Victhom Human Bionics, Saint-Augustin-de-Desmaures, Quebec, Canada, recently reported its annual and fourth quarter 2009 financial results.
For the year ended on December 31, 2009, Victhom recorded revenues of $1,570,476, compared with $2,286,468 in 2008, representing a decrease of $715,992 or 31.3percent. For the fourth quarter of 2009, Victhom recorded revenues of $128,642 compared with $597,700 in 2008, a decrease of $469,058 or 78.5 percent. According to the company, the decrease is attributable to the reduction of non-refundable advance royalty payments from Ossur, Reykjavik, Iceland, related to the reduction in activity level in the Biotronix division in the last phase of the development of the Power Knee second-generation product, which was the last project to be funded under the collaboration agreement with Ossur.
Normand Rivard, president and CEO of Victhom said, “During 2009, we have completed major transactions with partners that will allow us to bring products from both of our divisions to the market and generate revenues on a going forward basis. With the contribution of our new partner Otto Bock HealthCare [Duderstadt, Germany], our joint venture Neurostream has continued to make good progress on product development of the Neurostep® System commercial version in preparation for the European market launch and the start of the U.S. clinical trial.” He added, “The transactions completed with our partner Ossur in the last quarter of 2009 allowed the company to proceed with the restructuring of its Biotronix division to reduce costs and transfer the product support and development activities to Ossur to facilitate the successful commercial launch of the second generation of the Power Knee. With these two strategic transactions and the downsizing of its administrative functions, the company has significantly reduced its cash-flow requirements.”
