Rua Life Sciences Share Discussion Threads

[bones] 15/3/2022 18:24

Harrogate, as regards updates, I emailed the company (my usual lines of contact) last week to see if there is a prospect of at least a year end (31st March 2022) update in the works. I also reminded them of my substantial investment here (which I've increased manfully while available in the 50p range). Finally I gave my opinion that Amati VCT appear to be lightweights as a so-called cornerstone investor, selling out some (where will it end?) of their 8% stake investment made by them only a year ago.

I've had no response to the email (or indeed earlier recent efforts) and it's really been "radio silence" since the 510k setback. I have to assume a lot of "NDA" type stuff is happening behind the scenes and that no-one is prepared to utter a thing to outside investors.

The Cenkos roadshow slot last month with Caroline Stretton hinted (to my ears) of possible changes in the way the board is running things now even if that might fall short of a power struggle. Bill was unusually off-camera last month and didn't even get a mention from Caroline. It appears that:

"....Iain Anthony is absolutely critical in our strategy going forward and already he has brought huge value to the business...."

(that was word for word from Caroline Stretton in the concluding part of the Cenkos piece of 8th February).

You can draw your own conclusions. What we do have though is an overhang with a wobbly Amati VCT "investor" combined with an information vacuum in the middle of a small cap bear market and the threat of a war in Europe! Hardly surprising the share price is moribund.

[buywell3] 10/3/2022 07:56

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[harrogate] 10/3/2022 07:10

Yes that's why I posted it - for Buywell. I know we all said our piece a while back but they really need to get some communication sorted here.

[bones] 09/3/2022 16:15

Harrogate, I think that was the case that our agitating friend "buywell" kept mentioning here a few weeks ago while the patient was apparently doing well. As was pointed out at the time, as he well knew, RUA are not in that "whole heart" transplant market, far from it. As langland pointed out, if he needs a new spark plug, he is not in the market for a complete engine.

As you say, a sad event for the person and their family. I understood he was a very unwell man before so this was a last resort.

[harrogate] 09/3/2022 15:29

Obviously very sad for the individual and family but worth noting re RUA Man who received pig heart in ground-breaking transplant dies two months after surgery

[semper vigilans] 08/3/2022 17:04

As long as they don’t ‘cover up’ all bases!

[bones] 08/3/2022 16:53

The company’s year end is 31 March so maybe a “trading update” is planned to cover all bases.

It seems to me there are a few of us who either contribute here or just lurk whose combined shareholdings probably exceed maybe 10% of the company. Perhaps, as a group, more activism is required? Chatting and speculating only gets you so far.

[semper vigilans] 08/3/2022 16:33

Thanks share price and 25/9 - frustrating whatever is/is not going on in the background.

[25october1969] 08/3/2022 15:23

yep...coming up to 3 months since the smack on the hand. An update would be welcome.

This is a good time to reread the Equity Note of 13 December.

For those who do not have time for such trivialities, the general message is that you are not missing anything as no one appears to have a clue what the FDA has in store for RUA.

In a modern world, surely updates should be permitted and conveyed to those who wish to pretend that they understand what is going on behind closed door. The general view seems to be that the riff riff ie me and my kind, are lucky to be allowed to own shares let alone be informed of how the company is progressing

Roll on Democracy......or did we get that in the last century?

[semper vigilans] 08/3/2022 14:43

Very quiet here?

[buywell3] 16/2/2022 21:42

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[bones] 11/2/2022 21:16

The surgeon. Yes, I pretty much said the same in that things point to a licensing out of some HV IP to fund progress.

Then again, that was always the case for as long as I can remember. RUA never, ever was taking the HV far on its own.

What price will they get? I have no idea! Probably depends on how many of the bigger players want it.

