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Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or the "Group") the regenerative medical devices company announces its unaudited interim results for the six months ended 30 June 2019.

Highlights

 

Financial

• Group sales increased to £6.1m (H1 2018: £5.6m)
  • DermaPure increased sales by 33% to £2.0m (H1 2018: £1.5m)
  • GBM-v revenue growth of 19% to £1.1m (H1 2018: £0.9m)
  • Orthopaedics & Dental sales were affected by a realigning of manufacturing to address capacity in H2 but still delivered sales of £3.0m (H1 2018: £3.2m)
• Group EBITDA* loss of £3.6m (H1 2018: £3.5m)
• Cash balance of £10.1m (H1 2018: £12.2m), post-$7.5m drawdown under a credit facility secured for up to $20m to invest in meeting growing demand for products

*EBITDA is a non-IFRS measure that the Group uses to assess its performance. It is defined as earnings before interest, taxation, depreciation and amortisation

Commercial 

• Accelerating US market penetration
  • Expanded Group Purchasing Organisation coverage for DermaPure®
  • Commissioned SurgiPure® XD post marketing clinical data collection trial
• Continue to exploit global market potential
  • Entered Latin America for the first time through a distribution agreement for BioRinse® products in Chile
• Working towards strengthened portfolio
  • Submitted positive two-year clinical data for OrthoPure™ XT to the notified body

Operational

• Commenced second shift for BioRinse® products
• Appointed US President of Operations
• Supply chain improvement to deliver efficiencies

Post period

• John Samuel resumed position of Executive Chairman, Gareth Jones appointed Interim Chief Executive Officer and Mike Barker appointed Chief Financial Officer following the resignation of Steve Couldwell as Chief Executive Officer due to a recurrence of his illness.

Executive Chairman, John Samuel, commented: "We have strong global demand for our products, which allowed us to deliver continued revenue growth, demonstrated by DermaPure, which increased sales by 33% in the first half. We remain focused on short and medium term initiatives to increase capacity and alleviate supply constraints.

"During the first half of the year, we streamlined our supply chain activities and enhanced our operational procedures. 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. Longer term, having secured a credit facility of up to $20m with MidCap Financial LLP, this will support our ambitious growth plans, by adding further processing capacity to the San Antonio facility and expanding our commercial footprint.

"We anticipated that the year would be significantly weighted towards the second half, as announced on the 4 June 2019, at the time of the Company's results for the year ended 31 December 2018.

"We continue to expect that this will be the case, and, against a background where we see the ever growing demand for our products as the business looks to increase its manufacturing capabilities, the ability to bring this on stream during the second half of the year will be key in determining the year end outcome."

For more Information:

Tissue Regenix Group plc	Tel: 0330 430 3073 / 07920272 441
Caitlin Pearson, Head of Communications
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)	Tel:  0207 710 7600
Jonathan Senior / Alex Price / Ben Maddison
FTI Consulting	Tel: 0203 727 1000
Brett Pollard / Victoria Foster Mitchell / Mary Whittow

About Tissue Regenix

Tissue Regenix is a leading medical devices company in the field of regenerative medicine. Tissue Regenix was formed in 2006 when it was spun-out from the University of Leeds, UK. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or worn out body parts. Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.

In November 2012 Tissue Regenix Group plc set up a subsidiary company in the United States - 'Tissue Regenix Wound Care Inc.', January 2016 saw the establishment of joint venture GBM-V, a multi- tissue bank based in Rostock, Germany.

In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and wound care scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopedic, foot & ankle, dental, and sports medicine surgical procedures.

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