News and press releases

Coloplast has entered into a definitive agreement to acquire Comfort Medical, LLC (Comfort Medical) for a cash consideration of USD 160m equal to approx. DKK 1,120m.

Comfort Medical is a privately owned, US direct-to-consumer Durable Medical Equipment (DME) nationwide dealer of catheters and ostomy supplies founded in Florida in 2010. The acquisition is a continuation of Coloplast’s ambition to bring innovative products and services to the US market.

“The acquisition of Comfort Medical fits very well into our overall consumer ambition for Coloplast in the US, securing continued access to innovative technology for end users. Comfort Medical has a strong patient acquisition model and an efficient and scalable setup in addition to a strong management team with a good cultural fit to Coloplast,” says Lars Rasmussen, Coloplast’s CEO.

Comfort Medical’s business model is based on capturing patients through Direct Response Advertisement and physician referrals. Comfort Medical provides patients with products from a number of different manufacturers including Coloplast. The company is expected to record sales of USD 38m or approx. DKK 270m for the full-year 2016.

“I am excited about the future prospects of our US business and view this acquisition as an additional building block in the implementation of our US strategy,” Lars Rasmussen says.

The transaction is expected to contribute to Coloplast’s long-term growth ambition and is expected to close in the first quarter of 2016/17. The acquisition will, if completed and approved by authorities, lead to a revised financial guidance for the financial year 2016/17:

• The organic revenue growth guidance of 7-8% is unchanged. The growth in DKK of 5-6% is expected to be 1-2%-points higher.
• The EBIT margin guidance of 33-34% in constant exchange rates and about 33% in DKK is unchanged.
• The long-term guidance of 7-9% organic growth p.a. and an EBIT margin expansion of 0.5%-1.0%-points p.a. is unchanged.

Media contact:

Maria Lindeberg, Senior Media Relations Manager

Tel. +45 4911 3095

dkmalg@coloplast.com

Investors and analysts:

Ellen Bjurgert, Director, Investor Relations

Tel. +45 4911 1800 / +45 4911 3376

dkebj@coloplast.com

Thousands of South Koreans suffering from disorders such as spinal cord injury, multiple sclerosis and Parkinson’s disease will be able to opt for better and more modern catheters next year. Public reimbursement rules in South Korea have been improved, and that is good news to Coloplast, as the company aims to outgrow the market in the Continence Care business area.

An estimated 25,000 users in South Korea who need help emptying their bladder are covered by the public reimbursement scheme in the country, and they will now be able to opt for modern catheters. According to Coloplast CEO Lars Rasmussen, the reimbursement will support the company’s growth opportunities in South Korea.

“This is good news for Coloplast in South Korea and for the users, whose everyday lives will be made easier with the benefits of modern catheters, enabling them to live the life they want to”, says Coloplast CEO Lars Rasmussen.

Previously, South Korea only offered reimbursement to a limited group of users, but the improved access will allow all catheter users covered by the national health insurance access to better products.

Continence Care is Coloplast's second-largest business area, accounting for some 35% of consolidated revenue. Coloplast’s other business areas are Ostomy Care, Wound & Skin Care, and Urology Care. Last year, Coloplast generated revenue of DKK 14.7 billion.

Facts:

• The new reimbursement rules apply to persons who needs help to empty their bladder due to acquired disability and who are registered with the national health insurance in South Korea. Previously, only patients with Spina Bifida were covered.
• The reimbursement will improve the quality of life of the users. Instead of reusing their catheters, they can now use a new one each time they need to empty their bladder.
• The new reimbursement rules take effect on 1 January 2017.
• Coloplast is represented in over 130 countries and has approximately 10,000 employees.

Contact:

Maria Lindeberg, Senior Media Relations Manager

Tel: + 45 49 11 30 95

dkmalg@coloplast.com

Coloplast’s products are becoming increasingly popular with users, as reflected in growing sales and the improved earnings for the financial year 2015/2016. Full-year organic sales growth rates were 9% in Ostomy Care, the largest business area, 5% in Continence Care, 9% in Urology Care and 6% in Wound & Skin Care.

