Creo sales grow, losses widen as company expands

Surgical endoscopy-focussed medical device company Creo Medical Group reported a “strong” set of final results on Friday, with “significant” internal development and expansion despite the Covid-19 pandemic.

The AIM-traded firm said total sales in the year ended 31 December came in at £9.4m, up from £0.01m year-on-year.

It said it had cash and cash equivalents of £45.1m at year-end, down from £81m a year earlier.

Creo’s operating loss widened to £23.5m from £18.9m, including £0.7m of share-based payments, which was in line with management expectations and reflected increased research and development and commercial activities.

The company’s net cash outflow from operating activities grew to £16.3m from £11.9m in 2019.

On the operational front, Creo noted the acquisitions of Albyn Medical and Boucart Medical, providing it with a direct sales presence in key Europe markets, and strengthening its commercial team.

David Woods was appointed as chief commercial officer in August, bringing a “wealth of knowledge and experience” to the business, while a direct sales team was recruited in the United States and Asia-Pacific geographies.

Creo said its commercial, marketing and distribution resource increased tenfold, with the company now having a direct presence across five countries in Europe, four regions of the US, and a “centralised hub” in Asia.

It gained CE-marking for an additional five devices, and achieved US Food and Drug Administration (FDA) 510(k) clearance for’SlypSeal’, ‘MicroBlate Fine’, and ‘MicroBlate Flex’ post-period end.

The first clinical use of MicroBlate Fine in a successful pancreatic tumour ablation also occurred, with the board describing Creo’s IP portfolio as ‘strengthened’, with 247 patents granted, and 763 applications pending.

“It has been a transformational year and we have made impressive progress against our build, buy and partner strategy,” said chief executive officer Craig Gulliford.

“Perhaps the most satisfying achievement for the whole team has been the first clinical use of MicroBlate Fine to successfully treat a number of patients with pancreatic tumours in early December, with no adverse events reported to date.

“Though the evolution of Creo since IPO has been exceptional our mission remains the same: to improve patient outcomes and this is evidence that we are doing that.”

Gulliford said that, having started the year with just one CE-marked device, the company successfully cleared five additional “advanced energy devices” through the CE-mark process and gained FDA 501(k) clearance for three devices.

“Furthermore, we have completed two transformational acquisitions which are delivering meaningful revenue to the business and we have exceeded our objectives in expanding our sales team globally.

“We are extremely well positioned to be the next generation solution in minimally invasive surgery and, whilst our current focus is on gastrointestinal therapeutic endoscopy, looking forward we see significant further opportunities in other surgical disciplines/specialities and then beyond into diagnostics.”

At 0824 BST, shares in Creo Medical Group were down 1.9% at 206p.