The good news for us: "Increased demand for OviTex® and OviTex PRS Reinforced Tissue Matrix products during the first quarter, resulting in year-over-year revenue increase for each product of approximately 15% and 2%, respectively;". So, our customer is buying more product. And with Aroa's own sales team doing well, this is very nice.
This is offset by TELA continue to lose a lot of money. Whether they can remain solvent in the long-term is unknown (and questionable IMO). But companies have different options for funding, so they can probably raise more capital in the future if needed. At worst, they can limp along for a few more years.
This is complete speculation, but if the commercial terms can be agreed I can see a world in which Aroa takes back Ovitex sales from TELA. Our direct U.S. sales team is scaling and having control of all our products seems like a good alignment of interests. I suspect Aroa Management have at least considered this?
ARX Price at posting:
46.0¢ Sentiment: Buy Disclosure: Held
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