Multi-channel sales strategy drives growth for tissue repair biotech Aroa

• Aroa’s multi-channel sales strategy driving global growth of its soft-tissue repair products
• Aroa has a partnership with TELA Bio in US and also sells directly in the country with other distributors internationally
• Biotech moving towards long term profitability, delivering EBITDA of NZ$4.2 million in FY25, following up with a strong H1 FY26

Aroa Biosurgery (ASX:ARX) has developed multiple channels to drive global adoption of its soft-tissue repair products, providing the Auckland-based company with a clear, scalable pathway to long-term growth.

Founder and CEO Brian Ward said the multichannel approach, combining a growing direct sales force in the US with growing strategic distributor partnerships in the US and internationally, enabled Aroa to reach clinicians across multiple markets while keeping its commercialisation costs low.

In FY25, the strategy contributed to a transition to profitability, with Aroa recording EBITDA of NZ$4.2 million.

The strong momentum has continued into FY26, with both revenue and EBITDA growth in the first half supporting full-year guidance of NZ$92-100 million, representing 10–20% growth in constant currency.

“The first half of FY26 has been very solid – Myriad sales grew strongly, and we’ve delivered positive operating cash flow for the fourth quarter in a row,” Ward said.

Growing US direct sales channel drives Myriad growth

Aroa’s US sales team has grown to over 50 and has secured contracts with large group purchasing organisations (GPOs), making its flagship Myriad products accessible to 90% of hospitals in the country.

Myriad is used for complex wounds including trauma and lower limb salvage.

GPOs are an important part of the US healthcare system, acting as intermediaries that pool the buying power of hospitals, clinics, and other providers to negotiate contracts for supplies, services, and equipment.

“Establishing our own US direct sales team was a key strategic decision, enabling strong growth, increasing our capability and deepened ties with hospitals, health systems, and group purchasing organisations,” Ward said.

TELA Bio partnership on track for growth

In 2015, Aroa partnered with Nasdaq-listed TELA Bio to develop the OviTex range. TELA Bio is licensed to sell OviTex for abdominal wall reconstruction and hernia repair and OviTex PRS for breast reconstruction in the US and Europe.

Aroa and TELA Bio have also co-developed further product line extensions for hernia and breast reconstruction.

Morgans senior healthcare analyst Scott Power said the partnership had helped Aroa achieve significant progress in the hernia and breast reconstruction markets, despite some challenges.

“They’ve been able to leverage a sales infrastructure, as opposed to trying to build a direct sales force themselves, which they have for Myriad,” Power said.

“Aroa now has two complementary sales channels in the US.”

He said Tela Bio has had to raise additional funds over the past couple of years to maintain its working capital and momentum, resulting in a few share price downgrades.

“Tela Bio seems to now have its funding under control and continues to make good inroads in the hernia repair and breast reconstruction markets,” he said.

“Assuming that momentum continues the drag that has been experienced over the last couple of years should revert.”

Ward said that TELA Bio remained a long standing and strategically important partner for Aroa.

Distributor model to expand reach globally

While the US has been the predominant focus for Aroa, it has regulatory approval in more than 50 countries and is steadily expanding its global footprint.

To extend its reach in countries where it does not have a direct presence, Ward said the company was using a distributor model.

Recent agreements with healthcare distributor InterMed now bring Aroa’s products to clinicians across Australia and New Zealand.

InterMed was established in New Zealand in 1980, before expanding into Australia in 2013.

“Operating in international markets can be complex, due to the diversity of regulatory and market conditions,” Ward said.

“Partnering with strong local distributors with in-depth knowledge of their healthcare systems is a core part of our growth strategy for markets outside of the US.”

Symphony and growing US opportunity

A key focus for Aroa heading into 2026 in the US is Symphony, a graft for complex non-healing diabetic and venous ulcers, which received US Food and Drug Administration approval in 2020.

Symphony targets patients whose healing is severely impaired due to disease, and the company is currently running an 18-month randomised controlled trial with ~120 patients, with results expected in early 2026.

Recently announced changes to US reimbursement policies for skin substitutes, including Symphony, are expected to benefit Aroa.

The Centers for Medicare & Medicaid Services (CMS) will implement a capped payment rate from January 2026, removing price-driven incentives that previously favoured more expensive products.

Published data from Aroa’s Symphony study is expected to supply the clinical evidence required to secure CMS payment coverage in 2026.

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