- 2022 sales up +15% to €2.4 million driven by international
business
- Significant improvement in the margin on cost of sales to
63% from 55% in 2021 thanks to an increased presence in high
value-added markets
- Exceptional income of €6.6 million resulting from the
abandonment of the current account held by the Otsuka Group in
favor of SMAIO
Regulatory News:
SMAIO (Software, Machines and
Adaptative Implants in Orthopaedics – Euronext
Growth Paris ISIN: FR0014005I80 / Ticker: ALSMA), a French player
specialized in complex spine surgery with a global offer comprising
software, today published its 2022 annual results1 approved by the
Board of Directors on April 11, 2023.
Philippe ROUSSOULY, Chairman and CEO of SMAIO, said: “The
year 2022 has allowed SMAIO to consolidate its foundations which
should enable it to achieve its main objectives for 2023: to
develop its surgical planning software solutions in new countries
and above all to accelerate the penetration of the North American
market, the leading spine market in the world. Indeed, we have
strengthened our presence there during 2022 by obtaining two 510(k)
registrations and by conducting educational programs and first
surgeries. In addition, since our IPO, which helped strengthen our
financial structure, we continue to work closely with our partner
and shareholder NuVasive, a U.S. leader in spine technology
innovations. Our goal is to achieve, during the first half of 2023,
an initial milestone of $3 million from this collaboration, as well
as recurring revenues from imaging analysis services performed by
SMAIO operators for NuVasive customers. As a result, we look
forward to 2023 with confidence as we focus on ramping up our
international development strategy, particularly in the U.S."
Annual results 2022
Simplified income statement (€
millions)
2022
2021
Sales figures
2.4
2.1
Operating income
3.2
3.1
Operating expenses
(7.2)
(6.4)
Operating profit/(loss)
(4.0)
(3.4)
Exceptional income/(expenses)
6.6
(0.3)
Net profit/(loss)
2.8
(3.1)
Sales amounted to €2.4 million in 2022, up +15% on the
previous year. This growth is mainly driven by international
operations, in particular by the ramping up of historical
distribution contracts in Spain and Scandinavia, by new agreements
signed in Greece and the Baltic States, and by the first surgeries
performed in the United States.
As in 2021, sales of implants and rods accounted for 95% of
SMAIO's activity and the software segment, with the Keops platform,
represents the balance. As a reminder, the latter segment is
expected to grow in the coming months, driven in particular by the
FDA 510(k) clearance for the Balance Analyzer 3D software and the
partnership and licensing agreement with NuVasive2 .
The margin on cost of sales improved significantly,
rising from 55% in 2021 to 63% in 2022. This is a direct
consequence of the better purchasing conditions negotiated in 2021
and also of the growth in international sales in high value-added
markets.
Other operating expenses increased mainly due to the
amortization of new instrument kits loaned out or given to
hospitals on consignment, the amortization of R&D costs
reflecting the innovation momentum, the depreciation of
inventories, and the commercial resources for the deployment of the
Kheiron system. Depreciation, amortization and operating provisions
amounted to €1.5 million, compared with €1.1 million in 2021. This
change is explained by the continued increase in the base of
R&D costs, a growing volume of instrument kits amortized over 5
years, and the recognition of the risk of obsolescence on
implants.
Taking into account the above-mentioned factors, 2022
operating income is down to €(4.0) million compared with
€(3.4) million in 2021.
The exceptional result amounts to €6.6 million and
results almost entirely from the dropping of the current account
held by Japanese group Otsuka - SMAIO's former core shareholder -
in favor of the Company for €7.4 million, as well as the merger
loss of the company Sylorus Robotics for a value of €(0.6)
million.
After taking into account a research tax credit of €0.3 million,
net income for 2022 is a profit of €2.8 million compared
with a loss of €(3.1) million for the same period in 2021.
Solid financial structure
Cash and cash equivalents at December 31, 2022 amounted to €5.69
million, compared with €0.57 million at December 31, 2021. This
increase is explained by the integration of the net proceeds of
€7.5 million from the capital increase carried out at the time of
SMAIO's IPO on Euronext Growth in April 2022. This level of cash
enables the company to cover the financing needs related to the
developments presented to the financial community at the time of
this capital increase.
Shareholders’ equity stood at €9.75 million at December 31,
2022, compared with €(0.62) million at December 31, 2021.
As a reminder, on February 1, 2022, Otsuka announced that it was
discontinuing its orthopedic business and decided to transfer its
shares to the Vice President of Operations of SMAIO, as well as its
current account, to SMAIO's sole other shareholder, Sylorus
Scientific3. It also decided to entirely cancel SMAIO’s current
account debt, thereby completely deleveraging the company.
2022 highlights: structural steps achieved to accelerate
penetration of the US market
- Partnership with NuVasive
As part of the partnership, NuVasive has committed to invest a
total of $10 million (€9 million4) in the Company, of which $5
million (approximately €4.5 million4) has already been invested at
the time of SMAIO's IPO in early April 2022, with the balance
consisting of milestone payments to be made once the Company has
obtained FDA 510(k) clearance for two software solutions
interfacing with the US group's technology platforms.
