Osprey Medical Inc. Releases Q3 2016 Cash Flow Results

Posted: 2016-10-14 in Press Releases

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Quarterly Cash Flow Report

October 14, 2016 – Melbourne, Australia and Minnesota, United States – Osprey Medical (ASX:OSP) today released its Appendix 4C – Quarterly Cashflow Report for the period ending 30 September 2016.

Key financial details

·        Strong unit sales growth of 34% for the DyeVert System in Q3 2016, as compared to Q2 2016;
          239% growth in the quarter compared to the previous year’s corresponding quarter.

·        The number of hospitals ordering increased by 33% in Q3 2016, as compared to Q2 2016, and the pipeline of new hospitals at the evaluation stage is strong.

·        Original sales territory in San Antonio, Texas continued profitable growth in Q3 2016 with other territories following a similar sales trajectory.

·        Over 70% of San Antonio hospitals have now approved and purchased Osprey’s products, which demonstrates the clear potential for market adoption in other sales territories.

·        Cash receipts from customers increased in Q3 2016 to US$123k.

·        Cash at 30 September 2016 was US$24.4m (A$31.8m at AUD/USD exchange rate of $0.76).

Clear sales momentum

Osprey reported its eighth consecutive quarter of growth for its dye saving technologies.  DyeVert unit sales grew by 34% in Q3 2016, as compared to Q2 2016. This represents unit sales growth of 239% for the quarter compared to the previous year’s corresponding quarter.  Cash receipts from customers increased to US$123k in Q3 2016.

 

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Customers purchasing the DyeVert System expanded to 39 hospitals in Q3, up 33% over 2Q 2016.  Additionally, 40 hospitals are in the evaluation-to-purchase cycle reflecting a strong pipeline of future DyeVert customers.  Notably, Q3 marked the first full year of sales for DyeVert with more than 1,000 units sold, which compares to approximately 280 for AVERT, reflecting strong take-up of the DyeVert System and a shortened customer acquisition time.

 

San Antonio sales territory

Osprey piloted its commercialization efforts in San Antonio, Texas, as a blueprint for US sales force expansion.  The sales history over eight consecutive quarters (Q4 2014 to Q3 2016) provides the greatest insight into physician adoption of Osprey’s dye savings products.  Sales growth of the DyeVert System has accelerated in San Antonio with eight new hospitals purchasing the product since it was launched in December 2015 with 70% of hospitals (16 of 23) now using the device.  Additionally, three hospitals in the Rio Grande Valley, within the geography of this sales area, are in the evaluation-to-purchase cycle reflecting a strong pipeline of future customers.

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Notes:

1.     Quarterly unit sales fell in 4Q15 following the introduction of the DyeVert System, as hospitals sampled the new product

2.     This chart reflects the percentage of the 23 hospitals in San Antonio that have approved and purchased Osprey’s products

The continued growth in hospital penetration in San Antonio demonstrates the clear potential for strong market adoption in other sales territories.

Sales force expansion

Following an oversubscribed capital raising to existing and new investors raising A$29M, Osprey started aggressively scaling up its US sales force.  In Q3 Osprey had nine existing sales territories, with two new hires starting in October and nine additional sales reps and territories planned by the end of CY 2016.  Osprey intends to hire new reps where there is a high incidence of chronic kidney disease.  Planned new territories are indicated on the map below in blue).

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Mike McCormick, Osprey President said: “We are pleased with the continued momentum resulting from our expanded sales efforts and clinician support for our products.  With more than 4500 procedures using our dye saving devices, and key opinion leading scientific publication and presentations, awareness of the need and value of our products are growing rapidly.”

 

Osprey Medical is hosting an investor conference call on Monday 17th October at 11.00am Australian Eastern Daylight Savings Time.

Call details:

Australia Toll Free

1 800 558 698

Alternate Australia Toll Free

1 800 809 971

Australia Local Number

+612 9007 3187

Hong Kong

800 966 806

Singapore

800 101 2785

United States

1855 8811 339

 

Conference Identification:  655796

 

 

Contact details:

Media                                                                Investors                                                           Company
Amanda Loh                                                     Rebecca Wilson                                                Doug Schoenberg
Buchan Consulting                                           Buchan Consulting                                           VP of Marketing
T: (613) 8866 1210                                          M: (61) 417 382 391                                       T: (952) 955 8230

aloh@buchanwe.com.au                                rwilson@buchanwe.co.au                               dschoenberg@ospreymed.com                                                                             

About Osprey

Osprey Medical is focused on protecting patients from the harmful effects of X-ray dye (contrast) used during commonly performed angiographic imaging procedures. The Company’s core technologies originated from research conducted by Dr David Kaye at Melbourne’s Baker IDI Heart and Diabetes Institute.  Its proprietary dye reduction and monitoring technologies are designed to help physicians minimize dye usage.   The Company’s DyeVert™ System is a next-generation product that reduces contrast while maintaining image quality in a self-adjusting easy-to-use design. Osprey Medical’s Board and Management are comprised of experienced and successful personnel with established track records covering medical device development, regulatory approvals, sales and marketing, and mergers-acquisitions. Osprey Medical’s advisory board comprises world-recognised experts in heart and kidney diseases.

Forward-Looking Statements

This announcement contains or may contain forward-looking statements that are based on management’s beliefs, assumptions and expectations and on information currently available to management. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future are forward-looking statements, including without limitation our expectations with respect to our ability to commercialize our products including our estimates of potential revenues, costs, profitability and financial performance; our ability to develop and commercialize new products including our ability to obtain reimbursement for our products; our expectations with respect to our clinical trials, including enrolment in or completion of our clinical trials and our associated regulatory submissions and approvals; our expectations with respect to the integrity or capabilities of our intellectual property position. Management believes that these forward-looking statements are reasonable as and when made. You should not place undue reliance on forward-looking statements because they speak only as of the date when made. Osprey does not assume any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Osprey may not actually achieve the plans, projections or expectations disclosed in forward-looking statements, and actual results, developments or events could differ materially from those disclosed in the forward-looking statements.