Following weeks of speculation about its financial situation, artificial heart maker CARMAT has concluded a capital increase, securing a total of €7 million in funding. The move effectively extends the company’s cash runway, providing financial stability through early 2024. Reports in September suggested that the French company was operating on a cash runway of just one month after supply challenges hurt sales.
CARMAT said it anticipates a projected growth in European sales, with expected revenues in the range of €4 to €6 million during the latter half of 2023, with a significant uptick projected for 2024. The company also reported a ramp in sales of its Aeson artificial heart, achieving a consistent pace of one implant per week over the past three weeks.
The infusion of capital from this recent increase is expected to fuel CARMAT’s ongoing sales initiatives and clinical trials in the coming months. The company said it aims to expand its production capacity to 500 artificial hearts per year by the end of 2023, bolstered by the establishment of 30 operational centers for commercial implants.
According to CARMAT’s business plan, the company anticipates the need to secure an additional €50 million in financing to sustain its operational and investment needs through the end of October 2024. The company says it is actively exploring alternative financing solutions and measures to fortify its financial structure and alleviate any potential cash constraints.
Most of the new investment was contributed by long-standing financial shareholders of the company: Lohas, Santé Holdings and Therabel Invest.
“Their financial support will enable us to continue the deployment of our strategic plan over the coming months, and particularly to support the acceleration of our sales and our EFICAS clinical trial in France, said Stéphane Piat, CEO of CARMAT. “We are also very actively working on other financing solutions and measures which, combined with a strict financial discipline, should enable us to further extend our financial visibility.”
“We are confident in the robustness and safety of our artificial heart, and in its strong potential, and are determined to lead CARMAT to commercial success and profitability, with the support of our teams, shareholders and partners, for the benefit of patients suffering from advanced biventricular heart failure.”