Tissue Regenix Group

Arthrex collaboration extended into Europe

Update | 13 November 2018

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Tissue Regenix has signed an additional agreement with Arthrex for pan-European distribution of its BioRinse portfolio, which follows a US agreement signed in March 2018. This provides Tissue Regenix with a significant partner in two key geographies. Arthrex, a global leader in the field of sports medicine, specialises in the marketing of innovative products. Efforts will initially focus on the UK, before gradually launching in other European countries as approvals are gained. The extension of the collaboration should generate material sales growth in the coming years; but, to be conservative, we are maintaining our valuation at £245m (20.9p a share).

Year-end: December 312016120172018E2019E
Sales (US$m)
Adj. PBT (US$m)(10.9)(9.7)(9.3)(6.7)
Net Income (US$m)(9.9)(9.4)(8.6)(6.2)
EPS (US$)(1.29)(1.00)(0.77)(0.56)
Cash (US$m)
Adj. EBITDA (US$m)(10.8)(10.1)(8.0)(5.2)
Source: Trinity Delta 111 months to 31 December 2016; 2 The cash position in 2019 includes a capital raise of £2m. Adjusted numbers exclude exceptionals.
  • Broadening the opportunities for BioRinse in Europe The European orthobiologics market is estimated to be worth £450m. The BioRinse portfolio of decellularised bone products are the only available products verified as osteoinductive, and have proven their potential in the US. Under the new agreement, Arthrex will initially distribute in the UK and over time roll out across Europe where it has a strong distribution network. This agreement is an expansion of the collaboration signed between the companies in March 2018 where Arthrex took a selection of the BioRinse products under their own brand ‘Allosync’ for distribution in the US.
  • Collaborating with a global leader in sports medicine The demand for minimally invasive surgical procedures continues to rise, and Arthrex is an acknowledged leader in this field. It is a privately owned US-based company with a global salesforce, and has sales of c $2bn from marketing over 1,000 products, many of which are orthobiologics. The company prides itself on bringing innovative products to the orthopaedic market, which reflects well on Tissue Regenix and its products.
  • A significant deal, but benefits will take time This agreement should generate significant revenues for Tissue Regenix in the years to come, and is a further justification of the acquisition of CellRight Technologies in 2017. However, it will take time for the revenues to build as the BioRinse products are currently only approved for sale in the UK; additionally, innovative medtech products always take time to gain market traction. In the UK, Pennine Healthcare is already marketing the BioRinse portfolio for spinal applications, which is complementary to the arthroscopy markets that Arthrex will be addressing.
  • Valuation unchanged at 20.9p/share Despite the potential value of the new Arthrex deal, we leave our DCF valuation of Tissue Regenix unchanged at £245m (20.9p a share) to be conservative; similarly, we make no changes to our estimates. Having said that, we now see greater potential upside to our valuation.


13 November 2018

Market Cap£85.0m
Enterprise Value£72.8m
Shares in issue1,171m
12 month range5.5-12.2p
Free float14.4%
Primary exchangeAIM London
Other exchangesN/A
Company CodeTRX
Corporate clientYes

Company description

Tissue Regenix Group is a regenerative medicine company with a portfolio of soft tissue and bone products and two proprietary platform technologies, dCELL, and BioRinse. Applications include wound care/general surgery, orthopaedics, sports medicine, and dental. Commercialisation of the leading products are underway.


Mick Cooper PhD
+44 (0) 20 3637 5042

Lala Gregorek
+44 (0) 20 3637 5043

Exhibit 1: Summary of financials
Source: Tissue Regenix, Trinity Delta Note: Adjusted numbers exclude exceptionals. * FY15 refers to the 12 months ending on 31 January 2016; **FY16 refers to the 11 months ending on 31 December 2016 The short-term debt in FY19 and FY20 are indicative of the company’s funding requirement.



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