Control Bionics weathers COVID headwinds with 25pc jump in unit sales

Control Bionics reported a 25% rise in unit sales and a 22% rise in revenue for the first half of FY21.

Health technology pioneer Control Bionics (ASX:CBL) has announced a 25% increase in sales for the first six months of FY21, despite the challenges posed by the COVID-19 pandemic.

The company reported $2 million in revenue for the period, up 22%, and says it is well-positioned to grow following the rollout of the COVID-19 vaccine and a reduction in the restrictions that have made it difficult for businesses operating in the medtech space.

Optimistic about the future

CEO Rob Wong said the company is confident in a positive outlook over the next few months, especially as the COVID-19 restrictions seem likely to continue winding down.

“Despite the uncertainties Control Bionics’ key markets experienced in 2020 due to the impact of COVID-19, we are very pleased to report a 22% increase in revenue and 25% increase in unit sales for the half,” said Wong.

“Our technology is truly pioneering and life-changing for our customers and we are focused on improving their experience even further with ongoing product innovation.

“We are cautiously optimistic about the outlook. Our market access is naturally exposed to COVID-19 flare-ups, but with substantial capital available to us thanks to the very successful IPO, Control Bionics is very well positioned to benefit as access to clinicians and end users improves.”

In December, Control Bionics underwent a fully underwritten $15 million IPO, capitalising the company at $50 million. The funds will help the company to further its reach in its two key markets, USA and Australia, and further expand to Japan. As the world begins to move through the pandemic and the vaccine assists the market to recover, these funds will help Control Bionics capitalise on its market position and focus on growth internationally.

Positioned for growth

The company’s EMG (electromyography)-based technology helps people with disabilities inhibiting communications to do so through electronic devices that pick up their neuroelectric systems. Examples of such conditions include motor-neurone disease, cerebral palsy and spinal cord injuries.

Due to the nature of these conditions, the COVID-19 pandemic and associated outbreaks has restricted how much Control Bionics has been able to connect with its customers and the wider industry, but the company is confident that following the rollout of the vaccine it will be able to return to business as usual and its plans for expansion.

Despite the headwinds, Control Bionic’s sales in Australia rose 84% and the US maintained its previous levels across the six months. In fact, as COVID restrictions eased in the US across December, the company saw a pick-up across its operations, supporting the belief that Control Bionics is set to grow significantly as the COVID vaccine is distributed across the country and there are fewer obstacles to meeting with clients and practitioners.

The company has also been focused on building out its sales marketing and operational capacity and launching new technology, including the NeuroNode Trilogy GridPad in September 2020. Control Bionics has already begun converting the technology for the Japanese market upon its expansion into the region.

This article was developed in collaboration with Control Bionics, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.