Aortech Share Discussion Threads

[bones] 13/5/2020 13:33

Strikes me as a bit of a lazy update by Equity Development, done in a rush I think, with messy grammar; not proof read I guess.

Poor schoolboy error in the first paragraph, suggesting that the new name will be RUA Medical PLC when it has been flagged by the company as being RUA Life Sciences PLC.

Very surprised they have made no change to their risk setting for heart valve exit value. This was a critical early stage to prove the feasibility of this tooling design. How does that not justify even a small adjustment to the risk factor?

Unimpressed of ADVFN!

[edmonda] 13/5/2020 13:11

#AOR In a well-received trading update Aortech have detailed their FY royalty and licensing revenues, cash balance and product developments. After many years in the making, the Elast-Eon tri-leaflet heart valve now appears to be ready for ‘prime time’.

[someuwin] 13/5/2020 13:11

"In a reassuring and well-received trading update ahead of FY 2020 results set for July, Aortech have detailed their FY royalty and licensing revenues, cash balance and product developments. After many years in the making, the Elast-Eon tri-leaflet heart valve now appears to be ready for ‘prime time’.

We have made only very minor changes to our valuation and financials. Our valuation moves to £101.3m or 690p per share from £101.2m or 689p per share, largely as the result of the slightly higher cash balance. The major components of our valuation are the products in development and their valuation remains unchanged....

[langland] 13/5/2020 11:56

In a word yes in my opinion But, of course, stranger things have happened. The point about today's announcement, as I see it, is that is goes a long way to derisking the HV project. The significance of the company's statement about 20 years cannot be underestimated. The question is how soon the apparent discount between current and future value will be realised. The last Equity Development note stated that the market was giving zero value to the success of any of the projects. Despite today's rise, that still holds true. To see the significance of what AOR/RUA have here, I think you need to research the history and success of Edwards Life Sciences over the last 20 years.

[alanrussell] 13/5/2020 11:45

So the next question is when might there a deal with one or more of the manufacturers?
Evaluation will take time and then negotiation. Is it too much to expect a deal this calendar year?

[bones] 13/5/2020 10:43

This reads more impressively each time I look:

“...We are now delighted to announce that the manufacture of valves has been undertaken and early prototype valves are currently available FOR EVALUATION. The outcome of these manufacturing trials has far exceeded our initial expectations and the feasibility of the novel manufacturing concept has NOW BEEN PROVEN.

The valve design and manufacturing method are both major improvements and the Board believes that the combination has produced one of the largest step changes in heart valve technology over the LAST 20 YEARS.

All of the limitations imposed by historic methods of dip casting valve leaflets, and the quality issues related to those designs and manufacturing methods, have been ELIMINATED.

There is so much emphasis here on certainties, no messing about with “might have” and “could be”, but instead we have “NOW BEEN PROVEN” and “HAVE BEEN ELIMINATED”.

We also have “AVAILABLE FOR EVALUATION”. Safe to say this invitation is not aimed at day trading punters! It is surely a “come on in and take a look” to the big heart valve manufacturers.....

[bones] 13/5/2020 08:56

You can be sure that the majors will be the main target beneficiaries of the statement made that this development on heart valves is the biggest change in 20 years in the industry, not some of the day traders that have already been in and out for pennies today....

[someuwin] 13/5/2020 08:47

Just buy and hold imo. I can't see how this can fail to multiply many times over the coming years.

We have no idea when the real re-rating will happen. But happen it will. Of that I'm sure.

[semper vigilans] 13/5/2020 08:46

Sorry - double post!

[semper vigilans] 13/5/2020 08:46

Agree amt. However, we all live in hope, but I doubt a killer bid will emerge soon.

[amt] 13/5/2020 08:43

K1 I don't think so. This will not be coming back down. Its already broken out of its trading range.

[k1ngkonggb] 13/5/2020 08:18

This will probably hit 90p+ then over the coming days will fall back to mid 70's as this seems to be the trading range now.

[amt] 13/5/2020 08:15

Do you think they will get taken out now while the price is dirt cheap or will there be a battle to buy out the technology when all the boxes been ticked.
7 quid would be a nice price.

[bones] 13/5/2020 08:08

These recent research notes valuing AOR at 676p and 689p might well be revised to narrow the risk discount on the heart valve development:



That would take the valuation well north of 700p. Only about 10 times where we are then.....

[langland] 13/5/2020 07:43

Agree with everyone that this is an excellent update. The whole team are to be congratulated since this HV project has not been without risk. There is still some way to go with approvals but the technical success stands out. It is quite some statement to make that this is the biggest potential development in the last 20 years.

[bones] 13/5/2020 07:42

A few of the select band of Med-Tech giants will surely be taking a strong interest in that heart valve progress. Reference Langland’s link in post 3408, repeated here for convenience:



Medtronic, Abbott Labs, Baxter International, Terumo Corp, Edwards Life Sciences.....all worth billions.

Aortech/RUA .... £12M

John McEnroe would have a phrase for that.

[amt] 13/5/2020 07:25

Yes fabulous news. Its all about heart valves. I can't remember the size of the heart valve market but were they aiming for tens of millions in turnover from it?
I wonder if today's news is transformational and will see a massive increase in the share price.

[nimbo10] 13/5/2020 07:22

Great update on researchdevelopment activities, also positives in US elective surgeries openining up. Expect it to go in positive direction and head towards true value. Covid19 related companies seem to have shot up when newsflow is only based on hopes and hype and the Covid environment.

Here we seem to be close to achieving major developments with large health markets. Comfortable holding here as it heads for true valuation.

[amt] 13/5/2020 07:17

Yes fabulous news. Its all about heart valves. I can't remember the size of the heart valve market but were they aiming for tens of millions in turnover from it?

[bones] 13/5/2020 07:13

Priddy darn tootin’ update on progress, as they are apt to say, Stateside!

Super work by the team at Aortech and RUA, well done to them all. It’s been a long slog for Bill, that’s for sure. Well done him and the rest of the board who took on the new strategy in 2018.

[semper vigilans] 13/5/2020 07:13

Coming along very nicely - well done all.

[cocker] 13/5/2020 07:12

WOW, Great update & just perhaps the start of a more serious move towards true value.

[someuwin] 13/5/2020 07:09

Fantastic update!

"...The valve design and manufacturing method are both major improvements and the Board believes that the combination has produced one of the largest step changes in heart valve technology over the last 20 years.

All of the limitations imposed by historic methods of dip casting valve leaflets, and the quality issues related to those designs and manufacturing methods, have been eliminated. AorTech has already engaged with its IP advisers to initiate the steps required to protect this valuable new Intellectual Property."

[langland] 12/5/2020 11:09

Thank you.

[landy90] 12/5/2020 11:06

Langland I would imagine that the current focus is to prove the new manufacturing method in surgical valves. Once the leaflet can be formed with this method, adapting the technology for TAVR use is relatively simple. It would also give the design team something to work on whilst testing of the surgical valve gets underway.