On October 3, 2019 Median Technologies (Paris:ALMDT) (ALMDT), The Imaging Phenomics Company, reported its results for the first half of 2019 (Press release, MEDIAN Technologies, OCT 3, 2019, View Source [SID1234540043]).
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The company’s Board of Directors met on October 1st and approved the consolidated financial statements for the first half of 2019.
With € 4 million in revenue, Median Technologies’ sales increased 19.5% compared to the first half of 2018. The company’s H1 revenue came solely from its iCRO business1.
During the first six months of 2019, Median Technologies continued to invest in the development of its imaging phenomics platform, iBiopsy and strengthened its AI and data science teams in order to cement its position as a leader in the field.
As Median started managing operations locally in China, the company’s iCRO Business Unit continued to expand, which resulted in a significant increase of Chinese orders throughout the half of the year. In Europe and the United States, new orders in the first half of 2019 exceeded the company’s expectations for the entire year. As of June 30, Median’s iCRO business unit was operationally at its break-even point.
Simplified financial statements (IFRS consolidated)
The company’s operating expenses dropped sharply compared to last year due to a 36% decrease in staff costs (€ -4.1 million as of June 30, 2019 vs. € -6.5 million as of June 30, 2018) and a 37% decrease in external costs (€ -3.5 million as of June 30, 2019 vs. € -5.6 million as of June 30, 2018).
As a result, the operating loss was cut by more than 50% to € -4.19 million. The company’s net result at the half-year mark went from € -9.0 million in 2018 to € -4.2 million in 2019.
As of June 30, 2019, Median had € 7.9 million in cash and cash equivalents, not including the Research Tax Credit payment (€1.6 million) which was received in July, and € 4.9 million in net equity. Net new orders reached € 11 million in the first half of the year bringing the company’s order backlog to € 30.7 million, up € 7 million compared to December 31, 2018. The extent of the order backlog makes Median confident about the company’s revenues for the second half of 2019 and 2020.
Latest developments and perspectives
During the third quarter of 2019, Median Technologies has continued negotiations for a € 35 million loan with the European Investment Bank (EIB), however the process was slowed down due to EIB logistical internal constrains. EIB and Median expect to finalize the agreement in Q4. Median expects the lending of the first tranche of € 15 million in the first half of 2020. Structured in three tranches, the loan will enable Median Technologies to boost investments in its imaging phenomics platform, iBiopsy, over the next few years. The ongoing negotiations for this loan were announced on May 15th.
Current trends point to the company’s positive results in the third quarter of 2019. Q3 results will be published shortly. Median’s iCRO business is expected to keep growing steadily worldwide. In the United States, two phase III contracts (totaling € 2 million) were signed in Q2, with one of the world’s top 3 pharmaceutical companies, a new customer for Median. These contracts have opened promising opportunities for Median in the US. The development of iBiopsy is progressing as planned, including an upcoming technology demonstrator at the annual convention of the RSNA (Radiological Society of North America) in early December.
"Our results for H1 have exceeded all expectations. We anticipate keeping up the momentum in the second half of the year," said Fredrik Brag, CEO and co-founder of Median.
Median informs its shareholders and the financial community at large that its financial statements for the first half of 2019 have been filed with the French market regulator and are now available on the company’s website.