Admedus Ltd (ASX:AHZ) remains focused on further developing its ADAPT® single-piece 3D aortic valve for the surgical aortic valve replacement (SAVR) and transcatheter aortic valve replacement (TAVR) markets after a transformative 2019 year.
While completing the divestment of non-core assets, Admedus has transitioned to become a structural heart company focused on the development of novel products using its proprietary ADAPT® tissue technology.
In a preliminary financial report for the period ending December 31, 2019, Admedus stated it was set to begin its pivotal first-in-human SAVR)trial of its 3D aortic valve this quarter.
Driving value in ADAPT® portfolio
Chief executive officer Wayne Paterson said: “2019 was a pivotal year for Admedus.
“The capital injection has enabled the company to concentrate on driving the value in its ADAPT® portfolio, reduce operating expenses and develop next-generation products for the structural heart market.”
2019 included the following highlights:
- Successful recapitalisation with the sale of distribution rights to CardioCel® and VascuCel® patch business to US-based LeMaitre Vascular Inc (including a $21.2 million upfront payment) and the part-divestment of the Infusion business for $6.3 million, resulting in a closing cash balance of $16.1 million;
- Total revenue of $17.1 million for the 2019 financial year compared with $25.6 million in 2018. FY2019 revenue includes $10.2 million from sales of ADAPT® products and $6.9 million of Infusion products - reflecting the contribution from the Infusion business until its part-divestment in May 2019 and the patch business until its sale to LeMaitre in October 2019;
- Gross profit for the group for the year was $8.3 million, representing a gross margin of 49% (in line with 2018);
- Selling, general and administrative expenses (SG&A) reduced to $31.6 million from $34.3 million in the prior year following a significant reduction in global headcount. The full impact of this reduction will be reflected in the 2020 accounts; and
- Net loss after tax reduced to $6.2 million compared with $24.7 million in 2018, including gains from the patch business sale as well as the part-divestment of the infusion business.