(Alliance News) - Tissue Regenix Group PLC on Monday said it has inked a new manufacturing agreement with an undisclosed "top 10 global healthcare company" over a new orthopaedic product.
Shares in the regenerative medicine company were up 71% at 1.15 pence in London in afternoon trading.
Having previously signed a research & development agreement, the two companies have now entered a strategic collaboration for white label manufacturing. The name of the healthcare company was not disclosed.
The goal of this is to bring the product, intended "to address orthopaedic soft tissue repairs" to market as part of a newly developed product line. Specific details of the product and the line - such as the product's name - were not disclosed, though Tissue Regenix did said that product processing has started already and it has received initial orders.
This new product is forecast to "make a material contribution to" Tissue Regenix's top line revenue growth and the line "is complimentary to the other soft tissue products" which are processed at the company's facility in the San Antonio, Texas.
"Due to operational efficiencies implemented, it is not expected that there will be any impact on the current processing levels of other product lines," Tissue Regenix noted.
The firm inked further distribution agreements in the first quarter of the 2020 "with a number of selected partners" aimed at expanding the market penetration of Tisue Regenix's AmnioWorks, Matrix OI, and DentalFix brands within areas like dental, ocular, and spinal " where there is increasing demand for the differentiated product lines". These are also complementary to ongoing processing activity within the San Antonio facility.
Interim Chief Executive Gareth Jones said: "I am delighted to confirm the launch of our first product from our latest strategic collaboration with a leading healthcare company. This exciting opportunity will allow Tissue Regenix to drive its commercial strategy forward and ensure the continued growth of the business with minimal impact to our existing strategic partners and customer base. Securing these important partnerships and distribution agreements underscore the differentiation of, and increasing market demand for, our products; providing further validation of the exciting growth potential for the business once we have completed the planned expansion of our processing capacity."
By Anna Farley; annafarley@alliancenews.com
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Tissue Regenix Group (TRX)