Saw this posted on ADVFN29 Apr 2026 20:57
Nick241229 Apr '26 - 20:29 - 4435 of 4435
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I think RUA has been a valuation anomaly for a while, but even more so now they have stated in the trrading update that RUA Medical Devices revenues are set to double to over £10m and there is a more than reasonable prospect that the HoT will transition to a fully funded development deal for a much needed non-animal material heart valve multi-billion market.
I think the valuation disconnect is now so significant it’s hard not to sound overly bullish, but the reality is that the following figures are highly conservative.
Hybridan’s 5.4x revenues for an exit value for RUA Medical Products is conservative based on other comparative take-outs. But let’s just use it and apply it to £8m revenues, which is £2m less than RUA’s projection of a doubling of revenues going forward, which would be more than £10m. Using a conservative £8m and an ultra-conservative 5.4x gives an exit value of around £43m for this division alone.
As mentioned before, AorTech reached a peak value of over £100m even though it was a cash-guzzling, under-funded blue sky prospect. A fully funded development deal for a novel heart valve with one of the main players would surely require something like £50m to take out RUA Structural Heart given the prospect of tens of millions of annual revenues if it reached commercial status.
RUA Biomaterials holds the IP for Elast-Eon and the Company have flagged up growth from a new contract and the audit. Hybridan say royalties have barely scratched the surface as there are an array of other products where the IP can be applied.
It’s probably the hardest to value given we don’t know the extent of that growth. But if a major wanted to take over Structural Heart, which holds the IP for AurTex, I suspect they might also want the IP for Elast-Eon. Perhaps not, as each division has been structured to allow for a separate disposal, hence why the IP for AurTex has gone into Structural Heart, so let’s say £7m for this division plus the £3m cash.
So on the reasonably conservative logic above, a case can be made for RUA management only being persuaded to take offers for all the divisions for something approaching £100m.
To be overly conservative and looking at a less than fair pre-takeover value, divide that by two and we get to a value of around £50m, or very roughly 80p a share, compared to a current m/cap of about £12m and 20p. It might be a fully funded deal for a novel heart valve that moves it some way towards this sort of price range or it might just be a steady climb over time as the projected doubling of revenues start to show up.
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