Aurora Spine Corporation
TSX VENTURE : ASG

Aurora Spine Corporation

April 23, 2015 20:40 ET

Aurora Spine Corporation Announces 2014 Year End Results

CARLSBAD, CALIFORNIA--(Marketwired - April 23, 2015) -

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 year ended December 31, 2014.

To our Shareholders:

2014 has been a challenging and productive year for Aurora Spine. During 2014 we began the integration of our family of products into our Screwless Procedure™, a cutting-edge surgical approach to spine fusion. The Screwless Procedure features: our ZIP™ MIS Fusion System, our TiNano® Interbody cages, and our new COMPASS 4D™ retractor system.

Highlights from 2014

  • Achieved over $2.5M in total sales for the year;
  • Achieved quarter over quarter growth during the year of approximately 65%;
  • ZIP ULTRA™ sales grew an average of 52% each quarter during the year, totaling approximately $1.8M revenue;
  • Launched the next generation of interbody cages featuring Aurora's new TiNano® titanium spray coating technology. The TiNano® interbody portfolio has become our fastest growing product line, representing approximately 23% of our Q3-Q4 revenues;
  • Received nine (9) U.S. Food and Drug Administration ("FDA") 510(k) product clearances for the ZIP ISP products, lumbar interbody cages and cervical interbody cages; and
  • Performed surgeries using our implants in the United States, Israel, Germany, Italy, Poland, Spain, and the United Kingdom.

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.

Aurora is an early stage, global medical device company. As such we had to work hard in 2014 to gain the trust of manufactures, suppliers, and vendors. In our first full year of sales we were able to sell over 1250 product units with 47% of those units sold in the fourth quarter representing approximately $1.3M of revenue.

Simplifying the Complex™ has always been central to our culture and with the multiple FDA clearances we received during 2014, we increased our product portfolio from zero products in 2013, to over 14 products by the end of 2014. Mid-year, we added two new biologic products ZIP Graft™ (US market) & ZIP Graft TCP™ (International market). Both are designed specifically for use with the ZIP™ MIS Interspinous Fusion Systems. We are pleased with our current biologics offering and anticipate that this segment will grow to over a $1M in top line revenue in 2015 as we improve and grow our ZIP™ sales.

With the launch of our products in 2014, we focused on driving growth by training surgeons and distributors on Aurora Spine's unique technology and increasing the reach of our sales force. We continued international expansion in 2014, as we built our sales efforts in the United Kingdom, Germany, Italy and other European countries and Israel. Sales outside of the United States represented approximately 25% of revenues in 2014 and we anticipate an ongoing international presence.

We did experience manufacturing delays as we fine-tuned manufacturing procedures, improved delivery timelines and validated our processes. These delays impacted our sales for the year, but we worked through the headwinds and launched most of our expected 2014 product initiatives.

Going into 2015, we remain committed to developing our U.S. sales force, growing our number of sales professionals from a current level of three to six, which should allow us to generate increased sales and provide improved customer service.

In 2015, we will focus on:

  • Aggressively continuing our strategy of building a strong revenue base in the North American, European, and the Middle Eastern markets. We will accomplish this by expanding product usages with our current distribution network, developing new distribution channels and training new surgeons on the Aurora product advantages;
  • Expanding our sales teams in the US by region; and
  • Lowering our cost of goods across the board.

We expect that these initiatives will create value for our shareholders. Management and I thank our shareholders for their continued support in these endeavors.

We will look to extend our technology position further with minimally disruptive procedural solutions for the spine. We are committed to take market share in the minimally invasive (MIS) spine market.

Following the significant number of accomplishments of 2014, we are optimistic about 2015. We are adding new hospitals and surgeons to our customer base, entering new markets and are on our way to achieving our long-term growth and profitability objectives.

None of this would be possible without the dedication and commitment of our hardworking colleagues at Aurora. I want to thank them for the great accomplishments they have made this year, for Aurora and ultimately, for patients. They have embraced change and risen to the numerous challenges before them, and I am grateful for their ongoing support of our company and our mission.

I would also like to thank you, our investors, for your continued support. Together, we have built a strong foundation, and I look forward to the opportunities ahead of us. I am truly grateful to be part of an organization that makes such a positive improvement in the lives of patients around the world.

The statements together with the Management Discussion and Analysis can be found on SEDAR at www.sedar.com.

Trent J. Northcutt, President and Chief Executive Officer

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 materially 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.

Contact Information

  • Aurora Spine Corporation
    Trent Northcutt
    President and Chief Executive Officer
    760) 424-2004

    Aurora Spine Corporation
    Eric Fronk
    Chief Financial Officer
    (760) 424-2004