Goleta-based breast implant company Sientra continued to cut its losses, losing $11.4 million in the first quarter of 2017, down from $11.9 million for the same period the year prior.
“I am pleased with our first quarter performance, which was in line or above our expectations,” said Jeffrey Nugent, chairman and CEO. “In the first quarter, we also continued to make progress toward establishing high quality U.S.-based manufacturing supply, while continuing to serve our board certified plastic surgeon customers under our precision controlled supply strategy.”
Total net sales for the first quarter of 2017 were $7.5 million, compared to total net sales of $1.5 million for the same period in 2016. Sales increased after the company’s acquisition of Biocorneum. Its scar management product accounted for 19 percent of total net sales, while Sientra breast implants made up 78 percent of total net sales.
“We have been working diligently with our new manufacturing partner, Vesta,” Nugent said. “Our focus now is to be fully prepared for the FDA facility inspection and we remain confident in our expectation for FDA approval of our new manufacturing site by the end of the year.”
Sientra is on the rebound after European regulators suspended sales of breast implants by Sientra’s Brazilian manufacturer Silimed because implants at its Rio de Janeiro plant were contaminated by microscopic particles of silica and cotton. Sientra voluntarily suspended U.S. sales but maintained all along its products, which are sold in the U.S. and not Europe, are safe and pose no risk to patient safety. Sientra is now seeking European approval to distribute its products overseas.
Net cash and cash equivalents as of March 31, 2017 were $58.8 million compared to $67.2 million at the end of the fourth quarter 2016.
“As we move closer to supply chain stabilization, we also continue to see progress on our revenue diversification initiatives,” Nugent said. “In the first quarter, we achieved record Biocorneum sales and saw strong demand for our breast tissue expander portfolio. We remain confident in our ability to continue growing these segments as we look forward to getting back to our previous market share penetration strategy in the U.S. breast implant market while expanding our total addressable market opportunity.”
Sientra shares closed May 9 up 3 cents at $8.22.
• Contact Joshua Molina at [email protected]