RUA Life Sciences PLC AGM Statement and Trading Update (6996V)

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RNS Number : 6996V

RUA Life Sciences PLC

11 August 2020

RUA Life Sciences plc

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

AGM Statement and Trading Update

RUA Life Sciences plc (AIM: RUA.L), 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 (TM) ), is holding its Annual General Meeting ("AGM") at 11.00am today. Taking current Government guidelines and legislation into account, the meeting is therefore closed and voting on all resolutions will be conducted by poll based on valid proxy forms received. The results of the poll will be published on the Company's website, www.rualifesciences.com , following the conclusion of the meeting together with a short video interview where the Chairman, Bill Brown, and Chief Executive, David Richmond, will answer shareholder questions submitted in advance of the meeting. At the AGM, the Chairman will make the following statement regarding current trading:

"RUA Medical Devices

On 8 June 2020, RUA announced a notification from its largest customer requesting it to prepare for the production of products and that orders would resume in the near future. Since receipt of this notification, RUA has been closely monitoring the impact of COVID-19 on elective surgeries and the resulting orders for devices placed by hospitals both in North America and Europe in the therapeutic area served by its largest customer. Elective surgery represents procedures organised in advance by the physician and patient i.e. not surgeries carried out as emergency procedures. It appears that elective surgeries in the US have made a faster rate of recovery than those in Europe with hospital orders now having recovered to 90% of pre-COVID levels in the US compared to around 67% in Europe.

This increase in operating theatre activity has had a similar impact on the orders being placed on RUA Medical by its largest customer which has now placed orders in five out of the last eight weeks with weekly order values being at higher rates than the pre-COVID average. RUA estimates that shipments based on current orders received will average around 90% of pre- pandemic levels over the next three months.

As previously announced, the impact on order interruption is estimated by the Board at approximately GBP300,000 which has been mitigated by a number of actions, including placing 11 members of staff on furlough, the 20% salary sacrifice by the Board, general control of costs and the receipt of the Scottish Enterprise administered PERF grant of GBP150,000.

In order to meet customer delivery schedules, furloughed staff have now returned to work on at least a part time basis and full manufacturing activity is forecast to resume shortly.

RUA Biomaterials

The business specialising in licensing of Elast-Eon (TM) has had little impact from COVID-19 and recent data indicates that demand for the polymer has increased from those customers manufacturing ECMO catheters."

For further information contact:

RUA Life Sciences plc

   David Richmond, CEO                                           Tel: [phone] 

Shore Capital

   Tom Griffiths/David Coaten                                Tel: [phone] 

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 improving and enabling medical devices with Elast-EonTM, the world's leading long-term implantable polyurethane.

Whether it is licensing Elast-EonTM, manufacturing a device or component or developing next generation medical devices, a RUA Life Sciences business is pursuing our vision.

Elast-Eon(TM)'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 7 million implants and over 14 years of successful clinical use, RUA's polymers are proven in long-term life enabling applications.

The Group's four business units are:

 
 RUA Medical:        End-to-end contract developer and manufacturer 
                      of medical devices and implantable fabric specialist. 
 RUA Biomaterials:   Licensor of Elast-EonTM polymers to the medical 
                      device industry. 
 RUA Vascular:       Commercialisation of large bore polymer sealed 
                      grafts and soft tissue patches. 
 RUA Structural      Development of tri leaflet polymeric heart valves. 
  Heart: 
 

About RUA Medical Devices

RUA Medical is an experienced full-service medical device contract developer, contract manufacturer and implantable fabric specialist. The company provides subcontract design, development, manufacture, assembly, packing, inventory management, logistics and consultancy services to the Medical Device and Biotech Industries. The company partners with globally based companies to provide technologically innovative products that can deliver lifesaving and life enhancing solutions, and focuses on personalised service, combined with innovative design and development.

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August 11, 2020 02:00 ET (06:00 GMT)