RNS No 2303q
MEDISYS PLC
29 July 1999
MEDISYS PLC
Unaudited Interim results for the six months to 31 March 1999
and update on current trading
Highlights
* First half trading satisfactory - sales #4.2 million
* Reorganisation and cost cutting measures implemented
* Hypoguard
- Sales of Supreme monitoring strip showing steady growth
- Supreme Petit blood glucose meter performing ahead of
expectations - 30,000 placements achieved since launch in March
1998
- Sales in quarter ended 30 June 1999 28% ahead of previous
quarter
- Joint venture with Elan Corporation will accelerate development
of Arrow re-usable biosensor
* Lukens
- Comprehensively restructured since acquisition in September
1998
- Sale of sutures business removes loss making non-core business
from portfolio and completes restructuring process
- Excluding the sutures business, Lukens reported an operating
profit for the half year
- NicSafe selling well in Mexico - further distribution deals
signed with PSS in the US and Becton Dickinson in the Far East
- Remaining businesses renamed Futura Medical Corporation -
product portfolio now firmly focused on healthcare worker safety
products
Kurt E. Amundson, President & Chief Operating Officer commented:
"Both Hypoguard and Lukens (Futura Medical Corporation) made
significant progress towards achieving operating profitability
during the first half year. This trend is expected to continue
during the second half of the year. Overall, following the
streamlining of the operating businesses, it is expected that losses
for the Group for the year as a whole will be significantly less
than the loss in the first half. The Board believes that the
Company is now well positioned to take advantage of future growth
opportunities."
Enquiries:
Medisys PLC
Kurt Amundson, President & Chief Operating Officer 001 650 327 7900
Michael Barry, Chief Financial Officer 29 July 1999: 01394 387333
Thereafter:001 770 271 2795
Square Mile Communications 0171 601 1000
Kevin Smith/James Melville-Ross
MEDISYS PLC
Unaudited Interim results for the six months to 31 March 1999
and update on current trading
The Group made good progress during the first half of the current
year. Trading results were satisfactory and continued re-
organisation within the Group, including the integration of the
Needle Incinerator Company ("NIC") into Lukens, resulted in
immediate cost savings.
Financial Review
Turnover in the six months ended 31 March 1999 was #4.2 million,
including #0.6 million of sales from the Lukens sutures business
which was sold subsequent to the half year end and is shown on the
profit and loss account as operations to be discontinued. Operating
losses were #1.9 million, including #0.4 million of losses from the
Lukens sutures business. The loss before tax was #2.2 million.
Comparative six month figures are not shown in the financial
statements, because the year end changed in 1998 from June to
September. Given the acquisition of Lukens and the restructuring of
the NIC and Biocure operations, such comparative figures would not
be meaningful.
The Directors are not recommending the payment of an interim
dividend.
Research and development costs in the period totalled #0.2 million.
Net cash decreased by #5.6 million during the period. #2.7 million
of this decrease was due to the completion of certain transactions
associated with the acquisition of Lukens. The remaining #2.9
million decrease in cash resulted from the funding of operations.
Subsequent to the half-year end, approximately #4.1 million in
aggregate net proceeds was raised from a placing of shares, an
equity investment by Elan Corporation plc and the sale of the Lukens
sutures business.
Operational Review
Hypoguard
Hypoguard is a developer, manufacturer and distributor of blood
glucose monitoring products for the world-wide blood glucose
monitoring market.
Sales volumes for the Supreme monitoring strip and Supreme Petit
meter continued to grow steadily throughout the first half, and in
March Hypoguard posted its highest monthly sales (#381,000) in over
two years. The Supreme Petit system, launched in March 1998, has
been well received by the market and, with over 30,000 meter
placements, continues to exceed our sales expectations, assisted by
significant contract awards in both France and Bulgaria.
Progress on the Arrow re-usable biosensor-based blood glucose
monitoring system has been greatly enhanced by the formation of the
joint venture with Elan Corporation which is discussed in more
detail below. The Arrow product is currently going through the
final stages of development. Medisys expects to file an application
for FDA 510K approval for Arrow early in 2001.
Licensing opportunities for the DART single use biosensor-based
product are being actively pursued. It is envisaged that licensing
agreements in selected markets will be entered into in the near
term, for the development and commercialisation of the product.
In addition to its well recognised skills in blood glucose
monitoring, Hypoguard is also developing tests for osteoporosis,
Alzheimer's disease and H. pylori (peptic ulcers). Hypoguard
received a #250,000 grant from the Department of Trade and Industry
to help fund the development of the H. pylori test during the first
half.
