Shares in soft tissue regeneration company, Aroa Biosurgery Ltd (ASX: ARX), are falling lower this morning after the company reported a 10% decline in revenue for the first half of FY21. At the time of writing, the Aroa Biosurgery share price is trading 3.03% lower at $1.28. The company also reported a decline in normalised earnings before interest, tax, depreciation, and ammortisation (EBITDA), reporting a loss of NZ$2.3 million compared to positive earnings of NZ$2.15 million a year earlier.
What else did Aroa Biosurgery report today?
Aroa says that even though its revenues were down by 10% to NZ$9 million, it is still ahead of the company’s COVID-19 adjusted planning assumptions.
The company ended the half-year in a strong financial position with cash on hand of NZ$38.7 million.
Aroa says it expects to deliver revenue growth in the second half of FY21 to NZ$21 million as restrictions are expected to ease.
A quick look into Aroa Biosurgery
Aroa Biosurgery is a New Zealand-based, soft tissue regeneration company focused on improving the rate and quality of healing in complex wounds and soft tissue reconstruction.
Its products are mainly offered in the United States, and target chronic wounds and soft tissue reconstruction including for hernias, breast reconstructions and trauma, limb salvage, and tumour surgery.
Aroa says its total addressable market for the entire Aroa product portfolio has grown from $1.5 billion to more than $2.5 billion in the US this year.
In July, the company received US Food and Drug Administration (FDA) clearance for its Symphony product. This product will be used to reduce the time to wound closure, particularly where patients have severely impaired healing. Aroa expects to commercially launch Symphony in 2021.
How has the Aroa Biosurgery share price performed in 2020?
Aroa Biosurgery first listed on the ASX on 24 July this year after raising $45 million at 75 cents per share, with an indicative market capitalisation of $225 million. Minutes after listing, the Aora share price shot up to $1.52, before retreating to $1.35 at close of trading that day.
The Aroa share price is currently trading around 26% lower than its all time high reached on 30 July and has a market cap of $387 million.
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