Rua Life Sciences Share Discussion Threads

[bones] 11/12/2024 14:13

They would probably get that through, parsons.

[parsons4] 11/12/2024 13:48

I think RUA are a good take-over candidate. Someone with deep pockets can buy an established manufacturer with all the IP's and potential new products for say £20m,
a bargain !!!

[bones] 11/12/2024 13:26

To be fair, there has been a churn of shareholders for months already. Absolutely nothing is baked into the share price about the HV and Vascular upsides so those are already discounted. Enterprise value is below book value right now and no growth potential from medical devices is in the price either. Naturally, when a share price is on the floor (it’s a moribund AIM market after all), people tend to be downcast, pessimistic and critical. Human nature, innit?

The adventurous will buy at this level but RUA isn’t very visible to them which is something the company needs to rectify from a promotional viewpoint.

[thiopia] 11/12/2024 12:07

We do have to treat all the HV related upside optionality as worthless right now. A major player had ample time to look at it and decided it wasn't worth pursuing. Not only that but they think its so worthless they didn't even bother with any sort of relationship or contract tying up the IP so others couldn't get hold of it. Like one way of burying it would have been a small or zero upfront licensing fee with promise of multi-billions in potential milestones/royalties (safe in the knowledge they wouldn't even bother progressing it)

Thankfully they haven't made too much of the illusory 'profit' from one off accounting shenanigans. There probably will be a bit of rebasing of shareholders expectations for a while and churning of the shareholder base so all those who were here for the HV potential can sell up and give up the dull contract manufacturing business to those who want duller growth companies. They should consider delisting to save money on those costs if they have no plans to do anything adventurous or interesting with their listing TBH.

[bones] 11/12/2024 11:48

They’ve ditched that “broker” (Equity Development) so the only house broker is now Cavendish. They last had a 25p target which excluded any value for HV and Vascular. I hope there will be an update from them soon unless they are waiting on the completion of the ABISS net asset review.

Good to see RUA left some powder dry for the next interim report, namely the expected further uplift in fair values at ABISS over and above the existing heavily written down book values as well as the catching up of the backlog of orders there.

They bought ABISS almost as a favour to their main customer (which seems to be Coloplast based on the ABISS acquisition RNS) to help them out and now RUA are changing their year end to match that of Coloplast. That seems significant somehow. Certainly seems to be a solid relationship which might be beneficial if they are open to taking on more business from RUA. As pointed out, RUA also has some IP for Elasteon in the field of interest to Coloplast.

The next report from RUA should provide a first indication of how cash generative ABISS might be.

From an investment point of view, as Harrogate says, best to ignore HV and Vascular. I don’t believe for one moment that they are a write off but, for now, I’ll assume otherwise until there’s a specific development.

[harrogate] 11/12/2024 10:57

That sort of valuation was based on the HV and grafts coming off. I am treating those as dead and would like to see what the new core business is expected to do over the next couple of years

[cocker] 11/12/2024 10:54

Is this the same broker who was telling us 540 was fair value not so long ago, so again anything coming out from in house broker , basically not worth the paper is written on

[parsons4] 11/12/2024 09:53

I like the following statement "The objective for the enlarged business unit and Abiss specifically is to grow revenues through broadening the product range offered to the division's largest customer. RUA has held unexploited IP related to integrating Elast-EonTM into SUI devices to address the complications occasionally suffered by patients." That is a new statement that shows how the business can grow without the 2 other divisions. Also where is Bill????

[harrogate] 11/12/2024 09:39

Not much there that wasn't known already. Broker said they would review forecasts when RUA had done the DD on the deal. Would be good to see what the numbers look like going forward now

[lawson27] 11/12/2024 09:32

Hardly the reaction to a decent set of results!!

[thiopia] 11/12/2024 08:09

Maybe they should just become a roll-up vehicle ?

[lawson27] 04/12/2024 14:56

Looks like we could be on the move here off 11, GLA

[gleach23] 27/11/2024 11:20

I think the most recent trade of 17,372 shares and the 2 early 10k trades are sells. There's an argument for all other trades so far today being buys.

[z1co] 27/11/2024 11:02

Delayed buys of 93,236 and 64,776 from 9.50am and 9.57am shown by advfn as a sells.

[cocker] 25/11/2024 19:10

Just for the record, today's trades tell me someone's far from finished from dumping the stock. Still more for you guys!

[cocker] 25/11/2024 13:04

The share guru perhaps needs a lesson!

[z1co] 25/11/2024 08:20

It seems the slight overhang has finally been cleared , buying has increased to 11.9p.

[dave4545] 21/11/2024 20:07

Be aware a lot of trades marked as sales today were infact buys.

I got stock at 11.1p when it was 12p offer and the 11.3p buys late on were also buys.

[thiopia] 21/11/2024 19:34

Just FYI markets aren't efficient so of course you will get occasional mispricings. RUA does have a quite complex story and a history of not achieving anything on the big promises so far so a lot of stale bulls and lack of Institutional interest means we get a double whammy of persistent undervaluation and volatile small volume trading.

[z1co] 21/11/2024 15:28

Good summary by bones.

Also the CM has been trading ahead of expectations in the current year to date.

[marmiesz] 21/11/2024 14:56

Yes, thank you bones. That's very clearly put. Much appreciated,Marmie

[bones] 21/11/2024 14:42

Marmie, RUA paid €80,000 for total ownership of ABISS. This was a fire sale by the French liquidator out of ABISS’s old holding company. In the last RNS, RUA estimated, based on book values, that the surplus in value over the €80k that needs to be recognised as a non-cash one off addition to assets of the RUA group is around £900k (in GBP it said). This could be subject to change once they’ve worked out what the fair values of the assets are. They probably need to put some value on the IP too. I think there’s a good chance the adjustment might be higher.

Also, it sounds like ABISS is cash positive so they might be building cash having owned it for three months so far. Buying ABISS was mostly at the behest of the big customer, Coloplast, and the RUA group has now decided to realign its own year end to that of Coloplast. I don’t regard that as a coincidence. Coloplast has a vested interest in the products ABISS owns and produces for it.

RUA’s other contract manufacturing business seems to be going well also. That is profitable in its own right.

RUA’s R&D expenditure has been heavily curtailed to save costs too.

The current weakness is probably associated with the messaging on the heart valve. There is no way the share price had been factoring in the heart valve anyway (the CM businesses are worth more than the market cap on their own) but it’s a combination of sentiment and simply being a microcap stock in an ignored AIM marketplace.

I’m hoping the interims and commentary due in mid December will fill in the latest developments and be positive on these fronts.

[controlledmadness] 21/11/2024 12:47

Marmie. The actual wording said the 900K came from shareholder vale of 1 million. I assume this is mainly equipment and office furniture. So is revenue which will then move to capital.