REG - RUA Life Sciences - Acquisition

Rua Life SciencesAnnouncement

09/09/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240909:nRSI3276Da&default-theme=true

RNS Number : 3276D  RUA Life Sciences PLC  09 September 2024

RUA LIFE SCIENCES PLC

 

("RUA Life Sciences", the "Company" or the "Group")

 

Acquisition of Analytic Biosurgical Solutions SAS - ABISS.

 

Acquisition meets strategic objectives of growing Contract Manufacture and
delivers a portfolio of implantable medical devices

 

RUA Life Sciences (AIM: RUA), the holding company of a group of medical
device businesses focused on the exploitation of the world's leading long-term
implantable biostable polymer (Elast-Eon™), today announces that it has
acquired the entire issued share capital of Analytic Biosurgical Solutions
SAS, ("Abiss") for a cash consideration of €80,000 from the French
liquidator of IPSA SAS, the former parent company of Abiss. The acquisition
will be funded from the Company's existing cash resources and will be paid in
full on completion.

 

Founded in 2000, Abiss is the legal manufacturer of a number of long term
implantable devices as well as being a sub contract manufacturer of medical
devices for third parties from its factory and clean room facilities in Saint
Etienne, France where it has around 20 employees.

 

It is the stated objective of RUA to double the scale of its contract
manufacturing business over the medium term.  This opportunity, which aligns
with this objective, arose when the Company was asked by a significant
customer to assist in de-risking certain supply chain issues due to the
insolvency of the parent company of Abiss, one of its suppliers.

 

Since its creation, Abiss has promoted an innovative approach to surgical
implants working closely with surgeons to develop the first sling for the
treatment of female Stress Urinary Incontinence ("SUI") (trans obturator
route) with this procedure becoming the "gold standard". Abiss owns the IP and
has CE Mark approval for three products in the SUI field, Aris, Supris and
Cyrene which are marketed in Europe by distributors (including an Abiss 60%
subsidiary in Poland). The Aris and Supris products are licensed to and
manufactured for Coloplast who hold FDA approval for these products in the US.
During the past three years, Abiss has successfully completed the compilation
of data necessary to transition its products from the outgoing Medical Device
Directive regulations to the new MDR system. Abiss has also developed a
third-party contract manufacture business over the past two years. While the
procedure and devices that Abiss supplies have historically been the subject
of litigation and it has been a party to claims, all such claims have been
settled and there are no potential claims notified or disclosed.

 

The gross assets of Abiss at 31 December 2023 were €2,265,000. Revenue in
the year to 31 December 2023 was €2,159,000 up 36% from €1,592,000
during 2023. Loss before tax was €352,000 after depreciation and
amortisation charges of €537,000. In the year to 31 December 2023, Abiss had
net positive cash flow of €223,000 and cash balances of €279,000 at the
year end. Net Assets/Shareholders Funds at 31 December 2023 were €1,624,000.
Non-current liabilities totalled €640,000 at 31 December 2023.

 

Abiss was part of a wider medical devices group which went into insolvent
liquidation in June 2021 because of Covid. Although the parent company was in
liquidation, Abiss itself was not placed in receivership/liquidation. Abiss
has continued to trade solvently and has traded within its own financial
resources with the exception of French Government Covid support loans.  The
balance of these loans at 31 December 2023 was €293,000 (€418,000 in 2022)
and these are being repaid over an agreed period. The nature of the
transaction has precluded an extensive financial due diligence process and
post-acquisition a detailed financial forecast for the Abiss business will be
developed. Based on discussions with Coloplast, the board is confident that
there is continuing commitment to the Abiss products and there should not be
any negative impact on RUA profitability as a result of the acquisition.

 

This complementary acquisition is in line with RUA's strategy to grow and
expand its Contract Manufacture business and leverages the Group's strong
customer relationships and reputation for quality. It alone is expected to
secure the Group's medium term growth targets and, together with the project
announced on 24 July, which the group hopes to convert into a longer-term
supply contract, positions the Group well to further accelerate this position.
The acquisition price was set through an auction process with other interested
parties not having RUA's unique position as a buyer with a strong relationship
with a major customer.

 

Bill Brown, CEO of RUA Life Sciences, stated: "There are many similarities
between Abiss and RUA Contract Manufacture, particularly with a shared
customer. Abiss has been pursuing contract manufacture opportunities to
further grow its business and the combined strengths of RUA and Abiss should
only increase the potential. We very much look forward to working with the
Abiss team and integrating into the RUA group."

 

The information communicated in this announcement contains inside information
for the purposes of Article 7 of the Market Abuse Regulation (EU) No.
596/2014.

 

For further information contact:

RUA Life Sciences

 Bill Brown, CEO                                                                 Tel: +44 (0)1294 317073

 Lachlan Smith, CFO                                                              Tel: +44 (0)1294 317073
 Cavendish Capital Markets                                                       Tel: +44 (0)20 7220 0500
 Limited

 (Nominated Adviser and Broker)

 Giles Balleny/Dan Hodkinson (Corporate Finance)

 Charlie Combe (Broking)

 Michael Johnson (Sales)

 

 

About RUA Life Sciences

 

The RUA Life Sciences group was created in April 2020 when RUA Life
Sciences Plc (formerly known as AorTech International Plc) acquired RUA
Medical Devices Limited to create a fully formed medical device
business. RUA Life Sciences is the holding company of the Group's four
trading businesses, each exploiting the Group's patented polymer technology.

 

Our vision is to improve the lives of millions of patients by enabling medical
devices with Elast-Eon(TM), the world's leading long-term implantable
polyurethane. Whether it is licensing Elast-Eon(TM), manufacturing a device or
component, or developing next generation medical devices, a RUA Life
Sciences business is pursuing our vision.

 

Elast-Eon™'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. With over 8 million implants and 15 years of successful
clinical use, RUA's polymers are proven in long-term life enabling
applications.

 

The Group's four business units are:

 

 RUAContract Manufacture:  End-to-end contract developer and manufacturer of medical devices and
                           implantable fabric specialist.

 RUA Biomaterials:         Licensor of Elast-Eon(TM) polymers to the medical device industry.

 RUA Vascular:             Commercialisation of open surgical vascular grafts and patches

 RUA Structural Heart:     Development of polymeric leaflet systems for heart valves.

 

 

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 Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  ACQUPUAPBUPCGQR