AorTech International PLC Trading Update (8724Y)
May 14 2019 - 1:00AM
UK Regulatory
TIDMAOR
RNS Number : 8724Y
AorTech International PLC
14 May 2019
AorTech International plc
("AorTech", the "Company" or the "Group")
Trading Update
AorTech International plc (AIM: AOR.L), the licensor of the
world's leading long- term implantable biostable polymer
(Elast-Eon(TM) ) and developer of medical devices utilising the key
properties of Elast-Eon(TM) , is pleased to provide the following
trading update ahead of the publication of the Group's audited
final results for the financial year ended 31 March 2019 which are
expected to be released in mid-July 2019.
Highlights:
-- Growth in polymer licensing revenue from GBP404k to over GBP460k
-- Strong cash position of GBP2.4 million as at 31 March 2019 (2018: GBP422k)
-- Good progress in developing portfolio of medical devices
-- Confidence in strategy, business model and prospects
Bill Brown, Chairman of AorTech, commented: "Our strategy of
transitioning AorTech into a medical device manufacturer is
progressing well with much having been achieved over the last year.
The business model of working with partners means that progress has
been made on a highly cost effective basis. We remain confident of
delivering further progress in the current year."
2018-19 overview
AorTech went through a significant change during the year with a
new strategy adopted, a fundraising successfully concluded and the
Board strengthened. The new strategy is to develop medical devices
based upon the world class properties of AorTech's polymers whilst
continuing to license the rights to those same polymers in
non-competing areas. The development and approval process for new
medical devices takes several years and, as a result, the revenues
received in the year were restricted to the polymer licensing
business. To better reflect the focus of the business now being a
UK centric medical device developer, the currency of the annual
accounts has changed with effect from the financial year ended 31
March 2019 from US $ to UK GBP. It is pleasing that on a Sterling
denominated basis, we saw a growth in polymer licensing and royalty
income from GBP404,000 to over GBP460,000.
During the year, AorTech raised net new capital of GBP2.54
million by way of a placing and open offer of new shares at 30p per
share to fund product development costs. At the year end, the
Group's cash position remained strong at GBP2.41 million (2018:
GBP422k).
The development focus has been on heart valve design and the
synthesising of materials for vascular prothesis. This phase is now
nearing completion and prototyping, manufacturing and testing will
become the Company's principal focus over the coming year. Much
technical planning has been undertaken as part of the design for
manufacture process to identify the most up to date equipment
available to automate and ensure repeatability of the manufacturing
processes. Our team has identified an opportunity to significantly
improve the way the heart valves are manufactured and, if
successful, should allow optimised polymer heart valve designs to
be manufactured with reduced costs. We will, however, retain
optionality over the existing manufacturing method to ensure time
to market is not impacted.
For further information contact:
AorTech International plc Tel: +44 (0)7730 718296
Bill Brown, Chairman
Stockdale Securities Limited Tel: +44 20 7601 6100
Tom Griffiths/David Coaten
About AorTech:
AorTech has developed biostable, implantable polymers, including
Elast-Eon(TM) and ECSil(TM) the world's leading long-term
implantable co-polymers, now manufactured on their behalf by
Biomerics LLC in Utah, USA. With several million implants and seven
years of successful clinical use, AorTech polymers are being
developed and used in cardiology and urological applications,
including pacing leads, cardiac cannulae, stents and neuro
stimulation devices. Devices manufactured from AorTech polymers
have numerous US FDA PMA approvals, 510ks, CE Marks, Australian TGA
and Japanese Ministry of Health approvals.
Elast-Eon(TM) and ECSil(TM)'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. A
range of materials in a variety of application-specific
formulations for use in medical devices and components are
available.
In addition to the licensing of biostable polymers, AorTech is
now developing medical devices utilising the key properties of its
world class polymers.
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
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END
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