Co-development with J&J Progressing Smoothly
The author is an analyst of NH Investment & Securities. He can be reached at pk.park@nhqv.co. -- Ed.
Based on its iPSC technology, T&R Biofab has successfully created 3D-printed artificial organs. Given such, we believe that the firm stands on a par with Cellink in terms of technological capabilities, a global player that boasts a market cap of around W3tn. We expect T&R Biofab to complete the first phase of its co-development project for a next-generation acellular dermal matrix (ADM) with J&J in June, and subsequently sign related research contracts for commercialization.
iPSC being used as base ingredient for bio ink in 3D printer
Recently, market attention has been concentrated on technologies for producing 3D-printed artificial organs using not only extracellular matrix (ECM) but also cell-based solutions. In our view, T&R Biofab is comparable to Cellink, a company that has been collaborating with AstraZeneca to develop bioprinting technologies.
We believe that T&R Biofab boasts differentiated technological prowress in that it uses its own induced pluripotent stem cell (iPSC) technologies. Of note, Cellink’s share price has upped 500% from the early-2020 level, with its market cap now reaching around W2.5tn. As a prominent industry peer, T&R Biofab appears significantly undervalued, in our view.
Co-development with J&J progressing smoothly
We note that the contract that T&R Biofab signed with Ethicon (Johnson & Johnson (J&J)’s medical device arm) for a co-development project regarding 3D bio-printed soft tissue scaffolds is set to end in June 2021. Based on the project results, the company is likely to take the necessary steps to commercialize the developed technologies. T&R Biofab is currently developing next-generation dermal matrix materials for use in breast reconstruction. Of note, existing dermal matrices are mostly made of animal skin.
Strongly competitive in technology; time to hone its business development capabilities
The global medical 3D printing market is projected to size at US$3.7bn in 2026. The returns on ARK Invest’s 3D printing ETF have risen by 78% since early-2020. Given that T&R Biofab boasts: 1) abundant 3D printing patents, the third-largest in the world; 2) the first dECM cell printing technology; and 3) in-house induced pluripotent stem (iPS) cell technology, we believe that the company’s main weakness against Cellink has been poor marketing capabilities. With the firm planning to secure more workforce for business development this year, we expect the firm to garner stronger attention from the market going forward.