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Market capitalisation
GBP58m
Research: Healthcare
Creo Medical has presented real-world evidence of the economic utility of its minimally invasive electrosurgical devices, based on NHS data from 130 submucosal dissection procedures using Creo’s flagship Speedboat Inject device. The data demonstrated net cash savings of £687k for the NHS trust, driven by a significant reduction in both hospitalisation and critical care costs. We believe this provides external validation to Creo’s pursuit of improving patients’ outcomes through its novel suite of devices. Speedboat Inject is currently being assessed by the National Institute for Health and Care Excellence (NICE) and we believe this data could support a positive recommendation and improved NHS adoption.
Written by
Creo Medical |
NHS data validates Speedboat’s economic merit |
Business update |
Healthcare equipment |
25 April 2024 |
Share price performance
Business description
Analysts
Creo Medical is a research client of Edison Investment Research Limited |
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Creo Medical has presented real-world evidence of the economic utility of its minimally invasive electrosurgical devices, based on NHS data from 130 submucosal dissection procedures using Creo’s flagship Speedboat Inject device. The data demonstrated net cash savings of £687k for the NHS trust, driven by a significant reduction in both hospitalisation and critical care costs. We believe this provides external validation to Creo’s pursuit of improving patients’ outcomes through its novel suite of devices. Speedboat Inject is currently being assessed by the National Institute for Health and Care Excellence (NICE) and we believe this data could support a positive recommendation and improved NHS adoption.
Year, end |
Revenue (£m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/21 |
25.2 |
(29.7) |
(14.6) |
0.0 |
N/A |
N/A |
12/22 |
27.2 |
(31.0) |
(14.9) |
0.0 |
N/A |
N/A |
12/23e |
30.8** |
(24.3) |
(6.6) |
0.0 |
N/A |
N/A |
12/24e |
40.8 |
(14.8) |
(3.5) |
0.0 |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Reported.
Speedboat Inject is Creo’s flagship electrosurgical device, capable of delivering multimodal bipolar radio frequency and focused microwave energy from a single device for endoscopic dissection, resection and coagulation in precancerous and cancerous lesions in the lower and upper gastrointestinal (GI) tracts. Creo has disclosed NHS supply chain data from 130 Speedboat Inject-powered submucosal dissection procedures (related to bowel cancer and therapeutic endoscopy) undertaken at East Kent University Hospitals Foundation Trust. When compared with other surgical tool alternatives, procedures using Speedboat Inject reported materially lower hospitalisation periods (an eight-fold reduction from 8.4 days to 1.1 days) and associated healthcare costs. Key highlights include a 99% reduction in critical care costs, 91% reduction in hospitalisation costs (from £3.4k to £0.3k) and a 38% reduction in operating theatre costs (from £8.8k to £3.6k). We believe this data validates the economic benefits of this device, while also benefiting patients due to significantly shorter hospitalisation and recovery periods.
Speedboat Inject is currently being assessed by NICE under its Medical Technologies Evaluation Programme, which evaluates new devices and diagnostics and provides guidance for adoption. We believe that the reported real-world data will support a positive guidance from the agency, resulting in increased adoption by the NHS. Note that, while not binding, the NICE guidance is typically accepted and implemented by the UK public-funded healthcare system.
This past year has seen Creo grow its Speedboat franchise (with the launch of the Slim and UltraSlim version) and expand its market opportunity (following receipt of the CE mark for upper GI tract procedures). The company’s other electrosurgical product gained traction too, with the first use of its MicroBlate Flex device in a robotics-assisted procedure in the UK, using collaborative partner Intuitive Surgical’s Ion bronchoscopy-focused robotics platform. These developments support continuing momentum into 2024. We believe that the gross cash position at end-January 2024 (£22.8m) will be sufficient to take Creo to profitability in H126 and await the final FY23 results, expected to be released imminently.
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