TRADING STATEMENT - JANUARY 2008

09/01/2008

Farnham UK, 9 January 2008: Biocompatibles is pleased to provide an update on 2007 trading. The key points are as follows:
 

 2007 Results:

  • Revenue of £9.1m, representing growth of 53% on 2006; and compared with guidance of £8m to £10m.
  • Year-end net funds of £34.3m compared with most recent guidance of £33m.
     

Principal 2008 Goals include:

Biocompatibles UK Programmes

  • Presentation of randomised Phase II data from the PRECISION V trial at CIRSE.
  • Start of US registration trial for a pre-loaded bead.
  • Report of US launch of Medtronic’s Endeavor® Drug-Eluting Stent.

CellMed Programmes

  • Completion of recruitment in the CE Mark trial for the cosmetic dermal filler bead.
  • Completion of recruitment in the CellBeadsTM stroke trial.

2008 Guidance:

  • Revenue in the range of £12m to £15m.
  • Closing net funds of £30m.

 

2007 Results

Revenue increased by 53% to £9.1m largely due to growth at Biocompatibles UK from the new Drug-Eluting Stent agreement with Abbott and other, non-recurring, licensing activity. Sales of Bead Products declined slightly as a result of our actions to correct the excess inventory held by one of our distributors. CellMed revenue remained at around £1.0m.

In our 2006 Annual Report we identified eight non-financial goals for 2007. We achieved five during the course of 2007 (PRECISION V Safety Committee report, recruitment of the first patient in a HCC survival trial, presentation of further survival data at CIRSE from a European DEBIRI trial, the start of the CE Mark trial for the cosmetic bead and the start of the stroke trial, although the first patient is yet to be recruited). We missed three goals (launch of the DC Bead in China, IDE approval for the PARAGON Bead and out-license of the GLP-1 peptide). A full review will be provided with the Preliminary Results statement which is scheduled for 6 March.


2008 Guidance

The Company expects 2008 closing net funds to be around £30m.

The Company expects to achieve consolidated revenue in the range of £12m to £15m, the mid point of which represents growth of approximately 48%. This growth is expected primarily from Biocompatibles UK and in particular, from growth in sales of the Drug Eluting Bead products and in revenue from the Abbott agreement.

Ian Ardill, Finance Director, commented “Our revenue was in line with and our year-end cash was ahead of our expectations for 2007, helped by the new agreement with Abbott. I look forward to the development of the clinical projects and commercial activities in 2007”.

-Ends-