Tissue Regenix Group

New strategy delivering results

Update | 4 February 2019

Share this note

Tissue Regenix Group grew underlying revenues by 47% to £11.6m, ahead of our forecasts. This was achieved through the efficient integration of CellRight Technologies and the benefits of the new commercialisation strategy. Tissue Regenix now has a more focused direct marketing approach and is leveraging the return on its research and manufacturing capabilities by entering into strategic partnerships, such as those signed with ARMS Medical and Arthrex, Inc. These new relationships should sustain the strong growth of Tissue Regenix. Our valuation is unchanged for now at 20.9p/share.

Year-end: December 312016120172018E2019E
Sales (£m)
Adj. PBT (£m)(10.9)(9.7)(9.3)(6.7)
Net Income (£m)(9.9)(9.4)(8.6)(6.2)
Adj. EPS (p)(1.29)(1.00)(0.77)(0.56)
Cash (£m)
EBITDA (£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.
  • Strong revenue growth across all divisions Tissue Regenix has delivered sales of £11.6m in FY18, an increase of 47% in underlying revenues (after taking into account the purchase of CellRight in August 2017). This was achieved by the BioSurgery division, which sells DermaPure, growing sales by 79% to £3.4m, the Orthopaedic and Dental division increasing underlying sales by 31% to £6.4m, and GBM-v revenues by 64% to £1.8m. The growth is particularly notable, as it was achieved while Tissue Regenix was integrating CellRight.
  • Accelerating demand for DermaPure The company started 2018 by refining its marketing strategy for DermaPure, and the acceleration of growth from 53% in FY17 to 79% in FY18 shows the benefit. The direct marketing reps now adopt a ‘narrow and deep’ approach, driving advocacy and penetration by KOLs in targeted institutions. This is complemented by a strategic collaboration with ARMS Medical, a specialist distributor in the urogynaecology segment. Demand for DermaPure has meant that Tissue Regenix is planning to increase its manufacturing output by introducing a second shift at the San Antonio facility in Q119.
  • Major strategic partnership to underpin growth in orthopaedics Tissue Regenix signed an initial agreement with Arthrex for the distribution of select BioRinse products under their own brand ‘Allosync’ in the US, and expanded the relationship in November to include pan-European distribution of the BioRinse portfolio. These agreements with Arthrex, a global leader in the field of sports medicine, should lay the foundations for the sustained growth of Tissue Regenix’s orthopaedic division.
  • Valuation maintained at 20.9p/share We shall review our valuation and forecasts when Tissue Regenix reports its FY18 results in March, but for now maintain our valuation at £245m (20.9p/share) and our estimates. However, we note that sales were ahead of our estimate (£11.6m vs £10.8m) and tight control of costs, resulted in a stronger cash position at year-end than we forecast (£7.8m vs £7.0m).


20 February 2019

Market Cap£67.4m
Enterprise Value£59.6m
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.



Trinity Delta Research Limited (“TDRL”; firm reference number: 725161), which trades as Trinity Delta, is an appointed representative of Equity Development Limited (“ED”). The contents of this report, which has been prepared by and is the sole responsibility of TDRL, have been reviewed, but not independently verified, by ED which is authorised and regulated by the FCA, and whose reference number is 185325.

ED is acting for TDRL and not for any other person and will not be responsible for providing the protections provided to clients of TDRL nor for advising any other person in connection with the contents of this report and, except to the extent required by applicable law, including the rules of the FCA, owes no duty of care to any other such person. No reliance may be placed on ED for advice or recommendations with respect to the contents of this report and, to the extent it may do so under applicable law, ED makes no representation or warranty to the persons reading this report with regards to the information contained in it.

In the preparation of this report TDRL has used publically available sources and taken reasonable efforts to ensure that the facts stated herein are clear, fair and not misleading, but make no guarantee or warranty as to the accuracy or completeness of the information or opinions contained herein, nor to provide updates should fresh information become available or opinions change.

Any person who is not a relevant person under section of Section 21(2) of the Financial Services & Markets Act 2000 of the United Kingdom should not act or rely on this document or any of its contents. Research on its client companies produced by TDRL is normally commissioned and paid for by those companies themselves (‘issuer financed research’) and as such is not deemed to be independent, as defined by the FCA, but is ‘objective’ in that the authors are stating their own opinions. The report should be considered a marketing communication for purposes of the FCA rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. TDRL does not hold any positions in any of the companies mentioned in the report, although directors, employees or consultants of TDRL may hold positions in the companies mentioned. TDRL does impose restrictions on personal dealings. TDRL might also provide services to companies mentioned or solicit business from them.

This report is being provided to relevant persons to provide background information about the subject matter of the note. This document does not constitute, nor form part of, and should not be construed as, any offer for sale or purchase of (or solicitation of, or invitation to make any offer to buy or sell) any Securities (which may rise and fall in value). Nor shall it, or any part of it, form the basis of, or be relied on in connection with, any contract or commitment whatsoever. The information that we provide is not intended to be, and should not in any manner whatsoever be, construed as personalised advice. Self-certification by investors can be completed free of charge at www.fisma.org. TDRL, its affiliates, officers, directors and employees, and ED will not be liable for any loss or damage arising from any use of this document, to the maximum extent that the law permits.

Copyright 2019 Trinity Delta Research Limited. All rights reserved.