Other recent significant developments include the identification of
potential franchise partners for the Spectrum visual monitoring
strip in India, China and certain other markets, and, in May, a
collaboration agreement with Tesco, the UK supermarket chain, to
promote the Supreme Petit system through its 216 in-store
pharmacies.
The Board believes Hypoguard is making good progress towards its aim
of restoring profitability in the near term. Sales in the quarter
ended June 30, 1999 increased to #1.1 million, 28% over of the
previous quarter, due primarily to strong sales of the Supreme Petit
range of products. Furthermore, the business approached operating
break even during this period (before charging research and
development costs).
Lukens
Since its acquisition in September 1998, Lukens has undergone a
comprehensive restructuring of its operations. A new management
team with a strong healthcare marketing and operations background
has been appointed, bringing a new focus to the development of the
business.
As announced on 26 July, Medisys has disposed of the Lukens sutures
business for a consideration of $2.1 million. The sutures business
was loss making and the sale will enable the Group to focus on its
core healthcare worker safety products. Under the terms of the
transaction Surgical Specialities Corporation Inc. also acquired the
Lukens Medical name and the remaining business will be re-named
Futura Medical Corporation. Excluding the sutures business, Lukens
reported an operating profit for both the half year and the quarter
ended 30 June 1999.
The manufacturing facility in India, which currently manufactures
lancets, has been retained as a valuable low-cost production site.
Following the agreement in May with Physicians Supply and Service
Inc. to distribute the NicSafe products in the US, sales have
commenced in this important market. Legislative changes, designed
to reduce the incidence of needlestick injury amongst healthcare
workers, continue to proceed in several states in the US. The Board
believes that this legislation will ultimately drive demand for the
NicSafe product range. California, one of the states introducing
this type of legislation, is in the process of compiling a list of
safety products that fall under the new legislation. Management
believe that the NicSafe products will be included on this list.
In Mexico, where the NicSafe is distributed by Becton Dickinson,
Medisys has now begun to see replacement cartridges being re-
ordered. The Board views this as a positive indication of the
products' initial acceptance by the marketplace. In May, Medisys
extended its relationship with Becton Dickinson, adding a
distribution agreement for the Far East. Additional opportunities
to extend NicSafe's geographical market coverage, including building
on relationships with existing partners, are being examined.
Futura Medical is now primarily focused on the supply of medical
safety devices and products that ensure their safe disposal. Its
product range includes sharps bins, lancets, safety scalpels, bone
wax, the NIC needle incineration device and the recently acquired
Futura safety needle, enabling Futura to offer its customers a full
product line of medical safety and disposal products. Other product
opportunities, which would complement the existing portfolio, are
also being evaluated.
Acquisition of the Futura Safety Syringe
Subsequent to the half-year end Medisys acquired the world-wide
rights of the Futura safety syringe and related technology from
Adventec, Inc. ("Adventec") of the USA. The transaction was
approved by Adventec's shareholders on 15 July 1999.
The Futura is an innovative safety syringe featuring a state of the
art passive retraction system - when the plunger is pressed down
fully the needle is automatically retracted into the syringe barrel.
The Futura has a number of unique features, which will bring
considerable benefits in terms of manufacturing cost and complexity,
and the potential exists for it to be priced very competitively.
Acquisition of the Futura technology will enable Medisys to take
advantage of the introduction of US safety legislation and build a
strong position in the rapidly growing market for safety syringes.
The Futura is also complementary to the NicSafe product, allowing
the Group to offer a total solution to the problem of needlestick
injury. Medisys expects to file an application for FDA 510K
approval for the Futura early in 2000.
Joint Venture with Elan Corporation plc
On 2 July 1999, the Group announced the formation of a joint venture
with Elan Corporation, plc to develop new biosensor-based blood
glucose monitoring systems for use by diabetics. In addition, the
joint venture acquired the rights to certain technologies relating
to the in-vivo monitoring of blood glucose in diabetics from
Marathon Medical Technologies, Inc.
The joint venture creates a new company with a strong technology
portfolio and the capability to build a leading position in the
market for blood glucose monitoring systems. Combining the joint
technology and marketing resources of Hypoguard and Elan is expected
to accelerate the development of the Group's Arrow product and
enhance our future product pipeline. In addition, the continuous
monitoring technology acquired from Marathon will form the basis for
the next generation of glucose monitoring products, placing
Hypoguard at the forefront of glucose monitoring innovation.
Board Appointment
Following the announcement of the diabetes monitoring joint venture
with Elan Corporation plc, Mr Todd C Davis was appointed to the
Board as a non-executive director. Mr Davis, 38, is a director of
Strategic Planning within Elan and is also a director of Sheffield
Pharmaceuticals, Inc.
