By Anthony O. Goriainoff
Advanced Medical Solutions Group warned that its financial performance for 2023 will be affected due to the uncertainty around royalty stream and the higher destocking of its LiquiBand product in the U.S.
The U.K. surgical and wound-care specialist said Monday that revenue for the year is now expected to be in the 124 million pounds to 127 million pounds ($156.1 million to $159.9 million) range. Adjusted pretax profit is expected to be in the GBP25 million to GBP27 million range.
The company said Organogenesis–a company with which it has a patent-licensing agreement–announced that changes to U.S. reimbursement coverage for the treatment of diabetic foot ulcers and venous leg ulcers created uncertainty regarding the revenue outlook for some of its key products, including those using AMS patents.
The company said that as Organogenesis has withdrawn guidance, and that it has no control or insight into its sales, it was unable to quantify the financial effect on AMS at this stage. It added it believed it was prudent to remove this royalty in its entirety from fourth quarter guidance onward.
“Reflecting the board’s confidence, with the exception of the adjustment to the Organogenesis royalty, guidance for future years remains unchanged,” it said.
Write to Anthony O. Goriainoff at [email protected]
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