Lombard Medical Technologies Share Discussion Threads

[nod] 20/4/2010 02:24

Thanks for your comments guys. My question was open ended because I really have no idea what LMT is worth at this stage. Everything looks positive imho so it appears to be a matter of time for FDA approval. Included in the 1200 will be the 175 patients in the FDA trial. We are looking at another year as a minimum.

On the valuation, the only thing I have to go off is the recent fund raising. I'm assuming Invesco have knowledgeable fund managers and they would not be throwing good money at a single product company unless they were very confident. Invesco now owns nearly 44%

Invesco could also have got away with paying less for their shares, say 0.7p, but offered fairly close to the market price.

Major Shareholders
Shares in issue:2174.7m 1p Ords
Name Amount % Holding
Invesco Perpetual 955,179,756 43.92
Devices ULC 200,000,000 9.20
Donald Richard Ricci 200,000,000 9.20
Keystone Investment Trust PLC 130,950,613 6.02
Craig Robert Rennie 106,237,771 4.89

[joeblogg2] 19/4/2010 16:04

All, I hope/wish FDA fast track as 1200 patients around the World have already benefitted!!

[greynag] 19/4/2010 15:58

-->Balcony,
Yes, I know. I believe he is a long-term supporter.
Just adding another item to his list justifying a higher cap. ;-)

[balcony] 19/4/2010 13:38

I think Nod sees the company in a positive light

[greynag] 19/4/2010 13:12

Hi Nod,

I think that you missed an important difference:-

16 April 2010
The Company's Aorfix(TM) stent graft for AAA repair has now been used in over
1,200 patients around the world, and the clinical results have shown that the
Aorfix(TM) device has a unique market position in the treatment of patients with
complex and tortuous anatomy.

The current market cap reflects perhaps a considerably raised profile with respect to Aorfix and also an acceptable strategy that should see further significant progress.

[nod] 19/4/2010 11:46

13 December 2005
Lombard Medical Technology also made its debut, after a placing of 16.4m shares at 159p by Code Securities. The price hit 163½p before settling at 163½p.


That was a 26 million market cap in 2005 which is the same as today's market cap.

Is the company worth more now than then?

Certainly Aorfix is a lot closer to FDA approval.

Current revenues are about 5 times (still small though).

[pre] 19/4/2010 08:09

some big buyers moving in here.....

[pre] 18/4/2010 18:17

Nice write up in the daily mail over the weekend....roll on monday:-)))



greynag - 17 Apr'10 - 09:44 - 1046 of 1048


Lombard Medical, 20pc up at 1.235p, looked a picture of health following strong annual results. It saw revenues climb 25pc to £2.4m, while operating expenses fell 30pc to £8.7m. European sales of Aorfix, a stent to treat aortic aneurysms, advanced 49pc and the trial for Aorfix in the US is making progress. Nomura says that the device has the potential to take a significant share of the stent graft market.

[nod] 17/4/2010 11:45

A fairly thorough 'summary' of results:

Lombard Medical FY09 Loss Narrows - Update

Date: 16 April 2010

(RTTNews) - Lombard Medical Technologies PLC (LMT.L), the maker of Aorfix to treat abdominal aortic aneurysms, reported Friday a narrower loss for fiscal 2009, driven mainly by higher revenues and lower costs. The company said its strategic decision to focus on Aorfix would gain momentum in fiscal 2010 through the just-completed fundraising and from the new sales team.

For the year, loss before taxation decreased to GBP 7.79 million from GBP 11.44 million.

After-tax loss from continuing operations decreased to GBP 6.79 million from GBP 9.52 million.

Total loss for the year decreased 37% to GBP 6.2 million from GBP 9.9 million. On a per share basis, loss for the year was down to 0.80 pence from 7.46 pence as share count increased substantially to 774.5 million from 132.4 million last year.

During the year, the company sold its polymer coatings business to a combination of Bayer Plc and Bayer MaterialScience AG for GBP 1 million. From discontinued operations, the year's results had a net benefit of GBP 0.6 million while the previous year had a net loss of GBP 0.35 million.

The previous year's results sustained an impairment charge of GBP 0.87 million relating to the write-down of the company's shareholding in Vascular Concepts Holdings Limited. Also, there was a benefit of GBP 0.27 million last year representing the deferred consideration received in March 2009 from the sale of the company's 3.2% shareholding in EndoArt SA in February 2007.

Revenues for the full year increased 25% to GBP 2.35 million from GBP 1.88 million. Aorfix sales rose 32% to GBP 2.13 million. Sales from Europe, Brazil and Russia increased 49%.

