(News Bulletin 247) – The designer of artificial hearts has indicated that its commercial objectives for 2023 will not be achieved and that it will need new money to finance its activities beyond the month of October.

Carmat pays cash for its multiple delays in its artificial heart implantations. The company warned it would not be able to meet its annual targets, after posting lower-than-expected revenue in the first half.

During the first half of the year, Carmat achieved 600,000 euros in turnover. The company indicates that it has been penalized by supply disruptions from its suppliers, which “significantly” disrupted the ramp-up of its production of Aeson, its artificial heart. This level of sales corresponds to the sale of 3 Aeson cores, including 2 in the commercial context and 1 in the context of a clinical study carried out in France.

“Due to a lack of a sufficient number of prostheses, hospital demand was generated late, which explains a limited turnover in the first half of the year,” indicates Carmat.

Production normalized during the summer, which confirms Carmat in its objective of achieving a turnover of around 4 to 6 million euros in the second part of the 2023 financial year. January, the French company still anticipated revenues of between 10 million and 13 million euros for 2023. The account is therefore far from being there for Carmat, which had nevertheless communicated for the first time on financial objectives.

Financially out of breath

However, the company says it is “confident” in its ability to accelerate the number of its sales while work to extend its Bois-d’Arcy production site is progressing well. This should allow it to reach at the end of the year a nominal production capacity of 500 hearts per year and 1000 prostheses by 2027. In its 2010 base document, Carmat however hoped to reach a rate of 65 systems per month (i.e. 780 per year) in… 2017.

But this increase in production desired by the French company involves additional financial resources. However, Carmat, which claimed available cash of 23.8 million euros at the end of June, has almost no money left in the coffers.

The designer of artificial hearts indicated on Monday evening that it had financial visibility “until the end of October”, despite the approximately 72 million euros raised in two stages over the year 2022.

In this context, Carmat indicates “actively working” on different financing options to find the financial resources necessary to continue its activities after the month of October.

In reaction to the announcement of this need for new money, Carmat plunged another 30% on the Paris Stock Exchange around 12:50 p.m., after having been reserved for the fall as soon as the Paris market opened and having sold more than 50% of its value when it resumes trading.