On April 8, 2021 Median Technologies (Paris:ALMDT) (Euronext Growth – ALMDT), whose Board of Directors met on April 6th, 2021 to approve the consolidated financial statements for the financial year 2020, reported its detailed audited full year financial results for 2020 as well as indicators on its business activity for the first quarter of 2021 (Press release, MEDIAN Technologies, APR 8, 2021, View Source [SID1234577751]).
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2020 results in line with expectations, reflecting the investments needed to accelerate growth and develop the iBiopsy platform
The company, which published indicators on January 14th, 2021 on its 2020 business activity, confirms all the elements previously communicated. As of December 31st, 2020:
– Annual revenue of €13.5m, up 51% on 2019 revenue (€9m), with constant quarterly growth,
– Cash and cash equivalents of €16.3m compared to €19.4m as of June 30th, 2020,
– Order backlog1 of €51.7m, an increase of 35% compared to backlog as of December 31st, 2019 (€38.3m).
During the financial year 2020, the average number of employees in the Group was 125, with an acceleration of recruitment in the second half of the year. On December 31st, 2020, the company had 141 employees.
Given the increase in the company’s headcount to support the growth of the iCRO business (+51% in 2020) and of the iBiopsy technology development, staff costs are up by 37%.
The 27% increase in external costs for the year compared to 2019 external costs is related to:
the optimisation and deployment of a new, more efficient IT infrastructure between Europe, the US and China for the iCRO business and for future cloud-based operations of the iBiopsy platform,
increased costs related to outsourcing of independent image readings for the iCRO business and
the iBiopsy related investments.
Considering these elements, the operating result amounts to -€8.8m.
In the context of the debt issue linked to the EIB (European Investment Bank) loan, the Group granted warrants to the EIB. Under IFRS 9, these warrants are derivatives on own shares and must be valued at fair value through profit or loss. This debt impacts the net result in the consolidated IFRS income statements but has and will have no impact on the Group’s cash flow.
Acceleration of growth in Q1, 2021 and post-closing events
As of March 31st, 2021, the company’s quarterly revenue stands at €5.2m, an increase of 86% compared to the revenue in the first quarter of 2020 (€2.8m). The Group is accelerating its quarterly growth momentum with a 27% increase over Q4 2020 revenues, marking a tenth consecutive quarter of growth.
As of March 31st, 2021, the order backlog amounted to €52.6m, up from the backlog as of December 31st, 2020, despite an excellent quarter of invoicing and the cancellation of a project in China for an amount of €1.6m.
Cash and cash equivalents amounted to €39.8m as of March 31st, 2021. It should be noted that the cash position was strengthened by the capital increase by private placement targeting qualified investors finalised on March 25, 2021 for an amount of €28.1m, corresponding to €26.6m net of fees and commissions. The purpose of this fundraising is to allow the Company to finance its activities and fulfil its obligations under its contractual commitments with the EIB. The net proceeds of the capital increase are mainly intended to contribute to the financing of development operations of the iBiopsy business, in particular clinical validations on the three indications: lung cancer, primary liver cancer and NASH, as well as aspects related to regulatory and marketing strategies. The funds may also be used for any project that would accelerate the company’s growth.
In the first quarter of 2021, the Group also announced the signing of a major research collaboration with the University of California San Diego. The purpose of this collaboration is to conduct a new validation study for the iBiopsy clinical development plan in Non-Alcoholic Steatohepatitis (NASH), which will be conducted on an independent cohort of over 300 patients. The first results of this study are expected in the first quarter of 2022.
In addition, the company announced the initiation of a new clinical development plan for the early diagnosis of lung cancer, with first results on a cohort of 1,800 patients to be published in the second half of 2021.
"2020 was an excellent year in terms of our iCRO business performance, stock performance and progress in our iBiopsy clinical development and partnership plans. The recent funding round gives us the means to pursue our ambitions to simultaneously advance our indications for early diagnosis of liver cancer, NASH and, as recently announced, lung cancer as well," said Fredrik Brag, CEO and founder of Median Technologies. "2021 is shaping up to be a very exciting year, with revenue from our iCRO business already up by 86% in the first quarter compared to Q1 revenue last year. Our order backlog has increased despite the very significant increase in invoicing. This year will also see the continued publication of technology and clinical validation results for iBiopsy, as well as the continued implementation of our policy on setting up partnerships as a basis for future development".
Median informs its shareholders and the financial community that its annual financial report on the accounts for the year ended December 31, 2020 was made public and filed with the AMF.