First £225,000 Sales Order for myLotus Fertility Products Signed in China and Trading Update
12 June 2017
Concepta Plc (AIM: CPT), the pioneering UK healthcare company and developer of a proprietary platform and suite of products targeted at the personalised mobile health market with a primary focus on women's fertility and specifically unexplained infertility*, announces that it has received its first sales order for RMB 1.95million (£225,000 at today's exchange rate of RMB 8.33: £1) for its myLotus fertility products from its partner in China, HuanZhong Biotech Co.Ltd ('HZ Biotech').
This sales order represents the first purchase for the Company's myLotus products and will see HZ Biotech distribute myLotus products in China to help achieve market penetration for the initial launch of the product in the country. The Board anticipates that further sales orders will be made by HZ Biotech in line with its partner agreement and will update the market on these developments accordingly.
Concepta's myLotus product is the only consumer product which allows both quantitative and qualitative measurements of a woman's personal hCG and LH hormone levels in an easy to use home test to facilitate higher conception rates and early diagnosis of any fertility problems. Competitor products currently only allow qualitative measurement and are based on the 'average woman'.
Notwithstanding the significant progress made to date by Concepta on achieving its first sales and market penetration into China, as shareholders will be aware, the Company's original business plan envisaged commencement of sales during the first quarter of 2017. Given the receipt of the above order, the Board has re-appraised its sales forecast for 2017, and now believes turnover for year ending 2017 will be below market expectations. However, as the Company has delayed costs and initiated tight cost control, this will result in the losses for the year being broadly in line with current market expectations.
Erik Henau, CEO commented: "This is a positive and significant milestone for Concepta and is the result of close co-operation with our Chinese partners, who have helped us refine our market entry strategies into China. Through our office in Shanghai we continue to develop close local relationships that allow us to actively manage the profile and development of the myLotus brand. This first order allows us to test our three identified routes to market (IVF clinics, direct to consumer and hospitals) and we expect to make further announcements in the future as we look to expand our distribution network in China.
"We are now in a position to activate the whole supply chain, leveraging core UK elements configured to provide a scalable international supply chain. This is the result of a significant investment in regulatory processes and physical assets enabling our modular systems to expand capacity in line with demand."
Chairman Adam Reynolds commented; "It is a significant undertaking to transform a start-up situation with a pioneering product in development to one where all the infrastructure is maturing and initial distribution channels and sales have been established for a new product in an overseas territory. We are pleased that we have transitioned the Company to that position, although as outlined above, we have experienced some delays to our hospital trials schedule that will impact revenue this calendar year. Nonetheless, Concepta has made significant progress since coming to market, and the infrastructure and relationships we now have in place provide an excellent platform for growth."
Adam Reynolds, Chairman
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About Concepta Plc:
Concepta plc is a pioneering UK healthcare company that has developed a proprietary platform and products targeted at the personalised mobile health market with a primary focus on women's fertility and specifically unexplained infertility*.
Founded in 2013, Concepta has developed a revolutionary flagship product 'myLotus' for home self-testing that helps women with unexplained infertility to conceive.
myLotus is the only consumer product which allows both quantitative and qualitative measurements of a woman's personal hCG and LH hormone levels in an easy to use home test to facilitate higher conception rates and early diagnosis of any fertility problems. Competitor products currently only allow qualitative measurement and are based on the 'average woman'.
Concepta has a defined route to market for its new 'myLotus' product with Regulatory approvals for launch in China in place for H1 2017 and CE-Marking for UK and Europe to follow later in 2017. The revenue potential of the Chinese and EU infertility market is worth c.£600m per annum for the company.
*Unexplained infertility refers to women that have been unable to conceive after 6 months of trying. This highly motivated target group of consumers won't typically be offered medical intervention until 12 months of unsuccessfully trying, with IVF not offered until two years. Research indicates couples start to take positive action ahead of this time and there is little medical support to help them do so.