Aortech Share Discussion Threads

[ny boy] 29/4/2020 10:09

I have got a diary note 30 Nov 2023 to check for 400p 😁

[bones] 29/4/2020 09:56

Amt, that’s right. Once backlog starts to be worked on, it won’t matter that all the operations are months behind since the hospitals and surgical centres will be clamouring to obtain the materials required from the supplier that buys from RUA Medical. The build up will start gradually as States get back up one by one and hospitals begin prioritising urgent cases.

I read that many surgeries have stacks of empty beds currently as, in many areas, the C-19 demand has not materialised and there are so fewer trauma cases coming in due to the lack of traffic accidents on the now empty highways! Ergo, they want elective surgery back pronto.

[amt] 29/4/2020 09:43

Must be a huge backlog of surgery which will have to take place in the months ahead. As the number of new infections drops off quickly in the weeks ahead then should get back to some sort of normality

[langland] 29/4/2020 09:39

Decent reversal last 24 hours so one would like to think some canny buyers have shown up with anticipation that AOR/RUA will be the next 'big thing'. After all, if a dog like DEMG can double in the last week or so then why not AOR? But DEMG, which is also in the medtech sector, is strong because the market has just started waking up to the fact that it has valuable technology which would be attractive to the US market. How long before AOR/RUA follows suit?

[someuwin] 29/4/2020 09:31

I don't think this notice on their homepage is new (although I hadn't seen it before). But I think it is a good statement of intent. Hopefully this merger and rebranding of the two businesses will mark a new dawn for all concerned - esp us shareholders!

(just got to wait for this pesky virus to dissipate - but as bones points out above, US states are already starting to bring back elective surgery procedures)

[langland] 28/4/2020 16:09

Agree. In the current environment to get 'life sciences' in the name could spark a rerate on its own.

[bones] 28/4/2020 15:59

In fact, the sooner we have “Life Sciences” in the name, the more likely more will take a look as the sector is the place to be.

[bones] 28/4/2020 15:55

You must be the exception, someuwin. I think a few must have sold up to ride the Covid hot stox! We are still under £12m market cap, how ludicrous!

[someuwin] 28/4/2020 15:37

Been parking a bit more money here lately.

I see it as a safe haven at these levels. With the bonus of potential huge upside.

[bones] 25/4/2020 20:54

The US states are slowly looking to bring elective surgeries back on stream, eg:

[bones] 20/4/2020 16:16

All I know, Ivor, is that £5 would be splendid right now!

Hopefully, the heart valve manufacturing equipment will be up and running from next month. If they can get that working well, then things should start looking good from an IP development standpoint.

[ivor hunch] 20/4/2020 16:01

Sadly no chance of a £5 'knockout' bid. Why pay £5 when a predator could probably get it for £1.50 per share max?

[bones] 20/4/2020 15:52

On lockdown, basking in the sun and fast coming to the conclusion that a knockout £5 per share bid from an industry player would be absolutely splendid.

The AIM market and its mostly short-sighted investors just don’t get it! The teams running Aortech/RUA deserve better and perhaps would be best served being owned by the industry that knows what it is aiming to achieve.

Rant over.

[landy90] 17/4/2020 11:22

long term implantable devices and inpatient would be my expectation.

[bones] 17/4/2020 10:54

With reference to RUA’s customer holding up orders because of the temporary block on elective surgeries in the US, the just published guidance to States on “opening up America again” gives hope of restoration. It indicates that, where the conditions are met on Covid cases statistics In a State, the Phase One stage can include resuming elective surgery work on an outpatient basis. Then Phase Two will allow inpatient surgeries as well.



A lot of variables at work here;

- Into which markets (read States) does RUA’s customer sell? I understand that the customer is a top 20 device supplier in the US. It may sell to many and States will come back at different rates of time.

- Is the product sold by RUA likely to be used in outpatient cases or mostly inpatient? I would need knowledge of the procedures and technical advances to know that. I don’t know if RUA’s product for this company is cardiovascular related. It will presumably involve textile based materials but whether it goes inside a body or near or on the surface, is not known to me.

From what I have read, a lot of hospitals and surgical centres in the US are not emergency rooms and are often smaller business concerns relying heavily on elective surgery work. People with cancers, painful joints, gallstones, eye sight deterioration and heart maintenance issues are all affected because the definition of “elective” is wide and pretty much covers any forward booked operations. A lot of people are in pain and distress. Lobbying on all of these counts is fierce and the government will be keen to get this sorted out sooner rather than later I would think.

My overall take is that RUA’s customer will find their business comes back on a piecemeal basis given the variations between States and their health profiles.

[langland] 15/4/2020 11:23

The 25k trade was just me switching accounts.

[cfb2] 14/4/2020 22:24

The herd will only see the value when the share price approaches 600p and then they'll look longingly at the chart to when it was only in the 70's and think "if only..."!

20% cut for those not furloughed seems to be the norm. The thinking is that for the next 3 months the government pays for 80% of the wages (up to £2,500) and the company may make up the difference otherwise it is effectively a 20% cut in wages. If the company doesn't make up the difference then a furloughed employee has lost 20% of their wages and others should share the same pain.

Like others on this thread, I see this lock down as a delay and nothing more. The demand for use in elective surgery is not going to go away, it will be building up for when the suspension is lifted. I'm expecting increased demand at that point.

[bones] 14/4/2020 21:19

The recent 689p per share valuation by Equity Development is mostly a function of the discounted exit values of the “Structured Heart” and “Vascular̶1; divisions of the group. Today’s update explained the tremendous progress being made on both of those strands of the business. Both strands are approaching initial trial stages of some kind in 2020.

By rights, solid value should start to be accruing to the shares because those divisions represent the big value. This is also the part of the business that existed prior to the RUA purchase so, in many ways, not a lot has been affected by the order delay in RUA itself except to create a nuisance meaning that some employees have had to be furloughed, which is unfortunate for all concerned. Hopefully, that part of the business will resume in a few months but the work RUA is doing on these big Aortech projects continues unabated, we are told.

On a point of order, the temporary loss of RUA orders may knock a few pence off the 689p value but even at say 650p (guess) it is none too shabby given the current price of 76p.

[cocker] 14/4/2020 20:30

20% cut & not 30% as you mentioned.

[parsons4] 14/4/2020 15:39

A very good RNS. Management team taking a 30% cut is fantastic. Still top notch here I am expecting a great future with AOR. Still my largest holding.

[parsons4] 14/4/2020 15:39

A very good RNS. Management team taking a 30% cut is fantastic. Still top notch here I am expecting a great future with AOR. Still my largest holding.

[netcurtains] 14/4/2020 15:27

It depends when next bit of positive news comes thru....

Does anyone have a guess (won't hold anyone to it) for next good news date?

[cybernest53] 14/4/2020 14:07

Worth a top up?

[semper vigilans] 14/4/2020 11:58

Thanks - feel a bit better now!

[bones] 14/4/2020 11:53

Add to the above that the automated manufacturing processes being developed as part of the device production methodology will be a vast improvement on current manufacturing processes, especially on heart valves, where human inputs are much higher due to having to handle and treat the animal tissue. Ultimately, devices will be produced without animal derivative AND will be cheaper per unit for the majors to buy due to the automated manufacturing techniques.