Attractive divestment of Contract Manufacturing subsidiary and Trauma/LOQTEQ® growth of 47% give aap a good start in 2014
In the first quarter of 2014 the Company continued to deliver on its strategic objectives, as illustrated by the following highlights:
- Strong sales growth of the Trauma/LOQTEQ® product portfolio: +47% (from EUR 1.5 million to EUR 2.2 million); LOQTEQ® growth stand alone of +175%
- Divestment of the non core contract manufacturing subsidiary EMCM for EUR 18 million
- Receiving a US patent on silver coating
The ongoing positive development of the Trauma/ LOQTEQ® portfolio was supported by:
- Sale driver were: Russia, Turkey, Italy, Spain, Czech Republic and Bulgaria
- Filing of registration documents for new LOQTEQ® products in countries such as Russia, Iran, Iraq
- Zero reports of any cold welding events in the first quarter
The Company's R&D activities remain on track, including the further extension of the LOQTEQ® portfolio with one new system in the first quarter of 2014. In February, the Company announced that it was granted a US patent covering its silver coating technology. This promising technology has the potential to prevent infections, one of the fundamental challenges in treating trauma patients. aap's development activities with Chinese partner eontech Co. Ltd. for resorbable magnesium technology is in the advanced stage of selection of the active material and preferred coating.
2014 and 2015 Outlook
As reported earlier, the Company has evaluated strategic options for its Biomaterial/bone cement subsidiary aap Biomaterials GmbH in Dieburg. After a thorough review, the Company believes that the value of both aap Implantate AG and aap Biomaterials GmbH may benefit from a spin off of aap Biomaterials GmbH; with the timing of such a transaction being an important consideration. The management board has appointed an experienced merger & acquisition (M&A) company to assist in the execution of this project.
The Company expects sales for the second quarter to be between EUR 7.6 million and EUR 8.2 million (Second quarter 2013 (excl. EMCM): EUR 6.6 million). The EBITDA forecast for the second quarter amounts between EUR 1.0 million and EUR 1.5 million (Second quarter 2013 (excl. EMCM): EUR 0.2 million).
The management board is reaffirming the sales and EBITDA outlook for the full year of 2014: Sales of EUR 35 million and an EBITDA of between EUR 5 million and EUR 6 million.
This release may contain forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
aap Implantate AG
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of the Frankfurt Stock Exchange. For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.