RE: aor11 Dec 2017 16:18
Good read
sp 22.5p
shares o/s 5.6m
mkt cap £1.2m
AorTech has developed biostable, implantable polymers, including Elast-Eonâ„¢ and ECSilâ„¢ the world's leading long-term implantable co-polymers, now manufactured on their behalf by Biomerics LLC in Utah, USA. With several million implants and seven years of successful clinical use, AorTech polymers are being developed and used in cardiology and urological applications, including pacing leads, cardiac cannulae, stents and neuro stimulation devices. Devices manufactured from AorTech polymers have numerous US FDA PMA approvals, 510k's, CE Marks, Australian TGA and Japanese Ministry of Health approvals.
Elast-Eonâ„¢ and ECSilâ„¢'s biostability is comparable to silicone while exhibiting excellent mechanical, blood contacting and flex-fatigue properties. These polymers can be processed using conventional thermoplastic extrusion and moulding techniques. A range of materials in a variety of application-specific formulations for use in medical devices and components are available.
Financials
Revenue $614k
Profit $55k
Cash $114k
Upside ?
1. Change in licensing strategy
"Our manufacturing licensee, Biomerics concluded a licence for Elast-Eonâ„¢ earlier this year together with a long term supply agreement. There are currently a number of companies evaluating Elast-Eonâ„¢ which if succesful may lead to other licences. Biomerics adopts a different approach to licensing to that which AorTech has historically pursued. AorTech signed a number of licences with very small/development companies long before products were ready for market launch. As a result, other than annual maintenance fees, the revenues from those licences depended upon future product launches. By contrast, Biomerics is focussed on volume supply and near term success."
2.Additional licensing opportunities
Some historic licences signed by the Company have not generated value for AorTech and have only resulted in the Elast-Eonâ„¢ material not being exploited in the field of the licence. An example of this was the licence for breast implants signed in 2011. Since that time, AorTech's technology has not been incorporated into any new device nor generated any revenue for AorTech despite maintaining an IP portfolio in this arena. Your Board still believes there to be substantial benefits in utilising Elast-Eonâ„¢ technology in cosmetic and reconstructive surgery and as a result recently terminated this licence in order to pursue other opportunities in the field.
Outlook/Conclusion (from August 15th Final Results RNS)
"A new revenue-generating licence has been signed and enquiries have increased markedly. We have taken back control of our breast implant IP and are actively pursuing opportunities to exploit this alongside our other intellectual property, including heart valv
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