This announcement contains inside information
Tissue Regenix Group plc
Universal City grant award triggers commencement of facility expansion
Leeds, 17 October 2019 - Tissue Regenix Group (AIM:TRX) ("Tissue Regenix" or the "Company") the regenerative medical devices company provides the following trading update.
The Company announced at the time of its annual results on 4 June 2019, and its interim results on 10 September 2019, that it anticipated that sales in the current year would be significantly weighted towards the second half of 2019, as the Company's ability to bring onstream increased manufacturing capabilities during H2 would be key to determining the Company's year-end outcome.
The increase in throughput is now expected to become available during Q4 2019 and, as such, the Board anticipates that revenue for 2019 will be below current market consensus by approximately 15% to 20%, with a corresponding reduction in margin impacting EBITDA. Demand for the Company's products remains strong and the Board does not anticipate any longer term impact over and above the approximate three month delay to the manufacturing capacity increase.
Tissue Regenix has received confirmation of a $0.3m grant from Universal City to support the commencement of the initial phase of the build out programme on the Company's newly leased 21,000 sq.ft. facility in San Antonio, further details of which were announced on 15 August 2019. This grant will assist and permit the upgrades of utilities and infrastructure serving the new facility.
Technical staff necessary to enable the second shift in the original San Antonio facility to become operational have been recruited and are in the process of being trained. Monthly processing throughput has already more than doubled in the year to Q3 and these additional products are expected to become available towards the end of Q4.
The Company is working closely with its existing outsource provider, CTS, in order to increase the yield of its DermaPure® product after also announcing the launch of DermaPure® Non-Oriented, for use in surgical and uro-gynaecology applications, at the American Urogynecologic Society conference in Nashville in September. The Company is working closely with its strategic partner, ARMS Medical, on the roll out of this product.
John Samuel, Executive Chairman, Tissue Regenix plc commented, "We have excellent products for which demand is exceeding our current capacity. Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand."
For more Information:
Tissue Regenix Group plc
Caitlin Pearson Head of Communications
Tel: 0330 430 3073 / 07920272 441
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
Jonathan Senior / Alex Price / Ben Maddison
Tel: 0207 710 7600
Brett Pollard / Victoria Foster Mitchell / Mary Whittow
Tel: 0203 727 1000
The person responsible for the release of this announcement is John Samuel, Executive Chairman.
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.