2016: a historic year for VEXIM

2016: a historic year for VEXIM

22 March 2017 / 7 h 00

✓ Strong growth in SpineJack® sales in 2016: +33%, at €18.5 million
✓ Strong gross margin: 72,2% of sales (vs. 71,5% in 2015)
✓ Strong cash position: €9.8 million as of December 31st, 2016 (+ €0.3 million vs. June 30th, 2016)

--> 2017 objectives: Perspectives of profitable growth
✓ Sales growth of +30% to +35% (organic)
✓ Positive net income and operating income throughout the full year
✓ US FDA 510(k) filing planned in the last quarter for SpineJack®
✓ Expanding R&D pipeline for spine medical devices

Toulouse, March 22nd, 2017 (7:00 AM CET) – VEXIM (FR0011072602 – ALVXM), a medical device company specializing in the minimally invasive treatment of vertebral fractures, today announces its consolidated annual results (IFRS [1]) as of December 31st , 2016 [2] .

« Our 2016 results represent a historic turning point for Vexim. Vexim has reached profitability and generated a positive cash flow over the second half of 2016. These excellent results validate our profitable growth strategy. This trend should continue during 2017, as we expect sales growth of 30% to 35%, and full-year profitability. We expect to launch SpineJack® in the United States – the largest market for vertebral fractures – in 2018, further generating strong sales growth. We will decide and announce our business strategy for the US, aimed at capturing market share and building shareholder value, later this year. These achievements demonstrate that Vexim is on the right track to become a global leader in the market of spine trauma », said Vincent Gardès, CEO of Vexim.

Strong sales increase, solid gross margin on sales and positive net income in the second half of 2016 For the first time, and in order to comply with international standards, Vexim issues its consolidated financial statements, in accordance with International Financial Reporting Standards (IFRS). Appendixes, on page 9 of this press release, include the conversion tables from French accounting standards to IFRS for the consolidated income statements of the financial years 2015 and 2016.

Strong sales increase, solid gross margin on sales and positive net income in the second half of 2016 - Vexim

2016 highlights

 

New sales record in the 4th quarter, at €5.2 million;

 

Finalized patient enrollment for the international clinical trial intended to support our 510(k) submission to the FDA – announced on February 21st, 2017;

 

• Initiated a medico-economic study comparing the SpineJack® to conservative orthopedic management (bracing) on 100 patients with a 1 and 2-year follow-up;

 

Secured long-term cash position, thanks to a successful private placement of €10.4 million in January 2016;

 

• Strengthened our management team with the appointments of François Cathelineau as VP Operations, Sébastien Lemoine as VP International Sales & Market Development, followed by the appointment of Russell Powers as VP & General Manager of the US activities, in January 2017.

 

€18.5 million in sales: Vexim continues to expand at a steady pace (+33%)

 

 

Vexim’s sales for 2016 have reached €18.5 million, an increase of 33% compared to 2015. This significant growth underlines the effectiveness of the direct sales strategy implemented by the company for SpineJack® in Europe, as well as the broader adoption of the technology.

 

The gross margin on sales (“gross margin”) also increased by 35% compared to 2015, reaching €13.4 million (€6.3 million in the first half of 2016), representing 72.2% of sales. The gross margin maintained itself at a high percentage due to growing sales in Europe and competitive pricing, with the support of our direct-sales strategy. The 70.9% gross margin on sales in the second half of 2016 is explained by growing sales performance in countries with indirect distribution.

 

Impact of gross margin and cost control: strongly reducing annual losses and generating net profit in the second half of 2016

 

The second half of 2016 marked a historic turning point for Vexim, which proved its ability to achieve profitable growth and financial discipline.

 

Operating expenses only increased by 12% in 2016, up to €16.5 million, while sales grew 33% over the same period. Such control of operating costs contributed to further decrease the operating losses, from €4.8 million loss in 2015 to €3.2 million loss to in 2016. The net loss recorded in 2016, which includes income tax and finance costs of €0.5 million, is €2.7 million compared to €4.8 million in 2015.

 

For the first time since its creation in 2006, Vexim recorded a net profit of €0.1 million in the second half of 2016. This major step is the result of the strategy followed over the past two years by Vexim, with the aim of self-financing:

 

• Gained market shares in France and abroad, to drive further revenue growth;

 

• Used its technological advance to support competitive pricing and a high gross margin;

 

• Drew on productivity gains and effective cost control to maintain the beneficiary’s capacity and generate cash.

 

Positive cash flows in the second half of the year (+€0.3 million)

 

As of December 31st , 2016, the Group’s cash position stood at €9.8 million (vs. €9.4 million as of June 30th, 2016), boosted by a free cash flow of €0.3 million in the second half of the year. The current cash position and future cash flows should allow Vexim to self-finance, in line with its ambitions. Vexim plans to generate a positive free cash flow from operations over the full year in 2017.

 

2017 objectives: Perspectives for a strong and profitable growth

 

Despite an increasingly demanding “baseline” Vexim aims to keep achieving significant sales growth in 2017, combined with full-year profitability:

 

Expected strong sales growth of +30% to +35%;

 

Achieve profitability on a full-year basis;

 

FDA 510(k) filing in the United States during the last quarter, for an expected market launch in the first half of 2018;

 

Continue to expand abroad with new partnerships in Brazil, Australia and South Korea;

 

• Keep on innovating in the treatment of vertebral fractures, by developing new products to extend the current portfolio. To support Vexim’s accelerated development, the Board of Directors has approved a “technical” [3] project to transfer Vexim’s listing from Alternext to the regulated market of Euronext Paris.

 


Financial reporting schedule
1st quarter sales: April 19th, 2017*
*(Indicative dates, subject to modifications)

  1. The results have been audited and approved by the Board of Directors of Vexim on March 21st , 2017
  2. Consolidated financial statements presented in Appendix.
  3. Transfer of listing with no capital raising