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Superb article in the Scottish Herald this weekend:

Anyone needing a précis of the current state of play need only read this.

Aortech article

it is a very interesting article, but hard to determine from that what might be a current fair price for the stock

very belatedly, i bought a few 000 for my sipp yesterday

cynic, I could easily say that a fair price is, "whatever the market pays", but for me the following assets are in play:

- Historic £60M of investment in Elast-Eon and its uses (all still relevant and valuable learned assets I believe, including £30M in heart valve R&D);

- New strategic aims to develop and market cardiovascular patches and large bore grafts within two years (based on view that there is a genuine shortage of suitable animal tissue - a position not improving as populations age);

- new partnership with RUA Medical (http://www.ruamedical.com/) to use their development and marketing expertise in that field.

- Other main strategic aim to develop the synthetic heart valve using the very latest in computational tools to speed up the pre-testing phase, with a view to initiating in-vivo trials in two years time.

- new partnership with Vascular Flow Technologies (http://vascular-flow.com/) (experts in computer simulating natural blood flow) in the heart valve project.

- leveraging off VFT's connections and access to Ninewells Hospital and University of Dundee.

- expectation of receiving £0.5M investment grant from Scottish Enterprise.


For all of the above, the shareholders have recently stumped up £2.6M, turning the company from a £2M market cap microcap into, initially, a £5M one. Now it is priced around £10M. Still a microcap.

Given the historic investment, the absolute relevance and uniqueness of Elast-Eon and the medical need to create devices that dispense with the need for animal tissue whilst maintaining the low after-care needs enjoyed by people that received animal tissue implants, the potential market is huge and I believe AOR has a major head start.

Ultimately, it seems likely that a big player will get involved once AOR makes the hoped-for progress using all these new found, cutting edge resources at its disposal.

RUA Medical and VFT both stand to do very well too if things progress with their help. RUA is on a % of gross margin retainer on the grafts/patches. VFT will charge an ongoing periodic fixed fee for use of its facilities, expertise and manpower. Therefore all parties have major incentives to succeed.

Overall, the projects are joint efforts so rewards will eventually be shared. The size of the marketplace is the attraction for all, including AOR shareholders.

What is not in the broker's note valuation with a 400p target price is any pricing for the potential in furthering the licensing of their IP in the construction of new, lighter, more natural feeling breast implants.

According to the broker note, "....this project requires little investment by AorTech but, if successful, would result in either a very attractive licence and royalty income or a JV opportunity to disrupt current technologies and supply chains. Not assumed in our projections, but as an indication of the potential value is that a 5% royalty on a 5% global market share would generate an income stream of £2.5m per annum to AorTech."

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makes the hoped-for progress ........ aye, and there's the rub

“Hoped for” was my phrase to avoid any accusation of ramping. Clearly, if the progress was guaranteed we wouldn’t be here at a market cap of £11m. That said, in my view, the market is pricing AOR from a view of mistrust on its past slip ups. A cynical eye you might say.

chuckle ..... as you already know, i hold a few and may even add

superb chart.

Incredibly strong this morning and high volume.

One to watch next week.

The twenty year chart is amazing!!!

The 10 year chart is pretty good.

Thought I would bump this thread to the top before MAM goes tits up!

Decent update on progress from AOR today. Hopefully will wake this share from its bear market slumbers very soon.

Can’t get this link to work so you know what to do :)

https://www.moneyam.com/action/news/showArticle?id=6288823