Aroa Biosurgery Drives Record Myriad Sales Amid Strong Cash Flow and Steady FY25 Outlook

Financial Momentum and Operational Strength

Aroa Biosurgery Limited (ASX: ARX) has delivered a robust March 2025 quarter, marking its second consecutive period of positive operating cash flow since listing on the ASX in 2020. The company reported NZ$1.1 million in cash flow from operations, driven by strong customer receipts totaling NZ$20.1 million. This steady inflow, coupled with prudent capital expenditure of NZ$0.6 million, allowed Aroa to end the quarter with a healthy cash balance of NZ$22.0 million and no debt.

Maintaining its full-year FY25 guidance, Aroa expects total revenue between NZ$76-79 million on a constant currency basis and NZ$81-84 million on a reported basis, reflecting a 17-22% increase over FY24. Normalised EBITDA profit guidance remains steady at NZ$0-2 million (constant currency) and NZ$2-4 million (reported), underscoring management’s confidence in the company’s growth trajectory.

Record Sales Propel Myriad Product Line

March 2025 was a landmark month for Aroa’s Myriad family of products, with sales reaching a record US$2 million. This represents an 11% increase over the prior quarter and a striking 32% jump compared to the same period last year. The growth is attributed to enhanced sales productivity and deeper market penetration, signaling strong adoption of Myriad’s extracellular matrix (ECM) technology in soft tissue reconstruction and complex wound care.

Complementing this success, demand for the OviTex bioscaffold, co-developed and marketed in partnership with TelaBio, rose by 17% year-on-year. TelaBio itself reported a 19% revenue increase for calendar year 2024, reflecting the broader market appetite for advanced regenerative solutions.

Strategic Moves and Market Access Enhancements

To accelerate growth in the critical US market, Aroa appointed Ruth Powers as its first US-based Marketing Director. Powers brings extensive experience from her previous role at Integra LifeSciences, with a proven track record in surgical reconstruction marketing. Her appointment is expected to bolster Aroa’s sales momentum and deepen engagement with healthcare providers.

In a significant reimbursement milestone, Myriad Matrix and Myriad Morcells secured unique permanent Level II billing codes under the US Healthcare Common Procedure Coding System (HCPCS). This development will streamline claims processing in outpatient and ambulatory care settings and provide insurers with data to validate the products’ cost-effectiveness, potentially enhancing market uptake.

Navigating Tariff Challenges and Clinical Validation

Despite the US government’s imposition of a 10% import tariff on goods from New Zealand effective April 2025, Aroa anticipates the net impact on its operations to be substantially less than the headline rate due to favorable commercial arrangements. This mitigates a key risk factor and supports the company’s stable outlook.

AROA’s commitment to evidence-based innovation is reflected in the publication of over 100 peer-reviewed studies validating its ECM platform. The quarter saw three new case studies highlighting Myriad’s effectiveness in treating complex wounds, including autoimmune skin lesions, diabetic ulcers, and perianal fistulae. These clinical validations reinforce the therapeutic potential and market credibility of Aroa’s product portfolio.

Looking Ahead

With a strong cash position, expanding clinical evidence, and strategic leadership appointments, Aroa Biosurgery is well positioned to sustain its growth momentum. The company’s upcoming full-year financial results, due on 27 May 2025, will be closely watched for confirmation of these positive trends and further insights into tariff impacts and market expansion.