18 November 2011

Corin Group PLC 

Interim Management Statement 

Corin Group PLC (LSE: CRG, "Corin" or "the Group"), a leading manufacturer and supplier of orthopaedic devices, is today publishing an Interim Management Statement for the period from 1 July 2011 to 17 November 2011.

In the four months ended 31 October 2011, underlying constant currency sales growth (excluding the Group's discontinued Chinese operations) has increased to 7%, compared to the 1% level achieved in the first half of the financial year. 

Many of the major trends noted at the time of the interim results in August have continued. Sales of the Group's hip products have continued to be very strong.  The positive impact of initial stocking orders for Mako has outweighed the decline in metal-on-metal ("MoM") hip sales. There has been strong growth in sales of our new hip products in all of the group's geographies where they are approved for sale.

Knee sales in the four months ended 31 October continued to decline, but at a slightly slower rate than in the first half.  The new Unity knee product continues to make good progress in development, with initial evaluation surgeries now expected within the next three months.

As anticipated at the time of the interim results, LARS sales have declined, in comparison to an extremely strong performance in the comparative period, primarily owing to the ongoing clinical debate in Australia regarding the range of indications in anterior cruciate ligament ("ACL") injury that are suitable for repair using LARS.

The strongest geographical sales performance was in the USA. Growth in this market is being driven both by sales to Mako, whose hip application is presently being rolled out in the US, and by sales by the Group's small but growing direct sales operation, which is now distributing Cormet following the termination of the distribution agreement with Stryker in July.  This strong performance has been tempered by weakness in Australia and certain non-European distributor markets.

Corin expects to publish its results for the year ending 31 December 2011 early in March 2012.

Peter Huntley, Corin's Chief Executive, commented

"The rebalancing of our portfolio away from MoM continues to deliver results.  The level of growth across our new hip portfolio is very encouraging and is now outweighing the decline in MoM sales.  We are especially encouraged by the progress in the US."

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