European sales were up by 6 % and Coloplast’s homecare company Charter in the UK played a key role in increasing Coloplast’s market share in the country.

“We’ve seen impressive contributions from our European subsidiaries within all business areas, not least in the UK market as Charter continuously performs well, and users increasingly favour our stoma bags, catheters and accessories,” said Coloplast CEO Lars Rasmussen.

Other developed markets produced 6% organic growth, while sales in Emerging Markets were up by 14%. There is a strong underlying demand in the US market, although distributors continued to downscale their inventories which posed a challenge. Growth rates in the US market are expected to improve in the 2016/17 financial year.

Product launches to drive future growth

This fall, Coloplast launched a new flexible catheter for men, the SpeediCath Flex, and a new series of silicone dressings, the Biatain Silicone Sizes & Shapes. Both products are expected to become future growth drivers, just like the Sensura Mio Convex stoma bag.

“I’m pleased with our full-year results. Clearly, users are welcoming the innovative products we’ve developed to make their lives easier. This makes our new product launches all the more exciting to follow, in our efforts to achieve our long-term growth targets,” said Mr Rasmussen.

The full-year EBIT was impacted by a provision of DKK 750m to cover potential settlements and costs in connection with the lawsuits in the United States alleging injury resulting from the use of transvaginal surgical mesh products designed to treat pelvic organ prolapse and stress urinary incontinence. More than 90% of the cases are considered settled.

2016/17 guidance

For the 2016/17 financial year, Coloplast expects organic revenue growth of 7-8% at constant exchange rates and of 5-6% in DKK, with the EBIT margin expected at 33-34% at constant exchange rates and at about 33% in DKK.

For more on the full-year 2015/16 financial report, go to http://www.coloplast.com/investor-relations/announcements/2016/ (available shortly)

The Annual Report and the Corporate Responsibility Report will be released later today. For more information, go to http://www.coloplast.com/investor-relations/annual-reports/ and http://www.coloplast.com/about-coloplast/responsibility/policies/

Financial guidance for 2016/17

Press enquiries

Maria Lindeberg

Senior Manager, Media Relations

Tel. +45 4911 3095

dkmalg@coloplast.com

Coloplast is expanding its Biatain Silicone portfolio with eight new wound dressings referred to as Sizes & Shapes. Used for treating chronic wounds, the dressings are shaped to fit a heel, the hollow of the knee, the back of the neck or the shoulder; places where it can be difficult to apply a dressing properly.

According to Nicolai Buhl, SVP of Coloplast’s Wound Care business, innovative products such as Sizes & Shapes form an important part of Coloplast’s growth plans.

- Our new silicone wound dressings give the competition a run for its money, while giving the users what they want: wound dressings that conform to the body’s natural shape. We’re confident that our new wound dressings, developed by healthcare professionals and shaped by users, will strengthen our position in the global wound care market, because we now have a complete product offering for many different wound types, says Nicolai Buhl.

Coloplast’s Wound Care business currently has a global market share of 5–10 percent. The company’s ambition is to grow to 10–15 percent by the 2020/21 financial year.

Facts

- The global market for wound care products is estimated at DKK 16–17 billion, and market growth is estimated at 3–5 percent per year.

- Coloplast’s Wound Care Business has a 5–10 percent global market share.

- The new Biatain Silicone Sizes & Shapes series builds on the existing Biatain Silicone portfolio.

Read more: Coloplast.com/products/wound/biatain-silicone--fewer-days-with-wounds/

Press enquiries

Maria Lindeberg

Senior Media Relations Manager

Tel. +45 4911 3095

dkmalg@coloplast.com

Coloplast will begin the roll-out of a new flexible male catheter next month.

Scheduled for launch on the company's core markets in October, the new catheter is the latest addition to Coloplast’s innovative product portfolio and adds further fuel to the company’s plans to outperform its competitors in the continence care market.

The current growth rate in the global continence care market is 5 – 6 percent per year, and launching new products like the SpeediCath Flex is Coloplast’s recipe for outgrowing the rest of its competitors on the market.

