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Aroa Biosurgery maintains cash flow momentum as Myriad Matrix product sales hit record high

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By Imelda Cotton - 
Aroa Biosurgery ASX ARX March 2025 quarterly results
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Soft tissue regeneration specialist Aroa Biosurgery (ASX: ARX) has posted its second consecutive quarter of positive cash flow, in a period that also saw the company reach a key milestone with over 100 published peer reviews now validating its ECM platform in pre-clinical and clinical studies.

Cash flow for the three months to end-March totalled NZ$1.1 million, primarily reflective of an increase in receipts from customers to NZ$20.1m, as well as the absence of large one-off cash expenses.

Net cash outflows from investing activities were NZ$600,000 and total cash on hand increased by NZ$100,000 to NZ$22m, keeping the company in a debt-free position.

Myriad Matrix sales

Increasing sales of Aroa’s high-margin Myriad Matrix products for surgical soft tissue reconstruction and complex wounds helped facilitate the positive result, as the company recorded an 11% jump in sales revenue on the previous quarter and 32% against the previous corresponding period.

Myriad’s US$2m sales revenue in March was the highest on record, driven by continued improvements in Aroa’s sales productivity and penetration.

Aroa confirmed its full-year constant currency revenue guidance of between NZ$76m and NZ$79m and full-year normalised EBITDA of up to NZ$200,000.

Ovitex demand

Also in March, Aroa’s partner TelaBio delivered full-year 2024 revenue of US$69.3 million.

This represents an improvement of 19% on the previous corresponding period, with growing demand for reinforced bioscaffold product Ovitex a major factor.

Sales of Ovitex, used for hernia and abdominal wall repairs, increased by 17% on the previous corresponding period.

Level II codes

Earlier this month, Myriad Matrix and Myriad Morcells were assigned permanent Level II codes under the US Healthcare Common Procedure Coding System.

US Healthcare providers use these codes when making reimbursement claims for medical devices, medications and other supplies and services in outpatient and ambulatory centres.

The designation will help streamline the reimbursement process for customers using these Myriad products and eventually allow US insurers to access a body of verified data demonstrating their cost-effectiveness.