How things were looking 8 years ago11 Feb 2021 22:36
While things are quiet on the board, I thought it was interesting to read this broker view from 8 years ago.
Interesting to see how things looked back then.
This was around the time of my first purchase here.
Tissue Regenix's takeover value may eventually top US$1bn suggests broker
2013-12-05 10:56:00
A long way to go, says Jefferies, but launch of skin replacement product next year will highlight the potential.
Medtech group Tissue Regenix (LON:TRX) could be worth more than US$1bn if all of its product areas take off, a punchy note from US broker Jefferies has suggested.
The launch soon of its first product, a wound care treatment, could see the shares double in value as the story de-risks and first sales are generated, the house suggested.
“Eventually, if the products deliver on their promising early results, we would expect interest from the global medtech companies, and if each product area works, we see the potential for Tissue to be a US$1bn company.”
Tissue Regenix’s technology can be used to replace human body parts and addresses markets that today are valued at more than US$10bn, it said.
Its proprietary method of washing human and animal tissue has shown very promising results in small data sets, and Jefferies suggests there is significant upside from a successful launch of its skin replacement for wounds.
"The trial results and initial sales over the next 12-24 months could see Tissue Regenix become a takeover target," it said. The large medical device companies are grappling with how to move beyond metal and plastic implants, and the company can deliver a neat affordable solution.
As well as wound care, Tissue Regenix is developing products for meniscus and ligament repair and heart valve replacements, among others.
In heart valves, for example, Tissue has eight years of clinical data from Brazil and it has proved so superior to alternatives one tissue bank is now only using its process
Companies with products addressing similar needs have fetched valuations of US$500-700mln. Tissue Regenix has several product areas and so will get several shots at goal, Jefferies adds.
Based on historical takeover valuations, all of these areas combined could be worth "north of US$1.5bn or about 10 times the current share price in a break-up and take-out scenario".
On a cash flow analysis, the broker has a target price of 29p per share and is a buyer.
Shares rose to 15.05p today.
Sign In
Follow the stocks
