Funded through to profitability

TRX is focused on the development and commercialisation of two proprietary decellularisation technologies for repair of soft tissue (dCELL) and bone (BioRinse). It has a broad portfolio of approved regenerative medicine products for the biosurgery, orthopaedics and dental markets. Over the past two years, TRX has revised its commercial strategy, restructured to service demand, and commenced a capacity expansion programme in its US facilities. As some benefits were beginning to emerge, COVID-19 caused the postponement of elective surgeries on which much of TRX’s core business is derived. Despite the challenges, TRX is well positioned for growth.

• Strategy: TRX is building an international regenerative medicine business around its proprietary technology platforms, underpinned by compelling clinical outcomes. Work has begun to expand production capabilities, enabling the business to grow its distribution networks, via strategic partnerships, to drive sales momentum.
• Interims: 1H’20 results were broadly in line with our expectations, with reported sales of £6.1m (£6.1m) and a greatly reduced underlying EBIT loss of £2.4m (£4.2m loss). The net cash position, after taking into account the Placing completed in June, was £10.6m and in line with our forecast.
• Expansion: During 2019, TRX moved to two-shift manufacturing and restarted outsourcing some of its DermaPure production. Alongside this, in July 2020, an expansion programme to satisfy product demand through investment in its US facilities was started, with should see benefits from 1H’21.
• Commercial: In May 2020, TRX announced a white label manufacturing agreement with a top-10 global healthcare company. Following receipt of CE marking for OrthoPure XT® in June 2020, TRX has concluded a UK distribution agreement with a speciality supplier of orthopaedic and biologic products.
• Investment summary: TRX has a portfolio of innovative regenerative products with regulatory approval in both the US and EU. Realignment of the commercial strategy to maximise sales potential through strategic and distribution partnerships has been successful, resulting in increased demand for its products. TRX now has the necessary funding to scale up manufacturing capacity, leaving it well positioned to deliver on future milestones, which should result in a re-rating.