DMS Imaging, Q1 2021, Sales Results

Image Credit: DMS Imaging Booth, JFR 2018

On April 21st, Diagnostic Medical Systems Group, the French-based healthcare technology company, published its financial results for Q1 2021. These show that sales grew explosively during the first quarter, despite a tough comparable, as Q1 2020 sales grew by approximately +17%, compared with Q1 2019. Quarterly sales reached €9.0m, compared with €7.6m during Q1 2020, an increase of approximately +18% year-on-year. These figures reflect the sales performance of the DMS Group, which comprises of three operational segments, DMS Imaging, DMS Wellness and DMS Biotech.

DMS Imaging

The DMS Imaging segment is responsible for the development and manufacture of medical imaging solutions for radiology, osteodensitometry and posturology. DMS Imaging trades under four brand names; DMS and Medilink for bone densitometry systems, Apelem for radiology and AXS Medical for 3D modelling and posturology systems. Overall sales from DMS Imaging reached €8.8m during the first quarter, an increase of approximately +18% year-on-year.

In radiology, quarterly sales originating from radiology solutions were approximately +20% higher, compared with Q1 2020. The sales growth during the quarter was driven by strong sales growth from international distribution agreements with OEMs, in particular, Fujifilm Europe. The company signed new contracts under World Bank tenders during the quarter which contributed toward a strong order book. In addition, the company received U.S. FDA approval for its latest Platinum DRF imaging system during the quarter along with the extension of a partnership with FUJIFILM Medical Systems U.S.A. This is anticipated to support additional growth from the U.S. market during 2021, assuming the pandemic situation continues to improve.

In bone densitometry, quarterly sales increased by approximately +2% year-on-year, marking a return to growth for bone densitometry solutions which declined by approximately -18% in 2020, driven by the pandemic. It is anticipated that sales will normalise during 2021, supported by increased distribution with Fujifilm Europe across the EMEA and Asia. The agreement with Fujifilm enables the distribution of the DMS Stratos and Stratos DR systems under the brand name FDX Visionary-DR.

The DMS Group “MC2” project, winner of France’s recovery plan

In 2020, the French government committed significant financial resources to assist with the countries long-term economic plan as well as short-term recovery from the Coronavirus pandemic. A total of €600m was made available to support with investment and relocation of critical sectors, including healthcare. Companies were invited to submit proposals in order to secure government funding. Almost 850 applications were submitted and the government selected 273 winning projects, representing approximately €1.8bn of industrial investments, supported by €462m government funding. DMS Group, through its DMS Imaging division, was selected among these winners for its “MC2” project. This project aims to localize in France the production of emergency medical imaging mobile solutions in order to ensure care continuity in hospitals with more flexibility and health security. This project, which is resolutely innovative, will allow reinforcing the national production of these priority products and will open large commercial perspectives for export. In addition to creating about thirty jobs by 2025, the project will involve over 80 French companies as suppliers or partners.

Construction of a new factory completed

During June-19 the Group began the construction of a new factory located in Gallargues-le-Montueux (France). During Q3 2020, the construction of this facility was completed and from October this site was operational. Built on a total area of 16,800 m², this new facility offers a floor area of 5,500 m², of which approximately 50% is office space, 25% production space and the remaining 25% dedicated to storage and shipping. The site enables a double in production capacity as well as significant efficiency gains through consolidating multiple operations at Montpellier and Nîmes. The site has 115 parking spaces and will accommodate around 150 employees. The land also benefits from a land reserve of the order of 2,000 m² allowing to realise a project of extension according to the subsequent needs of the group.

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