Tissue Regenix, which uses animal and human tissue to replace damaged human body parts, plans to expand rapidly in the US following “outstanding” clinical results from wound treatment DermaPure.
The York-based group reported substantial commercial interest in DermaPure and said it has signed another deal with US health insurance firm CGS Medicare covering the states of Ohio and Kentucky, adding a further 1.9 million Medicare beneficiaries.
DermaPure has been proved to be successful in treating big, long term wounds. The group’s decellularisation process removes DNA and other cellular material from animal and human tissue leaving a tissue scaffold which is not rejected by the patient’s body.
Tissue Regenix announced an expected £8.4m operating loss for the year to January 31. CEO Antony Odell said the loss reflected investment in its commercial operation in the US as it hires more sales people.
The group is working on a number of new products to help fix sports injuries among younger patients.
When asked about comments that Tissue Regenix could become a takeover target, Mr Odell said: “I think we’ve got great technology. We’re a great company.”
He was responding to an analyst’s note from Martin Brunninger at Jefferies, who said: “We see a number of catalysts for the shares from clinical and commercial results over the mid to long term, including further upside as coverage of DermaPure broadens across the US. Given the acute need for new products to stay relevant with large hospital accounts, we believe it’s not unlikely that Tissue Regenix could become a takeover target.”