Strong growth in US sales has put some vim in wound care specialist Tissue Regenix Group PLC’s (LON:TRX) top line this year.
Results for the six months to the end of July revealed the regenerative medical devices company’s revenue shot up to £631,000 from £252,000 in the same period of 2015, thanks to sales of its DermaPure skin graft product in the USA.
As was the case in the previous year, revenue phasing across the year is expected to be weighted towards the second half of the financial year.
Tissue Regenix said that with more visibility now regarding the appointment of distributors and contract approvals, the 12-month revenue guidance range has been narrowed to US$2.5mln -$3.5mln compared to the 12-month prior period of US$1.2mln.
Gross margin for the period for the Wound Care division was 81%, up from 75% the year before.
Selling, general and administrative costs increased as expected to £6.04mln from £4.32mln. This is to be expected as revenue rises and like most growth companies at this stage of development the company made a loss before tax of £5.44mln, versus a half-year loss of £4.02mln in 2015.
“Our continued focus on adoption and advocacy was rewarded with further Medicare approvals and our first group purchasing order agreement, both significant steps for the continuing success of DermaPure, and highlights the growing commercial traction DermaPure has gained within the competitive US wound care market,” said Antony Odell, the chief executive officer of Tissue Regenix.
In response to physician feedback in the US the company has expanded its portfolio of products to allow for larger and thicker sizes, and it continues to pursue opportunities in different markets, such as dentistry and burns, and anticipates further progress in this regard in the coming year.
“Alongside this, we continue to progress with our European market entry and expect to be in a position to launch our first orthopaedic product, OrthoPure XT, into this market in H1 2017, with CE mark submission expected to be made a full six months ahead of schedule.
“The developing momentum behind our dCELL Technology product portfolio brings us confidence that we will achieve our year end corporate goals,” he added.