Creo Medical reported 168% y-o-y growth in its FY21 revenue (to £25.2m), broadly in line with Edison (£25.9m) and consensus estimates (£25.1m). While the increase was largely driven by the full-year contribution from Albyn Medical (acquired in July 2020), we are encouraged by the improved momentum in the core asset Speedboat Inject in H221, as COVID-19 headwinds subside. Management also announced a multi-year robotics collaboration with market leader Intuitive Surgical to optimise certain Creo products to be compatible with Intuitive’s robotic technology. The terms of the agreement include joint clinical studies and the potential for royalty and milestone payments to be received by Creo. We believe this agreement strengthens the company’s differentiated positioning in a rapidly evolving subsegment. While we wait for more details to incorporate the announcement into our valuation, we believe there may be upside potential on successful commercialisation of the covered products.
