• Revenue Growth: 136% top line growth of MagnetOs sales.
• EBITDA: $9 million, with an 11.9% margin adjusted after the Fibrin-PTH write-off.
• Surgeon Utilization: Increased from 2.5% to 7% of US spine surgeons using MagnetOs.
• Sales Agents Increase: 65% year-over-year increase in independent sales agents.
• Hospital Penetration: 85% year-over-year increase.
• International Expansion: Sales expanded from 11 to over 20 countries.
• Revenue Target Achievement: Achieved 58% growth in H2, doubling Q4 revenue year-over-year.
• Volume and Revenue Growth: Over 450% growth in volume and revenue over two years.
• Operating Cash Flow: Generated almost CHF 4.7 million.
• Cash and Cash Equivalents: Achieved almost CHF 3.8 million additional cash through LTI exercise.
• Future Revenue Guidance: Anticipated at least 60% growth in 2025, targeting $220 million to $250 million in revenue by 2027.

• Warning! GuruFocus has detected 1 Warning Sign with CSBTF.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kuros Biosciences Ltd (CSBTF) achieved a remarkable 136% top-line growth in MagnetOs sales, showcasing strong performance across various teams.
• The company has expanded its regulatory clearances in both spine and extremities, allowing entry into new markets and increasing the global addressable market.
• A strategic agreement with Medtronic has been established, setting the stage for future growth and providing significant market leverage.
• Kuros Biosciences Ltd (CSBTF) reported a profitable business with no debt and a $9 million EBITDA, indicating strong financial health.
• The company has successfully expanded its international presence, now operating in over 20 countries, which enhances its global footprint.

Negative Points

• Despite strong growth, the revenue from Europe remains low at about 1%, highlighting a need for further market penetration outside the US.
• The company faces challenges in the extremities market, with a focus on building clinical evidence before aggressively pursuing revenue growth.
• There is a delay in expected milestone payments from the Checkmate asset, pushing potential pre-commercial milestones to 2031-2032.
• Kuros Biosciences Ltd (CSBTF) is investing heavily in infrastructure and extremities, which may eat into EBITDA margins in the short term.
• The ongoing head-to-head trials against DBX and cell-based allografts will not have readouts until 2026-2027, delaying potential market impact.

Q & A Highlights

Q: What are the key assumptions behind Kuros Biosciences' 2025 growth target of at least 60%? A: Chris Fair, CEO, explained that the growth is driven by the strategic agreement with Medtronic, which has opened over 100 opportunities. The timeline from opportunity to impact is typically four to six months. International expansion and methodical growth in the extremities market are also key factors. The partnership with Medtronic will help accelerate growth in the extremities market by providing quicker access to surgeons.

Q: How is the partnership with Medtronic progressing, and what impact does it have on revenue? A: Chris Fair stated that Medtronic is a tremendous partner, drawn to Kuros by their clinical evidence. The partnership is in early stages, with opportunities being presented regularly. While specific revenue contributions from Medtronic are not disclosed, the goal is to grow together, leveraging Medtronic's market share to benefit both parties.

Q: What is the strategy for penetrating the foot and ankle market, and how quickly can Kuros achieve significant market share? A: Chris Fair mentioned that Kuros can grow the extremities business faster than the spine business due to existing hospital registrations. The focus is on building clinical evidence and establishing relationships with key opinion leaders. The second phase, involving greater market penetration, is expected in the second half of the year.

Q: What are the expectations for profitability in 2025, and how will it develop? A: Daniel Geiger, CFO, indicated that Kuros is in a growth phase, investing in infrastructure and the extremities market. The aim is to at least match the 2024 adjusted EBITDA margin of 11.9%, with potential gradual improvements. Key factors include maintaining a 90% gross margin and optimizing sales and marketing expenses.

Q: Why is Kuros switching its reporting currency from CHF to USD? A: Daniel Geiger explained that USD is the primary currency for internal budgeting and performance measurement, as most revenues are generated in USD. The switch also aligns with the expanded institutional investor base and facilitates communication with international investors. There are no current plans for a US listing.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.