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The Markets
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Pharma & Biotech

Tissue Regenix looks to US sports medicine market as sales of skin graft pick up momentum

Tissue also now has contracts with the two largest US hospital purchase organisations (GPOs)

Growing demand for its Dermapure skin graft helped Tissue Regenix PLC’s (LON:TRX) revenues jump by nearly 80% in the year just ended, with the Leeds-based medtech now eyeing the US sports medicine market.

Most of the sales originated in the US where Tissue’s wound care business now covers 93% of beneficiaries of US healthcare system Medicare.

Tissue also now has contracts with the two largest US hospital purchase organisations (GPOs), Premier and Vizient respectively.

WATCH: Tissue Regenix 'making a lot of good work towards commercialisation'

That has given the company 75% coverage for hospital based wounds in the US though there was no benefit from this in these numbers.

Dermapure sales rose by 64% to £1.3mln in the leven months to December, out of a total for the year of £1.4mln, while Tissue also saw a first contribution from German joint venture GBM-V.

Clinical data to the European regulatory body for CE mark approval for its pig-derived cruciate ligament replacement OrthoPure XT, has also been submitted.

Tissue said approval is taking longer than anticipated though it is still expected in 2017, and distribution agreements are in place for a roll-out once it gets the go-ahead.

Antony Odell, Tissue Regenix's CEO, said "we continue to pursue the necessary regulatory approval to roll out DermaPure and CardioPure in the EU and, upon finding a suitable tissue bank partner for OrthoPure HT in the US, we expect to enter the US sports medicine market in the near future."

Sales of both DermaPure and Tissue’s heart valve replacement, CardioPure, are also scheduled to start in Europe during 2018, he added.

The CEO said: "We believe that the progress we have made across each of our business units and the exciting organic growth opportunities afforded by our broad development pipeline of innovative products and the recently signed GPO contracts means that we are well placed for future growth."

Tissue has already confirmed it is talks to buy a Texas-based rival acellular scaffold specialist, CellRight Technologies, though negotiations are still ongoing and no details have been released.

Losses the eleven months to December were £10.9mln, as spending continued on products and marketing and distribution infrastructure. Cash at the year-end was £8.2mln.

In late morning trading, Tissue Regenix shares were 0.5p lower at 14.5p.

-- Adds video link, share price --

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