US-based Osprey Medical (ASX: OSP) has boasted a continuation of strong sales growth for its dye-saving medical technologies, posting a 73% boost in DyeVert unit sales in the 2019 first quarter.
The company also posted a total quarterly revenue of US$826,000 (A$1.15 million), up 56% from the 2018 first quarter, with 98% of this latest revenue coming from existing customers and 2% from new accounts.
Quarterly cash receipts of US$854,000 (A$1.19 million) were also up 70% compared to the same period last year.
Osprey’s DyeVert technology is used by physicians to help minimise dye usage and monitor the dose of dye real time throughout heart imaging procedures.
The technology was developed after research found the amount of dye (or contrast) used during angiographic imaging procedures increased a patient’s risk of dye-related kidney damage known as contrast induced acute kidney injury.
The range of products developed by Osprey include DyeVert, DyeVert Plus and DyeVert Plus EZ, with the latter only just launched in the US last November.
The company’s quarterly DyeVert sales amounted to 2,478 units, which was 73% higher than the corresponding period in 2018 and represents a 16% increase on 2018 fourth quarter sales.
According to Osprey, this sales growth was underpinned by a “strong acceptance” of the DyeVert Plus EZ system by the clinical community, with about 59% of DyeVert unit sales now attributable to the new and improved product.
Growth in hospital usage
The total number of hospitals that have purchased the DyeVert system grew 23% on the same period last year – from 114 in 1Q 2018 to 140 in 1Q 2019.
At the end of the quarter, Osprey said it also had 20 hospitals in the “sample-to-purchase pipeline”.
It said it planned to continue its strategy of driving sales through existing contractual relationships with US multi-hospital systems, which it refers to as group purchasing organisations (GPOs).
Osprey currently has four GPO contracts in place, representing 50% of US market coverage of addressable chronic kidney disease patients undergoing coronary angiograms. Its latest GPO contract signed in December is with one of the largest hospital groups in the US, Premier.
The company said talks with additional GPOs is “progressing well”.
“Osprey maintains the view that additional GPO contracts will be signed during FY 2019, to further expand coverage for DyeVert across the US,” it stated.
By mid-afternoon trade, Osprey shares were up 13.33% to $0.17.