Last checked at 4 Feb 2019 07:00
Tissue Regenix Group plc
Trading Update
· Group revenue growth of 47% pro forma and constant currency
· Year end cash position ahead of expectation at £7.8m
· Significant commercial milestones achieved
Leeds, 4 February 2019 - Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or "The Group") the regenerative medical devices company, provides an unaudited trading update for the year ended 31 December 2018.
Financial performance
The Group expects to deliver revenue of £11.6m (2017: £5.2m) in line with the Board's expectations.
Division | Actual, 2018 £'m | Proforma, 2017 £'m | Percentage increase |
Biosurgery (DermaPure) | 3.4 | 1.9 | 79 |
Orthopaedics and Dental (CellRight) | 6.4 | *4.9 | 31 |
GBM-v | 1.8 | 1.1 | 64 |
Total | 11.6 | 7.9 | 47 |
*Note: Orthopaedics and dental proforma includes a full year revenue from CellRight Technologies although the entity was acquired on 9th August 2017
On a proforma, constant currency basis (comparing 2018 to full year 2017 for Cellright - acquired on 9th August 2017) this represents an increase of 47%. Growth was driven by strong customer demand across all 3 operating divisions. Cash of £7.8m is better than anticipated and is a result of efficiency programmes and improved working capital management. The Group revised its commercial strategy in Q1 2018 with an increased focus on strategic partnerships to drive commercialisation of products, increase market penetration and maximise research and manufacturing capabilities.
DermaPure revenue grew 79% on a constant currency basis to £3.4m (2017: £1.9m), driven by a strategy to address tissue repair and replacement within surgical indications, and the contribution from the exclusive distribution agreement with ARMS Medical for its use in uro-gynaecology procedures. DermaPure manufacturing was successfully transferred into the CellRight facility ahead of schedule providing end-to-end control of the manufacturing process and contributing to growth. As demand for our products increases, planning is underway to increase the manufacturing output of the San Antonio facility with a second shift commencing from Q1 2019.
Orthopaedics and Dental revenue grew by 31% proforma on a constant currency basis to £6.4m (2017 full year: £4.9m). Following the US Arthrex distribution agreement announced in March 2018, an extension of this partnership was announced in November 2018 to cover Europe. The Group expects to benefit from these agreements during 2019.
Joint Venture GBM-v delivered sales of £1.8m (2017: £1.1m), an increase of 64% on a constant currency basis, as demand increased for corneal products. This contribution largely offsets the operational costs of the facility as we continue with the development and commercialisation plans for the CardioPure products.
John Samuel, Chairman commented: "The preliminary results for the year ended 31 December 2018 demonstrate growing commercial momentum across all of the Group's operating divisions and the successful integration of the platform technologies, manufacturing capabilities and distribution opportunities following the acquisition of CellRight Technologies in 2017. The Group is now well-placed to deliver further organic growth and expand our commercial footprint, both with new partnerships and into new territories. The Board is confident that during 2019 we will continue to deliver top line revenue growth, moving closer to our goal of sustainable profitability."
Management Update
Jesus Hernandez who joined the Group through the acquisition of CellRight Technologies has notified the Board of his intention to retire from his role as CEO of CellRight Technologies in Q1 2019. He remains committed to the future success of the Group and will continue to attend key events and meetings. Daniel Lee, who joined the Group in January 2019, will succeed Jesus in the capacity of US President of Operations, with a transition already underway. Daniel brings significant experience having worked in the orthobiologics market for over 20 years, most recently as President and CEO of Scaffold Biologics.
For more Information:
Tissue Regenix Group plc Caitlin Pearson Head of Communications | Tel: 0330 430 3073 / 07920272441 |
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Jefferies International Ltd Simon Hardy / Christopher Binks | Tel: 020 7029 8000
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FTI Consulting Brett Pollard / Victoria Foster Mitchell / Mary Whittow | Tel: 0203 727 1000 |
About Tissue Regenix
Tissue Regenix is a leading medical devices company in the field of regenerative medicine. Tissue Regenix was formed in 2006 when it was spun-out from the University of Leeds, UK. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or worn out body parts. Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.
In November 2012 Tissue Regenix Group plc set up a subsidiary company in the United States - 'Tissue Regenix Wound Care Inc.', January 2016 saw the establishment of joint venture GBM-V, a multi- tissue bank based in Rostock, Germany.
In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and wound care scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopedic, foot & ankle, dental, and sports medicine surgical procedures.