CARLSBAD, CALIFORNIA--(Marketwired - Dec. 1, 2014) -
NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Aurora Spine Corporation ("Aurora Spine" or the "Company") (TSX VENTURE:ASG) announces financial results for the quarter ended September 30, 2014.
The third quarter of fiscal 2014 was a busy and productive quarter for Aurora Spine. During Q3, Aurora Spine actively began the integration of its family of products into the Screwless-Procedure™, a cutting-edge surgical approach to spine fusion. The Screwless-Procedure features: the Aurora Spine ZIP™ MIS Fusion System, TiNANO® Interbody cages, and the new COMPASS 4D™ retractor system. The Screwless-Procedure has been developed to increase the possibility of significant benefits to patients, hospitals, and surgeons, including reduced surgery time, less blood loss, shorter hospital stays, and significantly faster recovery time. These benefits will continue to be the driving force of Aurora Spine's competitive advantage and growth.
Highlights for the third quarter of 2014
- Hospital and surgery center approvals increased by approximately 80 facilities.
- Launch of the TiNano® Interbody systems. TiNano is Aurora Spine's unique Titanium Plasma Spray coating on Invibio PEEK Interbody implants allowing for bone ingrowth due to its porous structure.
- First U.S. surgery using the ZIP Graft ™ pre-packaged sterile bone dowel was performed.
Sales Update
Hospital approvals remained the primary focus in Q3. Approvals were at a rate less than anticipated and negatively impacted surgeon ability to use the Company's products and consequently slowed sales introductions. During the quarter, the Company made significant leadership changes to help address this issue. Aurora Spine changed, added to, and upgraded its sales team. Mike Wheelock was hired as the Vice President of North American sales. The Company subsequently bolstered its sales management team by adding three new US Regional Sales VPs in the West Coast, the Central US, and on the East Coast. Each new US Regional Sales VP brings a wealth of relationships that the Company expects will facilitate hospital approvals and sales. In addition, the Company added two talented sales and marketing managers, one sales manager in the United Kingdom and one in Germany.
These personnel changes came after the Company experienced slower than expected US hospital approvals which resulted in less-than expected sales results for Q1 & Q2. President & CEO Trent J. Northcutt personally took over all U.S. sales responsibilities and made several visits to key accounts. As a result of these changes the Company experienced expected growth in Q3 and is looking forward to a strong Q4.
Aurora Spine is beginning to see its efforts translate into topline revenue growth. US revenue for July and August averaged approximately $117k per month. In September, the last month of Q3, sales rose to $190k. The Company expects that sales in the US will exceed $300k in the month of November, despite two shortened weeks with the NASS convention and US Thanksgiving holiday.
The Company continued its international expansion in Q3, as it built its sales efforts in the United Kingdom, Germany, Italy and other European countries and Israel. Sales outside of the United States represent 25% of revenues for 2014.
Product Development
During Q3, Aurora Spine continued its focus on Simplifying the Complex™. Through the end of Q3, the Company obtained multiple FDA clearances & multiple CE Mark approvals, increasing its product portfolio from zero products in Q3, 2013, to over 10 products by the end of Q3, 2014.
Looking Forward
With its product portfolio broadened out, the Company is fully focused on expanding its sales. The Company expects to continue to evaluate its direct sales team and requirements for increased coverage in the US.
The Company has a pipeline of new products in development furthering its Screwless Procedure strategy of providing cutting-edge, minimally invasive spine surgery (MIS) products. The Company's disruptive technology is being recognized as a differentiator for surgeons seeking more advanced solutions for MIS surgery. Aurora Spine remains committed to building partnerships with hospitals, healthcare systems, surgeons, and medical distributors with the corresponding goals and philosophy in mind to deliver superior patient outcomes.
Aurora Spine is well positioned on the path toward becoming the leading spine company in the world. As always, the Company wishes to thank Team Aurora, Board members and our Shareholders for the continued loyalty, support and confidence in Aurora Spine.
The statements together with the Interim Management Discussion and Analysis can be found on SEDAR at www.sedar.com.
About Aurora Spine
Aurora Spine is focused on bringing new solutions to the spinal implant market through a series of innovative, minimally invasive, regenerative spinal implant technologies.
Forward-Looking Statements
This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Aurora Spine, including, without limitation, those listed under "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Information" in Aurora Spine's final prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes information concerning the growth potential of Aurora Spine's products and its operating results. Aurora Spine cautions investors of its securities about important factors that could cause Aurora Spine's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ unilaterally from those expressed in such forward-looking statements. No assurance can be given that the expectations set out herein will prove to be correct and, accordingly, prospective investors should not place undue reliance on these forward looking statements. These statements speak only as of the date of this press release and Aurora Spine does not assume any obligation to update or revise them to reflect new events or circumstances.