Ellex announces strong half-year financial results

Australian company Ellex Medical Lasers has reported strong global demand for its Minimally Invasive Glaucoma Surgery (MIGS) device and Retinal Rejuvenation Therapy (2RT) laser, following the release of its half-year results.

According to the company, for the period ending 31 December 2018 group sales revenue increased by 9%, or 3% on a constant currency basis, to $41.6 million.

Ellex’s iTrack surgical systems saw revenues increase by 25%, or 16% on a constant currency basis, to $6.5 million. The results were driven by particularly strong sales in the US, which is a direct market for the company. China was also a bright spot, with unit sales up by 43% thanks to the Ellex iTrack being the only MIGS device currently approved in the country’s market.

The company also reported that revenue from its 2RT laser increased by 532% to $1.2 million. Behind the dramatic surge was the release of Ellex’s LEAD clinical study, which showed 2RT treatment achieved a 77% reduction in the rate of progression of 76% of patients with intermediate age-related macular degeneration (iAMD) to advanced forms of the disease over the 36-month study.

The 2RT laser is currently cleared in the US for clinically significant macular edema treatment, and Ellex expects to establish a pathway for it to receive approval for iAMD treatment during 2019.

“The overall performance of Ellex in the first half, with near double digit top-line sales growth across the business was principally driven by our glaucoma therapy segment, which grew 18% over the [prior corresponding period] and has exhibited a 23% compound annual growth rate over the last three years,” Mr Tom Spurling, CEO of Ellex, said.

“Group [earnings before interest, tax, depreciation and amortisation (EBITDA)] improved 12% versus the [prior corresponding period], principally the result of strong cost base leverage within our core Lasers & Ultrasound segment where revenues grew 4% while EBITDA surged 53%. This was despite a sluggish sales performance from our ultrasound products during the half.”

Spurling also commented that the global iAMD and glaucoma markets are expected to grow, boding well for Ellex’s product line.“The Company rains well funded, and operating cash flow is sufficiently strong to warrant these strategies while still expecting an improved operating result in FY19 as our product mix improves, sales grow and margins expand.”

Ellex also reported that it is on track to increase sales and deliver improved EBITDA for the rainder of the 2019 financial year.

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