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  • Bacterin expects 134% Q2 revenue growth, buys Robinson MedSurg assets  0 comments
    Jul 19, 2011 11:24 AM | about stocks: BONE

    Bacterin International Holdings (AMEX:BONE), a company that develops bone graft material and anti-infective coatings for medical applications, said Monday it expects to report its seventh consecutive quarter of record revenue growth, and on top of this, announced a separate acquisition.

    The Belgrade, Montana-based company, whose second quarter results are expected in August, said it anticipates revenue of around $7.5 million for the three month period, more than double the $3.2 million made a year ago, and around 25% higher than the previous quarter.

    The sales growth is attributed to a larger number of domestic and international hospitals using Bacterin products, as driven by the company's expanding sales force.

    "Our record revenue reflects the tremendous operational progress we made during the quarter," said chairman and CEO, Guy Cook.

    "This included the launch of our third human acellular biological scaffold during the quarter, hMatrix, which has opened the door to a $2.5 billion market in the U.S. alone.

    "We expect this revenue momentum and domestic and international market expansion to continue building throughout the rest of the year, especially with the recent addition of Bacterin's product line to ROI's nationwide network of hospitals and medical practices."

    The company said it also plans to leverage its sales force with new product lines.

    Separately, Bacterin announced it has acquired the assets of Robinson MedSurg, a medical device distribution company focused on maxillofacial and craniofacial surgery devices, in an all-stock deal.

    For $1 million worth of Bacterin common stock, the company acquired $500,000 in inventory, existing commercial agreements and intellectual property, including a number of patents and patent applications.

    Once certain revenue goals are acheived by the assets over a two-year period, additional Bacterin common stock valued at $1 million will be paid to Robinson.

    "We expect this acquisition to leverage our sales force, which will now have additional products to sell into the same call points," added Cook.

    "This acquisition represents our first foray into medical devices that will eventually use our anti-microbial coatings."

    The acquisition, comprised of implantable medical devices for maxillofacial, craniofacial, and orthopedic uses, will see Bacterin expand the established network of distributors the purchase is expected to bring, as well as further enhance the Robnison product line with its own products.

    The company expects to first sell the Robinson uncoated orthopedic implants, and by this time next year, anticipates having the FDA approval to use its anti-microbial coatings on the implants.

    In late May, Bacterin announced that Chicago-based asset manager Lincoln Park Capital invested an initial $1 million into the company through an equity financing, and committed to contribute a further $30 million.

    The new funds will be used to enhance the newly acquired Robinson MedSurg orthopedic implants.

    Bacterin said it plans to hold a conference call in the second week of August to discuss its  second quarter results.

    Themes: AMEX Stocks: BONE
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