REG - RUA Life Sciences - Group Reorganisation

Rua Life SciencesAnnouncement

08/06/2023 07:00

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RNS Number : 0046C  RUA Life Sciences PLC  08 June 2023

 

 

 

 

 

 

 

8 June 2023

 

RUA Life Sciences Plc

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

Group Reorganisation

Vascular and Structural Heart Businesses moved to stand alone subsidiaries

 

RUA Life Sciences plc (AIM: RUA.L), the holding company of a group of medical
device businesses focused on the exploitation of Elast-Eon™, the world
leading long-term implantable biostable polyurethane, is pleased to announce
that the Company has completed a reorganisation of its activities with the
hive down of the vascular graft business to RUA Vascular Limited (a 100%
subsidiary of the Company) and the hive down of the heart valve business to
RUA Structural Heart Limited (also a 100% subsidiary).

 

The activities of developing vascular grafts and polymeric heart valves have
been undertaken by RUA Life Sciences plc, with reporting of these activities
being on a divisional basis rather than as operating subsidiaries. The
introduction of segmental reporting has highlighted the benefits in financial
control of separating the business units out from the parent's activities. The
time is now right to formalise the process which is anticipated to bring
further benefits including simplifying regulatory transparency and increasing
funding options for the Group.

 

The hive downs have included the transfer of all related tangible and
intangible assets (including intellectual property) of the parent Company to
each of RUA Vascular Limited and RUA Structural Heart Limited. In addition,
RUA Life Sciences plc will recover the costs attributable to each of the
vascular graft and heart valve projects since 2018. Total attributed cost
recovery for RUA Vascular is £4.4 million and RUA Structural Heart is £3.1
million, which will remain as an intercompany debt. This will result in RUA
Life Sciences plc booking a one off trading profit of some £7.5 million. This
trading profit will appear in RUA Life Sciences's individual company accounts
but be eliminated on consolidation of the group.

 

 

Bill Brown, Chairman of the Company, commented: "This transaction is an
important step in RUA's journey of exploiting the clinical and commercial
value of ElastEon. Two businesses have been incubated within RUA each of which
is building upon the platform technology. By setting the businesses up as
subsidiaries, it increases transparency and allows a deeper understanding of
the value creation process."

 

 

For further information contact:

 

RUA Life Sciences

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

Caroline Stretton, Group Managing Director
 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:

 

 RUA Contract 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.

 

 

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