[the surgeon] 11/2/2022 21:00

The problem is RUU do not have the funds to do the clinical trials to get FDA approval. The RUA board seemed aghast when they were told it would cost in excess of €5 million.
Unless they sell the heart valve venture they will be unable to finance the clinical trials for the grafts etc. plus we are delayed by at least a year.
Blaming third parties is a nonsense. Anyone with any medical experience would have know it was a possibility and the costs involved should clinical trials be necessary. Unless a customer for the heart valve division is found RUA is doomed. Unfortunately any perspective buyer will know this and any offer will reflect this.
This share is either a sell now or a long term hold.

[25october1969] 11/2/2022 19:31

Another very informative post Bones

Many thanks

[spurious] 11/2/2022 19:09

Bones
Good that we are on the same page
SP

[bones] 11/2/2022 18:47

The recent 15 minute slot by Caroline Stretton at the Cenkos event seemed to divide opinion depending on one’s state of mind (pessimist or optimist?). So, for my own curiosity, I had a good listen again in detail, stopping and starting the video to see if I could detect anything amid the white noise.

All that follows are my views only. Take from them what you will.

Most of the talk appeared to be read from a prepared transcript so my first conclusion is that it will have been approved by all relevant board members; probably Bill Brown, Iain Anthony and Lachlan Smith at a minimum. I think the prepared script also allowed for the mention that “I can say that one of the key players in the heart valve market is actually visiting us today….” as Caroline appeared to read from her notes while saying it. To my mind, I don’t believe she would have slipped that out without approval even if it wasn’t especially unusual. It’s been made clear many times that they see and talk to these people regularly.

However, I’m unsure about the ending of the comment with “…which is very exciting…̶1; and, after a pause, the throwaway comment “More news on that shortly”. Those sounded more like expressions of Caroline’s enthusiasm. About what exactly? If something has actually been documented and inked, then RNS it, but there’s no proof here that it has. Nonetheless, interesting!

I could be over analysing but that is how I viewed it after several repeats of that bit!

A lot else was covered so I will try to condense the key conclusions and observations I took from it.

Fallout from FDA delay on Vascular

The FDA requires a clinical trial, so this is a delay, not a failure. However, “lessons were learned” and actions taken, such as:

- Not using third party advisers going forward
- Addressing “inexperience in certain areas of the business”

Caroline then emphasised her own appointment to MD in October and the appointments of Iain Anthony (Clinical Affairs) and Lachlan Smith (Finance), commenting that “the rest of the team” continue to bring a wealth of experience in the field of cardiovascular devices with world leading organisations”.

Does that sound like a changing of the guard? “The rest of the team”?

I get the impression that a lot of activity and soul-searching will have gone on since the FDA initial review findings and sparks have possibly flown. If there was complacency in situ before, I suspect it’s been booted out. Possibly, the new directors may be forces for good here.

Caroline said of herself: “…track record in medical device innovation and achieving multi-million pound exits.”

She said of the new directors: “…Iain Anthony and Lachlan Smith are playing key roles in developing a revised regulatory and clinical strategy and conducting detailed financial planning, which are essential for the group to become a fully-fledged manufacturer in its own right.”

Also, she said: “Iain Anthony is absolutely critical in our strategy going forward and already he has brought huge value to the business.”

Question from me: What was happening before the new directors arrived?


The RUA business divisions

All divisions are based on “Exploiting Elast-Eon as an Enabling Technology”.

1. RUA Biomaterials

Strategy – grow royalties from sales of Elast-Eon; Continue to enhance the IP through R&D

2. RUA Medical Devices

Strategy – transform business into “Elast-Eon Centre of Excellence”. Maximise sales from existing customers and ensure the group’s product portfolio is delivered upon.

3. RUA Vascular

Strategy – seek for RUA Vascular to become a significant player in the surgical aortic graft market. Develop and commercialise a “vascular graft pipeline and maximise shareholder value by growing the business to achieve attractive levels of profitability.”;

First product to market is to be aortic root graft. Planning a global launch now that a clinical trial will be aimed at Europe, US and Asia.

