Tissue Regenix ready for growth

The York-based spin-out, which floated on the Alternative Investment Market in June 2010, uses animal and human tissue to replace damaged or worn out body parts.

The group reported an increased loss after tax of £1.3m in the six months to July 31, up from £580,000 the previous year. This figure did not include the £3.8m cost of the reverse takeover of technology firm Oxeco last year. Including the cost of the reverse takeover, pre-tax losses fell from £4.4m to £1.3m.

Over the six-month period Tissue Regenix signed a deal with its development partners in Brazil giving it rights to clinical data on human donor heart valves.

It was also granted product patent for its orthopaedic dCELL vascular patch, which is used to repair damaged blood vessels.

Antony Odell, managing director of Tissue Regenix, said: “We have continued to build on last year’s achievements by further adding to our clinical data in support of the dCELL platform as well as concluding a deal with our Brazilian development partners that will enable us to develop our technology faster and more cost effectively.”

He said the Brazilian deal will open up a number of new opportunities as it gives the group rights to a lucrative pipeline of innovative products.

“With exciting new products in development and a healthy financial position, we believe we are well positioned for growth within the exciting regenerative medicine space,” he said.

Earlier this year the group set up a pilot study with its development partner NHS Blood and Transplant to investigate the use of human donor decellularised skin to treat chronic wounds. “This trial is currently underway and recruitment is progressing, but it remains too early to assess when data will be available,” said chairman John Samuel. “We also intend to examine use of this product in plastic surgery and burns.”

The group is planning to extend the dCELL vascular patch’s application to cardiac and neurosurgery.

Pre-clinical work will begin shortly in Brazil.

Mr Samuel said pre-clinical trial results for its arterial-vascular graft, which replaces damaged veins and arteries, have been “most encouraging” and it plans full clinical trials in 2012.

Pilot work on the dCELL porcine meniscal repair product is complete and the group has begun pre-clinical trials.

“There is a very large clinical need for this product and as yet there are no real competitive products in the market,” said Mr Samuel.

House broker Peel Hunt said: “Tissue Regenix has had a solid six months. Pre-tax loss of £1.2m and cash of £4.8m are in line with our full year expectations.

“The pipeline of new products is developing steadily with a range of replacement heart valves, knee meniscus and cardiac patches progressing through pilot studies.”

Mr Samuel said: “The investments we are undertaking to develop new product innovations has ideally positioned Tissue Regenix to capitalise on major global needs and become a leader in regenerative medicine.

“Our focus is to continue to develop our pipeline of products and seek commercialisation for them as soon as we are able. I believe we are making good progress.”

The two founders of the company have both received external recognition recently.

Eileen Ingham received the top award for Innovation and Entrepreneurship in Academia and Research at the UK Research Council’s Women of Outstanding Achievement Awards and John Fisher was awarded a CBE in recognition of his services to biomedical engineering.