TIDMAOR
RNS Number : 6925M
AorTech International PLC
13 May 2020
AorTech International plc
("AorTech", the "Company" or the "Group")
Trading Update
AorTech International plc (AIM: AOR.L), the holding company of a
group of medical device businesses focused on the exploitation of
the world's leading long-term implantable biostable polymer
(Elast-Eon (TM) ), is pleased to provide the following trading
update ahead of the publication of the Group's audited final
results for the financial year ended 31 March 2020, which are
expected to be released in the second half of July 2020.
Highlights:
-- Growth in polymer licensing and royalty revenue from GBP463k to GBP490k
-- Strong cash position of GBP2.0 million as at 31 March 2020 (2019: GBP2.4 million)
-- Research and Development activities currently exceeding the Board's expectations
-- Integration of RUA Medical Devices Limited progressing to plan
Bill Brown, Chairman of AorTech, commented : "Over the past two
years, AorTech has been transitioning into a medical device
manufacturer, progress with all elements of the Research and
Development projects has been positive and I am confident that the
recent acquisition of RUA Medical will help accelerate these new
product projects over the next year."
David Richmond, CEO of AorTech, added: "In the short time since
the combination of AorTech and RUA, the focus on new product
development has already produced results. We look forward to
further positive steps in the coming months. Regarding the impact
of COVID-19 on the RUA Medical business, we continue to monitor the
opening of elective surgery in the US and are well positioned to
recommence supply to meet customer orders."
2019-2020 Overview
The Group's strategy remains to develop medical devices based
upon the world class properties of AorTech's polymers whilst
continuing to license the rights to those same polymers in
non-competing areas. The polymer licensing business has continued
to progress over the past year and revenues grew from the
GBP463,000 reported last year to GBP490,000 in the year ended 31
March 2020. Investment in Research and Development increased over
the year and, despite this additional investment, the Company's
year-end cash resources (including monies in solicitors client
accounts for the completion of the acquisition of RUA Medical)
stood at GBP1.98 million compared to GBP2.4 million at the same
stage last year representing cash burn of a little over GBP400,000
during the year. Currently, Group cash balances stand at over
GBP1.7 million.
Shortly after the period end, AorTech completed the acquisition
of RUA Medical Devices providing the Group with the people,
premises and processes required for the Group to become an end to
end medical device developer and manufacturer. The Board remains
very confident that the strategic benefits of this acquisition far
outweigh any short term COVID-19 issues that the business may be
facing. The integration of the RUA business is progressing to
plan.
Heart Valve Development Update
In January, AorTech announced that it had committed investment
in a novel method of manufacturing polymeric heart valves. In early
April, the Company also announced good progress had been made with
the tooling for this project. We are now delighted to announce that
the manufacture of valves has been undertaken and early prototype
valves are currently available for evaluation. The outcome of these
manufacturing trials has far exceeded our initial expectations and
the feasibility of the novel manufacturing concept has now been
proven.
The valve design and manufacturing method are both major
improvements and the Board believes that the combination has
produced one of the largest step changes in heart valve technology
over the last 20 years.
All of the limitations imposed by historic methods of dip
casting valve leaflets, and the quality issues related to those
designs and manufacturing methods, have been eliminated. AorTech
has already engaged with its IP advisers to initiate the steps
required to protect this valuable new Intellectual Property.
Graft Development Update
The team at RUA Medical has been working closely with members of
the AorTech Board and progress has been made on the Elast-Eon (TM)
coated large bore grafts.
Further enhancements have been made to the Polyester fibre, the
textile construction refined, and an automated coating process
developed. These developments will allow the external graft surface
to be coated with Elast-Eon (TM) polymer whilst retaining the
mechanical performance, handling and suturing characteristics
required by surgeons.
As well as these encouraging developments, the RUA team has also
developed a method of being able to manufacture a one-piece
Elast-Eon (TM) polymer coated Aortic Root graft.
Overall, graft developments are swiftly approaching the design
freeze phase and animal trials are still anticipated to be
undertaken during the second half of the year.
For further information contact:
AorTech International plc
Bill Brown, Chairman Tel: +44 (0) 77 3071 8296
David Richmond, CEO Tel: +44 (0) 78 9999 6400
Shore Capital
Tom Griffiths/David Coaten Tel: +44 (0)20 7408 4080
About AorTech
AorTech has developed biostable, implantable polymers, including
Elast-Eon(TM) and ECSil(TM), now manufactured on its behalf by
Biomerics LLC in Utah, USA. Elast-Eon(TM) and ECSil(TM)'s
biostability is comparable to silicone while exhibiting excellent
mechanical, blood contacting and flex-fatigue properties. These
polymers can be processed using conventional thermoplastic
extrusion and moulding techniques. With over 6 million implants and
over 10 years of successful clinical use, AorTech polymers are
proven in long term life enabling applications.
In addition to continuing to exploit AorTech's Intellectual
Property related to the world class biomaterial - Elast-Eon(TM),
AorTech is now incorporating this material into a number of medical
devices of our own design. Elast-Eon(TM) has first class long term
blood contacting properties and, as a result, all of the initial
products being developed are for the cardio vascular field. Each
device is being designed to have improved clinical outcomes over
current device technology, eliminating the use of animal sourced
material whilst allowing procedures to remain the same, therefore
avoiding having to retrain surgeons in new ways of operating.
About RUA Medical Devices
RUA Medical is an experienced full-service medical device
contract developer, contract manufacturer and implantable fabric
specialist. The company provides subcontract design, development,
manufacture, assembly, packing, inventory management, logistics and
consultancy services to the Medical Device and Biotech Industries.
The company partners with globally based companies to provide
technologically innovative products that can deliver lifesaving and
life enhancing solutions, and focuses on personalised service,
combined with innovative design and development.
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END
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