– Completion of EMEA Direct Sales team build-out drives 46% growth in system installations over the course of 2016
– Reported unaudited FY 2016 revenue and strong year-end cash position
Curetis N.V. (Euronext: CURE, the “Company” and, together with Curetis GmbH, “Curetis”), a developer of next-level molecular diagnostic solutions, today announced the installation of its milestone 150th Unyvero Analyzer worldwide.
Curetis has now grown its installed base of Unyvero Analyzers to 151 as of 31 January 2017. This compares with 103 Analyzers as of the end of 2015, 113 at mid-2016 and 121 as of 30 September 2016.
“We are very pleased to reach this important installed base target, which represents 46% growth in system installations over the course of 2016 and the first month of 2017,” said Dr. Oliver Schacht, CEO of Curetis. “As expected, we have started to see significant momentum in placement rates beginning in Q4, 2016, and continuing into early 2017 following the completion of the build out of our EMEA direct sales team in Q3, 2016. Since then, our sales pipeline has expanded dramatically, both in terms of number and quality of prospective customers. We expect this pipeline growth to continue as we approach key inflection points in strategic markets such as the U.S., where our application for 510(k) clearance is currently under review by the FDA. Overall we are now well positioned to deliver further growth in 2017.”
The acceleration in placements towards the end of 2016 and first month of 2017 was predominantly driven by the completion of the build out of Curetis’ EMEA Direct Sales team, which became fully staffed and operational in the third quarter of 2016 across all of Curetis’ direct selling markets in the region.
Since September 30, 2016, new Unyvero Analyzer installations were placed in Germany (4), UK (9), France (8), and Switzerland (3) leading to a current installed base in the Company’s direct selling markets of:
• Germany: 44
• UK: 16
• France: 16
• BeNeLux: 3
• Switzerland: 3
In addition, Curetis’ pipeline of prospects has doubled from about 100 active leads early in 2016 to about 200 active leads currently, across all direct selling markets. As well as seeing growth in its direct selling markets, the Company recently signed new distribution partnerships in Greece and Israel, expanding its global distributor network, from 10 distribution partnerships to 12 across 26 countries.
“We expect an increase in commercial conversions to follow in a typical 9 to 12 month sales cycle from new installations,” added Dr. Achim Plum, CCO of Curetis, “Therefore, our assumption is that 2017 cartridge revenues will begin to increase considerably as compared to 2016 once all the new installations are up and running and commercial conversions have been made. We have observed that new users of the Unyvero system typically start with a single cartridge type but broaden their usage to other types of available cartridges as they begin to recognize the unique benefits of the Unyvero System. We expect to see similar behavior from new customers as we further expand our installed base.”
The Company also reported preliminary unaudited full-year 2016 revenues of EUR 1.3 M and year-end liquidity (cash, cash equivalents and VAT refund receivable) of EUR 24 M. The underlying product revenue (excluding 2015 non-recurring revenues of EUR 0.9 M in system sales to Asian partners for clinical trials and regulatory clearances and EUR 0.3 M of pharma revenue) grew from 0.9M EUR in 2015 to EUR 1.3M in 2016 or by ca.44%. The year-end cash position does not include any amounts under the EUR 25m EIB debt facility announced on 12 December 2016, which remains undrawn to date.
Curetis will report audited full-year 2016 financials on 12 April 2017.