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  • Significant Improvement in Gross Margin Up 7 Points at 78%
  • Positive Ebitda (1)
  • Tight Control Over Operating Expense
  • Reduction of Operating Loss

LYON, France & NEW YORK–(BUSINESS WIRE)–The Medicrea Group (Euronext Growth Paris: FR0004178572-ALMED ; OTCQX
Best Market –MRNTF), pioneering the transformation of spinal surgery
through artificial Intelligence, predictive modeling and patient
specific implants with its UNiD™ ASI (Adaptive Spine Intelligence)
proprietary software platform, services and technologies, reports its
unaudited results for the first quarter of 2019.

€’million       Q1 2019    

Q1 2018 (2)


Q1 2018



Gross margin – % of sales


Operating income

Other operating income and expense

Share-based payments

Cost of net financial debt

Income before taxes

Net Income




























(1) : Operating income before interest depreciation and
(2) : after IFRS 16 “Leases” adjustments
applicable since January 1, 2019


Sales for the first quarter of 2019 amounted to 7.7 million euros, up
10% (+6% at constant exchange rates) compared to 2018 on a pro-forma
basis, thanks to growth in the USA, the Group’s priority market.

The discontinuation of two non-strategic distribution activities of
third-party products (mainly biologics) and services (surgical motors
maintenance and repairs) accounts for the 6% overall and temporary
decline in sales compared to prior year. Starting from the second half
of the year, these changes will no longer impact sales growth.

The strategic activity of predictive modeling and personalized implants
(UNiD ASI™) is expanding strongly, mainly in the USA, with the number of
patient-specific UNiD® surgeries up 68% in Q1 2019. As of March 31,
2019, UNiD ASI™ sales represent 42% of total sales (33% in Q1 2018). For
the US market alone, these figures stand at 67% and 55% respectively. To
date, 3,750 patient-specific surgeries have been performed.

As previously announced, gross margin for the first quarter improved
significantly compared to the same period last year, amounting to 78%
(+7 points) thanks to 1 / a favorable mix of sales and improved
manufacturing efficiency (+5 points), 2 / the discontinuation of
non-strategic distribution activities (+1 point) and 3 / some positive
currency impact (+1 point). The improvement is also visible
sequentially, gross margins for the 3rd and 4th quarter amounting
respectively to 73% and 77%. The ratio should gradually move closer to
the 80% normative level, which is the Group’s target.

Operating expenses including research and development, marketing and
administration expenses amounted to € 7.6 million in the first quarter,
down € 0.4 million compared to the first quarter of 2018, after
neutralization of currency effects. Operating income before interest
depreciation and amortization (EBITDA), after taking into account IFRS
16 changes, is positive at € 0.3 million.

Operating loss thus improved by € 0.3 million to € -1.6 million thanks
to the increase in gross margin and the control of operating expenses,
despite the temporary adverse effects of the discontinuation of the
distribution and service activities described above.

Expenses of 0.5 million euro relating to share-based payments arise from
free shares and stock options granted in the last quarter of 2018.
Accounting rules in force for these instruments, in particular IFRS 2,
will result in recording a charge of approximately 2 million euros for
the full year.

The cost of net financial debt increased by € 0.8 million compared to
the first quarter of 2018, as a result of:

– interest expense on the $30 million bond issued in December 2018

some unrealized foreign exchange losses of 0.4 million euros on this
same loan due to the strengthening of the dollar since the beginning of
the 2019 financial year
– interest expense of € 0.1 million due to
IFRS 16 accounting changes

It is likely that the cost of net financial debt will fluctuate quite
significantly over the coming quarters depending on the euro / dollar
parity, should the Company not be successful in hedging both the
exchange rate and the interest rate attached to the $30 million bond.

Cash on hand amounted to € 6.9 million at March 31, 2019, not including
a € 1 million research tax credit receivable expected to be cashed in
the 2nd quarter of 2019.


“The increase in our gross margin and the control of our costs are very
positive signs for the start of this year. Our sales growth should
accelerate in coming quarters thanks to the expansion of our portfolio
products. We have just obtained the FDA’s approval to market our new
Tulip pedicle screw in the United States. These implants available from
June onwards and widely used by American surgeons should, in parallel to
the continued deployment of our UNiD ASI ™ offer, strengthen the Group’s
presence on its priority market,” comments Denys Sournac, President and
CEO of Medicrea.

Next publication: 2019 Half-Year sales: July 8th 2019,
after market.

About Medicrea (

Through the lens of predictive medicine, Medicrea leverages its
proprietary software analysis tools with big data and machine learning
technologies supported by an expansive collection of clinical and
scientific data. The Company is well-placed to streamline the efficiency
of spinal care, reduce procedural complications and limit time spent in
the operating room.

Operating in a $10 billion marketplace, Medicrea is a Small and Medium
sized Enterprise (SME) with 200 employees worldwide, which includes 50
who are based in the U.S. The Company has an ultra-modern manufacturing
facility in Lyon, France housing the development and production of 3D-
printed titanium patient-specific implants.

For further information, please visit:

Connect with Medicrea

Medicrea is listed on
EURONEXT Growth Paris
FR 0004178572

Ticker: ALMED

Medicrea is traded on
OTCQX Best Market


Founder, Chairman and CEO
[email protected]

Chief Financial Officer
[email protected]
+33 (0)4 72 01 87 87