27 February 2018
Release of Financial Results for Half-Year ended 31 December 2017
• Record sales revenue of A$38 million for the half achieved as Ellex’s glaucoma market penetration strategy gains traction
• Revenue and earnings in line with previous trading update
• Cash balance of A$25 million – Ellex well capitalised to grow top line revenue through glaucoma focus
• 65% uplift in USA sales of lead product Ellex iTrackTM and 9% lift in Core Laser and Ultrasound business sales resulted in 12% growth in Group sales compared with the prior corresponding period
• Revenue expected to continue to increase in the second half
Adelaide, Australia 27 February 2018 – Ellex Medical Lasers Limited (ASX:ELX), a global leader in medical devices for the diagnosis and treatment of eye disease, today released its audited financial results for the half-year ended 31 December 2017.
Performance and Strategy
During the period, Ellex continued to invest capital in the glaucoma market penetration strategy, primarily for its consumable Ellex iTrack™ catheter. Ellex iTrack™ is used in a minimally invasive ocular surgery technique to reduce eye pressure by dilating and flushing the natural outflow systems to reduce or eliminate the need for eye drops.
Ellex’s first half sales revenue of A$38 million was driven by sales of its glaucoma treatment lasers (“SLT”) and the Ellex iTrack™ device. The direct result of this investment was shown by the improvement in revenue, for both the Ellex SLT lasers and the Ellex iTrack™ catheters. These devices together target the broadest spectrum of glaucoma patient profiles with a minimally invasive glaucoma surgery (MIGS) approach. Ellex is the only company to offer this synergy in restorative glaucoma treatments, equipping it with a considerable market advantage.
Revenue from sales in the USA of Ellex iTrackTM was up 65% on the prior corresponding period and this, along with a 9% lift in revenue from the Core Laser and Ultrasound business, underpinned group revenue growth of 12% (13% in constant currency). Importantly, this trend in material improvement in group revenue is expected to continue into the second half.
Ellex raised A$23 million from US and Australian institutions in the second quarter of the current fiscal year to support its glaucoma market penetration strategy. Specifically, this capital has been, and will continue to be, primarily directed to the Ellex iTrack™ business in the USA to support the following initiatives:
• Significant expansion of the Company’s US Fremont manufacturing facility to accommodate growth in product sales
• Appointment of additional field sales representatives, and regional sales management personnel
• Expanded physician key opinion leader recruitment and engagement
• Enhanced tradeshow infrastructure equipped with tactile surgical simulators
• Improved clinical training program and selling tools
The Company has a strong balance sheet position. As of 31 December 2017, the Company had A$25.2 million of cash, trade borrowings of A$8.5 million and bank debt on its Mawson Lakes (Australia) and production facility of A$6.9 million.
Ellex designs, develops, manufactures and sells innovative products that help eye surgeons around the world to effectively and efficiently treat eye disease. Ellex is a world leader in this field. Headquartered in Adelaide, Australia, Ellex has ophthalmic lasers and devices that treat glaucoma, retinal disease primarily caused by diabetes, secondary cataract and vitreous opacities, as well as age-related macular degeneration. Manufacturing is carried out in Adelaide, Australia and Fremont, California. Sales and service directly to eye surgeons is conducted via subsidiary offices in Fremont, Minneapolis, Lyon, Berlin and Tokyo. A network of more than 50 distribution partners around the world services other markets.
For additional information about Ellex and its products, please visit www.ellex.com
|For further information please contact: Tom Spurling, Chief Executive Officer
W +61 8 7074 8293 | M +61 417 818 658
|Mark Lindh, Investor Relations & Corporate
W +61 8 87074 8200 | M +61 414 551 361