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Median Technologies Reports Full Year 2018 Financial Results

April 11, 2019 Off By BusinessWire

Order backlog of €23.7m
2018 full year revenues of €6.3m
Cash and cash equivalents of €12.7m, with significantly reduced burn
rate during the second half of the year
Reorganization of the company into two business units, iCRO and
iBiopsy®

SOPHIA ANTIPOLIS, France–(BUSINESS WIRE)–Regulatory News:

Median Technologies (Paris:ALMDT), The Imaging Phenomics Company®
reported today full year 2018 financial results. Median Technologies
Board of Directors approved the consolidated 2018 financial statements
on April 10, 2019. The annual shareholders meeting will take place on
June 26, 2019.

As of December 31, 2018, the Company’s order backlog was €23.7m, an
increase of 10.8% compared to the backlog on June 30, 2018. During the
second half of the year, Median signed up many of the leading Chinese
pharmaceutical companies, including major contracts for phase III
clinical trials. At the end of 2018, 39.2% of the order backlog was
coming from Chinese business compared to 5.4% in 2017.

As of December 31, 2018, the Company’s cash and cash equivalents were
€12.7m. The Company’s strategic restructuring into two business units
and an increased focus of the iCRO activity on high growth and
profitable markets has enabled the cash burn to decrease substantially.
During the second semester of 2018 the cash burn was €5.8m versus €9.8m
during the first semester of 2018. Excluding exceptional charges related
to the Company’s organizational changes, the cash burn would have
decreased even more.

As of December 31, 2018, the Company’s revenue was €6.3m, a decrease of
17.5% compared to 2017. Company revenues were entirely generated by the
iCRO business unit, which delivers solutions and services for medical
image management in oncology clinical trials; the iBiopsy® business unit
is not generating revenues at this stage, as it currently includes only
Research and Development activities. The restructuring of the iCRO
business unit has allowed the Company to significantly reduce costs and
improve its operational margins.

“In 2018 we repositioned our iCRO business to allow Median to
deliver on its promise of sustained profitable growth. We expect strong
growth in the coming years, particularly in China and the rest of the
Asia-Pacific region”, said Fredrik Brag, CEO and co-founder of
Median Technologies. “We have focused our R&D effort on the
development of our imaging phenomics platform iBiopsy®. Through the
application of cutting-edge AI technologies, our mission is to
contribute to medical innovation and the development of new therapies,
and to enable clinical decision making for precision and predictive
medicine”, Fredrik Brag added.

Selected financial information (IFRS consolidated financial
statements)

In €K (audited figures)	2018	2017
Revenue from ordinary activities	6,534	7,689
Staff costs	-10,430	-14,869
External costs	-9,895	-9,169
Operating result	-15,393	-17,081
Net financial result	70	-117
Net result	-15,284	-17,206

2018: iCRO business development in China, iBiopsy® R&D effort
strengthening

2018 was a year of successful transition that has led to the
organization of the Company into two separate business units, the iCRO
business unit delivering services for image management in oncology
clinical trials, and the iBiopsy® business unit. The Company focused its
iCRO activities principally on the Chinese market while pursuing new
business development strategies for the US and Europe. The Company
invested further in its R&D activities for iBiopsy®, its groundbreaking
imaging phenomics platform.

iCRO: The Chinese clinical trial market is experiencing strong
growth given that Chinese pharmaceutical companies have been able to
raise substantial amounts of funding and have had successful IPO’s.
Median has benefited in China from the fact that there are no legacy or
established relationships with local or International iCROs competing
with the Company. Median has experienced strong market penetration by
demonstrating a high quality of customer services. As far as the US and
EU markets are concerned, Median has reverted to a more cost-efficient
indirect sales model based on its existing partnerships and informal
collaborations with global CROs as well as repeat business from existing
customers.

iBiopsy®: In 2018, Median focused its R&D effort on its next
generation imaging phenomics platform iBiopsy®. The platform integrates
cutting edge Artificial Intelligence and image interpretation
technologies and addresses the entire patient journey, from the
development of next generation patient diagnosis to novel therapies and
treatments based on precision and predictive medicine. As of December
31, 2018, the iBiopsy® business unit represented more than 40% of the
Company’s overall headcount, the majority of the business unit’s
headcount being scientists specialized in image processing, Artificial
Intelligence and data sciences, as well as software developers.

