Craig Gulliford: Creo Medical’s 2025 roadmap - ICYMI

Creo Medical Group PLC (AIM:CREO) CEO Craig Gulliford talked with Proactive about the company’s 2024 performance and its strategy for 2025. He highlighted strong growth in Creo’s core technology platform, particularly in the U.S. market, as well as the successful launch of the Speedboat Ultra Slim device in late 2023.

Gulliford also discussed the introduction of the SpydrBlade product, which is set for a full market release in 2025 alongside several other new product launches. He emphasized that Creo Medical is shifting from a development-stage company to a commercially profitable business, supported by both revenue growth and cost management.

In addition, he spoke about the completion of a €30 million deal with Micro-Tech, where Creo sold a 51% stake in Creo Medical Consumables Europe. This transaction enhances the company’s supply chain security and strengthens its direct sales channel in Europe. He noted that the valuation of the business has more than doubled since its acquisition four and a half years ago.

Gulliford confirmed that the company’s cash reserves have been bolstered by the deal, allowing further investment in expansion across Europe, the U.S., and emerging markets in South America and Asia. He also highlighted progress in Creo’s partnership with Intuitive on the Kamaptive platform, which has entered a commercialization phase following the first robotically guided lung tumor ablation.

Looking ahead, investors can expect key milestones in 2025, including new product launches, further site expansions for Kamaptive, and continued revenue growth.

Proactive: Craig, it’s been a while since we’ve chatted, and since then, you’ve released your full-year 2024 trading update. You highlight strong performance from your Creo Core technology platform. Take us through some of the key achievements of the year.

Craig Gulliford: Yes, the key highlights for the year include strong growth in our core product, which we launched in earnest in 2022. We’ve continued to see growth, particularly through our U.S. office, which runs the Americas side of the business. We’ve also expanded our product range with the Speedboat Ultra Slim device, launched towards the end of 2023.

We saw the benefits of that launch throughout last year. Additionally, we’ve been expanding the product range, increasing new indications, and growing our pipeline in both the U.S. and Europe through our direct business, Creo Medical Europe.

We also introduced the SpydrBlade product with initial users towards the end of last year. This is part of a limited market release, with a full launch scheduled for 2025. Over the next 12 to 18 months, we plan to introduce around five new products.

Overall, we are transitioning from a development-stage company to a commercially profitable business. This is driven by revenue growth and cost management. As some of our key development projects have been completed, our foundational core product range is largely established. This also strengthens our Kamaptive platform and partnership development business, which continues to perform well.

Proactive: In the RNS, you mention that the full benefits of cost reductions will be seen in the current financial year.

Craig Gulliford: Yes, we’re looking at an annual cost reduction of at least £5 million, which started towards the end of last year as certain projects concluded. That reduction will continue throughout this year. While we are focused on revenue growth, we are also maintaining strict cost management. Many of our foundational projects are complete, and we’re already seeing the impact of our past development work with our partners. This makes future product developments more cost-effective as we refine and expand our technology.

Proactive: You also announced a major transaction in October, which was completed in February. That was the sale of a 51% stake in Creo Medical Consumables Europe to Micro-Tech for €30 million. What was the rationale behind this deal, and what does it mean for Creo Medical?

Craig Gulliford: When we originally acquired Creo Medical Europe around four and a half years ago, we paid just under €30 million. Now, we’ve sold a 51% stake as part of a strategic partnership with Micro-Tech. This deal secures our long-term supply chain, strengthens the Creo Medical brand in Europe, and maintains our direct sales channel.

We also retain access to our existing customers, which was the primary reason we acquired the business in the first place. Since then, we’ve worked with Lewis [CEO of Creo Medical Europe] to enhance and secure our supply chain. This agreement significantly improves that outlook, with strong backing from Micro-Tech.

Additionally, the products we sell in Europe will now also be available through our Americas business and other markets. Strategically, this strengthens our core business and complementary product offerings. Financially, the deal was highly beneficial—the valuation of the business more than doubled since we acquired it.

Proactive: This transaction has also strengthened your cash reserves. How will you use that capital to grow other areas of the business?

Craig Gulliford: We will use the funds to continue expanding sales in Europe and the U.S. Additionally, we’re growing our distribution channels in South America and some Asian markets.

A portion of the funds will also support new product launches. However, we’re not investing in foundational technology development as much as before. Instead, we’re focusing on applying our technology to new devices that we plan to launch in the next 12 months.

Creo Medical continues to drive innovation in advanced energy for flexible endoscopy and related markets. We are also progressing in our partnership with Intuitive on the Kamaptive platform. Last year, we achieved the first-ever robotically guided lung tumor ablation, which was a major milestone. We have since moved into a commercialization phase with Intuitive, as we transition to post-market cases and expand our footprint.

Proactive: What key milestones should investors look out for in 2025?

Craig Gulliford: We have several upcoming product launches, including derivatives of the Speedboat product and the SpydrBlade product. On the Kamaptive side, we expect additional sites to come online.

Overall, we are focused on continued product rollout and revenue growth. The trends in our core products remain strong, and we’re excited to build on that momentum throughout 2025.