What: Regenerative medicine business ADEMDUS FPO (ASX: AHZ) posted a full year loss of $6.6 million today as it continues to invest for it what it hopes will be a profitable future.
The group generated $7.9 million in revenue during the year through sales of general medical products and in May announced it had achieved the first U.S sales orders for its key CardioCel heart patch product.
The company also raised $29.5 million over the year partly to fund a global sales push for its CardioCel product and support the logistical requirements of manufacturing it on a commercial scale.
So what: CardioCel is a medical patch surgically placed on a patient's heart to potentially repair a range of defects. Its competitive advantage is that evidence suggests once attached the patch does not need to be replaced, preventing the need to reoperate.
Admedus has also been completing clinical trials in the hope that one day it will be able to market and sell unrelated therapeutic vaccines on a commercial basis.
What now: This all sounds good on paper, but Admedus is going to have start growing revenues soon enough if it is to justify the considerable investor support it has received and a market value of $231 million.
Details as to how sales of the CardioCel patch have been progressing are a little thin on the ground, although the company now has sales teams in Europe, Singapore and the U.S. Moreover, it says it anticipates sales growth over the next 12 months. Evidently the business has a big year ahead of it and investors can expect some significant share price movement, which way will likely depend whether the patch takes off or not.
