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ARX - Aroa Biosurgery

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Aroa Biosurgery is a soft tissue regeneration company that commenced operations in 2008. Aroa focuses on improving the rate and quality of healing in complex wounds and soft tissue reconstruction.

From over 10 years of research and development, Aroa has developed Endoform®, a proprietary soft tissue regeneration technology platform. Endoform® can temporarily replace damaged tissue by acting as a scaffold in the wound or the soft tissue to grow new tissue. It is used where tissue has been lost or damaged by disease or injury. Currently, Aroa has five commercial products based on the Endoform® technology, alongside a new product development pipeline.

Aroa is based in Auckland, New Zealand, with an additional sales office and distribution function in the United States.

It is anticipated that ARX will list on the ASX on 30 July 2020.

https://aroabio.com
 
still on track for end July

..Aroa is raising $45m as part of the IPO & will list with an indicative market capitalisation of A$225m under the code ARX. Bell Potter and Wilsons are Joint Lead Managers to the IPO.
..
Aroa’s products are covered by a patent portfolio that includes 10 patents and 25 pending patent applications across six patent families
..NZ$22m in product revenue FY20 (ending 31 March 2020) & EBITDA positive

At listing Aroa Founder and CEO Brian Ward will have an 11% shareholding.
 
came on market Friday 25th. ....up 80%
Aroa chief executive Brian Ward was letting his hair down on Friday, but said on Monday he would be straight back to work. "We've got a bit of a party going on here," he told The Australian Financial Review from Auckland. "It's been a huge, long, intense road ... and this is only one day, but it's a big moment for sure."
Aroa has created a biological scaffold from sheep forestomachs, which is surgically implanted to help patients grow new tissue that has been lost because of disease or injury. It already has a handful of products on the market using its Endoform platform, including scaffolds that can be used to help heal diabetic ulcers, hernias and wounds. The advantage of Aroa's products over other biological scaffolds is that they are substantially cheaper and often also stronger. The scaffolds are made in New Zealand, where sheep are plentiful and they have a unique disease-free status, and exported globally.
The $45 million raised from the listing will go towards financing Aroa's US expansion. With the Capital raise five times oversubscribed, no institution received a full allocation for what they applied.

Institutional investors that bought into the IPO include Ellerston Capital, Washington H. Soul Pattinson, Firetrail Investments, Perennial Value Management, OC Funds and Regal Funds Management.

Mr Ward retains the largest shareholding following the listing with 11 per cent of the business, while New Zealand venture capital fund Movac, Movac partners Phil McCaw (who is also a board member) and Richard Abbott, and the Aspire NZ Seed Fund make up the other top five shareholders.
"We are very early in the commercialisation of these products," Mr Ward said. "Our penetration is still very low and what that means is there's a large opportunity in front of us. "Early on when a product launches, surgeons will evaluate them, but the most important thing is to get good, solid clinical data which gives people confidence in the long-term performance of the product. It's been a significant investment of time and money to develop that data."
Long-time Aroa chairman Jim McLean said the overriding sentiment when the company listed on Friday was "justifiable satisfaction".
"What it means for us as much as anything is that this is a financing event, not a liquidity event, and now we're well financed," he said. "The biggest advantage of that is being able to attract the best possible people into the business. And the plus for us from COVID is that we're seeing a lot of talented people come back to New Zealand in specialised positions that previously wouldn't have come [back] because their jobs kept them in Australia, Europe or the US.
 
IPO @ 75c a share on Friday 24 July

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Top Tip from Tribeca Investment Partners, Jun Bei Liu: Aroa Biosurgery

Aroa is an exceptional growth story. It is at an early commercialisation stage of its product portfolio and has already delivered impressive revenue growth as its products gain a foothold in the large US market. Aroa is currently generating revenue of $22 million which we expect to compound by at least 50 per cent annually over the next three years.
 
Aroa is an exceptional growth story. It is at an early commercialisation stage of its product portfolio and has already delivered impressive revenue growth as its products gain a foothold in the large US market. Aroa is currently generating revenue of $22 million which we expect to compound by at least 50 per cent annually over the next three years.
It is a bit sluggish compared to other recent medical tech IPO, 4DX, but might be on to another breakout situation. Some neat similarities. Both opened well above IPO price, both saw plenty of volume as early investors monetised (some?) of their holdings, then both had a period of quiescence while holding those early gains more or less (>10% drop) before renewed lift and (subtly increasing) volume?

ARX daily with Volume; blue line is 4DX.... both since IPO

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AS the Resident Bottom picker I think it has hit the bottom at49c.

Not getting in yet but taking a deep dive into it research wise.
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Bit of a HO HUM reaction to:

A R OA B IO S UR GE RY M A RC H 2 02 4 4 C – C OM M E N TA RY

Financial Highlights
• Strong cash receipts from customers of NZ$18.0 million, reflecting a continuation of the prior quarter’s step-up in Myriad™ and OviTex™1 /OviTex PRS sales.
• Positive net cash inflows from operations of NZ$0.3 million, exceeding Q4 breakeven expectations.
• Net cash outflows from investing activities reduced to NZ$0.7 million, reflecting continued planned investment into additional manufacturing plant & equipment capacity with completion expected by Q3 FY25.
• The Company achieved a 71% reduction in quarterly cash burn to ~NZ$1 million, ending the year with a strong closing cash balance of NZ$29.5 million.
FY24 results to be released on Tuesday, 21 May 2024

The FY24 might give these the kick they need. Pretty sure this is close to the bottom but I have a feeling they will meander till something substantial is forthcoming.
 
After a bit of sideways movement I thought there may be a bit of a turn of direction.

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Showing signs of life..and in a hot sector attracting money.
 

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Had a flash of exuberance on 25 Jun with huge volume and then it dried up to almost nothing...a volume contraction?
Almost 5% today on low volume.
 

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