- Two 510(k) clearences to accelerate development in the
United States
In June 2022, SMAIO announced the granting of two FDA 510(k)
clearances for key components of its i-Kontrol platform: the
Balance Analyzer 3D surgery planning software and the K-rod
patient-specific union rod. With these clearances, SMAIO is able to
offer its i-Kontrol solution in North American medical centers.
- Success of the Sagittal Alignment Academy educational
programs
During the second half of 2022, SMAIO successfully held three
"Sagittal Alignment Academy" sessions for European (Copenhagen for
Northern Europe and Madrid for Southern Europe, in September) and
North American (Dallas, USA, in November) spine surgeons. Bringing
together several dozen surgeons, these programs aim to accelerate
the international distribution of SMAIO's technology.
Strategy and outlook: focus on US development,
internationalization and innovation
In line with the roadmap deployed since its IPO, SMAIO's
priority in 2023 will be to ensure:
1. the ramping up of the partnership with
NuVasive, focused on the development of a customized version of the
i-plan platform for NuVasive, entitling SMAIO to a first milestone
payment of $3 million. In parallel, the Company aims to develop an
image analysis service for NuVasive customers.
2. marketing the i-Kontrol solution in
Europe, the United States and Australia. To do so, the company will
rely on its own sales force, its partner NuVasive in the United
States, and a network of distributors and agents.
3. the development of innovative R&D
projects designed to improve the precision, speed and reliability
of spine surgery, with morphologically adapted guides manufactured
3D-printed from scans of the vertebrae to be operated on, enabling
implants to be accurately positioned in the pedicles, or
morphologically adapted trackers enabling the detection of
vertebrae in space in order to navigate them or to guide a robotic
arm.
About SMAIO
A precursor in the use of clinical data and imaging of the
spine, SMAIO designs global solutions for spine surgery
specialists. The Company has recognized expertise thanks to KEOPS,
its Big Data management software that has become a global reference
with more than 100,000 patient cases documented.
SMAIO offers spine surgeons a comprehensive platform, I-Kontrol,
incorporating planning, implants and related services, enabling
them to treat spinal pathologies in a safe, effective and lasting
way.
SMAIO is positioned at the forefront of innovation with the
ambition of providing surgeons with the first active robotic
solution enabling a high level of performance and repeatability to
be achieved.
Based in Lyon, France, SMAIO benefits from the skill and
expertise of more than 30 highly specialized staff.
For further information, please visit our website:
www.smaio.com
Next financial events:
- Annual General Meeting: June 20, 2023
- H1 2023 sales: July 18, 2023 (after market)
- H1 2023 results: October 18, 2023 (after market)
Listing market: Euronext Growth Paris ISIN:
FR0014005I80 Mnemonic: ALSMA
Disclaimer
This press release contains non-factual elements, including, but
not limited to, certain statements regarding future results and
other future events. These statements are based on the current
vision and assumptions of the management of the Company. They
incorporate known and unknown risks and uncertainties that could
result in significant differences in results, profitability and
expected events. In addition, SMAIO, its shareholders and its
affiliates, directors, officers, counsels and employees have not
verified the accuracy of, and make no representations or warranties
about, statistical information or forecast information contained
within this news release and that originates or is derived from
third party sources or industry publications; these statistical
data and forecast information are only used in this press release
for information purposes. Finally, this press release may be
drafted in French and in English. In the event of differences
between the two texts, the French version will prevail.
1 Audit procedures have been carried out on annual accounts. The
management report, the corporate governance report, the annual
financial statements and the auditor's report on these annual
financial statements will be posted on the Company's website
(www.smaio-finance.com) and on the Euronext website
(www.euronext.com). 2 On February 9, 2023, Globus Medical, a
U.S.-based company that manufactures and markets a full range of
spinal devices and implants, signed an agreement to acquire
NuVasive in an all-stock transaction valued at approximately $3.1
billion. As of the date of the publication of the annual financial
report and the information available to SMAIO, NuVasive owns 15.55%
of the Company's share capital. To the best of the Company's
knowledge, this transaction does not impact the commercial
agreement between SMAIO and NuVasive. 3 Sylorus Scientific SA is
80% owned by Philippe Roussouly, CEO of SMAIO, and by Pierre
Roussouly (Philippe's father) for the balance. 4 Based on an
indicative exchange rate of 1 euro for 1.10 dollar
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230411005780/en/
SMAIO Philippe Roussouly Chief Executive Officer Renaut
Fritsch Chief Financial Officer investors@smaio.com
NewCap Dusan Oresansky/Quentin Massé Investor Relations
smaio@newcap.eu Tel.: +33 (0)1 44 71 94 92
NewCap Arthur Rouillé Media Relations smaio@newcap.eu
Tel.: +33 (0)1 44 71 94 98
SMAIO (EU:ALSMA)
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