11 Jul Safe Group announces half-year sales of €2.75 million,  27% growth

• Direct sales revenue of €1.183M in Q2 2022, up +59% compared to Q1 2022 
•     Doubling of Sycamore and Hickory users
•     Fully integrated production of SteriSpine^TM technologies within the group

Eragny-sur-Oise, Fleurieux sur l’Arbresle, France, July 7^th, 2022 5:45pm CET – Safe (FR0013467123 – ALSAF), a company specializing in the design, manufacturing and marketing of single-use technologies for spinal surgeries, delivering the safest treatment for spinal fractures urgently treated, announces its half-yearly revenues for the period ending June 30, 2022.

“Safe Group closes the first half of 2022 with an overall half-year sales growth of 27% compared to the first half of 2021 driven by Safe Orthopaedics (+46%) and Safe Medical (+26%) direct sales growth, while indirect sales are still limited by the health situation and the financial conditions of our distributors (+1%),” commented Pierre Dumouchel, Safe Group’s Chairman and CEO. “In the second quarter, all of our Safe Orthopaedics direct sales forces posted double-digit growth, accelerated by the promotion of Sycamore and Hickory, even though marketing and sales headcount was held back by a third. Safe Medical continues to show steady growth of 26%.”

S1 2022 revenues

Safe Orthopaedics’ half-year direct sales amounted to €1,182k versus €811k in the first half of 2021, up 59%, driven by significant growth in all direct sales territories: France +19%, Germany +16%, United Kingdom +65% and the United States where sales amounted to €245k versus €122k for the full year 2021.

In France, first-half sales amounted to €646 thousand, compared with €545 thousand in the first half of 2021. In the second quarter, sales jumped by 44%, driven by the acceleration of Sycamore sales. 
In Germany, French sales amounted to €228,000 compared with €197,000 in the first half of 2021. In the second quarter, sales jumped by 19%, driven by the new ClinikPartners centers and the introduction of Hickory. 
In the United Kingdom, half-year sales were €94 thousand, tending towards pre-covid volume. 
In the United States, half-year sales were €215 thousand under the direction of a single sales manager, doubling the 2021 sales. For several quarters, resources allocated to the first three countries have been optimized to maintain double-digit growth, to move more quickly towards positive national financial contributions and to release additional resources in the United States. 

Indirect sales in the first half of 2022 are constant compared to 2021. Sanitary conditions in certain countries and the financial caution of certain distributors in a anxious international financial environment are still limiting international growth. In Japan, the transition of distribution from Otsuka/Kisco to Teijin slowed sales in the first half of the year, even though this new partner has invested in the new generation of SteriSpine PS.

Safe Medical was able to post sales of €517k in the second quarter of 2022, showing a 26% increase in sales compared with the previous year, and a 26% increase in the first half of the year to €1m, reflecting the stability of industrial growth and confirming the recovery of the sector and a strong commercial dynamic.
From an innovation point of view, the new Sycamore and Hickory technologies continue to be deployed in direct territories. The number of Sycamore and Hickory French-German user centers doubled between the first and second half of 2022.
The increase in Hickory inventory was achieved in the first half of the year to allow for international deployment from the second quarter.
The presentation of the first clinical results of Sycamore at 3 and 6 months by Professors Jean-Charles Le Huec and Kevin Buffenoir at the SCFR gives a very good outlook. As a reminder, this novel technology aims to secure the treatment of vertebral fractures and reduce the risk of adjacent fractures. Following CE Mark approval in 2021, Safe Orthopaedics had initiated an observational study in 5 centers on 50 cases and is working on setting up a long-term clinical registry and registration of Sycamore in the United States.

From a structural point of view, the group now produces all its products in-house. Starting in 2021 with the SteriSpine PS range, the production of the LC, CC and VA ranges is effective on the Fleurieux-sur-l’arbresle site, which allows a drastic reduction in manufacturing lead times, working capital requirements and a significant improvement in margins.

Cash position

As of June 30, 2022, the Group’s cash position amounted to 0.1 M€, compared to 3.94 M€ at the end of June 2021. As a reminder, the balance of financing to be received amounts to 4 M€ over the next 10 months.

Next financial publication

Results for the first half of 2022, on September 29, 2022 (after the close of trading)

About Safe Group
Safe Group is a French medical technology group that brings together Safe Orthopaedics, a pioneer in ready-to-use technologies for spine pathologies, and Safe Medical (formerly LCI Medical), a medical device subcontractor for orthopaedic surgery. The group employs approximately 150 people.

Safe Orthopaedics develops and manufactures kits combining sterile implants and single-use instruments, available at any time to the surgeon. These technologies are part of a minimally invasive approach aimed at reducing the risks of contamination and infection, in the interest of the patient and with a positive impact on hospitalization times and costs.  Protected by 18 patent families, SteriSpineTM kits are CE marked and FDA approved. Safe Orthopaedics is headquartered in the Paris region (95610 Eragny-sur-Oise) and has subsidiaries in the United Kingdom, Germany, the United States and the Lyon region (Fleurieux-sur-l’Arbresle).

For more information: www.safeorthopaedics.com

Safe Medical produces implantable medical devices and ready-to-use instruments. It has an innovation center and two production sites in France (Fleurieux-sur-l’Arbresle, 69210) and in Tunisia, offering numerous industrial services: design, industrialization, machining, finishing and sterile packaging. Supported by the French stimulus plan in 2020, the companýinvests in additive printing and will be operational in 2022 on this new technology. 

For more information: www.safemedical.fr

Contacts 

Safe Group

François-Henri Reynaud                                 
Chief Financial and Administrative Officer                    
Tél. : +33 (0)1 34 21 50 00                                              
investors@safeorthopaedics.com 

SOURCE: Safe Orthopaedics, Globe Newswire, July 7 2022.

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