Regenerative medical devices maker Tissue Regenix PLC (LON:TRX) remains on track to hit its target of breaking even by 2020 after revenues more than doubled last year.
The company, which was spun out from the University of Leeds in 2006, saw revenue jump to £11.6mln in the 12 months ended 31 December 2018, up from £5.2mln a year earlier.
The performance leaves Tissue with £7.8mln of cash in the bank – more than it had expected – and bosses expect to see more top-line growth in 2019 which should take Tissue a step closer to profitability.
“The preliminary results for 2018 demonstrate growing commercial momentum across all of the group's operating divisions and the successful integration of the platform technologies, manufacturing capabilities and distribution opportunities following the acquisition of CellRight Technologies in 2017,” said chairman John Samuel.
“The group is now well-placed to deliver further organic growth and expand our commercial footprint, both with new partnerships and into new territories.
“The board is confident that during 2019 we will continue to deliver top line revenue growth, moving closer to our goal of sustainable profitability.”
Full contribution from CellRight
As Samuel alluded to, much of last year’s revenue surge was down to CellRight – the Texas-based biotech it bought in August 2017 – chipping in with its first full year of revenue. On a proforma basis, revenue growth was still 47%.
Tissue said the strong top-line performance was also aided by rising demand for its products across all three of its divisions.
An exclusive distribution agreement with ARMS Medical Revenue helped revenue in its Biosurgery business to zip 79% higher to £3.4mln (2017: £1.9mln).
Orthopaedics & Dental sales climbed by a third on a proforma basis to £6.4mln (2017: £4.9mln) reflecting a distribution deal with Arthrex in the US last March, which was later extended to include Europe.
Its Germany-based joint venture, GMB-v, delivered sales of £1.8mln – up 65% from a year earlier (2017: £1.1mln).
To help manage the increasing popularity of its products, Tissue is adding a second shift to the rota at its manufacturing facility in San Antonio.
In the same statement, TRX confirmed Jesus Hernandez, the chief executive of its CellRight business, is to retire from his position later this quarter. Daniel Lee, who joined the group last month, will take over the reins.