Admedus (ASX:AHZ) has reported a 7.09% increase in revenue for the year ended 30 June 2014 to $7.94 million as it built a platform for the manufacture and international roll-out of CardioCel®.
This entailed building its sales, marketing and operational infrastructure to support CardioCel® sales and to progress its technology pipeline in regenerative medicine and therapeutic vaccines.
When combined with additional income from tax rebates and grants, the company’s total revenue is increased to over US$10 million.
During the financial year, the company carried out two successful capital raisings that raised a total of $29 million.
It currently has $19.6 million in cash as at 30 June 2014.
Sales & Marketing Division
Admedus’ Sales and Marketing Division focused on building its infusion systems portfolio within the Australian market and has expanded globally to build the demand from international markets for CardioCel®.
With operational and sales and marketing footprints now established in Europe, the U.S. and in the Asia Pacific region, the Division is well positioned to grow sales for CardioCel® and our other products.
Regenerative Medicine Division
The Regenerative Medicine Division has seen two major milestones with the regenerative tissue product CardioCel® receiving regulatory approvals in both Europe and in the U.S.
European approval had enabled the company to not only generate revenue from the product, but also to leverage the European approval to gain marketing approval in other jurisdictions.
Meanwhile, the U.S. market clearance strengthens its ability to grow revenue through the sales of CardioCel® in the single largest market for the product.
The U.S. clearance also covers a broader range of applications than the initial European approval and therefore provides potential for additional uses in cardiovascular surgery.
This not validates CardioCel® as well as the core technology, the ADAPT Manufacturing Process.
Admedus plans to leverage the initial approvals to expand its product range in the cardiovascular space and to develop additional products for other surgical applications.
Biomanufacturing Division
Admedus recently carried out the official opening of its new manufacturing facility, coinciding with the first shipment of CardioCel to the U.S.
It had in December 2013, the Company acquired Admedus Biomanufacturing Pty Ltd, which holds a lease over the pre-established facility, which has the capacity meet the expected international demand for CardioCel®.
Vaccines
Admedus Vaccines initiated and completed the first clinical study for the Herpes Simplex Virus 2 (HSV-2) program during the financial year.
The Study was designed to investigate whether individuals with no prior exposure to HSV-2 could generate some immunity against the virus.
This had a positive outcome, with the vaccine being shown to be safe as well as being able to stimulate a T-cell response.
Analysis
While the revenue increase is a positive for Admedus, the progress in the launch and marketing of CardioCel® in Europe and the U.S. should drive further growth in the near-term.
Admedus is fast establishing itself as a diversified global healthcare company with growing revenues and a platform to support the manufacture and roll-out of CardioCel®.
Other work and milestones that could re-rate the company include:
- Extending the use of CardioCel® for an expanded range of indications in cardiovascular surgery;
- Expanding regenerative tissue portfolio and explore the use of ADAPT® prepared tissue for additional surgical applications that have the potential to increase revenue in the future;
- Further data from the HSV-2 Phase 1 Study to be released this quarter;
- Initial Asian market approval for CardioCel®;
- Initiation of HSV-2 Phase II; and
- Initiation of HPV Phase I.
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