-- adds broker comment, share price --
Tissue Regenix (LON:TRX) is ahead of schedule with the roll-out of its skin repair product in the US, the med-tech company said.
The regenerative medicine group launched skin graft DermaPure in the US last year and is using both a direct sales force and distributor network to boost sales.
DermaPure is now available under Medicare, the US’s healthcare plan for the elderly, to some 37 mln people in in 31 US states.
Two distributor agreements were signed the first half that will be worth a minimum of US$0.8mln in sales.
Elsewhere, a replacement knee cartilage utilising Tissue Regenix’s cell washing technology has begun European trials, while recruitment for an anterior cruciate ligament (ACL) replacement trial is expected to start by the end of the year.
Antony Odell, chief executive, said: “The successful implementation of our hybrid commercialisation strategy throughout the USA has meant that we are exceeding our expectations for the roll out of DermaPure; and the ongoing clinical trial for the dCELL meniscus product within the EU will allow us to gain a CE mark and expand our portfolio of products throughout 2016.”
Revenues in the half year to July rose to £252,000 (£100,000), while losses were £4mln (from 3.7mln), reflecting the increased spending in the US.
Cash at the end of the period was £24.9mln.
House broker Jefferies has forecast Dermapure sales of around £10mln in the full year 2016/17.
Pressure on prices in the wound care and orthopaedic market is intensifying but it remains a significant opportunity for the company.
Medicare contractors are becoming increasingly conscious of cost/efficiency as the US healthcare market changes.
DermaPure treats the majority of target cases with one application, so is well-placed to take advantage.
OrthoPure, the cartilage and ACL products, will also be key in the coming two years, the broker believes.
Some 1.5mln people per year in the US and Europe suffer meniscal industries.
A ten-year cardiac study in Brazil is also producing encouraging data and EU commercial deployment appears close to realisation.
Jeffries has a price target of 36p and ‘buy’ rating.
Shares were a touch lower at 16.35p.