Medical devices company Tissue Regenix (TRX) - the owner of patented 'dCELL' technology - has retained the confidence of its investors since the shares jumped over 150 per cent during the nine months to May. That reflects the company's successful launch of its Dermapure product, which is aimed at treating chronic wounds, on time in the US. This leaves the company well on the way towards targeting the skin-substitutes market, estimated to be worth $1.4bn (£867m).
While US sales of Dermapure begin building, the company is developing more treatments from its dCELL platform. The patented technology helps remove DNA from animal and human tissue before it is re-inserted into patients to naturally regenerate diseased or wounded parts of the body.
Tissue Regenix is due to start a UK clinical trial of a meniscal device (aimed at aiding knee injuries), marking the first step in achieving EU clearance and full commercialisation of the product. Analysts at Jefferies expect the product to launch in the US and Europe by 2017, with sales of $5.6m in the first year and $19.4m in the second year. The broker estimates that 1.5m people a year in Europe and the US are affected by knee injuries and, to date, no satisfactory treatment method has been established for meniscal replacement.
| TISSUE REGENIX (TRX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 23p | MARKET VALUE: | £150m | |
| TOUCH: | 22-24p | 12-MONTH HIGH: | 32p | LOW: 12p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 2.4p | NET CASH: | £14.6m | |
| Half-year to 30 Jun | Turnover (£000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 3 | -2.3 | -0.34 | nil |
| 2014 | 8 | -3.7 | -0.54 | nil |
| % change | +167 | - | - | - |
Ex-div: - Payment: - | ||||
