Aroa Biosurgery Limited (ASX: ARX, ‘AROA’ or the ‘Company’) is pleased to provide an update on its activities for the quarter ended 31 March 2024.
Highlights are listed below, to read the full announcement, click here
Financial Highlights
- Strong cash receipts from customers of NZ$18.0 million, reflecting a continuation of the prior quarter’s step-up in Myriad™ and OviTex™[1]/OviTex PRS sales.
- Positive net cash inflows from operations of NZ$0.3 million, exceeding Q4 breakeven expectations.
- Net cash outflows from investing activities reduced to NZ$0.7 million, reflecting continued planned investment into additional manufacturing plant & equipment capacity with completion expected by Q3 FY25.
- The Company achieved a 71% reduction in quarterly cash burn to ~NZ$1 million, ending the year with a strong closing cash balance of NZ$29.5 million.
- FY24 results to be released on Tuesday, 21 May 2024.
Operational Highlights
- Continuing expansion in Myriad sales access during the quarter, with Myriad active accounts increasing from 205 to 218 during the quarter.[2]
- Strong CY23 OviTex™ PRS and OviTex sales, with TELA Bio, Inc. (‘TELA Bio’) reporting CY23 revenue of US$58.5 million (41% ‘pcp’[3] growth) and providing CY24 revenue guidance of US$74-76 million (27-30% pcp growth).[4]
- Product shipments to TELA Bio continue to re-align with its sales trajectory (following a reduction in shipments during H1 FY24) with H2 FY24 cash receipts from TELA Bio increasing 20% compared to H1 FY24.
- US launch of OviTex IHR, a new AROA ECM™ product specifically designed for use in laparoscopic & robotic-assisted inguinal hernia repair and co-developed with TELA Bio under the parties’ existing license arrangement.
- Enrolments completed for two clinical studies: the pilot study assessing Enivo™, AROA’s new tissue apposition platform technology, and the Myriad Augmented Soft Tissue Regeneration Registry (‘MASTRR’), AROA’s largest prospective study to date. AROA expects to commence publishing study results from Q3 FY25. AROA’s Symphony™ randomised control trial continues to progress well, with a total of 90 patients enrolled by the end of the quarter (n=120).
- A peer-reviewed publication of three case reports indicates that Myriad Matrix™ and Myriad Morcells™ may complement existing negative pressure wound therapy (‘NPWT’) protocols, reduce the frequency of dressing changes associated with NPWT usage in abdominal soft tissue defects and decrease the overall healing time of complex abdominal defects.[5]
- Winner of both the ‘Supreme Business Excellence’ and ‘Excellence in Innovation’ categories at the ‘Best of the Best 2023’ 2degrees Auckland Business Awards in April 2024.[6]
- Seasoned global commercial operations executive, Darla Hutton, joined AROA’s board as an independent non-executive director following the retirement of long-standing director Steven Engle. Based in the United States, Ms. Hutton brings over 25 years of international leadership expertise in life sciences commercial strategy, operations, sales, marketing, and data analytics, including at Intuitive Surgical, Inc., the global leader in minimally invasive care.[7]
[1] OviTex and TELA Bio are trademarks of TELA Bio, Inc.
[2] Represents accounts to which sales were made in the applicable quarter.
[3] Meaning prior comparable period.
[4] TELA Bio press release dated 21 March 2024.
[5 ] Taarea, R., A. Florence, B. Bendixen and C. A. Castater (2024). “Early Experience with Ovine Forestomach Matrix for the Reconstruction of Abdominal Defects following Emergency Open Abdomen Surgery at a Level 2 Trauma Center.” Trauma Cases Rev 10(1): 102.
[6] AROA previously won those categories in the South and East Region division.
[7] Noting that AROA currently has six non-executive directors, this reflects the short overlap between Darla Hutton’s appointment and Steven Engle’s retirement.
