- Aroa lists on the ASX today after raising $45m at $0.75/share
with an indicative market capitalisation of A$225m under the code
- The Company has a range of five products that have been used in
more than four million procedures to date, focused on improving the
rate and quality of healing in complex wounds and soft tissue
- Existing and new product pipeline focused on US$2.5b² total
addressable market opportunity in the USA – established
distribution with sales in more than 600 hospitals
- Aroa’s leading products are covered by a patent portfolio that
includes 10 patents and 25 pending patent applications across six
- NZ$22m in product revenue FY20 (ending 31 March 2020) and
- Clinically proven with peer reviewed publications and
regulatory approval in 37 countries
- IPO was met with very high demand from new and existing
shareholders spanning institutional, professional and retail
- Existing institutional shareholders subscribed for
approximately half of the capital raised in the IPO
- The IPO was underwritten by Bell Potter and Wilsons as Joint
Soft tissue regeneration company
Aroa Biosurgery Limited (ASX:ARX, ‘Aroa’ or the ‘Company’)
commences trading on the Australian Securities Exchange (ASX) today
following the completion of an initial public offering (IPO) that
raised $45m from investors.
The offer was comprised of A$30m of primary capital through the
issue of 40 million new shares at $0.75, with the remaining A$15m
forming part of a limited sell down by early investors in the
company. The IPO values Aroa at A$225m upon listing.
The IPO received extraordinary support from institutional
investors across Australia, New Zealand and other overseas markets,
as well as a strong vote of confidence from existing shareholders
who subscribed for approximately half of the funds raised.
Aroa is focused on improving the rate and quality of healing in
complex wounds and soft tissue reconstruction. From more than 10
years of research and development Aroa has developed Endoform®, a
proprietary soft tissue regeneration technology platform.
Endoform® is derived from ovine (sheep) forestomach and includes
a basement membrane layer and propria-submucosa (supportive
connective tissue). It acts as a scaffold to grow new tissue lost
or damaged through disease or injury, allowing the patient’s own
cells to grow into the matrix to build new tissue and re-establish
blood supply. As the patient continues to heal this is replaced by
their own tissue.
The Company lists on the ASX having achieved product revenue of
NZ$22.0m in FY2020 (March year-end) and NZ$18.7m in gross profit.
The Company was also EBITDA positive during this period¹.
Aroa has five commercial products approved for sale in the US
based on the Endoform® technology, which have been used in more
than four million procedures targeting chronic wounds, hernia, soft
tissue and breast reconstruction. This is in addition to a new
product development pipeline, with all products engineered for the
challenges of a specific use case.
Aroa’s products are typically 20%-60% less expensive than
competing biological products, while offering superior regenerative
performance, and in many cases are only at a small price premium
over synthetic products.
Its success in market comes off the back of validation from peer
reviewed publications as well as past and ongoing clinical studies.
Aroa has regulatory clearance in more than 37 countries and a deep
The total addressable market for its current products exceeds
US$1.5 billion² in the US, with an additional pipeline of new
products to be commercialised with a total addressable market
estimated to be more than US$1.0 billion².
The Company plans to grow its sales within its principal market
of the United States as well as in other markets such as Canada,
Europe and select Asian countries where it has made early inroads.
To date it has achieved sales with more than 600 hospitals in the
US as well as being on contract with major group purchasing
organisations and surgical distributors.
Aroa employs 140 people across its headquarters in Auckland, its
USA operations in San Diego and its USA-based Appulse sales office,
a sales-focused joint venture.
Another key distribution channel for Aroa is via NASDAQ listed
partner TELA Bio Inc., a company dedicated to sales and
distribution of Aroa products across its 200 active hospital
accounts in the USA. During 2020 TELA Bio expects to expand to 60
employees to cover the top 500 hospitals for soft tissue
reconstruction in the USA.
Funds raised in the IPO will be used to invest in sales and
marketing, increase manufacturing capacity to meet anticipated
demand and facilitate product development, working capital and
Bell Potter Securities and Wilsons were Joint Lead Managers to
“We’re delighted to reach this key milestone for the business
and eagerly welcome our new shareholders to the journey. Since
founding Aroa in 2008 we’ve developed the Endoform® platform
technology to deliver clinically effective products and a strong
pipeline which places the business in an ideal position for
continued growth across the US and other global markets,” said Aroa
Founder and CEO Brian Ward.
“Our proprietary technology combines advanced regenerative
performance with scalable and efficient manufacturing, to target
significant addressable markets with a substantial competitive
“With our committed board, management and staff, we look forward
to continuing to grow the value of Aroa, deliver better healing
outcomes to patients and generate positive returns for our
¹ Positive EBITDA based on proforma financials ²
SmartTRAKBiomedGPS data 2020, DRG Millennium Research data, Hernia
Repair Devices, 2020, Aroa management estimates, DRG Millennium
Research, Breast Implants & Reconstructive devices, 2018.
Market data was prepared before the onset of COVID-19, the economic
effect of which is currently not possible to predict with any
certainty. Consequently, while the Company has no reason to believe
that the market data does not remain accurate based on the relevant
markets operating normally, the impact of COVID-19 on the market
data that is referenced is not possible to currently predict with
any certainty and investors are cautioned against placing undue
reliance on such data.
Authorised on behalf of the Aroa Biosurgery Board of
Directors by Brian Ward, CEO.
About Aroa Biosurgery:
Aroa Biosurgery is a soft-tissue regeneration company that
develops, manufactures, sells and distributes medical and surgical
products to improve healing in complex wounds and soft tissue
reconstruction. Committed to ‘unlocking regenerative healing for
everybody’, its products are developed from the Company’s
proprietary Endoform® technology platform, a novel extracellular
matrix biomaterial derived from ovine (sheep) forestomach.
Clinically proven with peer reviewed publications, Aroa’s products
have been used in more than four million procedures to date, with
distribution into its key market of the United States by Appulse
and Tela Bio.
Founded in 2008, Aroa is headquartered in Auckland, New Zealand
and is listed on the Australian Securities Exchange (ASX:ARX).
version on businesswire.com: https://www.businesswire.com/news/home/20200723005968/en/
Investor Simon Hinsley Investor Relations email@example.com +
61 401 809 653
Media Australia Matthew Wright
firstname.lastname@example.org +61 451 896 420
New Zealand Piet De Jong
email@example.com +64 21 812 766
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