28 October 2024

BELLUSCURA PLC

("Belluscura" or the "Company" or "Group")

Trading Update

Belluscura plc (AIM: BELL), a leading medical device developer focused on lightweight and portable oxygen enrichment technology, today provides a trading update.

Further to the Interim Results announcement ("Interims") on 26 September 2024, which stated that Group revenue has continued to grow through 2024, revenue in the first nine months of the year was better than expected at $3.3m (unaudited) (Q1: $0.1m. Q2: $1.2m, Q3: $2.0m).

The Group also stated that prospects for FY24 Q4 were enhanced by the forthcoming release of the new DISCOV-R device, with FY24 Q4 sales of $4m expected, dependent upon two key factors:

·    Timely receipt of Pricing Data Analysis and Coding ("PDAC") codes that allow Durable Medical Equipment distributers to claim reimbursement from Medicare for sales of DISCOV-R to patients; and

·    Finalising further funding facilities to meet the significant increase in working capital requirements resulting from the anticipated strong Q4 sales demand in order for DISCOV-R.

Although later than anticipated at the time of issuing the Interims, the Board is pleased to confirm that the Company has now received confirmation that the PDAC Codes have been issued.  This is a significant milestone for the Company.  

The issuance of the PDAC Codes e1390 and e1392 means that for the first time the DISCOV-R unit will be eligible for reimbursement under Medicare and also under private health insurance.  Medicare is the $800bn US federal health insurance program that provides coverage for most Americans aged over 65, and for many with qualifying conditions under the age of 65.  There are over 65m people enrolled in Medicare in the US.  A recent report published in the American Thoracic Society estimates that over 1.5m Americans currently receive supplemental oxygen through Medicare for a variety of respiratory disorders to improve their quality of life and prolong survival.

The need for further funding facilities to meet the anticipated increased working capital requirement due to strong Q4 sales demand for the DISCOV-R is driven by interest from three nationwide durable medical equipment distributors and numerous regional distributors who collectively serve several million respiratory customers in the US.

As stated previously the Company has received several debt funding proposals. Although the process has also taken longer than the Board anticipated at the time of the Interims, negotiation of the terms of new funding facilities with a prospective lender are at an advanced stage.  The facilities are expected to be a combination of debt and invoice discounting together with credit insurance.  The Company continues to evaluate whether additional funding, including debt and/or equity, may be required alongside the proposed new funding facility.

As at 25 October 2024 the Group had cash reserves of $0.3 and receivables of $1.1m.  

Having now received the PDAC Codes in late October and with the delay in completion of the new funding facilities, the Group's ability to fund the working capital for sales of DISCOV-R has been curtailed.  Accordingly, revenue in FY24 Q4, is now expected to be lower, in the range of $1.0m to $1.5m, producing expected revenue for 2024 of between $4.3m and $4.8m (2023: $0.8m), an increase of over 430%.

Notwithstanding the funding challenges referred to above, the Board continues to have a real sense of confidence that in 2025 the Company will build on the strong revenue growth achieved in 2024 to date.

The Company will issue a further statement once the new funding facilities have been finalised.

-Ends-

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED.  ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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About Belluscura plc (https://belluscura.com/)

Belluscura is a UK medical device company focused on developing oxygen enrichment technology spanning broad industries and therapies. Our innovative oxygen technologies are designed with a global purpose: to create improved health and economic outcomes for the patients, healthcare providers and insurance organisations.