There are two explanations for rising costs at biotech Tissue Regenix (TRX). The first is the US rollout of its woundcare product, DermaPure, and the second is the escalating clinical trial programme. There's no detailed split, but chief executive Antony Odell says "close to two-thirds" of the £4.4m in administrative expenses went towards research and development in the first half. From this point on, chairman John Samuel says the company accounts will better represent these different parts of the business.
While DermaPure drives the commercial arm of the company - sales are expected to accelerate in the second half of the current financial year - TRX is developing other products from its patented 'dCell' technology platform. This removes DNA from animal and human tissue before reinserting it into patients, so that diseased or wounded parts of the body can be naturally regenerated. Initial results from a clinical trial testing a potential knee injury product are starting to trickle through. All being well, a European marketing approval could be granted as soon as the year to January 2017.
Mr Odell says the group burns through £10m a year moving products through clinical trials. With £25m in the bank and sales of DermaPure ticking up, he’s confident the company can reach break-even point within the next three years.
| TISSUE REGENIX (TRX) | ||||
|---|---|---|---|---|
| ORD PRICE: | 16.5p | MARKET VALUE: | £125m | |
| TOUCH: | 16-17p | 12-MONTH HIGH: | 25p | LOW: 14.5p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 3.5p | NET CASH: | £25m | |
| Half-year to 31 July | Turnover (£'000) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 8.0 | -3.7 | -0.54 | nil |
| 2015 | 252 | -4.0 | -0.50 | nil |
| % change | +3,050 | +8 | -7 | - |
Ex-div: na Payment: na | ||||
