14.10.2015, 23:03
Edison initiates coverage of Tissue Regenix
OREANDA-NEWS. Tissue Regenix's (TRX) investment story is built on dCELL, a versatile regenerative medical technology, and its potential across the subsectors: wound care, orthopaedics and cardiac implants. We forecast that the US Wound Care subsidiary will be a driver of rapid group sales growth from the FY15 starting point of ?0.1m, rising to ?74m in FY21 boosted by product launches from all three divisions.
Our sum-of-the-parts DCF valuation is ?325m, or 43p/share, using a 12.5% WACC. We value the wound care franchise at ?175m, orthopaedics at ?95m and the cardiac division at ?35m. The current market capitalisation, which is subject to an estimated funding requirement of ?15m needed to develop OrthoPure XT and XM in the US, does not reflect the full pipeline potential, which could ultimately be attractive to larger medtech companies.
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