# Tissue Regenix Group: Funded through to profitability

- Link: https://www.directorstalkinterviews.com/tissue-regenix-group-funded-through-to-profitability/412862920
- Published: 2020-10-08T08:35:10+01:00
- Author: Amilia Stone

**Tissue Regenix Group plc** (LON:TRX) is focused on the development and commercialisation
of two proprietary decellularisation technologies for repair of soft tissue (dCELL)
and bone (BioRinse). It has a broad portfolio of approved regenerative medicine 
products for the biosurgery, orthopaedics and dental markets. Over the past two 
years, TRX has revised its commercial strategy, restructured to service demand, 
and commenced a capacity expansion programme in its US facilities. As some benefits
were beginning to emerge, COVID-19 caused the postponement of elective surgeries
on which much of TRX’s core business is derived. Despite the challenges, TRX is 
well positioned for growth.

 * **Strategy:** TRX is building an international regenerative medicine business
   around its proprietary technology platforms, underpinned by compelling clinical
   outcomes. Work has begun to expand production capabilities, enabling the business
   to grow its distribution networks, via strategic partnerships, to drive sales
   momentum.
 * **Interims:** 1H’20 results were broadly in line with our expectations, with 
   reported sales of £6.1m (£6.1m) and a greatly reduced underlying EBIT loss of
   £2.4m (£4.2m loss). The net cash position, after taking into account the Placing
   completed in June, was £10.6m and in line with our forecast.
 * **Expansion:** During 2019, TRX moved to two-shift manufacturing and restarted
   outsourcing some of its DermaPure production. Alongside this, in July 2020, an
   expansion programme to satisfy product demand through investment in its US facilities
   was started, with should see benefits from 1H’21.
 * **Commercial:** In May 2020, TRX announced a white label manufacturing agreement
   with a top-10 global healthcare company. Following receipt of CE marking for 
   OrthoPure XT® in June 2020, TRX has concluded a UK distribution agreement with
   a speciality supplier of orthopaedic and biologic products.
 * **Investment summary:** Tissue Regenix Group has a portfolio of innovative regenerative
   products with regulatory approval in both the US and EU. Realignment of the commercial
   strategy to maximise sales potential through strategic and distribution partnerships
   has been successful, resulting in increased demand for its products. TRX now 
   has the necessary funding to scale up manufacturing capacity, leaving it well
   positioned to deliver on future milestones, which should result in a re-rating.

[DOWNLOAD THE FULL REPORT](https://www.hardmanandco.com/wp-content/uploads/2020/10/TRX-post-interims-update-%E2%80%93-7-Oct-2020.pdf)

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