“Our ambition is to continue to gain market share. To do that we need innovative products like the SpeediCath Flex. It is discreet, hygienic and easy to use,” said Kristian Villumsen, Executive VP of Coloplast’s Chronic Care business, which includes the Continence Care division.

As part of the SpeediCath range of male catheters, the SpeediCath Flex is available in both compact and traditional versions.

“By adding another catheter to our product catalogue, we help make life easier for even more users,” said Mr Villumsen.

Continence Care is Coloplast's second-largest business area, accounting for some 35 percent of consolidated revenue. Coloplast’s other business areas are Ostomy Care, Wound & Skin Care, and Urology Care.

Facts

• SpeediCath Flex will be rolled out in all major markets in 2016 and 2017.
• A special feature of the new product is its flexible tip and dry sleeve, which is a protective film that makes catheter insertion easy.

Press enquiries

Maria Lindeberg

Senior Media Relations Manager

Tel. +45 4911 3095

dkmalg@coloplast.com

Read more: Coloplast.com/speedicat-flex

All over the world, more and more people living with a stoma are choosing Coloplast’s stoma bags and accessories. As a result, the company’s sales outperformed the market in the first nine months of the financial year. Sales in the Ostomy Care business area grew by 11% in the third quarter and by 9% in the 9M reporting period.

"Our latest ostomy care product, the SenSura Mio Convex is now available in sixteen countries, and feedback from users and healthcare professionals remains highly satisfactory. We now have the complete SenSura Mio portfolio on the market, which has a positive effect on growth in our Ostomy Care business," says Coloplast CEO Lars Rasmussen.

Sales in the Continence Care business grew 5% in the 9M period, mainly driven by disposable Speedicath catheters and Peristeen. Sales in the US market remain challenged as distributors continue to downscale their inventories, but the underlying growth is positive.

The Wound & Skin Care business delivered 7% organic growth. The European market is a positive contributor, while the Wound Care business remains challenged by slowing growth in China. Urology Care sales were up by a satisfactory 8%.

Solid growth in Europe

Coloplast’s sales to the European market were up by 6% in the 9M reporting period and by 8% in the third quarter alone, in part driven by solid growth in the UK market.

"With the UK being our largest single market, I’m very pleased to note that we are again generating strong growth in the UK and that users are happy with our products. We’re winning market share, and that’s very satisfactory," Lars Rasmussen says.

Germany and the Nordic markets also contributed to sales growth. In non-European markets, Argentina, China and Russia were the main contributors.

Maintaining guidance

Coloplast maintains its guidance for the 2015/2016 financial year of 7–8% organic revenue growth at constant exchange rates and now of about 6% in DKK. The EBIT margin is expected to be 33–34% at constant exchange rates and about 33% in DKK.

For more on the Q3 2015/16 interim report, go to www.coloplast.com/investor.  

Press enquiries

Maria Lindeberg

Senior Media Relations Manager

Tel. +45 4911 3095

dkmalg@coloplast.com

Investors and analysts

Ellen Bjurgert

Investor Relations Manager

Tel. +45 4911 3376

dkebj@coloplast.com

A growing demand for Coloplast’s ostomy care products among European users produced strong sales and 8% organic growth for the Ostomy Care business in the first six months of the 2015/16 financial year.

“More and more users are choosing our stoma bags and accessories, allowing us to outgrow the market. We’ve also just launched one of our future growth drivers, the Sensura Mio Convex, in fifteen countries, and user feedback has been highly satisfactory,” said Coloplast CEO Lars Rasmussen.

In the regional markets, Coloplast is generating solid sales growth in Europe, and especially Coloplast UK, its largest subsidiary, is a strong contributor to growth in the European business. Charter, Coloplast’s own distribution company in the UK, is also winning market shares.

“UK is currently the stand-out market in Europe, however, countries like France and the Netherlands are also delivering good results, steering our European market in the right direction,” says Mr Rasmussen.

The Wound & Skin Care business delivered 9% organic growth in the reporting period, and Urology Care sales were up by 8%.

Coloplast’s Continence Care business grew by 4%, the weak growth rate being mainly due to amended distributor contracts in the US market. Sales are expected to normalise in the second half of the financial year.

Coloplast maintains its guidance for the 2015/2016 financial year of 7–8% organic revenue growth at constant exchange rates. With GBP and USD weakened against DKK, the company now expects 6–7% growth in DKK instead of previously 7%. The EBIT margin is expected to be 33–34% at constant exchange rates and about 33% in DKK.

For more on the Q2 2015/16 interim report, go to www.coloplast.com/investor. 

Press enquiries

Maria Lindeberg

Senior Manager, Media Relations

Tel. +45 4911 3095

dkmalg@coloplast.com

Investors and financial analysts

Ian Christensen

Vice President, Investor Relations

Tel. +45 4911 1301

dkisec@coloplast.com

The Japanese healthcare authorities have decided to improve reimbursement for intermittent catheters. This represents a breakthrough in the Japanese market for Coloplast, who will have an easier time offering the newest and best catheters to people living with incontinence in Japan.

“We already have a solid market share when it comes to our ostomy business in the Japanese market. With the new reimbursement rules in place, we see improving business opportunities for our continence business and we will surely benefit from them,” says Lars Rasmussen, CEO of Coloplast.

Coloplast has had a subsidiary in Japan for 28 years and Lars Rasmussen sees great potential for growth in the country going forward.

“There are close to 100,000 people in Japan living with incontinence who need a catheter and they will now have access to better and more modern products. That is very positive,”says Lars Rasmussen.

Japan generally has an advanced and very modern healthcare system, and with improved reimbursement in place, the monthly supplement per catheter user will increase with more than 50%.

This means better access to improved products and is a result of, among other things,Coloplast’s contribution of health economic data to the Japanese authorities.

Coloplast products are sold in more than 130 countries worldwide and Japan is an important market in the company’s future growth plans.

Press enquiries

Maria Lindeberg

Senior Manager, Media Relations

Tel. +45 4911 3095

dkmalg@coloplast.com

Investors and financial analysts

Ian Christensen

Vice President, Investor Relations

Tel. +45 4911 1301

dkisec@coloplast.com

Coloplast is off to a good start to the financial year, with most European markets showing good results and, notably, with the UK business again contributing to growth. The improvement was due in part to a solid performance by Coloplast’s own UK homecare company after an otherwise difficult year in 2014/2015.

“We’ve had a satisfactory first quarter. One of the reasons our sales have improved is because our UK company has now overcome the challenges of managing electronic prescriptions. We’re winning new and retaining existing customers in the UK market,” said Coloplast CEO Lars Rasmussen.

Sales were up by 8% in Ostomy Care, by 6% in Continence Care, 7% in Urology Care and 10% in Wound & Skin Care. In terms of sales by region, Europe was up 5%, Other Developed Markets grew 6% and Emerging Markets gained 16%.

New product well received by users
The Sensura® Mio Convex ostomy care range has been well received with highly satisfactory user feedback. For the past four months, SenSura® Mio Convex has been available in twelve countries.

“Our new Sensura Mio Convex ostomy care range will come to play a key role in the future, so it is important to us that the users like the new product,” said Mr Rasmussen.

He also mentions the Wound & Skin Care business which has performed well in recent months.

“In the European markets, the Biatain Silicone foam dressing has been the main growth driver,” said Mr Rasmussen.

Coloplast maintains its guidance for the 2015/2016 financial year of 7-8% organic revenue growth at constant exchange rates and of about 7% in DKK. The EBIT margin is expected to be 33-34% at constant exchange rates and 33% in DKK.

For more on the Q1 2015/16 interim report, go to www.coloplast.com/investor. 

Press enquiries

Dennis Kaysen

Communication Director

Tel. +45 4911 2608

dkdk@coloplast.com

Investors and financial analysts

Ian Christensen

Vice President, Investor Relations

Tel. +45 4911 1301

dkisec@coloplast.com