REG - RUA Life Sciences - AGM Statement and Trading Update

Rua Life SciencesAnnouncement

22/08/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230822:nRSV9881Ja&default-theme=true

RNS Number : 9881J  RUA Life Sciences PLC  22 August 2023

22 August 2023

RUA Life Sciences plc

("RUA", the "Company" or the "Group")

AGM Statement and Trading Update

RUA Life Sciences plc (AIM: RUA.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 holding its Annual General
Meeting ("AGM") at 11.00am today.

At the AGM, the Chairman, Bill Brown, will make the following statement
regarding current trading:

"Trading in the period to the end of July has seen group revenues meeting the
Board's expectations. We have continued to manage expenditure prudently and
all main cost lines are showing positive variances to budget with overall
costs 20% down on management's expectations. As a result of the tight control
over expenditure and the positive trading, cash resources are also ahead of
management's budget.

There have continued to be positive developments in all parts of the business
which are summarised below:

RUA Contract Manufacture has made good progress with a customer funded
development project for an implantable textile component of a currently
marketed product. Assuming the project is a success, it is anticipated it will
convert into a long term supply agreement. At a customer's request, we have
also now supplied samples of textiles and components for another range of
devices that are part of the customer's plans to de-risk supply chain issues
by dual sourcing. Dual sourcing is a developing industry theme, a reaction to
shocks to global supply chains during Covid, resulting in device manufacturers
now being prepared to undertake the expense of validating second suppliers. We
have had enquiries from other potential customers for textile devices,
strengthening our belief of being able to double the scale of the business
over the coming years.

Revenues at RUA Biomaterials have been in line with expectations with some
positive indicators of shipments by Biomerics to new customers within the mix.
Additionally, we have agreed an extension to one of our existing licenses that
over time will allow a doubling of the royalty potential from licensee.

RUA Structural Heart, which has been undertaking research and development
activities into the creation of a polymeric heart valve, has made an
outstanding breakthrough in the development of a synthetic leaflet material
for the manufacture of heart valves. As well as demonstrating that it has the
flexibility to perform as a heart valve leaflet, our new composite material
has now achieved the important milestone of completing 400 million cycles
(equivalent to 10 years in man and twice regulatory requirements) of fatigue
testing. As at the time of the release of the Group's annual report, only 200
million cycles had been completed.   The blood contacting properties of
Elast-Eon, combined with the flexibility, durability and mechanical properties
of the composite, mean that the new composite may well be suitable to be used
in valve designs that are currently in the market. As such, the route to
commercialisation for the RUA composite is no longer dependant on developing
and testing our own valve design but could be more near term by making the
composite available to other manufacturers. Having been approached, we have
recently agreed to provide a major player with material for evaluation to
initially confirm some of our in-house test results.

RUA Vascular, the business developing the vascular graft range is now in the
final stages of planning the pre-clinical and clinical trials that have been
agreed with the FDA under the pre submission process. Quotations have been
received and budgets prepared with detailed timelines as well as other
detailed planning to allow testing to be undertaken as soon as funding allows.
On commercial activities, we have always expected the grafts to be ideal for
incorporation as components into other medical devices. We are delighted that
our promotional efforts are being effective and we have now received a
purchase order from a major company in the sector for grafts to trial as part
of their devices.  Although early stages, this first commercial sale of our
graft devices is the beginnings of an OEM business line."

 

 

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK version of the EU
Market Abuse Regulation (2014/596) which is part of UK law by virtue of
the European Union (Withdrawal) Act 2018, as amended and supplemented from
time to time.

 

For further information contact:

 

RUA Life Sciences

Bill Brown, Chairman
                      Tel: +44 (0)1294 317073

Dr Caroline Stretton, Group MD
            Tel: +44 (0)1294 317073

 

 

Cenkos Securities plc (Nominated Adviser and Broker)      Tel: +44
(0)20 7397 8900

Giles Balleny/Max Gould (Corporate Finance)

Michael Johnson (Sales)

 

 

About RUA Life Sciences

 

The RUA Life Sciences group was created in April 2020 when RUA Life
Sciences Plc (formerly known as AorTech International Plc) acquired RUA
Medical Devices Limited to create a fully formed medical device
business. RUA Life Sciences is the holding company of the Group's four
trading businesses, each exploiting the Group's patented polymer technology.

 

Our vision is to improve the lives of millions of patients by enabling medical
devices with Elast-Eon(TM), the world's leading long-term implantable
polyurethane. Whether it is licensing Elast-Eon(TM), manufacturing a device or
component, or developing next generation medical devices, a RUA Life
Sciences business is pursuing our vision.

 

Elast-Eon™'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 8 million implants and 15 years of successful
clinical use, RUA's polymers are proven in long-term life enabling
applications.

 

The Group's four business units are:

 

 RUAContract Manufacture:  End-to-end contract developer and manufacturer of medical devices and
                           implantable fabric specialist.

 RUA Biomaterials:         Licensor of Elast-Eon(TM) polymers to the medical device industry.

 RUA Vascular:             Commercialisation of open surgical vascular grafts and patches

 RUA Structural Heart:     Development of polymeric leaflet systems for heart valves.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  AGMEAXPFAELDEFA