OXFORDSHIRE, England--(BUSINESS WIRE)--Sep. 13, 2017--
Lombard Medical, Inc. (NASDAQ: EVAR), a developer, manufacturer and
marketer of endovascular aortic aneurysm repair products, today
announced completion of a restructuring following the implementation of
its new strategy to focus sales efforts in the UK, Japan and China, and
reduce operating and manufacturing costs in order to achieve cash flow
breakeven in the near term.
The restructuring program is anticipated to result in a reduction of
nearly $12 million in operating expenses in 2018 when compared to 2016
expenditure levels, a reduction of more than 50%.
Kurt Lemvigh, Chief Executive Officer, commented “During 2017, we have
refocused sales and marketing activities in an effort to concentrate on
our highest margin markets. We continue to sell on a direct basis in our
home market of the UK and via our distribution partner Medico’s Hirata
in Japan. Sales in Japan continue to increase, and we expect to gain a
further 2% market share this year. Our intention is to expand into
additional geographies internationally in the second half of 2018 as our
cost of goods reduction initiatives bear fruit.”
Lombard’s strategic partnership with MicroPort Scientific Corporation
(0853.HK) is focused on two key areas - gaining CFDA regulatory approval
for Lombard’s endovascular portfolio in China and a significant
reduction in material and labour costs. To that end, the parties have
several collaborative initiatives and cost saving projects well
underway. It is anticipated that based on this collaboration, Lombard
will achieve industry standard gross margins within the next 24 months.
The parties intend to launch the Lombard abdominal aortic aneurysm (AAA)
products in China, distributed by MicroPort, following regulatory
approvals currently anticipated before the end of 2018.
About Lombard Medical, Inc.
Lombard Medical, Inc. based in Oxfordshire, U.K., develops, manufactures
and markets an innovative range of minimally invasive abdominal aortic
aneurysm endovascular repair products. For more information, please
This announcement contains forward-looking statements that reflect the
Company’s current expectations regarding future events. These
forward-looking statements generally can be identified by the use of
words or phrases such as “believe,” “expect,” “future,” “anticipate,”
“look forward to,” “intend,” “plan,” “foresee,” “may,” “should,” “will,”
“estimates,” “outlook,” “potential,” “optimistic,” “confidence,”
“continue,” “evolve,” “expand,” “growth” or words and phrases of similar
meaning. Statements that describe objectives, plans or goals also are
forward-looking statements. Forward-looking statements are subject to
risks, management assumptions and uncertainties. Actual results could
differ materially from those projected herein and depend on a number of
factors, including the success of the Company’s research and development
and commercialization strategies, the uncertainties related to the
regulatory process and the acceptance of the Company’s products by
hospitals and other medical professionals, the uncertainty of estimated
revenues and profits, the uncertainty of current domestic and
international economic conditions that could adversely affect the level
of demand for the Company’s products and increased volatility in foreign
exchange rates, the inability to raise additional funds, and the risks,
uncertainties and other factors described under the heading “Risk
Factors” in the Company’s Form 20-F filed with the Securities and
Exchange Commission dated May 1, 2017. Readers are urged to consider
these factors carefully in evaluating the forward-looking statements.
The forward-looking statements included herein are made only as of the
date of this report and the Company undertakes no obligation to update
these statements in the future.
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Source: Lombard Medical, Inc.
Lombard Medical, Inc.
Kurt Lemvigh, +44 (0)1235 750 800