Medicrea signaled its possible availability for acquisition when it announced preliminary discussions with U.S.-based spine players. While the company hedged by stating that these discussions could also lead to distribution agreements or strategic partnerships, it nonetheless retained the services of U.S. investment banking firm Cowen and Company.
The announcement portrayed a competitive bidding process to come, noting regular inquiries about their UNiD ASI platform from U.S. groups and offers in 2019 from "leading companies" that Medicrea ultimately did not pursue. However, the company believes the interest demonstrates that now is the time to maximize their market access by leveraging the sales and marketing resources of large U.S. players.
Medicrea plays in the spine and orthobiologics segments, with slightly more than 50% of its revenue coming from U.S. sales. We project total company revenue of $37.7 million for 2019.
With no firm or binding proposals thus far, Medicrea intends to proceed with fundraising to meet its financial needs for 2020. This could take the form of a five million euros capital increase without retention of preferential subscription rights in the first quarter of 2020.