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Admedus Delivers More Stellar Results

Admedus (ASX:AHZ) continues to perform with overall sales of $7.8 million for the year ended 30 June 2014, up from the $7.4 million of the previous year.

The performance reflects some of the milestones the company has achieved including the first sales in May of its lead regenerative tissue product CardioCel® in the U.S.

Total income for the year including tax rebate and grants was $10.4 million.

This included $1.9 million in grant funding from the Commercialisation Australia grant, which is supported by the Australian Government.

The closing cash balance at the end of the period was a robust $19.5 million after a successful rights issue and share purchase plan.

The company remains in a strong financial position as it progresses with the launch and marketing of CardioCel® in Europe and the U.S.

Working capital expenditure increased for both the quarterly period and the full year, compared to corresponding periods.

This reflects Admedus' further investment into therapeutic vaccine programs, led by Professor Ian Frazer, as well as the establishment of the manufacturing facility in Western Australia and the expansion of the CardioCel sales teams in Europe and the US.

Recent Activity

The past quarter saw increasing activity around the launch of CardioCel® in Europe with 12 centres now using the product.

This is well within its goal of it being used in 15 surgical centres.

During the quarter, Admedus also announced initial sales for CardioCel® in the US, following its receipt of U.S. Food and Drug Administration clearance in February this year to begin marketing.

Earlier this month, the company also demonstrated its confidence in Professor Ian Frazer's Admedus vaccines, a developer of therapeutic vaccines, by increasing its stake to 66.3% from 50.1%.

The company had earlier this year received positive interim results for the therapeutic vaccine for Herpes Simplex Virus Phase I study and is scheduled to release additional data this quarter once confirmatory assays are completed.

Admedus Vaccines is also continuing the pre-clinical work on the Human Papillomavirus therapeutic vaccines.

Analysis

Admedus' increased sales of $7.8 million demonstrates the progress that the company has made with its CardioCel® lead regenerative tissue product in the past 12 months.

There is more growth to come with the company continuing to progress the launch and marketing of CardioCel® in Europe and the U.S.

Other work and milestones that could re-rate the company include:

- Extending the use of CardioCel® for an expanded range of indications in cardiovascular surgery;
- Expanding regenerative tissue portfolio and explore the use of ADAPT® prepared tissue for additional surgical applications that have the potential to increase revenue in the future;
- Further data from the HSV-2 Phase 1 Study to be released this quarter;
- Initial Asian market approval for CardioCel®;
- Initiation of HSV-2 Phase II; and
- Initiation of HPV Phase I.

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