RUA Life Sciences plc
RUA Life Sciences is a holding company for a group of medical device businesses focused on the exploitation of the world's leading long-term implantable biostable polymer (Elast-EonTM).
RUA Life Sciences Management Presentation June 2020
Bill Brown, Chairman of RUA Life Sciences, takes us through a presentation on the new structure following the name change from AorTech International, and the acquisition of RUA Medical. Looking at both the Medical, Vascular, Structural Heart, and Biomaterials divisions, he details the trial timelines and expected progress for their key products in the next 12 months.
A run of good news
Since AorTech’s May trading update the company has continued its run of positive news announcements with a Government grant under the Pivotal Enterprise Resilience Fund (PERF), the issue of a new patent, and most recently, the impending resumption of orders from RUA Medical’s largest customer.
On 8 June, AorTech announced that its wholly owned subsidiary RUA Medical Devices’ largest customer has requested that it prepare for production, and that orders have resumed for supply in August, subject to any second wave pressure.
Since announcing the finalisation of the manufacturing and design of its heart valve prototype, AorTech have further noted the US Patent and Trademark Office’s issue of a new patent that protects those developments.
The refinement and protection of claims for the incorporation of its biostable polymer ElastEon in medical devices that include heart valves and aortic grafts, will not only be closely watched by AorTech’s potential licensees for its heart valve product, but will be required by any US licensee.
Although the heart valve and vascular products comprise just over 90% of our valuation of AorTech, we have not made any changes to our valuation but have incorporated the £150,000 PERF grant into our FY 2021 financials.
Our valuation remains at £101.3m or 690p per share.
In a reassuring and well-received trading update ahead of FY 2020 results set for July, Aortech have detailed their FY royalty and licensing revenues, cash balance and product developments. After many years in the making, the Elast-Eon tri-leaflet heart valve now appears to be ready for ‘prime time’.
We have made only very minor changes to our valuation and financials. Our valuation moves to £101.3m or 690p per share from £101.2m or 689p per share, largely as the result of the slightly higher cash balance. The major components of our valuation are the products in development and their valuation remains unchanged.