Myriad soft-tissue reconstruction products position Aroa for strong growth

• Sales of Aroa’s high-margin Myriad family expected to further propel growth in FY26 and beyond
• Myriad sales were NZ$30.8 million of the total NZ$84.7m for FY25, representing 38% growth on FY24 
• Direct sales team momentum and growing body of research expected to drive adoption

Special Report: Aroa Biosurgery’s Myriad product family was a star performer of the New-Zealand-based soft-tissue repair company’s first profit since listing in 2020 and is expected to continue to deliver strong growth in years to come. 

Aroa Biosurgery (ASX:ARX) reported Myriad sales grew by 38% on FY24, contributing NZ$30.8 million to FY25 total product sales of NZ$84.7m. 

Morgans’ senior healthcare analyst Scott Power noted AROA’s high-margin Myriad products had been a strong performer for the company and this was expected to continue.  

“The key driver in our opinion is the growth of the Myriad product,” Power said. 

“It’s where they have their direct sales force and the growth for Myriad has been significant and we expect that to continue over the next three plus years.

“That will be driven by increase adoption and a lot of peer-reviewed published research to support that uptake.” 

Myriad usable in range of procedures

The Myriad product range includes several formats, which can be used in a wide range of surgical procedures where tissue needs to be rebuilt. 

The source material for all of AROA’s soft-tissue reconstruction products is ovine forestomach matrix (sheep rumen) sourced exclusively from New Zealand, which provides a scaffold – or framework – for new tissue to build.

The forestomach matrix is gently processed and sterilised to remove cells and DNA. Left behind is extracellular matrix (ECM), a tissue scaffold with a dense network of vascular channels with a structure like human skin and more than 150 proteins known to support the healing process.

Myriad Matrix is an extracellular matrix graft, indicated for use in soft tissue reconstruction and complex wounds. It was AROA’s first product in the range and received US Food and Drug Administration (FDA) clearance in 2019. 

Following customer feedback, product line extensions were developed, including Myriad Morcells and Myriad Morcells Fine, which are a powder format, rather than sheets.

Myriad Morcells and Myriad Morcells are morcellised conformable ECM grafts, which conform to optimise contact with irregular wound beds. Each format can be used either by itself, or synergistically with Myriad Matrix. 

Direct sales team to drive further growth

Established in 2021, AROA’s direct US sales team is responsible for driving adoption of the Myriad range. 

In FY25, AROA direct sales accounted for 53% of the product revenue mix, with Myriad expected to continue to become a larger part of the overall sales mix, forecasting growth of 25% for FY26.

Myriad Sales this year are projected to increase by at least 20% on FY25 sales of $30.8 million. Throughout FY26, the team will focus on expansion within existing accounts and increased productivity to continue driving Sales momentum.

Growth of Myriad supported by research

Clinical evidence for AROA’s ECM platform to support sales growth continues to strengthen, with more than 100 peer-reviewed studies now published.

First results from Aroa’s Myriad Augmented Soft Tissue Reconstruction Registry (MASTRR) show strong promise in treating high-risk lower limb reconstruction cases.

The study revealed a cost difference of up to 195% compared to other dermal substitutes, positioning Myriad as providing both clinical efficacy and exceptional value for complex lower-limb surgeries where cost containment is an increasing priority. 

Clinical evidence is also building around Myriad’s use in complex trauma cases, particularly when paired with negative pressure wound therapy (NPWT).

During Q4 FY25 another study was published describing the first reported use of Myriad to treat skin lesions associated with the autoimmune disease Pemphigus Vulgaris, which results in severe, widespread blistering and erosions to the skin. 

The patient had been impacted by severe blistering affecting ~30% of their body surface area for nine months before the lesions were treated with one application of Myriad Matrix. 

Aroa said the study found that most of the affected areas had healed within one week and were completely healed in one month. 

Also during the quarter, researchers in Singapore published their initial findings using Myriad to treat perianal fistulae, which builds on initial research into using Myriad to treat these challenging chronic wounds. 

The authors showed that placement of Myriad within the contaminated defects led to successful regeneration of tissue. 

In its FY25 results announcement AROA said the Company planned to continue building a compelling body of evidence that demonstrated Myriad’s distinctive value – the restoration of tissue, with minimal complications, in a single application.

The company said it was confident this evidence would lead to accelerated adoption based on improved clinical outcomes, increased patient access and reduced hospital costs across a broad range of soft tissue reconstruction procedures.

Commenting on AROA’s outlook for FY26, Founder, CEO and Managing Director, Brian Ward said FY25 marked a significant financial milestone with its first year of normalised EBITDA profitability since listing. 

“Looking ahead, we are increasingly confident about our ability to deliver strong top-line growth and enhanced profitability in FY26 and beyond,” he said. 

“Myriad clearly demonstrates that we are delivering on our vision to unlock regenerative healing for everybody.”

This article was developed in collaboration with Aroa Biosurgery, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.