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Product / Company Performance

aap Reports 4Q18 Revenue of €2.6MM, -9.8% vs. 4Q17 -


aap Implantate posted 4Q18 revenue of €2.6MM (USD $3.2MM), -9.8% vs. 4Q17, and full year 2018 revenue of €10.8MM (USD $13.3MM) vs. 2017. After achieving 20% revenue growth in 2017, this year “fell short of expectations” according to company leadership, although it was in line with the guidance of €10MM to €11.7 provided in November 2018. The projections that we published at the end of the third quarter overestimated company performance by 1.9%.

aap performed well in its home market of Germany with 14% year over year growth, as well as in BRIC countries (+32%) and other key European markets (+17%). The company benefitted from traction in major German hospitals and purchasing associations. app found little success in North America, however, with revenue down -27% vs. 2017, as it was unable to sign new contracts and lost key distributors and clinics.

Leadership is bullish on the company’s 2019 outlook. Its antibacterial silver coating technology produced convincing results in animal studies at the end of 2018, showing no negative influence on bone healing, which is a central requirement for approval. At the end of the year, aap applied to BfArM (Federal Institute for Drugs and Medical Devices) to begin human trials, which are expected to start in 1H19. The company anticipates that human trials, if approved, will increase operating costs and is thus exploring options to strengthen its financial base such as licensing technology and leveraging equity instruments.

aap is targeting 20% - 40% growth in 2019 by focusing on the North American market, exploring strategic partnerships with global orthopaedic companies and expanding its LOQTEQ polyaxial fixation portfolio for the foot and ankle. Leadership provided 2019 guidance in the range of €13MM to €15MM, with 1Q19 revenues between €2MM and €3MM.

4Q18 and FY segment sales and growth on an as-reported basis are as follows.

  4Q18 4Q17 $ Change % Change
Trauma $3.2 $3.5 -$0.3 -9.8%


  FY18 FY17 $ Change % Change
Trauma $13.3 $13.1 $0.2 1.6%


Sources: aap

Mike Evers is ORTHOWORLD’s Market Analyst. He can be reached by email.

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