One of Wales’ leading life sciences firm, Creo Medical, has seen its share price rally after confirming that revenues for 2021 are expected to be ahead of market expectations at £25m despite the challenges of the pandemic.
The Chepstow-based and acquisitive Alternative Investment Market (AIM) listed business, which focuses on the emerging field of surgical endoscopy, said it was delivering on its ‘build, buy and partner’ strategy.
On the back of the upbeat trading statement, Creo Medical’s share price has risen around 50p to £170p in recent days adding around £91m to its market capitalisation (£311m). However, this time last year its share price was at £2.33p.
It said it has seen a significant uplift in orders and adoption of its Speedboat Inject device in the US and Europe. Speedboat Inject offers large cost savings in lower gastrointestinal (GI) procedures versus a traditional surgical procedure as well as improved clinical outcomes.
Last year Creo raised £35m from a share issue to support its expansion plans. It also acquired Albyn Medical, a Spanish specialist in the supply of GI products to healthcare providers, for £25m.
Creo, which listed on AIM in 2016 and whose shareholders include the Development Bank of Wales, said the pipeline of doctors waiting to be trained as part of the group’s clinical education programme has more than doubled from the number trained in 2020. It said it trained a significant number of leading clinicians last year, who are now product users.
It expects this number to rise in 2022. and in order to service this increased demand, Creo has increased its direct sales force by 25% since the beginning of 2021.
It has also invested in a new US headquarters with a learning centre and fully equipped training laboratory, has helped to support Creo’s commercial roll-out in the key US market.
As of the end of December it had a net cash position of approximately £44m.
Chief executive Craig Gulliford said: "I am pleased to report on what has been a successful year for Creo, with strong progress against our ‘build, buy, and partner’ strategy. We have seen significant growth in commercial orders and adoption of Speedboat Inject in the US and Europe, the successful acquisition of Aber Electronics, as well as agreeing heads of terms with a number of third parties to provide access to our advanced energy technology.
"Particularly encouraging has been completing the transition from a distribution model in core markets to an integrated direct sales team, built from the ground up in the US and through successful integration of Albyn Medical into our European business.
“We see the Covid-19 outlook improving, with an increased backlog of doctors gearing up to perform procedures as staffing challenges reduce, and restrictions ease across the globe.
“2022 has already started positively, with strong performances seen from our core product portfolio. Throughout the rest of the year, we look forward to continuing to execute and expand our three-tiered strategy through the education and training of clinicians, the roll-out of our product portfolio in Asia-Pacific and further commercial orders and adoption of Speedboat Inject in the US and Europe.
" With our strong cash position and clear strategy, Creo is well positioned to deliver shareholder value in 2022. We look forward to updating shareholders in more detail in due course.”
