Trading Statement
Advanced Medical Solutions Grp PLC
16 January 2003
For Immediate Release: 07:00 Thursday 16th January 2003
Advanced Medical Solutions Group plc ('AMS' or the Company)
FDA 510(k) clearance, Board Change and Trading Update
Winsford, UK: AMS, the global woundcare technology company today announced
approval of a 510(k) from the US Food and Drug Administration, changes to its
Board and Senior Management Team and an update on its trading situation.
The Company is pleased to announce that it has just received FDA 510(k)
clearance in the USA for extending the use of its MedLogic LiquiShieldTM skin
protection product to include damaged skin. This greatly increases the potential
market for this product within Professional Woundcare, and is also a key
stepping stone to the Company entering the rapidly emerging consumer liquid
bandage market sector later this year - a sector currently estimated to be worth
in excess of $20 million.
With regard to management changes, Tom Donovan, aged 49, has joined AMS as
Managing Director of the existing Professional Advanced Woundcare business with
responsibility for all related functions at the Company's Winsford site. Tom
has a wide range of experience gained internationally in sales, marketing and
operations in the medical and related industries. He was the former founder and
Managing Director of Yew Tree Pharmaceuticals. Tom will work alongside Richard
Stenton, Managing Director of the recently acquired MedLogic medical adhesives
and sealants business, to maximise growth of the Group's Professional product
range targeted at hospitals and nursing homes.
Godfrey Axten, aged 54, has been appointed to run a focused Consumer Division
addressing the retail pharmacy, sports and grocery market for first aid,
footcare and skincare, utilising technology transferred from both the Advanced
Woundcare and MedLogic operations. Godfrey has had a successful career in
sales, marketing, business development and senior general management in Consumer
OTC with Schering Plough and Warner Lambert in the USA and more recently with
Novartis Consumer Health, with positions in Scandinavia, Japan and as UK
Managing Director. Godfrey brings the appropriate expertise to establish and
deliver a viable global Consumer business for AMS products.
Tom and Godfrey will join Richard Stenton in reporting directly into the CEO,
Dr. Don Evans.
Following these appointments, Graeme Brookes (Sales & Marketing Director) has
resigned from the Board with immediate effect. The Board would like to thank
Graeme for his contribution to the Group since joining in April 1998 and wish
him well for the future.
For the Group as a whole, further progress has been made during 2002. The
strategic acquisition and integration of the MedLogic business has met
expectations. This business is delivering higher value products, which are
enhancing the gross margins of the Group. Our Professional Woundcare business
continues to grow well ahead of the market rate, however, the progress made in
rebuilding a Consumer business around higher value products has been
disappointing. This is expected to result in our overall sales and profits in
Woundcare being similar to the previous year.
A number of major new business opportunities expected for completion towards the
end of 2002 did not materialise before the year-end as we did not manage to
conclude deals that the Board felt would deliver maximum value for shareholders
in the future. However, we expect completion of some of these opportunities
imminently, in particular we are about to start distribution of the MedLogic
LiquiShieldTM skin protection product in the USA hospital market with one of
AMS's woundcare partners. In addition, we have negotiated termination of the
supply contract for LiquiShieldTM in the UK, which will give us greater
flexibility to market this product in the future. New partnership deals in
other key international markets are expected to be completed during Qtr.1 that
will contribute to significant new sales during 2003.
Commenting, Don Evans stated:
'The FDA clearance of LiquiShieldTM for damaged skin offers exciting new
opportunities for growing the business both within Professional Woundcare and
Consumer Skincare.
I am also delighted that we have been able to attract executives of the calibre
of Tom and Godfrey to join AMS at a key point in our development. I remain
confident that with these organisational changes providing expertise and
focussed leadership in each of our three key business units, we are well placed
to deliver the necessary deals and sales revenue to move the Group through to
profitability in 2003 within current cash'.
- ENDS -
For further information, please contact:
Advanced Medical Solutions Group plc Tel : +44 (0) 1606 863 500
Don Evans, Chief Executive
www.admedsol.com
Buchanan Communications Tel: +44 (0) 20 7466 5000
Nicola How / Fergus Mellon
Notes to Editors:
Advanced Medical Solutions is a leading company in the development and
manufacture of products for the £4 billion global advanced woundcare and wound
closure market.
Founded in 1991 and currently quoted on AIM, Advanced Medical Solutions is
focused on the design, development and manufacture of innovative and
technologically advanced products for woundcare and other medical applications.
In-house natural and synthetic polymer technology is used to provide advanced
wound dressings based on the moist healing principle. AMS's resources ensure a
unique position as a vertically integrated 'one stop shop' to provide all
categories of moist wound healing products. The Company has the capability to
move from product design and development through to production and delivery
ready for distribution into customer markets.
The recent acquisition of MedLogic has brought AMS products and technology in
cyanoacrylate based tissue adhesives and sealants sold direct to A & E
departments or through distributors.
AMS's technology and products currently serve the majority of the key global
markets with strategic partners including 3M, Novartis, Johnson & Johnson,
Molnlycke Healthcare, Coloplast, Smith + Nephew and Beiersdorf.
This information is provided by RNS
The company news service from the London Stock Exchange