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Rex Bionics PLC: THE INVESTMENT CASE
INVESTMENT OVERVIEW

Rex Bionics focused on commercialisation

Rex is making progress on its commercial priorities: clinical data, distributor recruitment, reference centres, US development and new medical applications.
Rex Bionics focused on commercialisation
INVESTMENT OVERVIEW: RXB The Big Picture
REX is completely self-supporting and rapidly adjustable for each user

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Rex Bionics (LON:RXB), maker of the revolutionary REX robot technology, said second half sales should exceed those in the first half of its fiscal year.

Interim results from the early-stage medtech company included the company's first sales since it floated in May of last year, and the company is confident sales momentum is building.

Revenue in the six months to the end of September totalled £184,000, but more importantly the company is now painting a clearer picture of how its technology fits into the issue of the rehabilitation of people with mobility impairment.

The recently published analysis of interim data from the RAPPER II clinical trial provides clear evidence that the concept of Robot-Assisted Physiotherapy is both viable for patients and effective for clinicians in a rehabilitative session, and that patients with more severe spinal cord injuries can be safely and effectively treated, Rex said in its results statement.

The company has been heartened by a recent award by a UK court in a personal injury case that included funding for the claimant to purchase a REX exoskeleton.

With further orders already in-house for shipment during the second half, we are confident that sales momentum is beginning to build, said chief executive, Crispin Simon.

“The appointment of Ri LLC as our US distribution partner, opening up the substantial and technology-friendly US market, and the positive interim data from the RAPPER II trial, were crucial milestones,” Simon claimed.

"With more of the basics now in place, we are ready to focus again on our mission to commercialise an all-day use REX P for a target market segment of wheelchair users with a spinal cord injury, who number around 500,000 people in the US and EU alone," he added.

The half-year loss narrowed slightly from the year before, to £2.29mln versus £2.37mln in 2014.

Net cash at the end of the reporting period stood at £3.70mln, down from £4.37mln at the start of the period.

Rex's nominated adviser (nomad), Stifel, said the sales numbers were in line with expectations while the loss was slightly smaller than it had been anticipating.

“The company hopes that data released from the RAPPER II trial will be critical in influencing the buying decisions of rehabilitation clinics and together with the appointment of distributors in key markets, the company has made good progress in the commercialization of the REX technology, in our view,” the nomad said.

The interim data from the first 20 volunteers in the RAPPER II study was released last month and show that 95% of users were able to complete the walk protocol , which was the primary endpoint of the trial.

No serious adverse events or treatment-related adverse events were reported, Stifel noted, and 19 of the 20 volunteers said they would like to use the REX on a weekly basis.

“The company reports that it hopes to have eight active reference centres by the end of 2015 and an additional two by the end of Q1 2016, which should accelerate the production of further data from this study, including feedback on pain, sleep, spasm and heath outcomes are used to evaluate the impact of the treatment,” the broker added.

The house broker reiterated its 'buy' recommendation and target price of 150p, based on a projected enterprise value (market capitalisation adjusted for cash & debt)/sales multiple of 3.5.


 

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