Losses are multiplying at biotech group Tissue Regenix (TRX). But with companies of this nature, a lack of profits is often a sign of progress rather than strife. Last year the group spent any money it made promoting its DermaPure product - aimed at treating chronic wounds - over in the US. It also put cash towards a number of new clinical trials, the most advanced of which has already started to recruit up to 60 patients to test a new meniscus-repair product. All in all, this led to operating losses of £8.4m last year, compared with losses of £6.6m in 2014.
After launching DermaPure in the US last June, the company has been busy setting up a dedicated sales and marketing team to target the country's medical and hospital groups. However, it could take six to 18 months before the product receives clearance to enter any clinical supply chains, vital for sales to accelerate.
In the meantime, Tissue Regenix successfully raised another £19m from investors in February. So with roughly £30m in the bank, chief executive Antony Odell says that should cover three years of work based on a cash-burn rate of £8m a year.
| TISSUE REGENIX (TRX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 20p | MARKET VALUE: | £154m | |
| TOUCH: | 20-21p | 12-MONTH HIGH: | 29p | LOW: 15p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 1.5p | NET CASH: | £10m | |
| Year to 31 Jan | Turnover £000 | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 173 | -5.7 | -1.48 | nil |
| 2012 | 109 | -2.9 | -0.57 | nil |
| 2013 | 49 | -4.0 | -0.55 | nil |
| 2014 | 6 | -6.3 | -0.88 | nil |
| 2015 | 100 | -8.2 | -1.19 | nil |
| % change | +1,567 | - | - | - |
Ex-div: na Payment: na | ||||
