Medical firm HealthBeacon sees slight revenue rise as it copes with chip shortages and costs

Jim Joyce, CEO and co-founder of HealthBeacon, at the company's office in Bluebell, Dublin. Picture by Frank McGrath

Sarah Collins

Irish-listed medical devices company HealthBeacon reported a slight growth in revenues last year as shortages and costs weighed on margins.

Revenue grew 2pc to €2.25m last year, as gross profit margin came in at 41pc, down from 65pc in 2021 due to increased supply chain costs.

The group is more upbeat about its prospects this year, as it predicts significant revenue growth with the launch of a speciality pharmacy distribution.

HealthBeacon’s net cash position was €12.16m at the end of last year, less than half what it was in 2021, but enough to fund growth over the coming quarters, the company said in its preliminary statement of results for last year.

A global chip shortage and energy crisis last year had an impact on lead times, transport and component costs, which weighed on gross margins, the firm said.

HealthBeacon makes devices and software to manage critical and chronic medications.

It is concentrating on its speciality pharmacy division in the US as the route to market for injectable medicines, and has signed two speciality pharmacy clients.

It said proceeds from its listing in 2021 and commercial relationships will help deliver “significant growth” ahead.

“We have confronted several challenges in building out our delivery infrastructure in the US,” said chief executive Jim Joyce.

"However, I’m pleased to report that we will soon be in a position to deploy our highly effective medical adherence tool at scale to exploit the speciality pharmacy opportunity we have worked so hard to engineer.

"Following a challenging 2022, my colleagues and I look forward with confidence to the next 12 months.”