News blog
Lombard Medical Technologies
- BY: Andrew Hore |
- POSTED: 23/08/2010 |
Medical device developer Lombard Medical Technology is growing the revenues of its Aorfix abdominal aortic aneurysm stent in the five main EU markets.
These markets (France, Germany, Italy, Spain and the UK) accounted for £622,000 of the £1.45m generated in the first half of 2010, compared with £348,000 of the revenues of £1.25m in the first half of 2009. The revenues from US clinical trials are falling as is the contribution from the Greek market.
Aorfix is an endovascular stent graft for the treatment of abdominal aortic aneurysms, which are a balloon-like enlargement of the aorta that can rupture and cause death. The selling point of Aorfix is that it can handle bends in the aorta.
The market is worth $1bn, with one-half in the US and 28% in the five main EU markets. The market value is expected to grow to $1.5bn by the end of 2015.
Lombard is making progress towards regulatory approval in the US. The next steps are engineering, bench testing and shelf-life and manufacturing and quality assurance. These two modules will be filed by the end of 2010. Clinical data on a minimum of 120 patients should be filed in the first half of 2011.
Lombard is changing its manufacturing set-up by transferring stent graft production from Didcot to Prestwick and Didcot will concentrate on assembling the device. This will help to increase capacity.
The reported interim pre-tax loss edged up from £4m to £4.18m. Research and development spending increased from £2.33m to £2.49m, while marketing costs rose sharply. The R&D tax credit declined from £545,000 to £471,000.
Lombard raised £12.1m (£13.3m gross) at 1p a share. There was a £3.26m cash outflow from operations in the first half of 2010, which is slightly higher than the first half of 2009.
There was £10.25m of cash at the end of June 2010. The cash should last until the fourth quarter of 2011. That is long enough for the business to show it has progressed but not long enough to for it to be cash generative. It could provide enough time for Lombard to get a reaction from the US regulators from the filing of its clinical data.
At 0.85p, down 0.025p, Lombard is valued at £18.5m.
Download the August edition of AIM Journal at http://www.hubinvest.com/AIMPDFAugust2010_11.pdf
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