RUA has received “substantial interest” in its vascular product range from major corporations (distributors and OEM’s) and discussions are all under non-disclosure agreements.

4. RUA Structural Heart

Strategy – “Development and de-risking of the polymeric heart valve technology platform and licensing to a major corporation if valuations are attractive prior to launch.

RUA has been mentioned at global cardiothoracic meetings during discussions on polymeric heart valves so, as Caroline stated:

“We are positioning ourselves to disrupt the $8,000,000,000 surgical and TAVI heart valve market”.

It sounds to me like licensing of the heart valve “technology platform” is possibly front and centre here.

That’s about the main points for me.

[bones] 10/2/2022 18:18

Moving on, with covid restrictions being relaxed in general, I think there is no reason why the next AGM shouldn’t be open to shareholders. There is no substitute for meeting the board in person and having the chance to discuss the company’s business. It’s usually in August but could be a good amount of things in play by then!

[harrogate] 10/2/2022 14:29

But she is hardly going to talk about such price sensitive information on a speed dating show is she ?

[cfb2] 10/2/2022 14:21

Still waiting for the invite TRMB. I assume the postman is waylaid with all my valentine gifts.

I listened to the same 10 minutes yet came away with a different conclusion and if bones or others get upset by me posting that view here then there is no point to having any financial BBs.

What Caroline talked about was her disappointment with the submission and only touched on the remedy (dumping consultants, employing new management and being careful of the quality of future staff) and made no mention of the timescales or of funding. Not so much what she said but what she didn't say.

[bones] 10/2/2022 13:07

Harrogate, absolutely agree. I can well understand your weariness though!!

[the_real_mr_big] 10/2/2022 13:01

Sounds like cfb2 didn't get the invite to Bill's Buckie Bonanza.

Management f.cked up big time and there's no excuses, but I'm still here because of this:
"The share price is marginally higher than when they embarked on the graft project. 80 prototypes later, design freeze and testing success is apparently worth 10p per share."

Current mcap is nuts, and development opportunities are pretty good.

[harrogate] 10/2/2022 12:38

I agree absolutely that griping on boards isn't that constructive and if you don't like a share / management then sell up. But boards are also about setting out both sides or other possibilities. If everyone just sold and didn't post negatives surely the board would be less useful. My main point in posting was to counter some of the over optimistic reaction to a 10 minute presentation. I am a very weary shareholder I agree though

[bones] 10/2/2022 12:37

Finally, as previously stated, I have been aggressively buying here in the last few days at prices between 52-56p. Again, this is an investment decision on my part. I happen to think the market has reduced the price to bargain bucket status so I acted. If I lose from here, that’s again my fault.

If management truly screws up in the next year or two, then maybe it will be time to call it a day. I’ve been in since 2017 and in the round I believe the management has been excellent despite hiccups along the way. I remain happy with them in the broader scenario and am pleased with the recent strengthening of the board and in particular the posts of clinical affairs and finance. I look forward to greater professionalism all round as the strategy reaches its critical stages.

[bones] 10/2/2022 12:28

Just for the record, I agree the messaging last year gave an overriding impression that confidence in the approval process was likely as witnessed by the repetition of the Q1/22 first revenues from grafts. It was never a guarantee though and that was never given. The 3rd November webinar even had a question about whether the FDA might insist there is a novel aspect to the grafts and Bill clearly had to think hard about that before responding that it was possible.

In retrospect, I should have thought through those replies a bit more critically. I might then have realised that there was a slight binary element here and that maybe I should think about “de-risking221; a little given the decent share price at the time.

However, I didn’t, I took a whack and I correctly blamed myself 100%. It is my investment and I made a misjudgement in managing it.

My conclusion however is that there has been no fundamental change to the company strategy, potential and the rest of it. The board has been strengthened and maybe the pressure on Bill will reduce and more collective brains applied going forward.