CellRight hits the right note

Tissue Regenix (TRX) has a broad portfolio of regenerative medicine products for the biosurgery, orthopaedics, dental and cardiac markets. The company has two proprietary decellularised technology platforms for the repair of tissues and bone. 2017 was a dynamic year for the group, growth being boosted by the acquisition of CellRight Technologies. This was borne out by full-year results. Although sales were in line with forecasts, control of costs reduced the EBIT loss and generated a stronger balance sheet. Management is continuing to integrate and streamline the business, and is seeking distribution partnerships to maximise the opportunities.

• Strategy:  To build an international regenerative medicine business with a portfolio of products using proprietary dCELL and BioRinse technology platforms, underpinned by compelling clinical outcomes. TRX is looking to expand its global distribution network, via strategic partnerships, to drive sales momentum.
• 2017 results:  This was the first set of full-year numbers based on a December year-end. On a pro forma basis, group sales grew 39%, with DermaPure growing 38% and CellRight 21%. Careful cost control generated an underlying EBIT loss of -£9.7m (-£13.4m), £3.7m better than forecast, giving net cash of £16.4m.
• Integration process:  TRX moved quickly to integrate its existing San Antonio operation within established facilities acquired with CellRight. While still some way to go, further progress has been made to make CelRight’s products available in the EU, and to have TRX’s products manufactured in CellRight’s facilities.
• Partnerships:  TRX is looking at more ways to maximise the opportunities for the enlarged group by broadening the product offering and through geographical expansion. To this end, management has signed two US distribution deals: with ARMS Medical for urology and gynaecology and with Arthrex in orthopaedics.
• Investment summary:  TRX is building commercial momentum through three value drivers: sales of BioSurgery products in the US; expansion of combined CellRight and TRX technologies in Dental, Orthopaedics and Spine; and preparation for OrthoPure XT launch in the EU in 2018. Early signs of the benefits derived from CellRight are apparent, which should hasten the time to reach sustainable profitability.