10 Reasons for RUA (from Telegram)11 Oct 2021 11:39
10 Reasons I like RUA and have increased my investment recently. Please do your own research.
1. £32m market cap (as I write), small market cap
2. Strong cash position, ~£6.2m when last declared
3. Very large total addressable market (TAM), ~$5bn market for patches & grafts, ~$8bn market for heart valve
4. Steady long term uptrend however well down from highs of ~180p, as said above, the market cap is small
5. Good quality II’s onboard, Amati global investors bought 8.07% of the company at 120p last December
6. Equity Development Research Broker Target is currently 523p, this target has been steadily increasing based on progress made, I expect it to carry on increasing
7. RUA owns Elast-Eon, a bio stable polymer used in medical devices, it has been used in 6.3m long-term cardiovascular implants and has NEVER had a failure
8. RUA are now moving towards making their own products rather than just supplying others their world class material, the product pipeline is impressive
9. Vascular graft FDA 501k submission is imminent, the approval process is ‘months’ not ‘years’ as it’s a medical device not a drug, the company expects product launch this financial year. RUA have a steady pipeline of products coming down the track after the first graft.
“Dr Caroline Stretton, Group MD of RUA, said: "I am delighted that the work by the third-party testing house has confirmed our internal work on resolving the cellulose contamination issue and look forward to the final submission of our 510k and receiving feedback on our products from EACTS. We remain on target to launch the world's first non-biogenically sealed grafts by the end of this financial year."
10. RUA have a heart valve project working towards ‘design freeze’. The heart valve project alone could be sold for 10x the current market cap.
“Potential buyers of new heart valve technology tend to get really interested around the time of the human trial phase, Brown observes.
Take-out values have been US$300-500mln,he points out. What we’ve got is substantially more disruptive.”
In summary: Great IP, large TAM, small market cap, strong cash position & near term catalysts
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