Lombard Medical Technologies (NSDQ:EVAR) said today it completed a restructuring of its business after implementing a plan to focus its sales efforts on the UK, Japan and China, as well as reducing operating and manufacturing costs as it seeks to breakeven with its cash flow.
The UK-based company said that the restructuring is expected to result in a reudction of nearly $12 million in operating expenses next year when compared to last years expenditure levels, with costs reduced more than 50%.
“During 2017, we have refocused sales and marketing activities in an effort to concentrate on our highest margin markets. We continue to sell on a direct basis in our home market of the UK and via our distribution partner Medico’s Hirata in Japan. Sales in Japan continue to increase, and we expect to gain a further 2% market share this year. Our intention is to expand into additional geographies internationally in the second half of 2018 as our cost of goods reduction initiatives bear fruit,” CEO Kurt Lemvigh said in a press release.
Lombard said that its strategic partnership with MicroPort Scientific, which invested $15 million in a deal last December, has been focused on both achieving Chinese regulatory clearance for its endovascular portfolio and reducing material and labor costs.
The company said it has “several collaborative initiatives and cost saving projects underway.”
Lombard said it expects to launch its abdominal aortic aneurysm portfolio of products in China before the end of next year.