Rex Bionics Plc - Company Update

Rex Bionics Plc

("Rex Bionics" or the "Company")

Company Update

12th October 2015, Rex Bionics Plc (AIM: RXB), the pioneer of the REX Robot technology that enhances the mobility of wheelchair users, today announces a company update.

Rex Bionics is pleased to report progress against the five commercial priorities set out in its December 2014 trading statement: clinical data, distributor recruitment, reference centres, US development and new medical applications.

Highlights of the company update

· Ri, LLC, a medical distribution company specializing in neurological rehabilitation, has been appointed as US Distribution Partner, providing 30 US sales representatives

· The RAPPER II clinical trial is on track. Interim Analysis of the first 20 patients will be presented at the 3rd European Congress of Neuro-Rehabilitation (ECNR), Vienna, Austria (2 - 5 December 2015). Two UK NHS Hospitals and hospitals in Australia and New Zealand have applied to join the trial

· First half sales of three REX units, representing maiden sales since IPO

Progress against Rex's five key commercial priorities

US Distribution Partner

Rex has appointed Ri, LLC, a specialist supplier of movement therapy equipment to neuro-rehabilitation clinics, as its distributor for REX products in the US. Ri, LLC is privately-owned and was established by Mike Laky, a seasoned rehabilitation industry specialist, in 2003. Headquartered in St Petersburg, Florida, it supplies a range of rehabilitation products and has contracts with the leading US hospital chains including the Veterans Administration, HealthSouth and Select Healthcare. It has a track record of growth through the introduction of novel technologies in the US market, and a brand in the industry that is recognised for service and innovation. With 30 sales representatives in the field Ri, LLC offers broad geographic coverage for Rex products across the US, as well as providing the required FDA-compliant regulatory systems.

Rapper II Clinical Trial and Reference Centres

The RAPPER II ("Robot-Assisted Physiotherapy Exercises with REX") clinical trial is making good progress. The Company is encouraged by an interim analysis of results from the first 20 volunteers, which has been accepted for presentation at The Australian and New Zealand Spinal Cord Society (ANZSCoS) Annual Meeting, Perth, Western Australia (25- 27 November, 2015) and the 3rd European Congress of NeuroRehabilitation (ECNR), Vienna, Austria (2 - 5 December 2015). Four of the 20 volunteers had C-level (more severe) injuries. The trial is registered with clintrials.gov and is monitored by an independent Clinical Research Organisation.

This first phase of RAPPER II entailed a single visit consisting of a walk test and a set of exercises with immediate post-experience follow-up. The second phase has endpoints of four validated questionnaires - for Pain, Sleep, Spasm and Health Outcome, with follow-up at seven days to gather data on the duration of treatment effect.

Four leading neuro-rehabilitation Hospitals in the UK, Australia and New Zealand are also expected to join the trial in the next few weeks.

Maiden Sales

In the six months to 30 September 2015, Rex Bionics sold three units (six months to 30 September 2014: zero). There are further orders in hand and it is expected that sales in the second half will be higher than sales in the first.

Management Change

Richard Little, the co-founder of Rex Bionics and its Chief Technology Officer, has recently indicated his intention to resign from his position in order to develop a new business in a non-competitive field. Richard will continue to work with Rex Bionics on a consultancy basis, in order that his knowledge and experience remain available to the Company. Duncan Clement, Rex Bionics' Director of Engineering, who first worked with the company in 2008, will continue to lead Rex's R&D group, as he has done since his appointment to the role earlier in 2015.

Financial

At 30 September 2015, Rex Bionics had £3.7m cash. The Company expects to announce its interim results for the six months to 30 September 2015, in December 2015.

Commenting on the Company update, Crispin Simon, Chief Executive Officer of Rex Bionics, said: 

"Today's news shows the progress we are making with the commercialisation priorities we announced last year; converting proven engineering excellence into medical and commercial reality.

 "We are delighted to appoint Ri, LLC as our US Distribution partner. The US market is typically the most important for medical innovations and Ri, LLC have the knowledge, contacts and motivation to seize the opportunity." 

Mike Laky, President and CEO of Ri, LLC, added:

"Rex Bionics represents one of, if not the, most significant technological developments for physical therapy in recent years. Giving patients the ability to walk, hands free and independently, is a huge step forward for rehabilitation. Coupled with all of Rex's other capabilities, we view the REX as new workhorse for therapists involved in neurological rehabilitation.

"Every day we speak to therapists discovering new applications with REX for neuromuscular injury and illness. REX fits perfectly with our other solutions for neuro-rehabilitation, offering great outcomes and a truly positive impact on the emotional as well as physical wellbeing of those who use it, and their caregivers."

For further information please contact:

Rex Bionics Plc

Crispin Simon, Chief Executive Officer

+44 (0) 748 3 167851

Peter Worrall, Chief Financial Officer

+44 (0) 142 864 5416

Stifel Nicolaus Europe Limited (NOMAD and Broker)

Jonathan Senior/Ben Heald

+44 (0) 20 7710 7600

Consilium Strategic Communications

Mary-Jane Elliott / Jessica Hodgson / Chris Welsh / Lindsey Neville

[email protected]

+44 (0) 203 709 5700

About Rex Bionics

Rex Bionics (AIM: RXB) has three Strategic Objectives - to establish Robot-Assisted Physiotherapy as a Gold Standard of Care for Spinal Cord Injury, Stroke and other neurological conditions; to establish REX as the market-leading robotic mobility aid; and by effective execution of our plans, to deliver significant value growth to shareholders.

The REX Robot that enhances the mobility of wheelchair users was developed in Auckland, New Zealand by two robotics engineers with first-hand experience of wheelchair users and their needs, Rex Bionics is working with physiotherapists to develop the practice of Robot-Assisted Physiotherapy (RAP). In a session of RAP, REX lifts patients from a sitting position into a robot-supported standing position, allowing them to take part in a set of supported walking and stretching exercises.

Wheelchair users are at risk of developing numerous medical complications from extended periods of sitting. By enabling them to spend more time standing, walking and exercising, REX may offer significant health benefits, including improved sleep, cardiovascular performance, maintenance of joint range, and a reduction in spasm, pain, common abdominal problems and prescription drug use. A programme of "RAPPER" clinical trials is now under way to evaluate these potential benefits. 

REX has, up till now, been most commonly used by people with a spinal cord injury, but has also been used by people who have suffered a stroke or other traumatic brain injury; and people with multiple sclerosis and muscular dystrophy. REX P, for use in the home, enables users to walk and stand with their hands free - providing more work and recreation options. 

Rex Bionics listed on the London Stock Exchange's AIM in 2014. REX is not approved for At-Home use in the United States of America.

About Ri, LLC

A family of companies supplying Marketing, Sales, and Logistics to individuals, facilities, and manufacturers that are in need of unique Health, Wellness, and Mobility solutions. Some of our premier products include RECK MOTOmed ergometers, HASOMED RehaMove Functional Electronic Stimulation (FES) and VELA ergonomic highly customizable chairs and stools. Our premier services include our Complex Rehabilitation Sales Force. These professionals have years of experience and credentials second to none in our industry. Our capabilities include logistics for domestic distribution on behalf of our international partners with services ranging from marketing, customer service, warehousing, technical support, and sales. For more information see www.ri-llc.com.