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Tissue Regenix (AIM: TRX), the regenerative medical devices company, announces its final results for the year ended 31 December 2020.

Financial Highlights

• Maintained Revenue at £12.8m (2019: £13.0m) despite the challenges posed by COVID-19
  • Orthopaedics and Dental revenue of £7.4m, +11% (£2019: £6.7m)
  • Joint venture GBM-v achieved sales of £2.1m (2019: £2.1m)
  • DermaPure^® sales decreased by 22% to £3.3m (2019: £4.2m)
• Gross Profit steady at £5.9m (2019: £6.0m), with a 46% gross profit margin (2019: 46%)
• Operating Loss of £9.8m (2019: £7.2m) driven largely by a non-cash impairment charge of £6.1m arising from the annual impairment test on the CellRight Technologies
  • Implemented cost reduction initiatives reducing the overhead cost base by £400,000
• Cash balance at 31 December 2020 £9.6m (2019: £2.4m) following an equity fundraise raising net proceeds of £13.8m in June 2020

Operational Highlights

• CE Mark approval for OrthoPure^® XT, June 2020
• New strategic collaboration with a top 10 global healthcare company for white label product
• Additional commercial opportunities secured for growth product lines such as AmnioWorks™, diversifying the sales portfolio
• Phase 1 of the capacity expansion programme commenced in San Antonio, July 2020, providing additional capacity from H1 2021
• Operational improvement initiatives implemented at San Antonio facility
• Relocation of UK facility to Garforth, Leeds, October 2020, expected to deliver annualised savings of £0.4m from 2021
• 19 new DermaPure^® clinical case studies undertaken for new product applications
• EU and UK distribution agreements signed for OrthoPure^® XT
• Daniel Lee appointed as Chief Executive Officer, November 2020

Post balance sheet events

• Trevor Phillips and Brian Phillips appointed as Independent Non-Executive Directors
• David Cocke appointed Chief Financial Officer, January 2021
• Restructuring of US Operations, estimated to save c.£500k on an annualised basis, January 2021
• Jonathan Glenn appointed Non-Executive Chairman, February 2021
• Occupation of initial phase of the facility expansion in San Antonio, Texas, March 2021

Daniel Lee, CEO of Tissue Regenix, commented: " I am honoured to have been appointed as CEO to lead the Group through its next stages of development. 2020 was a challenging year, but under the circumstances, a successful period for the Group and we are pleased to have maintained consistent revenues and gross profit despite the many challenges of COVID-19.

"The year was primarily highlighted by our financial performance relative to other industry participants, and securing the necessary funding to support the organisation and invest in the required capacity expansion programme. Alongside this, we secured a number of additional distribution and white label agreements for organic growth in the US and extending our geographical outreach through the receipt of the CE Mark for OrthoPure®XT which allowed us to begin our commercialisation efforts within the EU. As COVID restrictions subside and with the backdrop of a material global backlog of elective surgeries, we expect strong growth in product demand in the second half of 2021 and are well positioned to capture and service this need with our extensive product lines.

"Having been with the Group for two years as President of US Operations, I was familiar with much of the business. However, since moving into this role, I can see expansive opportunities that lie before us to enable our global growth in regenerative medicine."

Annual Report and Accounts and Notice of AGM

As part of the Company's move to electronic reporting, the Annual Report and Accounts, notice of AGM and accompanying form of proxy, will be available later this morning on the Company's website, www.tissueregenix.com , in accordance with AIM Rule 20. For those who opted to receive hard copies of the Annual Report, these will be posted today.

The AGM will be held at DLA Piper, Princes Exchange, Princes Square, Leeds LS1 4BY, on 3 June 2021 at 12.00pm. At the time of writing, it is expected that there will still be limitations on the ability to host shareholders at the AGM. Shareholders are strongly recommended not to attend the AGM in person and instead appoint the Chairman of the meeting to act as their proxy. If any shareholders do intend to attend the meeting in person, the Company strongly encourages them to advise the Company at least 48 hours in advance of the AGM by using the contact details below. Any such communication shall not provide a guarantee that admittance to the AGM will be permitted where to do so would be in breach of rules governing public gatherings and/or the need to protect the health and safety of those already in the meeting. The Company would nevertheless like to engage with its shareholders as fully as possible in the circumstances, and you are invited to ask the Board questions about the Accounts or the AGM by contacting Walbrook PR at [email protected] .

The results of the votes on the proposed resolutions will be announced by RNS as soon as practicable after the conclusion of the AGM.

For more information:

Tissue Regenix Group plc	www.tissueregenix.com Via Walbrook PR
Daniel Lee, Chief Executive Officer David Cocke, Chief Financial Officer
Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)	Tel: +44(0)20 7710 7600
Ben Maddison / Alex Price
Walbrook PR Ltd	Tel: +44 (0)20 7933 8780 [email protected]
Alice Woodings / Lianne Cawthorne / Paul McManus

 

About Tissue Regenix ( www.tissueregenix.com )

Tissue Regenix is a leading medical devices company in the field of regenerative medicine. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human soft tissue leaving an acellular tissue scaffold which is not rejected by the patient's body and can then be used to repair diseased or worn-out body parts. Current applications address many critical clinical needs such as sports medicine, heart valve replacement and wound care.

In August 2017 Tissue Regenix acquired CellRight Technologies®, a biotech company that specializes in regenerative medicine and is dedicated to the development of innovative osteoinductive and soft tissue scaffolds that enhance healing opportunities of defects created by trauma and disease. CellRight's human osteobiologics may be used in spine, trauma, general orthopaedic, foot & ankle, dental, and sports medicine surgical procedures.