Tissue Regenix Group PLC Trading Update (9118O)
February 04 2019 - 2:00AM
UK Regulatory
TIDMTRX
RNS Number : 9118O
Tissue Regenix Group PLC
04 February 2019
Tissue Regenix Group plc
Trading Update
-- Group revenue growth of 47% pro forma and constant currency
-- Year end cash position ahead of expectation at GBP7.8m
-- Significant commercial milestones achieved
Leeds, 4 February 2019 - Tissue Regenix Group (AIM:TRX) ("Tissue
Regenix" or "The Group") the regenerative medical devices company,
provides an unaudited trading update for the year ended 31 December
2018.
Financial performance
The Group expects to deliver revenue of GBP11.6m (2017: GBP5.2m)
in line with the Board's expectations.
Division Actual, 2018 Proforma, Percentage
GBP'm 2017 increase
GBP'm
Biosurgery (DermaPure) 3.4 1.9 79
------------- ---------- -----------
Orthopaedics and Dental
(CellRight) 6.4 *4.9 31
------------- ---------- -----------
GBM-v 1.8 1.1 64
------------- ---------- -----------
Total 11.6 7.9 47
------------- ---------- -----------
*Note: Orthopaedics and dental proforma includes a full year
revenue from CellRight Technologies although the entity was
acquired on 9(th) August 2017
On a proforma, constant currency basis (comparing 2018 to full
year 2017 for Cellright - acquired on 9(th) August 2017) this
represents an increase of 47%. Growth was driven by strong customer
demand across all 3 operating divisions. Cash of GBP7.8m is better
than anticipated and is a result of efficiency programmes and
improved working capital management. The Group revised its
commercial strategy in Q1 2018 with an increased focus on strategic
partnerships to drive commercialisation of products, increase
market penetration and maximise research and manufacturing
capabilities.
DermaPure revenue grew 79% on a constant currency basis to
GBP3.4m (2017: GBP1.9m), driven by a strategy to address tissue
repair and replacement within surgical indications, and the
contribution from the exclusive distribution agreement with ARMS
Medical for its use in uro-gynaecology procedures. DermaPure
manufacturing was successfully transferred into the CellRight
facility ahead of schedule providing end-to-end control of the
manufacturing process and contributing to growth. As demand for our
products increases, planning is underway to increase the
manufacturing output of the San Antonio facility with a second
shift commencing from Q1 2019.
Orthopaedics and Dental revenue grew by 31% proforma on a
constant currency basis to GBP6.4m (2017 full year: GBP4.9m).
Following the US Arthrex distribution agreement announced in March
2018, an extension of this partnership was announced in November
2018 to cover Europe. The Group expects to benefit from these
agreements during 2019.
Joint Venture GBM-v delivered sales of GBP1.8m (2017: GBP1.1m),
an increase of 64% on a constant currency basis, as demand
increased for corneal products. This contribution largely offsets
the operational costs of the facility as we continue with the
development and commercialisation plans for the CardioPure
products.
John Samuel, Chairman commented: "The preliminary results for
the year ended 31 December 2018 demonstrate growing commercial
momentum across all of the Group's operating divisions and the
successful integration of the platform technologies, manufacturing
capabilities and distribution opportunities following the
acquisition of CellRight Technologies in 2017. The Group is now
well-placed to deliver further organic growth and expand our
commercial footprint, both with new partnerships and into new
territories. The Board is confident that during 2019 we will
continue to deliver top line revenue growth, moving closer to our
goal of sustainable profitability."
Management Update
Jesus Hernandez who joined the Group through the acquisition of
CellRight Technologies has notified the Board of his intention to
retire from his role as CEO of CellRight Technologies in Q1 2019.
He remains committed to the future success of the Group and will
continue to attend key events and meetings. Daniel Lee, who joined
the Group in January 2019, will succeed Jesus in the capacity of US
President of Operations, with a transition already underway. Daniel
brings significant experience having worked in the orthobiologics
market for over 20 years, most recently as President and CEO of
Scaffold Biologics.
For more Information:
Tissue Regenix Group plc Tel: 0330 430 3073 /
Caitlin Pearson Head of Communications 07920272441
------------------------------------------ ---------------------
Jefferies International Ltd Tel: 020 7029 8000
Simon Hardy / Christopher Binks
------------------------------------------ ---------------------
FTI Consulting Tel: 0203 727 1000
Brett Pollard / Victoria Foster Mitchell
/ Mary Whittow
========================================== =====================
About Tissue Regenix
Tissue Regenix is a leading medical devices company in the field
of regenerative medicine. Tissue Regenix was formed in 2006 when it
was spun-out from the University of Leeds, UK. The company's
patented decellularisation ('dCELL(R) ') technology removes DNA and
other cellular material from animal and human soft tissue leaving
an acellular tissue scaffold which is not rejected by the patient's
body and can then be used to repair diseased or worn out body
parts. Current applications address many critical clinical needs
such as sports medicine, heart valve replacement and wound
care.
In November 2012 Tissue Regenix Group plc set up a subsidiary
company in the United States - 'Tissue Regenix Wound Care Inc.',
January 2016 saw the establishment of joint venture GBM-V, a multi-
tissue bank based in Rostock, Germany.
In August 2017 Tissue Regenix acquired CellRight Technologies(R)
, a biotech company that specializes in regenerative medicine and
is dedicated to the development of innovative osteoinductive and
wound care scaffolds that enhance healing opportunities of defects
created by trauma and disease. CellRight's human osteobiologics may
be used in spine, trauma, general orthopedic, foot & ankle,
dental, and sports medicine surgical procedures.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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