Median’s focus on high growth markets and high potential activities led
to a reduction in headcount: as of December 31, 2018, the Company’s
headcount totaled 78 compared to 117 as of December 31, 2017. Staff
costs reflected this decrease. At the same time, external costs
increased due to exceptional costs related to the Company
reorganization. The Company reported an operating loss of €15.39m and a
net loss of €15.28m, down 11.2% compared to 2017 figures.

2019: breakeven iCRO business, an ambitious iBiopsy® roadmap

iCRO: The iCRO business should experience continued growth
through the conversion of its increasing order backlog and its
positioning in the Chinese market. Median is targeting breakeven in 2019
for this part of the business and will focus on establishing a China
based entity delivering operations and services for Chinese customers
through its WFOE (Wholly Foreign Owned Enterprise) created in
2018 in Shanghai.

iBiopsy®: In December 2018, Median appointed Dr. Nozha Boujemaa
as Chief Science and Innovation Officer. Nozha Boujemaa took office at
the beginning of 2019 and joined the executive committee of Median
Technologies. As a Key Opinion Leader in the field of Artificial
Intelligence and data sciences, Nozha Boujemaa oversees Median’s
scientific vision as well as innovation and development strategies for
iBiopsy®. Median’s academic and industry-related partnership policy for
iBiopsy® is also under her responsibility.

Nozha Boujemaa’s experience and deep knowledge of the latest AI
technologies are valuable assets and will help define and implement
strong technological differentiators for iBiopsy® according to its
clinical objectives, especially in immuno-oncology. The 2019 iBiopsy®
roadmap includes a set of technical validations leading to the
production of a prototype at the end of the year. Clinical validation,
prototype deployment and early adopter selection will commence in 2020.

Median informs its shareholders and the financial community that its
annual financial report on the accounts for the year ended December 31,
2018 was made public and filed with the AMF.
The annual financial
report is available on the company website: www.mediantechnologies.com/investors/

Forward-Looking Statements: This press release contains
forward-looking statements. Forward-looking statements are statements
that are not historical facts. These statements include projections and
estimates and their underlying assumptions, statements regarding plans,
objectives, intentions and expectations with respect to future financial
results, events, operations, services, product development and
potential, and statements regarding future performance. Forward-looking
statements are generally identified by the words “expects”,
“anticipates”, “believes”, “intends”, “estimates”, “plans” and similar
expressions. Although Median’s management believes that the expectations
reflected in such forward looking statements are reasonable, investors
are cautioned that forward-looking information and statements are
subject to various risks and uncertainties, many of which are difficult
to predict and generally beyond the control of Median, that could cause
actual results and developments to differ materially from those
expressed in, or implied or projected by, the forward-looking
information and statements. These risks and uncertainties include among
other things, the uncertainties inherent in research and development,
future clinical data and analysis, including post marketing, decisions
by regulatory authorities such as the absence of guarantee that the
service if approved will be commercially successful, the future
approval, Median’s ability to benefit from external growth
opportunities, to complete related transactions and/or obtain regulatory
clearances, risks associated with intellectual property, trends in
exchange rates and prevailing interest rates, volatile economic
conditions, the impact of cost containment initiatives and subsequent
changes thereto, the average number of shares outstanding as well as
those discussed or identified in the public filings with the AMF made by
Median, other than as required by applicable law, Median does not
undertake any obligation to update or revise any forward-looking
information or statements.

About Median Technologies: Median Technologies provides
innovative imaging solutions and services to advance healthcare for
everyone. We leverage the power of Imaging Phenomics to provide insights
into novel therapies and treatment strategies. Our unique solutions for
medical image analysis and management in oncology trials and iBiopsy®
for imaging phenotyping, together with our global team of experts, are
advancing the development of new drugs and diagnostic tools to monitor
disease and assess response to therapy. Median Technologies supports
biopharmaceutical sponsors and healthcare professionals around the world
to quickly and precisely bring new treatments to patients in need. This
is how we are helping to create a healthier world.

Founded in 2002, based in Sophia-Antipolis, France, with a US subsidiary
and another one in Shanghai, Median has received the label “Innovative
company” by the BPI and is listed on Euronext Growth market (ISIN:
FR0011049824, ticker: ALMDT). For more information: www.mediantechnologies.com