Tissue Regenix Group PLC Trading Update (1509Q)
October 17 2019 - 2:00AM
UK Regulatory
TIDMTRX
RNS Number : 1509Q
Tissue Regenix Group PLC
17 October 2019
This announcement contains inside information
Tissue Regenix Group plc
Trading update
Universal City grant award triggers commencement of facility
expansion
Leeds, 17 October 2019 - Tissue Regenix Group (AIM:TRX) ("Tissue
Regenix" or the "Company") the regenerative medical devices company
provides the following trading update.
Trading update
The Company announced at the time of its annual results on 4
June 2019, and its interim results on 10 September 2019, that it
anticipated that sales in the current year would be significantly
weighted towards the second half of 2019, as the Company's ability
to bring onstream increased manufacturing capabilities during H2
would be key to determining the Company's year-end outcome.
The increase in throughput is now expected to become available
during Q4 2019 and, as such, the Board anticipates that revenue for
2019 will be below current market consensus by approximately 15% to
20%, with a corresponding reduction in margin impacting EBITDA.
Demand for the Company's products remains strong and the Board does
not anticipate any longer term impact over and above the
approximate three month delay to the manufacturing capacity
increase.
Facility expansion
Tissue Regenix has received confirmation of a $0.3m grant from
Universal City to support the commencement of the initial phase of
the build out programme on the Company's newly leased 21,000 sq.ft.
facility in San Antonio, further details of which were announced on
15 August 2019. This grant will assist and permit the upgrades of
utilities and infrastructure serving the new facility.
Technical staff necessary to enable the second shift in the
original San Antonio facility to become operational have been
recruited and are in the process of being trained. Monthly
processing throughput has already more than doubled in the year to
Q3 and these additional products are expected to become available
towards the end of Q4.
The Company is working closely with its existing outsource
provider, CTS, in order to increase the yield of its DermaPure(R)
product after also announcing the launch of DermaPure(R)
Non-Oriented, for use in surgical and uro-gynaecology applications,
at the American Urogynecologic Society conference in Nashville in
September. The Company is working closely with its strategic
partner, ARMS Medical, on the roll out of this product.
John Samuel, Executive Chairman, Tissue Regenix plc commented,
"We have excellent products for which demand is exceeding our
current capacity. Therefore, our current focus is ensuring we can
increase our capacity to meet this significant demand."
For more Information:
Tissue Regenix Group plc Tel: 0330 430 3073
Caitlin Pearson Head of Communications / 07920272 441
--------------------------------------------- -------------------
Stifel Nicolaus Europe Limited (Nominated Tel: 0207 710 7600
Adviser and Broker)
Jonathan Senior / Alex Price / Ben Maddison
--------------------------------------------- -------------------
FTI Consulting Tel: 0203 727 1000
Brett Pollard / Victoria Foster Mitchell
/ Mary Whittow
============================================= ===================
The person responsible for the release of this announcement is
John Samuel, Executive Chairman.
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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