finance

Life sciences firm sees orders boost as US ops resume



Rapid resumption of elective surgery in the US has allowed synthetic tissue specialist RUA Life Sciences to bring staff back to work.

The AIM-listed biotech firm based in Irvine said its biggest customer in the States had placed orders in five of the last eight weeks, spending more on average than before the pandemic.

RUA, which makes implantable devices such as heart valves using the biostable polymer Elast-Eon, said orders from hospitals in the US were now at 90% of pre-Covid levels, compared with 67% in Europe.

The firm said its RUA Biomaterials business which licenses Elast-Eon has been barely impacted by Covid-19 and that demand had increased from customers making ECMO catheters.

RUA Life Sciences has brought all furloughed staff back to work part-time and intends to resume full production soon.

The firm said: “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 £300,000 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 £150,000.

“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.”



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