On October 20, 2022 Median Technologies (Euronext Growth – ALMDT) (Paris:ALMDT), whose Board of Directors approved on October 18, 2022 the consolidated IFRS financial statements for the first half of 2022 after a limited review, reported its half-year results as well as revenues for the third quarter of 2022 (Press release, MEDIAN Technologies, OCT 20, 2022, View Source [SID1234622244]).
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Fredrik Brag, CEO and Founder of Median Technologies said:
"We are very pleased that in this uncertain economic environment, Median continues to deliver double digit growth of its revenues and backlog.
We can already observe the very strong impact of the launch of Imaging Lab in May 2022, which is generating significant traction with biopharma companies. Median is positioning itself to become the strategic partner to extract insights from medical images by applying AI solutions to better understand the mechanism of action of new drugs. Therefore, we are becoming the natural provider for clinical studies. With this strong and unique differentiator, we expect to see a clear impact on our iCRO order backlog in the coming months.
Our iBiopsy activities have also been very intense during the quarter with the formation of a first class clinical advisory board and our continued interaction with the FDA for our iBiopsy LCS CADe/CADx SaMD which is following its natural course. We still expect to start our pivotal study in the coming months. Furthermore, the European Union has announced that lung cancer screening1 will become one of the main priorities for the new cancer plan "Europe’s beating cancer plan", which should substantially increase our total addressable market in the coming years."
Further growth during Q3 2022
Third quarter revenues amounted to €6.0 million, representing a 13% increase compared to Q3 2021 revenues (€5.3 million). Revenues for the first three quarters of 2022 were €18.7 million, up 21% compared to the €15.4 million for the first three quarters of 2021. Revenues are entirely generated by the iCRO2 business, which provides imaging services to the biopharmaceutical industry worldwide for oncology clinical trials.
The order backlog3 was €62.5 million on September 30, 2022 , up €8.3 million compared to September 30, 2021 (€54.2 million, +15%).
Cash and cash equivalents totaled €25.9 million on September 30, 2022, including receipt of the 2021 research and innovation tax credit for €1.6 million, and benefiting from the collection of late payments from the second quarter by the Chinese subsidiary following the lockdown in the Shanghai region.
Financial information at June 30, 2022 (IFRS consolidated financial statements)
Median Technologies continued robust growth momentum during the first half of 2022 .
The Company continued the development program of its iBiopsy Lung Cancer Screening (LCS) CADe/CADx software as medical device (SaMD), which resulted in an increase of the cash flow deficit, partially offset by the additional margins generated by the growing iCRO business.
Working capital requirements deteriorated temporarily due to the closure of Chinese administration offices during the lockdown in Shanghai, which delayed the invoicing and collection process for trade receivables. On June 30, 2022, the Group estimated late payments of €2.5 million.
The operating loss reached (€11.0) million, representing an increase of €6.5 million relative to the year-earlier period, including €4.3 million due to the accounting under IFRS of free share allocations made in October 2021 for the Group’s employees and management (with no cash impact), and also due to the investments made for research and development work for the iBiopsy platform.
The increase in revenues and the margin generated by the iCRO business helped reduce the impact of investments in iBiopsy on operating result.
Financial result reached €2.4 million, due primarily to an IFRS accounting valuation adjustment (with no cash impact) of the equity warrants issued in favor of the EIB with the drawing of the first €15 million tranche of its loan in H1 2020. This valuation has been significantly impacted by changes in the share price since the issue of these warrants. Although it is recorded in the statement of financial position under financial instruments, no reimbursement will be made that could affect the Group’s cash in the future.