Operating expenses for the year decreased 30% to GBP 8.66 million from GBP 11.75 million. Research and development costs fell 33% to GBP 4.70 million from GBP 7.06 million, as non-essential development projects were shelved. Selling, marketing and distribution expenses decreased 23% to GBP 1.58 million from GBP 2.05 million, on a 50% lesser employee count from 2008. Administrative expenses decreased to GBP 2.37 million from GBP 2.64 million.

The company raised GBP 6.4 million in January 2009 and GBP 13.3 million in February 2010.

In June 2009, the company received regulatory approval to widen the Aorfix label to include patients with complex anatomies and high-angle-neck aneurysms of up to 90 degrees. The product now has a unique label claim that differentiates it from the competition

Lombard is halfway through the pre-market approval submission process to the U.S Food and Drug Administration. The company said the remaining submissions will be completed in 2011. The U.S market is estimated to be worth more than US$500 million in 2010.

John Rush, chief executive officer said, "2009 was a transformational year for Lombard Medical; during which we significantly reduced costs, refined our strategy and restructured the Company, placing us in a stronger position to capitalize on the large and growing commercial opportunity for our lead product, Aorfix. The US trial has made good progress, with 175 patients now enrolled and we are on track to meet the remaining submission requirements."

For the year ahead, the company said it has had a good start to 2010 and anticipates full year revenues to reflect the increased investment in sales and marketing resources.

"We are confident that by increasing our specialist sales force in Europe we can continue to capitalise on Aorfix's unique label claim. The additional £13.3 million raised in February will enable us to execute our strategy and advance the potential of Aorfix, Rush added.

LMT.L is currently trading on the LSE at GBP 1.10 pence, up 0.08 pence or 7.32%.

[nod] 17/4/2010 11:38

Lombard reduces loss
Article Date: Apr 16 2010

Medical device specialist Lombard Medical Technologies sounds upbeat after cutting annual losses 31 per cent to £7.8 million.

The Didcot-based AIM dog, where experienced US sector player John Rush replaced Brian Howlett as chief executive officer in October, increased turnover 21 per cent to £2.3 million last year. Lombard cut operating expenses 30 per cent to £8.7 million, with staff numbers down to half their 2008 peak, as the company decided to concentrate its energies on commercialising its lead product, the Aorfix stent graft.

Rush, former head of Nasdaq-quoted North American Scientific, says Aorfix, which he describes as 'the only product approved for treating high-angle neck aneurysms', achieved sales growth of almost 50 per cent in Europe, led by Germany, Italy and Russia. He reports 'good progress' in US trials for approval and declares Lombard is 'on track to meet the remaining submission requirements'.

Lombard, which raised a net £5.95 million at 1p in January 2009, ended the year with cash up from £775,000 to £1.3 million. In February, the company tapped the market for another £12.1 million after expenses at the same price to support Aorfix's European drive.

Floated at 159p five years ago, Lombard shares have been disastrous performers, landing at 0.88p within the past 12 months. Now 1.18p, valuing the company at £25.5 million, they are a high risk/high reward punt on Rush's new focused strategy paying off.



This story is from Growth Company Investor, the independent voice on fast-growing companies. Subscribe today for the latest AIM recommendations.

[greynag] 17/4/2010 09:44

Lombard Medical, 20pc up at 1.235p, looked a picture of health following strong annual results. It saw revenues climb 25pc to £2.4m, while operating expenses fell 30pc to £8.7m. European sales of Aorfix, a stent to treat aortic aneurysms, advanced 49pc and the trial for Aorfix in the US is making progress. Nomura says that the device has the potential to take a significant share of the stent graft market.

[jotoha2] 16/4/2010 16:56

They are only scratching around currently with very modest sales of £2.5m , clearly the product is best in breed and thats why Invesco has supported them so heavily , subject to FDA approval company will easily be valued at around £250m within 18 months. So yes keep buying and holding , I now have over one million and am not selling for a long time.

[webshares] 16/4/2010 16:43

I feel only now after these results that the price is low, there was too much uncertainty until today, we are moving closer and closer and confidence should really start to trickle through this year and we will be in a very good position in 2011.

My advice is top up, or get in quick because we won't see 1p again

[pre] 16/4/2010 13:40

shocking to see how cheap these are....low mkt cap, FDA approval pending....breakout now taken place...pretty certain we will see some large accumualtors move in here imo...very interesting stock which will get greater visibility going forward.

[debbiegee] 16/4/2010 13:29

26m market cap tapping $1b market already approved in Europe waiting US approval.Even without US look at some of the nos in report to see speed of growth.

