SpineGuard is an innovative
company deploying its proprietary radiation-free real time sensing
technology DSG® (Dynamic Surgical Guidance) to secure and
streamline the placement of implants in the skeleton. SpineGuard
designs, develops and markets medical devices that have been used
in over 75,000 surgical procedures worldwide. Fifteen studies
published in peer-reviewed scientific journals have demonstrated
the multiple benefits DSG® offers to patients, surgeons, surgical
staff and hospitals. Building on these solid fundamentals and
several strategic partnerships, SpineGuard has expanded its
technology platform in a disruptive innovation: the « smart »
pedicle screw launched late 2017 and is broadening the scope of
applications in dental implantology and surgical robotics. DSG® was
co-invented by Maurice Bourlion, Ph.D., Ciaran Bolger, M.D., Ph.D.,
and Alain Vanquaethem, Biomedical Engineer.
For further information, visit www.spineguard.com
Disclaimer The SpineGuard securities may not be offered
or sold in the United States as they have not been and will not be
registered under the Securities Act or any United States state
securities laws, and SpineGuard does not intend to make a public
offer of its securities in the United States. This is an
announcement and not a prospectus, and the information contained
herein does and shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
securities referred to herein in the United States in which such
offer, solicitation or sale would be unlawful prior to registration
or exemption from registration.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200423005420/en/
SpineGuard Pierre Jérôme CEO & Chairman Tel.: +33 1
45 18 45 19 p.jerome@spineguard.com
SpineGuard Manuel Lanfossi CFO Tél.: +33 1 45 18 45 19
m.lanfossi@spineguard.com
NewCap Investor Relations & Financial Communication
Mathilde Bohin / Pierre Laurent Tel.: +33 1 44 71 94 94
spineguard@newcap.eu
Spineguard (EU:ALSGD)
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