Creo Medical : 2022 Annual Report

Creo Medical Group plc - 2022 Annual Report & Accounts

Introduction

Transforming Surgery,

Transforming Energy,

Transforming Lives

Creo Medical is a UK based medical device and advanced energy company, transforming lives by delivering pioneering solutions to healthcare providers across the world.

The Company was founded in 2003 by Professor Chris Hancock, initially to target the treatment of cancers through the use of high frequency microwave energy.

One in two1 people will develop some form of cancer in their lifetime. We will all likely know someone who will be or has been impacted in some way. These diseases can be treated using advanced energy, with potentially huge impact for both patients and their loved ones. Chris was driven to apply this technology to make a difference to improve people's lives, and this is the foundation on which Creo is built.

Our Products

Creo Medical has developed a suite of unique endoscopic devices (see pages 24 and 25). When combined with the CROMA advanced energy platform, the Kamaptive Technology enables a broad spectrum of energies to

be utilised. It is this unique combination that puts us at the forefront of a paradigm shift in the treatment of an increasing number of indications, particularly in the GI tract, pancreas, liver and lung. Creo is now able to complement these devices with a broader range of Endotherapy products, which are available to our EMEA and US customers.

Our Kamaptive Licensing Programme has had a successful year with income already generated and with our team working extremely positively with others.

Our Stakeholders

In pursuing our mission 'to improve patient outcomes', a number of stakeholders directly or indirectly benefit from our technologies:

Patients

• Improved patient outcomes
• Shorter procedure times
• Low recurrence risk (rate less than 1%2)
• Organ preservation rather than surgical intervention
• Reduced risk

Healthcare Professionals

• Minimally invasive treatment
• Reduced risks associated with surgical procedures
• Removal of lesions en-bloc (in one) for improved histology and lower recurrence rates
• Streamlined training curve

Hospitals

Transforming Lives, Case by Case

Creo's products are in everyday use by some of the world's best physicians and healthcare institutions, particularly our flagship device, Speedboat Inject, which is providing excellent outcomes and for which we have a growing pipeline of physicians globally.

We employ a wide range of experts spanning all Company departments

• Engineering and R&D teams.
• Enhanced manufacturing capabilities optimised for growth.

• Excellently connected sales teams and bespoke direct and indirect distribution networks across territories.
• A world-class Pioneer Clinical Education Programme tailored to the needs of our customers and their patients.
• Global business support functions to continue to build the Creo brand globally.

With our Kamaptive Licensing Programme also coming to fruition, it is clear 2022 was a year of great progress for Creo. Having established a presence across the US, Europe and APAC, the foundations are laid for rapid growth, not only for Speedboat Inject but across our portfolio.

In addition to endoscopic products manufactured by Creo, we have begun to work with leaders from other sectors (particularly robotic surgery) through our Kamaptive Licensing Programme in order to ensure that the benefits of our advanced energy technology are maximised, both in aiding the treatment of more patients and indications worldwide and in generating income from multiple high- growth markets.

References

1. https://www.nhs.uk/conditions/cancer/
2. Saito, Y., Fukuzawa, M., Matsuda, T. et al. Clinical outcome of endoscopic submucosal dissection versus endoscopic mucosal resection of large colorectal tumors as determined by curative resection. surg Endosc 24, 343-52 (2010). https://pubmed.ncbi.nlm.nih.gov/19517168/

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Creo Medical Group plc - 2022 Annual Report & Accounts

Our Achievements

Commercial and Operational Highlights

Financial Highlights as of 31st December 2022

Threefold increase in revenue generated from Creo's core technology

Revenue

£27.2m

(2021: £25.2m)

Underlying EBITDA loss*

£22.1m

(2021: £22.6m)

Net Assets

£49.4m

(2021: £73.3m)

Kamaptive Licensing Programme

First Revenues

Operating Loss

£30.8m

(2021: £29.9m)

Gross Margin

48.3%

(2021: 46.0%)

Post balance sheet event

£34m

(Oversubscribed Fundraise - March 2023)

Cash & Cash Equivalents

£13.1m

(2021: £43.5m)

*  Underlying EBITDA is defined on page 63