Brandenburg-based biotech company increases revenue despite difficult market conditions

co.don AG, one of the leading companies in the production of autologous cartilage cell transplants for articular and vertebral damage, can look back on a successful financial year 2011. On the basis of preliminary figures, revenue in Germany rose by around 28% (unaudited). Allowing for lost sales in foreign markets, especially Italy and Greece, due to the economic climate, total revenue growth of around 8% to EUR 2.3m (unaudited) was achieved in 2011. Product sales volumes also rose sharply by a total of around 11% (unaudited), whereby the sales increase in Germany was in excess of 26%.

Due to very substantial investment in two clinical trials, co.don AG will close 2011 with a negative operating result. This investment is justified by the market authorisation for the whole EU that a successful trial would bring. The patented procedure, which qualifies for reimbursement by health insurers in Germany, has already been applied successfully thousands of times in Germany. "Access to 30 European countries will lead to a completely new market positioning and a massive increase in the potential market", explains CEO Dr Andreas Baltrusch.

The fact that the trials are proceeding quickly and efficiently formed the basis for the capital increase adopted by the Executive Board and Supervisory Board of co.don AG in January 2011 and implemented in May 2011.

A simplified capital reduction and a 2:1 reverse share split was voted at the ordinary shareholders' meeting of co.don AG held on 6 July 2011. The equity transaction reduced share capital to EUR 7,108,584.00. The capital reduction was entered in the commercial register on 26 August 2011 and serves to prepare further equity transactions.

In mid 2011, co.don and its sales partner ORMED (now DJO GLOBAL), were able to sign a supply contract with Asklepios Group, Germany's largest hospital operator.  This will enable patients with articular cartilage problems at the Asklepios Clinics throughout Germany to be treated with the cell-based biological drug ARTROCELL 3D^® / co.don chondrosphere^®.

In November 2011 co.don AG was also awarded the Entrepreneurship Prize by the East German Savings Bank Association. The prize is one of the most sought-after awards in Eastern Germany and honours the performance and entrepreneurial commitment of the innovative, Teltow-based biotech specialist for regenerative medicine.

"Over 4,000 patients have already received articular and spinal disc treatment and the success ratio is very high", said Dr Baltrusch. Public and private-sector health insurers already reimburse the costs of treatment with this method, which is much easier on the patient than other therapeutic options. More than 175,000 knee replacements are carried out every year in Germany - a figure which according to Baltrusch is much too high. "With our procedure", says co.don CEO, "knees can be repaired gently and replacement surgery often averted."

About co.don^® AG:

The company is based in Teltow, Brandenburg, and was founded in 1993. Since 2001 the bio-pharmaceutical specialist has been listed on the Frankfurt Stock Exchange (ISIN: DE000A1K0227). co.don AG uses tissue engineering - the cultivation and growth of autologous tissue cells - to develop innovative products and therapeutic concepts for the orthopaedic and neurosurgical markets. The cell-based biological drugs (autologous cell transplants for articular cartilage and intervertebral disks) are produced without the use of antibiotics, growth factors and genetic engineering. The Management Board of co.don® AG is made up of Dr Andreas Baltrusch (CEO) and Ms Vilma Siodla (COO).
Further information is available from: www.codon.de

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