July 20, 2016 – Minnesota, United States and Melbourne, Australia – Osprey Medical (ASX:OSP) today released its Appendix 4C – Quarterly Cashflow Report for the period ending 30 June 2016.
Key financial details
• Strong unit sales growth of 88% for the DyeVert System and 45% for the DyeVert and AVERT Systems combined in Q2 2016, as compared to Q1 2016
• Original sales territory in San Antonio, Texas was profitable in June 2016 with other territories following a similar sales trajectory
• Over 65% 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 66% to US$113k in Q2 2016 over Q1 2016
• Cash at 30 June 2016 was US$5.8m (A$7.7m at AUDUSD exchange rate of 0.75)
Clear sales momentum
Osprey had another successful quarter commercializing its dye saving technologies. DyeVert unit sales grew by 88% in Q2 2016, as compared to Q1 2016, with DyeVert and AVERT System unit sales combined growing 45%. This represents unit sales growth of 440% for the quarter compared to the previous year’s corresponding quarter. Cash receipts from customers increased 66% to US$113k in Q2 2016 over Q1 2016.
Sample evaluations of the DyeVert System also experienced significant growth with 172 units recorded for 2Q 2016, up 42% over 1Q 2016. The growth of DyeVert samples reflects strong interest from physician’s eager to evaluate the device. Osprey has now recorded seven consecutive quarters of growth in units sold and samples, reflecting a strong endorsement from the cardiovascular physician community of Osprey’s dye reduction technologies.
Sample evaluations of the DyeVert System also experienced significant growth with 172 units recorded for 2Q 2016, up 42% over 1Q 2016. The growth of DyeVert samples reflects strong interest from physician’s eager to evaluate the device. Osprey has now recorded seven consecutive quarters of growth in units sold and samples, reflecting a strong endorsement from the cardiovascular physician community of Osprey’s dye reduction technologies.
The continued growth in hospital penetration in San Antonio demonstrates the clear potential for strong market adoption in other sales territories. Recent sales traction in the largest hospital system in San Antonio, the Methodist Health Care System, has been particularly encouraging, where 47 units were sold in Q2 2016.
Sales force expansion
Osprey started aggressively scaling up its US commercialisation initiatives in October 2015, following FDA clearance of enhanced claims for dye savings, image quality and reflux reduction. At the completion of 2Q 2016, Osprey had sales reps in 9 territories with plans to hire up to 11 additional sales reps and territories 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 indicated in blue on the map).
Key Scientific Podium presentations
The AVERT randomized controlled clinical trial results were presented as a “Late Breaking Clinical Trial” at the Society of Cardiovascular Angiography and Interventions (SCAI) May 4-7 in Florida. SCAI is one of the largest meetings of speciality heart physicians and draws a worldwide audience of physicians and scientists who are focused on angiography and interventions (diagnosing artery blockage and stent treatment). Dr Roxana Mehran, the principal investigator of the AVERT study, presented the results at the main podium stage as the first scientific presentation of the meeting. Dr Mehran was Program Chair for the SCAI
meeting and the selection of the AVERT trial to lead the Scientific Sessions indicates the importance of reducing Contrast Induced Acute Kidney Injury to the physician community.
In addition, the DyeVert first-in-man clinical trial was presented at the EuroPCR meeting May 17-20 in Paris. Professor Steffen Desch presented outcomes of the 44 patient study, which was performed at the Heart Centre in Lübeck, Germany and Monash Medical Centre in Melbourne, Australia. Monash’s Dr James Sapontis was the principal investigator of the study. This prospective, non-randomised, single arm trial found that the DyeVert System saved 47.4% contrast dye on average in all patients, 50.3% in PCI/Stenting and 46.6% in diagnostic procedures. These results further support Osprey’s commercialisation efforts in the US.
meeting and the selection of the AVERT trial to lead the Scientific Sessions indicates the importance of reducing Contrast Induced Acute Kidney Injury to the physician community.
In addition, the DyeVert first-in-man clinical trial was presented at the EuroPCR meeting May 17-20 in Paris. Professor Steffen Desch presented outcomes of the 44 patient study, which was performed at the Heart Centre in Lübeck, Germany and Monash Medical Centre in Melbourne, Australia. Monash’s Dr James Sapontis was the principal investigator of the study. This prospective, non-randomised, single arm trial found that the DyeVert System saved 47.4% contrast dye on average in all patients, 50.3% in PCI/Stenting and 46.6% in diagnostic procedures. These results further support Osprey’s commercialisation efforts in the US.
