Shares of Tissue Regenix Group PLC (AIM:TRX, OTC:TSSNF) rose nearly 7% after the regenerative medical device company announced an exclusive distribution agreement with Hong Kong-based Kingsung Medical Group for the distribution of its OrthoPure XT product in China.
The deal is for six years and requires a minimum unit volume to be purchased each year to maintain exclusivity. The two companies are also committed to advancing the clinical study of OrthoPure XT to support the regulatory approval process in China.
OrthoPure XT is a decellularised xenograft ligament, which is the only non-human biologic graft currently available and indicated for certain ligament reconstruction procedures.
CE-marked OrthoPure XT can be used for the revision of anterior cruciate ligament (ACL) reconstruction procedures and reconstruction of other knee ligaments, including multi-ligament and primary procedures when an autograft is not an option.
The market for ACL reconstruction in China is estimated to be between 200,000 and 250,000 procedures per year.
Analysts at healthcare research house Stifel said of the agreement with Kingsung: “Whilst Tissue Regenix is only guiding to modest sales of OrthoPure XT of US$3m to US$4m by 2025, securing a distribution partner for a third major market is encouraging and demonstrates the interest being shown by distributors in the potential of the product.”
In mid-afternoon trade, the shares were changing hands for 0.68p, up 0.044p. Stifel rates them a ‘buy’ up to 1.2p.