Kuros reports 163% growth in direct MagnetOs sales and 153% increase in total medical device sales for the full year 2023
Schlieren (Zurich), Switzerland, March 13, 2024 – Kuros Biosciences (“Kuros” or the “Company”), a leader in next-generation bone graft technologies, today announced financial results for full year 2023 along with continued significant growth.
Direct sales of MagnetOs rose 163% to CHF 31.7 million in 2023 from CHF 12.1 million in 2022. Total medical device sales accelerated from CHF 13.3 million in 2022 to CHF 33.6 million in 2023, which is a 153% increase. MagnetOs exceeded its commercial plan in 2023 by reaching the important milestone of 25,000 patients treated worldwide, resulting in a positive EBITDA of CHF 6.8 million in the Medical Devices product segment in 2023.
Chris Fair, Chief Executive Officer, stated: “Kuros Biosciences experienced a tremendous year in 2023 as we built a newly focused, scientifically led and clinically proven, pure play MedTech business. Last year’s record sales revenue, coupled with our global expansion efforts and a dedicated strategy, marked a successful period as we transitioned to becoming a global leader in bone grafting technologies. Our significant, 153% revenue growth of MagnetOs sales in 2023 compared to last year corresponds to the treatment of over 25,000 patients with MagnetOs.
Mr. Fair continued, “The marked growth in revenue for 2023 is a result of a well-executed plan of geographic and sales channel expansion led by our expert sales, marketing, and customer service teams. In addition, our continued investment in innovation, and operational excellence in manufacturing, quality, and logistics has ensured that we can meet and exceed our customers’ demands, ensuring that no patient will miss treatment. With our recent decision to focus our financial resources on the MagnetOs technology and associated portfolio of products, and not to proceed into Phase 3 with Fibrin-PTH, we have made significant progress toward reaching a cash flow break-even point more quickly. These strong financial results underline our commitment to increasing shareholder value by balancing high sales growth with targeted profitability.”
Key developments in 2023 and so far in 2024
| February 16, 2023 | Kuros Biosciences announces changes to Executive Management Team
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| February 21, 2023 | Kuros Biosciences announces publication of supportive osteoimmunology data for MagnetOs bone graft |
| March 15, 2023 | Kuros Biosciences reports results for the full year 2022 |
| April 27, 2023 | Kuros Biosciences reports 168% increase in direct MagnetOs sales in the first quarter of 2023 |
| May 8, 2023 | Annual General Meeting of Kuros Biosciences approves all resolutions |
| July 13, 2023 | Kuros Biosciences announces completion of enrollment in the Fibrin-PTH Phase 2 trial |
| August 9, 2023 | Kuros Biosciences reports results for first half 2023 |
| October 12, 2023 | Kuros Biosciences reports a 150% increase in direct MagnetOs sales in the first nine months of 2023 and announces changes within Executive Management Team |
| November 28, 2023 | Kuros Biosciences receives US FDA 510(k) clearance for use of MagnetOs in interbody spinal cages |
| December 20, 2023 | Kuros Biosciences receives US FDA 510(k) clearance for use of MagnetOs Putty standalone |
| December 27, 2023 | Kuros Biosciences announces results from two prospective randomized clinical trials: STRUCTURE and MAXA |
| January 4, 2024 | Kuros Biosciences announces three advancements related to its MagnetOs portfolio including impressive fusion data from MAXA prospective randomized clinical trial and two 510(k) clearances from FDA |
| January 31, 2024 | Kuros Biosciences receives US FDA 510(k) clearance for MagnetOs Granules for interbody use and regulatory clearance of MagnetOs Granules and MagnetOs Putty in New Zealand |
| February 1, 2024 | Kuros Biosciences presents at the CG 2024 Musculoskeletal Conference |
Group financial results
Revenue and cost of goods sold
In 2023, direct sales of MagnetOs rose by 163% from CHF 12.1 million to CHF 31.7 million in 2023. Total revenue from medical devices arrived at CHF 33.6 million (2022: CHF 13.3 million), showing an increase of 153% or 166% on a constant currency basis versus 2022. Cost of goods sold amounted to CHF 9.6 million (2022: CHF 7.2 million) of which CHF 1.8 million (2022: CHF 2.2 million) related to the amortization of capitalized R&D; and CHF 4.4 million and CHF 0.1 million related to impairment of goodwill and intangible assets respectively. (2022: impairment of goodwill of CHF 3.6 million).
Net operating costs
Operating costs amounted to CHF 37.1 million, compared to CHF 24.2 million in the previous year. The increase is primarily driven by sales and marketing costs resulting from growing commercial activities. Therefore, sales and marketing costs increased from CHF 12.8 million in 2022 to CHF 23.3 million in 2023, mainly due to the increase in sales force headcount and general sales and distribution costs. Research and development costs increased from CHF 5.2 million in 2022 to CHF 5.6 million in 2023. General and administrative costs increased from CHF 6.6 million in 2022 to CHF 8.4 million in 2023. Other income amounted to CHF 0.2 million (2022: CHF 0.4 million).
Net finance expense
Net finance expense amounted to CHF 0.2 million (2022: CHF 2.5 million), mainly comprised of a gain resulting from a revaluation on financial liability to XOMA because of the re-assessment of the probability assumption of future milestone payments, net of the result of foreign exchange.
Financial position and other assets
Cash and cash equivalents amounted to CHF 14.2 million and funds available (including trade and other receivables) totaled CHF 21.8 million as of December 31, 2023. This is a decrease of CHF 5.9 million from CHF 27.7 million as of December 31, 2022. The decrease is mainly driven by net operating cash outflows.
As of December 31, 2023, total intangible assets amounted to CHF 16.5 million (2022: CHF 19.4 million) and goodwill amounted to CHF 24.5 million (2022: CHF 29.3 million). The impairment of goodwill of CHF 4.4 million resulted from a reassessment of the assumptions underlying the expected milestones from Checkmate licensing.
| Key figures | 2023 | 2022 | |
| In TCHF, IFRS | |||
| – Revenue from product sales | 33,564 | 13,265 | |
| – Revenue from collaborations | – | 4,721 | |
| Total Revenue | 33,564 | 17,986 | |
| Cost of Goods sold | (9,628) | (7,217) | |
| Gross profit | 23,936 | 10,769 | |
| – Sales and marketing costs | (23,328) | (12,785) | |
| – Research and development costs | (5,599) | (5,194) | |
| – General and administrative costs | (8,449) | (6,598) | |
| – Other income | 248 | 362 | |
| Net operating costs | (37,128) | (24,215) | |
| Operating loss | (13,192) | (13,446) | |
| Net finance expense | (155) | (2,545) | |
| Income tax | (380) | 1,396 | |
| Net loss | (13,727) | (14,595) | |
| Net loss per share (in CHF) | (0.38) | (0.43) | |
| Cash and cash equivalents | 14,208 | 24,065 | |
| Trade and other receivables | 7,617 | 3,618 |
Events after the reporting period
The group has no significant events after the reporting period up to the date of this announcement.
Outlook
Kuros’ products are advancing according to plan with MagnetOs continuing to generate strong sales growth in the U.S., Europe, and the rest of the world. The company is adequately funded along the planned organic growth path and – adjusted for the Fibrin-PTH costs – will generate positive single-digit EBITDA for the first time in 2024.
The annual report 2023 is available on our corporate website under the following link:
Kuros Biosciences 2023 Annual Report
We will discuss the 2023 results in a virtual call on March 13, 2024, at 3pm CET. If you wish to participate, please register in advance for this webinar: