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Corin Group PLC (CRG)

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Wednesday 14 May, 2008

Corin Group PLC

Interim Management Statement

RNS Number : 4415U
Corin Group PLC
14 May 2008

14 May 2008


Interim management statement 

Corin Group PLC (LSE: CRG, "Corin" or "the Group"), a leading manufacturer and supplier of orthopaedic devices, is today publishing an Interim Management Statement for the period from 1 January 2008 to 13 May 2008, including a notification of a reduction in Stryker's anticipated purchasing requirements of Cormet instrumentation and implants in the current financial year. 

Just prior to the Group's preliminary results announcement on 17 April 2008, Stryker confirmed to the Board of Corin the level of shipments of instrumentation and product that Corin should forecast to deliver to Stryker during 2008.  As previously announced Stryker's surgeon training programme during the first quarter of 2008 was slower than anticipated for a number of reasons, including the implementation of its non-prosecution agreement.  This had resulted in some shipments of instrumentation and product being rescheduled.  At the time of Corin's preliminary results in April, Stryker still expected the implantation rate to accelerate once its training programme for the second quarter of 2008 got under way.  

Corin has just been notified that Stryker expects to see a lower number of Cormet procedures carried out in 2008 than previously anticipated. The level of inventories currently held by Stryker means that Stryker does not now anticipate purchasing any further Cormet instrumentation and implants from Corin until December 2008.  

The Board, following consultation with Stryker, now expects that revenues from the US business for the year to 31 December 2008 are unlikely to be more than £10 million. 

The Group's business outside of the USA has continued to trade in line with the Board's expectations.  In the UK, the launch of the Metafix cementless stem and the Zenith mobile bearing ankle have contributed to modest growth, in line with the Board's expectations, over prior year.  In Germany, the launch of these products together with the Mini stem remains on course for later this year.  Sales in Japan, through the Group's direct sales force, have continued to show growth in line with the Board's expectations, as have sales in Australia.

Peter Huntley, Corin's Chief Executive commented

 "The lower level of anticipated sales to Stryker in 2008 is clearly disappointing but we, as does Stryker, remain confident that the potential for Cormet in the world's largest orthopaedic market is substantial."


Corin Group PLC
Peter Huntley, Chief Executive
Simon Hartley, Finance Director
 01285 659 866
College Hill
Adrian Duffield
020 7457 2020

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