Early-stage Healthcare micro-cap, years from commercialisation, why must your siren song call to me so strongly?
Tissue Repair (TRP) floated in November 2021 with the object goal of successfully completing the Phase 3 trial of their TR-987 gel prior to proceeding to commercialisation in the US market.
The topical gel is aimed at treating chronic wounds which, currently, require the use of a medical device, scaffold, or human derived product to treat the wound.
There is no clear message as to whether the gel would be used in lieu of these items as apposed to conjunction with them.
The company also has a market ready cosmeceutical gel (TR Pro+) that it is aimed at a post procedural product for minimally invasive cosmetic procedures.
Market
TR-987
The company’s initial target for TR-987 is the US. Specifically, the active wound care (defined as an impaired wound that has not healed after 4 weeks) segment worth circa $1.5b.
There is additional commentary on expanding beyond this section of the market into burns, surgical/trauma wounds and after sun care amongst others however the primary target for initial commercialisation is the active wound sector.
TR Pro+
The company intends to target this product at those who have undertaken nonsurgical treatments for aesthetic reasons e.g., Laser skin resurfacing, chemical peels, microdermabrasion etc.
In Australia (first area for launch) this market is quoted as being circa $341m with the larger US market at $3.4b.
Timing
TR-987
Timeframe to FDA Approval is circa 48 months, or sometime in late 2025/2026, assuming trialing and approval process run in alignment with the company’s expectations.
TR Pro+
The company is aiming to have the product in market and generating sales in 2022. This is specific to the Australian market. I couldn’t find any reference to proposed launch into the US however, pending response in AUS, that may be in the future plans for the company.
Company Funding
The November float raised circa $22m to fund the Phase 3 trials.
The prospectus calls out that the raised funding should allow the company to achieve its stated objectives for the next 24 months.
The company has since (per the Dec 21 4C and Activities update) stated it has sufficient funding to complete the Phase 3 trial programme and also the initial commercialisation activities for the TR Pro+ product.
I would imagine that the company would come back to the market for funding in circa 36 months with some positive updates to raise the funds to cover the perspective ramp up costs to commericalise the product.
The company has released a further update as part of the Dec 201 4C / Activity update which I’ll aim to touch on separately to avoid a War and Peace here.
Thoughts:
Fellow Straw people! It’s magic goo that can heal your cuts! What’s not to like.
In all seriousness, the product and its path to commercialisation remains high risk. I like the fact that they have the alternate product (TR Pro+) that is closer to earning some dollars but outside of that there is a lot of work for the company to do before it’s where it wants to / needs to be.
As it sits, the Share Price is sitting at 44c (as at 7 Feb 2022). A large drop from it’s IPO price raise of $1.15. If you are a holder with a time horizon any shorter than the late 2020’s when this product is due to be in market then you are likely not a happy camper.
From where I sit, it’s a watch over the next year to see how the Pro+ commercialisation progresses, how the preparation and commencement of the phase 3 trials run and also how the cash is expended ($13m of the raised capital has been earmarked for the phase 3 trial). Assuming the company achieves the short-term goals for 2022 I would look to purchase at a similar time in Feb 2023.
