From what I can gather, Medibrane is a private Israeli company but it has been twice invested in by a VC company for a minority interest. The direct investment is by another Israeli company called STI Laser which is involved in lasering of metal parts of medical devices. Seems to have business worldwide. STI Laser itself was last year acquired by Resonetics Inc, a US company in the medical devices space. Resonetics, in turn, was acquired in 2017 by Regatta Medical, an investor in medical companies set up in 2017 as a partnership between Robert Hance and GTCR which is an investor in various sectors.
The CEO (Robert Hance) of Regatta Medical is a veteran in cardiovascular areas, who spent many years at Abbott but also a short spell at the FDA.
Regatta/Resonetics seems to have a wide range of investments and potential areas of business being sought by them. Perhaps Medibrane can leverage its relatively new network to widen interest in the benefits and uses of Elasteon? The RNS CEO comment seemed to envisage such an aim.
I get the impression Israel is a leading centre in medical developments and I am not certain if Aortech have done deals there before rather than the US.
Excellent update out. Plenty for the market to absorb. Good to see:
- well managed cash burn, demonstrating the value of the established licence income stream
- new key employee supported by government grant
- establishment of two new clean rooms for trial manufacturing of grafts and patches
- industry advances and recognition in polymer heart valve development which is Aortech’s ultimate holy grail
The market hasn’t a clue about the potential value underlying this company!
- Stupidly oversold, RSI under 10!!
- Final results and update expected mid-July, so one or two buying ahead of that after a spell of barely no trades in the stock for a month.
- Possibly expect updated research from the new broker, Shore Capital, who took over Stockdale Securities recently?
- Huge upside potential remains in place and the market has given the company zero credit given that, to date, there has been no change to expectations to timelines. Last update in May contained plenty of positives and indications the company is transitioning to the manufacturing and testing stages soon.
Any other views?
Share price into double figures now. It’s not often such a gift presents itself as this one did in the 5p area in late April and again in the first hour after the interims at 6p on 13th May....
The potential here is good and I don’t think people have given enough weight to the recent announcement that OfQual now offer the first “Teaching Online” qualification provided by WEY. That is official Government recognition of WEY’s qualities and potentially a new source of income - teaching the teachers. Online is not going away!
“InterHigh has helped to develop a new accredited qualification for teaching online.
The UK Government exam board regulator, Ofqual, has approved the new qualification accredited by the Awards for Training and Higher Education (ATHE) awarding body.
Available on the Ofqual register, the new qualification is designed to meet the increasing demand for alternative approaches to learning.”
There is certainly one less major stale bull as several million were sold at 5p over the previous two weeks. I understand that it was a single institution so we might see an RNS at some point. It’s why I don’t want to entrust my money with small cap funds because they so often have to sell big at the wrong times due to their own liquidity issues.
Give it time, as investors slowly twig what potential is here and that the past problems, including sad death of CEO D Massie, are sorted out. It’s all about the online schools growing in UK now. Can they get it right? If so, it looks good.
Anyone left in this share? Given the recent move up from stupidly low levels, I am surprised no holders are posting their thoughts.
House Broker updated last week following the industry news that the US FDA has granted an IDE ("investigative device exemption") to a US based company for early trials on a polymer heart valve. This gives validation to AOR's polymer valve and triggers a slow realization to the heart valve majors that their industry is changing from the old animal tissue world that they have gorged on for the last few decades.
Could be a matter of time before the companies with these new developments get snapped up by competing majors as the R&D progresses.
Broker summary was:
"We view positively the news earlier this week that the FDA has granted Foldax Inc. investigative device exemption (IDE) approval for an Early Feasibility Study of its Tria surgical aortic heart valve to treat aortic valve disease. This is because it sets the path to commerciality for AorTech with its polymeric heart valve, which uses its patented Elast-Eon polymer. With milestones set to be achieved in both the heart valve and textiles projects in 2019 and 2020, we expect to see a significant increase in news flow. We retain our 400p TP and Buy rating."
Hope you are still holding Allie123..! 43.4p to mid-price 60p in a month and a half is not too shabby. The big test is not to follow the sellers who bank short term profits (and often losses) as they have no patience. This is a share for the long term with massive upside potential and I am holding on for that.
The house broker has 400p pencilled in (possibly for this year) for starters and so far the strategy of the company is on track with both the RUA and VFT partnerships working well.
Worth digging around here as there is a lot of data to absorb. It's a long term project. Nothing is guaranteed obviously.
Should be a good move Allie123.
A lot of disappointed momentum followers seem to be bailing out through impatience with the company’s timelines. The market makers are dropping the price of fishing nets each day but still catching the booty!
I’m not sure it implies a 12 month target. It’s a target based on potential progress. What they have said is if good progress is made, their 400p target is likely to be conservative.
I am not hanging anything on a time target. That’s not the point of it. It’s all down to what the company does.
The broker has said it will update its outlook after the interims in December so I expect it will be advised by the company of the state of play of the projects at that time.
John389, two excerpts from broker note wrap-up:
“Our 400p target price is based on the assumption that over the next 12 months the Medical Textiles division and the Heart Valve division will both make significant progress towards the potential £50m valuation of each that we have highlighted above.”
“Obviously, both divisions are at a relatively early stage of development so there are risks as to, firstly, whether commercialisation will be achieved and, secondly, that this will occur in the timeframe we have anticipated.”
On the contrary, john389, all normal shareholders got a 3 for 10 open offer and the opportunity to apply for many more at 30p. In the end, 38% of all additional shares were made available.
I expect Clive Titcomb’s additional shares were ALL from the recent issue. I do not know if he was included in the placing element of the fund raise though.
Easy conclusion to come to on the bare stats but in reality the comparison is between
* 6% of the pre-finance raise issued shares of around 5.6m
* 4% of the post-finance raise issued shares of around 14.7m
The answer is that Clive Titcomb’s interest has increased by around 260k shares to 590k, in round sum terms.
If you have a free account at ADVFN, there’s a detailed thread running there with a long top post with useful links.
Also go to AOR website and download the Open Offer document from May 2018. Tells you all you need to know.
Broker has 400p conservative target based on current strategy aims. Also board are incentivised with 300p options.