Positive AGM statement

RUA have provided a recent flurry of positive news, including an update on RUA Vascular division’s products and the recovery in elective surgical procedures in the US and Europe. The recovery in surgeries is positive for the revenues of RUA Medical Devices division and provides investors with much more reassurance than the second-quarter financial results from the biggest medical device companies.

The AGM update paints a recovering picture of the orders and therefore revenues at its RUA Medical Devices division. The recovery in elective surgical procedures and orders from its largest customer are expected to result in shipments that will average around 90% of pre-pandemic levels over the next three months. RUA Medical Devices has received orders in five out of the last eight weeks at higher levels than the pre-pandemic weekly average value.

There is also progress for RUA Vascular‘s Elast-Eon-sealed large diameter sealed vascular grafts and patches, as the critical ‘design freeze’ stage has been reached for the graft. Achieving the leak and permeability characteristics of market-leading grafts without animal products now clears the way for regulatory testing to complete in early 2021.

With the tangible progress in RUA’s surgical grafts and patches, we are getting closer to increasing our valuation, but for now make no changes to our financials. We still value RUA Life Sciences at £99.3m or 676p per share.