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| Bacterin CEO Dan Goldberger |
Bacterin International reported a slight increase in Q1 2014 revenue over the same period last year. The maker of bone-graft material and medical coatings announced that its Q1 total revenue grew approximately 2%, fueled by a 20% increase in biologics revenue.
The company expects its total net revenue for the first quarter of 2014 to be between $8.7 million and $8.9 million, an increase of approximately 7% over Q4 2013 and a 2% growth when compared with the $8.6 million in revenue reported in Q1 2013. Core recurring biologics revenue ranges from $8.6 million to $8.7 million for Q1 2014--a 7% increase over the same quarter last year, and a 20% jump over the same period last year.
"Bacterin plans on seeing continued growth in the upcoming year," CEO Dan Goldberger said in a statement. "We have now posted two consecutive quarters of sequential and year-over-year revenue growth. I believe that our new product launches and revitalized sales function are moving Bacterin in the right direction. As we continue to grow our sales force, expand into new territories and launch new products, we expect to see continued growth from our core business."
The Montana-based company is hoping for a brighter 2014 after a series of ups and downs the previous year. In February 2013, Bacterin was slapped with two FDA warning letters for alleged quality and manufacturing violations over its bone putty product and two kinds of wound drains. The agency also knocked the company for not having the proper procedures to handle product complaints or employee training.
Bacterin changed hands in August 2013 with the appointment of Goldberger as chief executive and president, and has since shifted its sales and revenue goals. Goldberger said that one of his top priorities was strengthening the company's sales operations, and trimmed its 65-person salesforce to 25. The 25 employees sold $8.1 million in 2013, compared to $8 million sold with a 65-person staff the previous year, the company said in a statement.
Bacterin is also looking overseas for potential revenue. In November, the company said it would work with DMP Spine Biologics to distribute its products throughout the European Union. The deal gives Bacterin access to DMP's "extensive relationships throughout Europe" and its knowledge of orthopedic and spine markets, Goldberger said in a statement.
In March, the company borrowed an additional $4 million from Orbimed Advisors under the existing terms of the company's credit facility. Bacterin had collected $25 million from Orbimed in 2012 to advance growth plans and meet its revenue goals.
- read the release