Profit warning sends biotech firm’s shares down 20%
Tissue Regenix has today warned its 2019 profits will be up to 20% lower than expected because of delays to its plans to increase manufacturing capacity.
The Leeds-based regenerative medical devices company also expects revenues to be 15-20% lower than investors had forecast this year.
Investors reacted to the news by sending its share price down by more than 20% on opening. The company’s shares have now lost 70% of their value since February.
In June and September the company had said that sales would be “significantly weighted” to the second half of the year. But it has revealed this morning “the increase in throughput is now expected to become available during Q4”, hitting revenues and EBITDA.
Tissue Regenix’s executive chairman John Samuel said: “We have excellent products for which demand is exceeding our current capacity. Therefore, our current focus is ensuring we can increase our capacity to meet this significant demand.”
The company said it “does not anticipate any longer term impact over and above the approximate three month delay to the manufacturing capacity increase”.
It is investing in a new site in Texas, USA. It has received confirmation of a $300,000 grant from Universal City to support the start of the build out programme on its newly-leased 21,000 sq ft facility in San Antonio.
