aap Joints focuses on reconstructive implants (hips, knees, shoulder) and related products, including the bone cement C~ment®. In 2012 aap Joints
recorded sales of EUR 2.2 million. This joint venture will expand sales activity into the greater Asian market, leveraging aap's product development and manufacturing
expertise along with the local market commercial expertise of selected Asian medtech entrepreneurs. aap Joints plans to immediately initiate registration activities in China,
and based on current expectations, aap anticipates the joint venture will achieve its first sales in the high growth Indian and Chinese markets in the second half of 2013 and
late 2014, respectively. In addition, the joint venture will benefit from plans to expand the product portfolio with additional Biomaterials. Outside of the greater Asian market, aap Joints will continue to serve its existing customer base in Europe and the Middle East.
As a result of the acquisition of shares as part of the joint venture agreements, we expect a slightly positive EBITDA impact on aap Implantate AG's financial results. It is
expected to have a positive impact on the Company's balance sheet given the anticipated decrease in inventory of approximately EUR 2 million, lower intangible assets (capitalized development cost)
of approximately EUR 1.5 million and a strong improvement of the net working capital quote.
Biense Visser, CEO of aap Implantate AG, said, "This joint venture represents another milestone in the ongoing implementation of our strategy to focus on the key elements of
our business, including trauma and biomaterials. We have been evaluating various alternatives for our Recon portfolio and this joint venture offers an attractive business opportunity in the
strategic greater Asian market. aap Implantate AG will benefit directly from increased supplies to aap Joints GmbH and indirectly from the value
created by this joint venture."
Isaac Bresnick, Managing Director of aap Joints GmbH, said, "The joint venture allows us to build up a market share in the growing Asian medtech market with recon products
and cements. We will now be able to offer customers in Asia high quality orthopaedic recon products with an excellent reputation, given that they are made in Germany and have received U.S. and/or
European regulatory approval. The joint venture may also allow us to increase our value proposition by outsourcing parts of the manufacturing to recognized Asian suppliers. Together with the
aap management we will select other products from aap's portfolio for sales in China and other Asian markets."
aap Implantate AG will update its guidance for the third quarter and the full year 2013 to include the impact of the joint venture in conjunction with the publication of the
report for the second quarter on August 14, 2013.
This release contains forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not
guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation,
development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that
may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does
not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
aap Implantate AG (ISIN DE0005066609)
- Prime Standard/Regulated Market - All German stock markets -
aap is a global medical device company headquartered in Berlin, Germany that develops, manufactures and markets innovative biomaterials and implants that are used in orthopedic
procedures. The Company's products, which include a full line of plating systems, cannulated screws and bone cement products, are primarily used in the orthopedic specialty areas of trauma and
spine repair. The Company's products are sold through its direct sales force, distribution partners and license agreements with OEM partners. aap's stock is listed in the Prime Standard segment of
the Frankfurt Stock Exchange. For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.
For inquiries please contact:
aap Implantate AG, Marc Heydrich, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany
Tel.: +49 30 7501 9-134, fax: +49 30 7501 9-290, email@example.com
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: aap Implantate AG via Thomson Reuters ONE
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aap Implantate AG
Lorenzweg 5 Berlin Germany
WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;