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- Aroa Biosurgery (ARX) posts healthy gains on the ASX today after releasing its latest half-yearly report
- The report highlights NZ$17 million (A$16.21 million) in product sales revenue for the first half of its 2022 financial year
- This represents an increase of 108 per cent compared to the first half of Aroa’s 2021 financial year and 37 per cent compared to the second half
- At the same time, ARX extends a contract with US-based HealthTrust for the Aroa Myriad-branded products
- Shares in Aroa Biosurgery close 13.43 per cent higher this afternoon at $1.22 each
Soft-tissue regeneration company Aroa Biosurgery (ARX) posted some healthy gains on the ASX today after releasing its latest half-yearly report.
In the report, ARX highlighted NZ$17 million (A$16.21 million) in product sales revenue for the first half of its 2022 financial year — an increase of 108 per cent compared to the same time the year before.
This half-yearly result is roughly 37 per cent higher than the second half of Aroa’s 2021 financial year on a constant currency basis.
It should be noted that the results announced by the company today are preliminary and unaudited.
Still, given the preliminary results, Aroa said it expected full-year revenue for its 2022 financial year to land at the upper end of its previously-announced guidance of between NZ$30 million and NZ$33 million (between A$28.61 million and A$31.5 million).
Aroa CEO Brian Ward said the results were driven by changes to the Aroa sales team for its Myriad Matrix, Myriad Morcells, and Endoform products.
“It is pleasing to see the momentum that is developing across the Aroa product portfolio,” Mr Ward said.
“We are also seeing growing demand from TELA Bio, Inc., Aroa’s sales and distribution partner for OviTex products.”
He said the half-yearly results came in spite of COVID-19-related business constraints and exceeded internal forecast expectations.
Mr Ward added that once the outlook for COVID-19 becomes clearer, the company will further assess its 2022 financial year product sales revenue guidance.
US contract extension
Meanwhile, ARX extended a contract with US-based HealthTrust for the Aroa Myriad-branded products.
HealthTrust, headquartered in Nashville, is the third-largest group purchasing organisation (GPO) in the States, serving roughly 1500 hospitals and healthcare systems across the country.
The new deal with HealthTrust extends its business relationship with Aroa while adding the Myriad Matrix and Myriad Morcells products to the purchase agreement previously only signed for Endoform products.
Aroa said HealthTrust members will be able to access the Myriad products from October 8, 2021.
“With this contract extension, we have implemented a framework for HealthTrust’s US members to access our full current product portfolio,” Mr Ward said.
“We had expected Myriad sales to drive growth in FY22, so it is pleasing that the addition of Myriad Matrix and Myriad Morcells to our HealthTrust contract offers the potential to further fuel that growth.”
The Myriad products are designed to support soft tissue repair and to treat complex wounds. Endoform products are designed to manage acute and chronic wounds.
Shares in Aroa Biosurgery closed 13.43 per cent higher this afternoon at $1.22 each. The company has a $418.8 million market cap.
