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San Antonio's Tissue Regenix set to launch wound care product
December 12, 2013

By Peggy O'Hare, San Antonio Express-News

SAN ANTONIO - A British medical device company that opened its American subsidiary in San Antonio last year is preparing to commercially launch its first product in the United States in the first quarter of 2014.

Tissue Regenix Wound Care Inc. has signed seven independent regional sales agreements for distributors to begin promoting its DermaPure tissue regeneration product in 25 states, including Texas.

The technology, which helps heal chronic and acute wounds, will be available to hospitals and U.S. Department of Veterans Affairs health care institutions in those areas.

Its parent company, Tissue Regenix Group, which is publicly traded on the London Stock Exchange, is looking to sign more agreements to expand product sales to all U.S. metropolitan areas by the end of 2014.

DermaPure removes DNA and cells from human donors' skin, which is then used as a scaffold to repair wounds by attracting the tissue recipient's cells to the repair site, where they can regenerate.

The product requires only a one-time application instead of repetitive surgeries and does not need to be stored on dry ice, Bila said.

The company has spent the past year developing and commercializing U.S. products for wound and surgical care, vascular repair, cardiovascular support and orthopedic repairs, said Greg Bila, president of the company's San Antonio office.

An analysis by Jefferies International Ltd. predicts the company's shares could double in value as its first sales are generated.

"At this point in time, we're not giving an estimation of what (U.S.) sales will be," Bila said Thursday. "But we're looking at Tissue Regenix as having the potential to become a $1 billion market cap organization."

The company's San Antonio office now employs six people, including Bila, a former Kinetic Concepts Inc. director of sales, leadership and training development.

But the size of its workforce is likely to increase.

How many more people are ultimately hired for Tissue Regenix's San Antonio operation depends on the reception of its first U.S. product, he said.

"We're quite confident from the acceptance that we've had from physicians involved in clinical research and the acceptance from clinicians that have heard about the product," Bila said.

The company's U.S. products are now manufactured in Ohio, but it is possible those manufacturing duties could also expand to Texas at some point, he said.

The Jefferies report, issued Dec. 5, predicts global medical technology companies could eventually show interest if Tissue Regenix's products deliver on "promising" early results.

"The trial results and initial sales over the next 12 to 24 months could see Tissue Regenix become a takeover target," the report states. "The large medical device companies are grappling with how to move beyond metal and plastic implants, and Tissue Regenix is positioned to deliver a neat solution that is both affordable to bring to market and affordable for the payer."

Based on historical takeover valuations, Jefferies predicts the company's product areas combined could be worth about 10 times the current share price in a "break-up and take-out" scenario.

"This would be several years into the future, but highlights the upside potential," the report states.

Tissue Regenix Group began in the United Kingdom in 2006, evolving as a corporate spinoff from the University of Leeds.

The U.S. subsidiary, supported by British funding sources so far, might start raising investment capital in the U.S. at some point because the domestic market is one of the fastest-growing areas in regenerative medicine, Bila said.

The distribution agreements approved this month will allow more than 40 sales representatives to promote DermaPure to U.S. hospitals in the 25 states.


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