Aroa Biosurgery Q3 Earnings Call Highlights
by Tristan Rich · The Markets DailyAroa Biosurgery (ASX:ARX) management highlighted growing clinical evidence for its Myriad product, an evolving U.S. reimbursement landscape that it believes is becoming more favorable for Symphony, and improving financial momentum during an investor webinar following the company’s February 2026 business update.
Founder and CEO Brian Ward said the company is using periodic business updates to discuss “key matters happening within the business” now that it is no longer required to provide quarterly cash flow reporting. The discussion covered a trauma subgroup analysis from Aroa’s Master Registry, changes in U.S. reimbursement for skin substitute products, commercial plans for Symphony, and the company’s outlook versus guidance.
Myriad trauma registry data: median 25.5 days to vascularized coverage
Ward pointed to recently released results from a trauma subgroup analysis within Aroa’s ongoing Master Registry, a “large, ongoing, prospective, multi-center observational study” tracking bioscaffold performance in a broad range of surgical procedures. The registry has been running for about three years and can recruit up to 800 patients; Ward said the company has enrolled 450 patients to date.
The trauma subgroup included 49 patients with 61 defects treated at four U.S. Level 1 trauma centers. Ward said the study showed fully vascularized tissue coverage in a median of 25.5 days, typically with one application of Myriad, and reported no device-related complications.
Ward said the company reviewed published literature for comparable products and concluded Myriad’s outcomes are “at least equivalent or better with fewer complications and fewer product applications.” He cautioned, however, that because the registry is single-arm and includes a mixed variety of cases, it is “very hard to do a direct comparison with other products.”
Beyond clinical outcomes, Ward emphasized potential hospital economics, arguing that achieving results with a single application can reduce repeat surgeries and follow-up procedures, with implications for total cost of care, time in surgery, and ongoing treatment.
Symphony reimbursement: pricing reset and “market disruption”
A central theme of the webinar was shifting U.S. reimbursement for skin substitute products, particularly changes tied to the Centers for Medicare & Medicaid Services (CMS) and Medicare Administrative Contractors (MACs). Ward said CMS is seeking to “reset the reimbursement environment” and described substantial industry and provider pushback.
Ward said a flat fee of $127 per square centimeter took effect January 1, describing it as a “major reset in terms of pricing.” He contrasted that level with historical pricing, which he said had ranged from $400–$500 per square centimeter and, at the high end, $2,000–$3,000 per square centimeter for products that “really showed no difference in the efficacy of the product.”
Ward also discussed proposed changes that would have been implemented through Local Coverage Determinations (LCDs), including limiting the number of applications and restricting reimbursement to products supported by randomized controlled trials (RCTs) in diabetic foot ulcers and venous ulcers. He said those LCDs have now been withdrawn, meaning that for the next year companies do not need that level of clinical evidence to support reimbursement.
Despite the withdrawal, Ward said Aroa believes the “direction of travel” remains toward more stringent evidence requirements and suggested that RCT requirements may return later. He characterized the current environment as disruptive and said many existing market participants may not be viable under the new pricing and evidence expectations.
Commercial approach: leveraging the hospital footprint
Ward said the company believes Symphony is well positioned for the evolving reimbursement landscape due to its pricing, the company’s progress on an RCT, and its ability to adapt commercial strategy. While Aroa’s current full-time sales representatives are focused on inpatient hospital procedures, Ward said the company will emphasize hospital outpatient departments, often located within or adjacent to hospitals.
He said Aroa plans to have inpatient representatives also call on these hospital outpatient departments because it fits the existing sales footprint. Ward added that the company is exploring distribution and partnership opportunities in sites of care it does not cover or does not plan to cover directly.
Ward described Symphony as an additive product for the existing salesforce—something reps can sell alongside current offerings to improve sales productivity and efficiency.
Management’s expectations for Symphony and the RCT timeline
In response to an investor question about what to expect for Symphony sales, Ward declined to provide specific numbers but said directionally he would expect Symphony to have “at least the same sort of growth trajectory” that Myriad had previously. He added that, given the reimbursement reset and expected market exits, Symphony “could…perform much better,” while noting that outcomes will depend on how CMS proceeds with reimbursement and how quickly competitors exit or remain in the market.
Asked whether the withdrawal of the LCDs affected Symphony’s go-to-market plans, Ward said it did not—“on the contrary,” he said, it increased confidence. He explained that if LCDs had remained in place, Aroa’s ability to obtain reimbursement could have been delayed without published RCT results, but the withdrawal removes that impediment for now. Still, he reiterated that he expects RCT requirements may be reintroduced.
On the publication timing for the Symphony RCT, Ward said the study has wrapped up and the company is working with the contract research organization to lock the database and prepare for statistical analysis. He said that should occur over the next month or so, and that “with everything going in the right direction,” the company should have that by the end of the fiscal year.
Guidance and profitability commentary
Ward reiterated the company’s guidance issued at the beginning of the year: revenue of $92 million to $100 million on a constant currency basis and normalized EBITDA of $5 million to $8 million. With about two months remaining in the year, Ward said the company is tracking toward the upper end of both ranges, citing strong Myriad sales as a key driver.
On profitability, Ward said the company is profitable and has been transitioning toward profitability, with guidance implying profitability for the year. He also said Aroa has been cash flow positive for the last four quarters and expects to be cash flow positive for the full year. Ward said the company is not in a position where it needs to return to capital markets to raise funds and expects profitability to increase over the coming years.
Ward closed by saying Aroa sees strong performance from Myriad, a large opening opportunity for Symphony, and momentum heading into FY2027, with full-year results expected in May.
About Aroa Biosurgery (ASX:ARX)
Aroa Biosurgery Limited develops, manufactures, and sells medical devices for wound and soft tissue repair using extracellular matrix (ECM) technology in the United States and internationally. Its products include Endoform Natural and Endoform Antimicrobial Restorative Bioscaffold for treating acute and chronic wounds; Myriad Matrix, an engineered ECM for soft tissue repair, reinforcement, and complex wounds; Myriad Morcells, a morcellized (powdered) format of Myriad Matrix for soft tissue repair and complex wounds; Myriad Morcells Fine that delivers a bolus of biologically important ECM proteins to help kick start and sustain healing; and OviTex and OviTex PRS, a reinforced bioscaffolds for use in hernia repair and abdominal wall reconstruction, as well as breast reconstruction.