US regional distribution agreement signed
Tissue Regenix Group plc (AIM:TRX) ("Tissue Regenix" or "the Group"), the regenerative medical devices company, announces that TRX Wound Care Inc. has signed a new regional distribution contract for DermaPure® which is used in the treatment of chronic and acute wounds.
There has been substantial commercial interest in Dermapure® since Tissue Regenix received notice of Local Coverage Determination (LCD) from Novitas, as announced on 5 March 2015 and effective from 9 April 2015. Novitas is a Medicare Administrative Contractor covering US states representing 8.9 million Medicare beneficiaries and is responsible for product coverage and reimbursement. Novitas is the largest of the eight reimbursement groups covering Medicare and Medicaid reimbursement claims in the US.
This major new contract has been signed with an experienced surgical and wound care distribution network; the contract covers 2 of the 12 states that comprise the region covered by the Novitas reimbursement LCD notice and represents approximately 11% of the Medicare patients addressed by the notice. The contract is expected to be worth a minimum of $600k over the next 12 months and provides for additional areas to be covered by mutual agreement.
Building on the increasing clinical awareness of the outstanding results being achieved in the US by Dermapure®, Tissue Regenix is also continuing to deploy its direct sales representatives as part of its ‘hybrid’ distribution strategy of both direct and indirect sales representation.
Our US team has done an outstanding job in achieving commercial traction for DermaPure® and signing this regional distribution agreement. This agreement validates the hard work put in since the launch of DermaPure® in June 2014, as well as the remarkable clinical results that we are seeing from the product.
Tissue Regenix is a leading medical devices company in the field of regenerative medicine. The company's patented decellularisation ('dCELL®') technology removes DNA and other cellular material from animal and human tissue leaving an acellular tissue scaffold which is not rejected by the patient's body which can then be used to repair diseased or worn out body parts. The potential applications of this process are diverse and address many critical clinical needs such as vascular disease, heart valve replacement and knee repair. Tissue Regenix was formed in 2006 when it was spun-out from the University of Leeds. The company commercialises academic research conducted by our partners around the World. In November 2012 Tissue Regenix Group plc set up a subsidiary company in the United States- 'Tissue Regenix Wound Care Inc.', as part of its commercialisation strategy for its dCELL® technology platform.