ESPERITE : N.V. (ESP) publishes 2015 half-year results, total revenue increases over same period last year
25/08/2015 | 07:19
CryoSave maintains new client intake but revenues are under pressure
Genoma reports strong intake of sales and confirms global plan will be met despite of a 2 to 3 month delay compared to the forecast
Zutphen, The Netherlands - 25 August 2015
Esperite NV (Euronext: ESP, "Esperite" or "the Group") has published its financial results (unaudited) for the period of six months ended June 30, 2015 showing an increase in total revenue compared to the same period last year. Esperite has built a successful constellation of companies In less than a year and created its own identity. Esperite's vision and strategy have been validated, the Group's focus has shifted now to implementation and growth.
Consolidated revenue increased by 3%. Genoma sales increases every month significantly. During the first 6 months of 2014 no sales were recorded for the Genoma segment. The sales during the first half year mainly consisted of the product Tranquility. The introduction of the product Serenity in May 2015 is well received by the market. The revenue of the stem cell business segment was almost at the same level.
Consolidated result worsened as a result of the investments made regarding the Genoma activities. Besides the increased marketing expenses also the G&A cost increased because the Genoma back office activities were implemented.
GENOMA shows strong sales intake and consistently registered strong growth on every month of the reporting period. All parameters are in line and confirm the trend and the forecast established for the year. Genoma is fully confident in the future, and anticipates an even higher demand of its products in 2016. Longer than expected implementation of distribution agreements has resulted in a two to three months lag between the forecast and the results. Genoma has attained its strong market position thanks to the combination of its cutting-edge technology, advance pipeline of exclusive genetic tests and active network of clients, partners and sales force at the local level with a proven track record.
The first two phases of the Group's geographical expansion strategy are well underway. Noteworthy progress in phase one include increased capillarity in Italy, Spain and Serbia where products were successfully launched. The Group is creating Genoma brand awareness and direct contact with doctors and healthcare institutions in the most important medical Congresses in Europe in which Genoma participates prominently. Specific events to present Tranquility to the medical community are very successful and, as a result, new clients and partners are acquired and additional sales realised.
Phase two of the geographical expansion includes France and Germany. The strategy to enter and conquer these two high-potential markets is already under implementation; experienced Business Development Managers hired to cover these areas are operational. Belgium, Switzerland, Austria and Turkey are also part of this expansion. The prospects are bright.
Agreements with large private hospitals and public sector health institutions have been signed recently. These partnerships established with some of the most prestigious and influential health institutions in Europe is starting to generate sales. Genoma has signed an agreement with Vatican's Catholic University of the Sacred Heart to distribute Genoma's genetic tests and establish a Genoma Cloud satellite laboratory in Italy. In addition to this, Genoma products distribution through its local commercial structures in the different countries continues to show traction and growth.
Enhanced offer of upgraded products. Tranquility was upgraded to become the most complete CE-IVD marked DNA NIPT test in the market. Strong sales and consistent growth per month are confirming Tranquility's market position. Tranquility already complies with requirements for metal fraction calculation.
T52s, the genetic test for trisomies 21, 18 and 13 which also provides fetal sex determination, has proven to be a well-targeted product very appealing for the public sector. Public hospitals have already signed exclusivity agreements with Genoma to provide T52s to its patients. In some countries T52s is to become the product of choice, a mass market product.
Serenity is showcased at national-level congresses where oncologists and gynecologists representing both public and private sector and hospitals had the opportunity to try the test. Genoma has signed an agreement with an insurance companies offering Serenity in exclusivity to its clients.
Eventy is a mass product targeting population with and without history of colorectal cancer, the second most common cancer and cancer-related death. Eventy. the colorectal cancer risk screening test, will be available through Esperite's entire network by September's end.
Laboratory expansion. Genoma's state-of-the-art clinical genetic center in Geneva with Next Generation Sequencing (NGS) technologies keeps increasing its throughput capacity to absorb the ensuing surge in demand.