Artificial heart maker Carmat could run out of cash after sales miss

[September 26, 2023]  (Reuters) -French artificial heart maker Carmat said on Monday supply issues meant it would miss its full-year sales target and warned it could run out of cash by the end of October.

"During the first half of 2023, the production ramp-up we were anticipating was significantly disrupted by supply issues," CEO Stephane Piat said in a press release after the market close. "Due to the lack of a sufficient number of devices, we were late in generating the demand from hospitals."

Carmat said in February it was targeting full-year sales of between 10 million and 13 million euros ($10.6 million to $13.8 million).

The company reported first-half sales of 600,000 euros on Monday and forecast a further 4 million to 6 million euros in the second half. While the company did not explicitly say by how much it could miss its target, the second-half forecast points to full-year sales of between 4.6 million and 6.6 million euros.

Carmat said it had a cash position of 23.8 million euros at the end of June and was exploring a number of financing options as it might run out of cash at the end of October.

Chief Executive Officer of French artificial heart manufacturer Carmat, Stephane Piat, poses holding an artificial heart during an interview with Reuters in Velizy, near Paris, January 11, 2021. REUTERS/Christian Hartmann/File Photo

It received non-dilutive financing of 13.2 million euros, consisting of a 7.9 million euros grant and a 5.3 million euros repayable advance, in April within the 54 billion euros “France 2030” national investment plan, at which time the company said it had sufficient cash through mid-October.

"If the company is unable to secure the funds it needs, it may not be able to pay its debts and realize its assets in the normal course of its business," Carmat said in a separate financial report.

($1 = 0.9425 euros)

(Reporting by Michal Aleksandrowicz in GdanskEditing by Kirsten Donovan and Mark Potter)

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