Diabetic foot ulcers (DFUs) are a significant health challenge, frequently resulting in hospitalisation or lower extremity amputation for diabetics, and costing $79bn pa in the US alone.
Luckily, new technologies are being developed to help treat DFUs and other 'hard to heal' wounds, such as venous leg and pressure ulcers.
Enter Belluscura (BELL) , a developer of best-in-class portable oxygen concentrators (POCs) used to treat respiratory conditions like COPD. Today, the firm said it had "entered into a product development joint venture with its research partner Separation Design Group and a major medical device company (MDC) to explore the use of oxygen-based wound care solutions".
Here Belluscura will act as the device manufacturer, with the MDC funding product development, clinical trials, and distribution upon regulatory approval. An initial clinical study is scheduled to begin in early Q2'25 outside the US.
In terms of scale and potential upside, DFU and wound healing firm AOTI IPO'd on AIM in Jun'24 and is currently valued at c. £137m vs BELL's £17m. Plus, the wound care market is estimated to be worth around $22.5bn annually, and projected to achieve 5.9% CAGR between 2023-32 (Global Markets Insights).
CEO Bob Rauker commenting: "Our JV with Separation Design Group demonstrates the potential of leveraging our oxygen-based technology across broader therapeutic applications and healthcare challenges, such as addressing an unmet need in the hard-to-heal wounds market."
"Partnering with a globally recognized medical device company enables us to explore the development and commercialization of this innovative wound care solution by combining our oxygen enrichment technology and expertise with their resources and distribution capabilities."
Finally, in terms of the numbers, in Oct'24 house broker Dowgate Capital had a 35p/share target price, based on BELL's turnover climbing from $4.5m in 2024 to $20.0m next year and generating FY25 EBITDA of $0.8m.
As at 25 Oct’24, Belluscura had cash reserves of $0.3m and $1.1m of receivables, excluding $9.6m of convertible loan notes - meaning that after securing a $4m working capital facility from Sallyport last month, further capital may be required in order to facilitate a full commercial launch of its groundbreaking DISCOV-R POC.
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