IMPLANET: Buoyant Growth in Revenue in 1H 2014: +21% to €4.0 Million

Regulatory News:

IMPLANET (Paris:IMPL) (Euronext: IMPL, FR0010458729, PEA-PME eligible), a medical technology company specializing in vertebral and knee-surgery implants, today announced its revenue for the second quarter and first half of 2014.

Ludovic Lastennet, CEO of Implanet, states: "The revenue recorded over the first half of the year reflects Implanet’s positive development dynamic. We are continuing our efforts to accelerate JAZZ sales, the ramp up in the United States has enabled us to already exceed the total annual sales recorded in 2013. We are pleased with the progress in Knees, which is an integral part of our commercial strategy. We are now seeing the first results of the strategic decisions implemented in 2013, which consist of refocusing our effort and investment in our proprietary product ranges. The Company’s rapid structuring in the U.S. over the first half will enable our American team, backed by 14 sales agencies and a compelling economic proposal, to accelerate the deployment of our JAZZ technology in that market.”

Audited data

Half-year 2014 sales of JAZZ exceed full year 2013 sales

In the first half of 2014, Implanet recorded revenue of €4,001 thousand (+21%), thanks to the buoyant sales dynamic of its Spine (JAZZ) and Knee ranges. Export revenue totaled €1,603 thousand over the first half and accounted for 40% of sales.

JAZZ is receiving a positive response in every region in which it is presented, resulting in 2.3x half-year revenue growth multiple, to €879 thousand. Over the first six months of the year alone, Implanet sold a total of 2,174 units (+127%), thus exceeding the total number of JAZZ implants sold in full year 2013 (1,953 units). During the first half, more than 300 surgeries were carried out using our JAZZ technology.

Solid first half performance for the Knee-surgery line

Revenue from the Group’s Knee activities recorded significant growth of +20%, totaling €2,357 thousand. This validates both the product development strategy and the distribution model changes adopted by management for this segment. In 2013, the Company altered the product mix, gradually withdrawing from Hip surgery and focusing on Knee surgery. The launch of a new ligament rebalancing system as well as the encouraging first developments of a revision implant system, will serve to strengthen the Company’s position in the Knee-surgery segment.

Continuation of the upsurge in JAZZ sales over the second quarter

Over the second quarter, the quarter in which Implanet typically records its lowest revenue, the Company reported revenue of €1,954 thousand (+40%), driven by the acceleration in JAZZ sales and by the solid performance in Knees. Export revenue totaled €798 thousand and accounted for 41% of total sales.

Over the quarter, revenue from the Company’s Spine activity (JAZZ) grew by a 3.2x multiple, totaling €455 thousand. The upsurge in JAZZ sales has been confirmed, with sequential growth of +7% over the first quarter of 2014. In the second quarter, Implanet sold a total of 1,102 units.

Revenue from Knees continued to grow, reaching €1,112 thousand (+33%), whilst the Company’s Hip activity saw sales decrease to €387 thousand (-9%), in accordance with its planned gradual withdrawal from this low value-added market.

Next financial press release: results for the third quarter of 2014, 15 September, 2014

About IMPLANET
Founded in 2007 and based near Bordeaux, IMPLANET is a medical technology company that manufactures high-quality implants for orthopedic surgery. Its flagship product, the JAZZ latest-generation implant, aims to improve the treatment of spinal pathologies requiring vertebral fusion surgery. Protected by four families of international patents, JAZZ has obtained 510(k) regulatory clearance from the Food and Drug Administration (FDA) in the United States and CE mark. IMPLANET employs 38 staff and recorded 2013 sales of €6.7 million.

For further information, please visit www.implanet.com