ANNUAL FINANCIAL REPORT 2010 2010 - TiGenix

7.2.3 Selling, general and administrativeexpensesSelling, general and administrative expenses consist primarilyof sales and marketing expenses, professional services (suchas pricing & reimbursement, market access, financial, legal,accounting, audit, HR, IT and administration expenses andinsurances), salaries and other personnel-related expenses,general expenses and office rental payments.Although significant efforts in building the commercialteam were done in the past years, it is expected that sellingexpenses will increase further with the commercialisation ofChondroCelect, ChondroMimetic and potential third-partyproducts. Market access, pricing and reimbursement, marketingand sales efforts will continue in the years to come.General and administrative costs are expected to remainrelatively flat over the coming years.7.3 Analysis of results of operations7.3.1 Year Ended December 31, 2010 comparedto Year Ended December 31, 20097.3.1.1 RevenuesTotal revenues were €2,423k in 2010 compared to €1,032k in 2009 representing an increase of 135%.Years ended December 31Thousands of Euro (€) 2010 2009Sales billed 982Deferred sales (361)Sales 621 46Other revenues 1,802 986Total 2,423 1,032For ChondroCelect, 2010 was the first full year of nonreimbursedcommercial sales in a limited number of Europeanreference centres. Only part of the ChondroCelect sales couldbe recognized as revenues as the Company had an agreementwith a limited number of Dutch reference centres in placewhereby only part of the price had to be paid upfront withthe remainder to be paid at the moment ChondroCelectwould be admitted to the “Lijst Dure Geneesmiddelen”. TheChondroCelect sales are limited and will continue to be limitedand irregular until ChondroCelect will be reimbursed. In 6.5,an update can be found with respect to reimbursement in thedifferent European countries. Billed sales of ChondroCelectamounted to approximately €830,000 in 2010.For ChondroMimetic, the commercial sales started onlyin October of last year after the launch at the 9th WorldCongress of the International Cartilage Repair Society (ICRS) inBarcelona, Spain. Billed sales of ChondroMimetic amounted toapproximately €150,000 in 2010.For the development work done in stem cells and biomaterialsmainly in the indications of meniscus and osteoarthritis, theCompany received grant revenues of €1.8 million.153 •