Current Trading and Prospects
Both Hypoguard and Lukens (Futura Medical Corporation) made significant
progress towards achieving operating profitability during the first
half year. This trend is expected to continue during the second half
of the year. Overall, following the streamlining of the operating
businesses, it is expected that losses for the Group for the year as
a whole will be significantly less than the loss in the first half.
The Board believes that the Company is now well positioned to take
advantage of future growth opportunities.
Note to editors:
Medisys PLC develops, manufactures and markets diagnostic, medical
and safety products serving the rapid test and point of care medical
market. The Group has two principal operating subsidiaries,
Hypoguard and Futura, located in the UK and in the US respectively.
The diagnostic division develops and supplies blood glucose
monitoring systems for the diabetic market. Its future focus is on
serving unmet medical needs through the development of diagnostic
products based on its own proprietary platform technologies.
Futura, the safety and medical supplies division, develops,
manufactures and markets a wide range of safety products and medical
supplies for the point of care market. Medisys, headquartered in
Ipswich, UK, employs approximately 225 people in the UK and US.
Enquiries:
Medisys PLC
Kurt Amundson, President & Chief Operating Officer 001 650 327 7900
Michael Barry, Chief Financial Officer 29 July 1999: 01394 387333
Thereafter:001 770 271 2795
Square Mile Communications 0171 601 1000
Kevin Smith/James Melville-Ross
Medisys PLC
Unaudited profit and loss account
for the six months ended 31 March 1999
Six months 15 months to
ended 31 March 30 September
1999 1998
Continuing Operations to Total Total
operations be discontinued
#'000 #'000 #'000 #'000
Turnover 3,600 647 4,247 5,097
Cost of sales (2,067) (928) (2,995) (2,844)
-------- -------- -------- --------
Gross profit / (loss) 1,533 (281) 1,252 2,253
Research and development (161) - (161) (1,792)
Administration expenses (2,834) (113) (2,947) (4,945)
-------- -------- -------- --------
Operating loss (1,462) (394) (1,856) (4,484)
Interest receivable 26 50
Interest payable and
similar charges (365) (135)
-------- --------
Loss on ordinary activities
before taxation (2,195) (4,569)
-------- --------
Taxation on loss on
ordinary activities - -
-------- --------
Loss on ordinary activities
after taxation (2,195) (4,569)
-------- --------
Loss per ordinary share (1.22)p (2.73)p
-------- --------
Consolidated statement of total recognised gains and losses
Loss for the financial period (2,195) (4,569)
Loss on foreign currency translation (11) (14)
-------- --------
Total recognised gains and losses for the period (2,206) (4,583)
Medisys PLC
Unaudited consolidated balance sheet
at 31 March 1999
At At
31 March 30 September
1999 1998
#'000 #'000
Fixed assets
Intangible assets 366 327
Tangible assets 2,576 2,579
Investments - 420
-------- --------
2,942 3,326
-------- --------
Current assets
Stocks 1,499 1,484
Debtors 2,006 1,879
Cash at bank and in hand 3,466 7,593
-------- --------
6,971 10,956
-------- --------
Creditors: amounts falling due within one year (7,878) (10,130)
Net current assets / (liabilities) (907) 826
Total assets less current liabilities 2,035 4,152
Creditors: amounts falling due after
more than one year
Other creditors (1,426) (1,849)
Convertible bonds due 2002 (12,046) (13,961)
-------- --------
Net liabilities (11,437) (11,658)
-------- --------
Capital and reserves
Called up share capital 1,833 1,697
Share premium account 4,880 2,263
Other reserves (7,326) (7,000)
Profit and loss account (10,824) (8,618)
-------- --------
Equity shareholders' funds (11,437) (11,658)
-------- --------
Notes:
1. The interim financial information has been prepared on the
basis of the accounting policies set out in the 1998 annual report
and accounts, but has not been audited.
2. The interim financial information does not constitute full
accounts within the meaning of Section 240 of the Companies Act
1985. The accounts for the 15 months ended 30 September 1998 have
been filed with the Registrar of Companies and received an
unqualified auditors' report.
3. The loss per ordinary share has been calculated on losses of
#2,196,000 divided by 180,125,397, the weighted average number of
ordinary shares in issue.
4. The interim report for the six months ended 31 March 1999 has
been prepared by the Company and was approved by the Directors on 27
July 1999
5. A copy of this announcement will be sent to all shareholders.
Further copies are available to members of the public from the
Company's registered office, Bruce & Partners, 23 Bridge Street,
Ellon, Aberdeenshire AB41 9AA.
END
IR AKSAKKSKBUAR
MDY Healthcare (LSE:MDY)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
MDY Healthcare (LSE:MDY)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
