(Alliance News) - Creo Medical Group PLC on Monday announced a collaboration agreement with Intuitive Surgical Inc as it posted a higher loss for 2021 on cost hikes.
Creo's agreement with Intuitive Surgical will see Creo's technology being adapted for use with a robotic-assisted surgical platform, the Chepstow, Wales-based medical device company said.
Intuitive is a Sunnyvale, California-based technology firm which Creo described as "a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery."
The agreement provides a platform to optimise Creo's products, allow joint clinical studies and includes milestone payments to Creo, the Welsh firm added.
"Future royalty structures have also been agreed for any products which may be sold in the future," it explained.
Creo is developing and commercialising electrosurgical medical devices to help support surgical capability and patient outcomes, it said.
Meanwhile, the company released its results for 2021. Its pretax loss widened to GBP30.3 million from GBP23.5 million in 2020. Revenue however surged to GBP25.2 million from GBP9.4 million.
Administration expenses rose to GBP41.5 million from GBP27.6 million. Cost of sales widened to GBP13.6 million from GBP5.4 million.
Regarding the expenses increase, the company explained the costs are "reflecting the increased operating expenses in relation to clinical and development activities together with further investment in headcount and business infrastructure including securing US and Asia Pacific offices to support the business and enable it to continue to develop and commercialise its technology.
"This continued investment in the business will support anticipated growth and development in the coming periods." For 2022 and beyond, its board has strong confidence in the firm's opportunities, Creo added.
Creo Medical Group shares were 1.9% higher at 97.81 pence each in London on Monday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Creo Medical (CREO)