Products spanning wound care, orthopaedics and cardiac application
Focused on increasing capacity
Expects its operational and financial performance to be second-half weighted
Tell us about the company
Regenerative medical devices maker Tissue Regenix PLC (LON:TRX) has products spanning wound care, orthopaedics and cardiac applications which are based on two proven technologies.
The first, dCELL, removes cellular and DNA material from biological tissues, leaving intact a scaffold upon which the patient's cells can regenerate and re-populate.
The AIM-listed company, which was spun out from the University of Leeds in 2006, uses dCELL Technology in its DermaPure product for healing of chronic wounds.
The other technology, BioRinse, does a similar job, killing micro-organisms, bacteria and spores as well as removing debris, blood, bone marrow and lipids.
It is key to the process used to create regenerative scaffolds used by surgeons developed by CellRight – the Texas-based biotech Tissue Regenix bought in August 2017.
CellRight provides osteobiologics for use in orthopaedic, spine and foot, and ankle procedures to enhance healing of defects caused by trauma or disease.
How’s it doing?
In September it said it was focused on initiatives to increase capacity and alleviate supply “constraints” as it continued to see strong demand for its products.
During the first half, the regenerative medicines specialist streamlined its logistics network and enhanced its operational procedures, said chairman John Samuel, commenting on the company’s first-half results.
“These initiatives have enabled us to increase production capabilities within the San Antonio facility, the benefits of which will come to fruition in the second half of the year,” he added.
Tissue Regenix’s financial performance is likely to be second-half weighted as the aforementioned initiatives increase overall capacity, the company re-confirmed.
Still, it made a solid start as its sales rose £500,000 to £6.1mln during the six months ended June 30, boosted by revenues from its DermaPure skin repair product, which grew by 33% to £2mln.
Expansion plans are being backed by a £16.2mln (US$20mln) credit facility from MidCap Financial. At the end of the period the firm’s cash balance was £10.1mln following a £6.1mln drawdown from MidCap. In common with companies at this formative stage of commercial development, Tissue Regenix was loss-making in the first half – to the tune of £3.6mln at the EBITDA level. That was broadly in line with the deficit this time last year.
Commercially, the group accelerated “US market penetration” in the early part of the year, while expanding the group purchasing coverage for DermaPure.
Operationally, it has begun a second shift for its BioRinse products, while improvements to the supply chain continued to deliver “efficiencies”.
On October 3, the firm unveiled a product extension based on DermaPure, the company’s technology for skin repair, or reinforcement. DermaPure Non-Oriented has two identical sides, meaning the orientation of the graft is not a factor during implantation, making it easier to apply. It will be used in uro-gynecological (female pelvic medicine) and will be sold by partner and specialist distributor, ARMS Medical.
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What the boss says
Chief executive Gareth Jones said of the company's strategy going forward: "We've gone back to the beginning and looked at our supply chain. We recruited a specialist in donor services and really looked at how we get donors in. It's not just a question of quantity, but it's a question of quality and availability as well."
"But it really is about commercial execution for us now - we have significant demand, and it really is about us executing that and delivering products to our customers," he added.
A lot of that growth is coming from the US, Jones added: "We're getting a lot of traction, momentum, and demand for our products in America".