[nod] 16/4/2010 13:18

It's good to see LMT appearing on the Breakout Charts - currently at #12

[greynag] 16/4/2010 10:05

I think that the real news is the additional study by Dr Hardman (see article below) plus Mark Fillinger's recent observation made during a Pythagoras update that "Unprecedented neck angulation and gender distribution in this trial; this device may expand the number of patients who can be treated with EVAR."


Study success for Lombard Medical's Aorfix - 2010-04-15 08:52:00

Business Financial Newswire - Lombard Medical's Aorfix Stent Graft reduced the rate of iliac limb occlusion from 7.5% to 0% in a study at the Royal United Hospital in Bath.

Dr John Hardman presented data on the use of Aorfix in patients with tortuous iliac anatomy at the 32nd International Charing Cross Symposium.

The control group included 93 patients, 12 of whom were considered to be severely angulated or required adjunctive stenting (12.9%).

Seven patients in the control group developed iliac limb occlusions (7.5% occlusion rate), and five of these patients required an additional intervention during the first two weeks post procedure.

The study group included 168 patients, 25 of whom were considered to be severely angulated (14.8%). Iliac limb occlusions were eliminated completely in this group (0% occlusion rate).

The Aorfix stent graft was utilised in 40 of the most severely angulated cases in the study group.

Dr Hardman concluded his presentation by stating that: "In our experience, having Aorfix available allows us to treat more patients with an endovascular approach.

"Furthermore, we have seen a dramatic improvement in our iliac limb occlusion rates when utilizing the Aorfix stent graft."

Story provided by Business Financial Newswire

[debbiegee] 16/4/2010 08:59

Business Financial Newswire - Revenues at Lombard Medical Technologies rose 25% to £2.4m in the year to the end of December.

Operating expenses fell 30% to £8.7m and net cash outflow from operating activities reduced by 37% to £6.7m.

The firm - a a medical device company focused on solutions for the $1bn abdominal aortic aneurysm repair market - postgs a total loss of £6.2m, down 37% on 2008.

Chief executive John Rush said: "2009 was a transformational year for Lombard Medical; during which we significantly reduced costs, refined our strategy and restructured the company, placing us in a stronger position to capitalise on the large and growing commercial opportunity for our lead product, Aorfix.

"The US trial has made good progress, with 175 patients now enrolled and we are on track to meet the remaining submission requirements.

"In Europe, where Aorfix is the only product approved for treating high- angle-neck aneurysms up to and including 90 degrees, we saw sales growth of almost 50%, led by strong performances in key markets including Germany, Italy and Russia.

"We are confident that by increasing our specialist sales force in Europe we can continue to capitalise on Aorfix's unique label claim."



Story provided by Business Financial Newswire

[joeblogg2] 16/4/2010 08:30

This stock is so overlooked due to the funding issues but these are now sorted and all that remains is the FDA approval. Hopefully at some stage they are fast tracked as it is being used in Europe!!!

[johnyee 7] 16/4/2010 08:26

Yes,at last it's starting to get better.

[joeblogg2] 16/4/2010 08:19

Results really look good and the outlook even better:
With a large and growing target market, a unique and differentiated market position, an exclusive indication, and a clear and focused strategy, Lombard Medical is in a strong position to achieve the goals we have set ourselves.

The recent successful fundraising now gives us the capital required to attract the talent we need to execute on our strategy and realise the full potential of Aorfix™. This has been reflected in the appointment of additional sales executives in the UK and Germany and a new VP, Sales & Marketing, who will join the Company in June, all of which will significantly increase the opportunity to strengthen sales of Aorfix™ in Europe.

The Directors expect Lombard Medical to continue to benefit from the cost reductions and restructuring measures implemented in 2009. The Company has had a good start to 2010 and anticipates full year revenues to reflect the increased investment in sales and marketing resources

[nod] 15/4/2010 21:40

tct - LMT has only just completed a round of fundraising that should see them ok well into next year. The funds were to go into the FDA approval process as well as development. The closer it gets to the FDA approval the greater the chance of raising additional funds so it's unlikely they will fail to get more funds next year unless the product doesn't work. So far, all the news has been positive and the investors seem to think so.

[tctmeeting] 15/4/2010 15:40

Many people have known for several years the clinical advantages of Aorfix and the latest round of clinical persentations from the Cx Symposium support this. However LMT's value will only be realised when Aorfix gains FDA approval but the questions that still remain are; has the company sufficient cash or will there be a need to raise more funds (with further dilution) and will LMT be able to secure a commercial distribution partner for the US? Perhaps there is a potential buyer in the wings but don't count on it.

[jotoha2] 15/4/2010 08:29

Splendid news , next 12 months should be very interesting.