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Special Report: <\/em><\/strong>Dropping milestone numbers this week is the Perth-based regenerative medtech Orthocell, for which record quarterly and full year revenue has been driven by a huge uptick in demand across the company\u2019s flagship healing solutions.<\/strong><\/p>\n An ongoing spike in sales growth for both Orthocell\u2019s market-leading Striate+ and Remplir products has delivered record June quarter revenue of $1.84mn, a jump of 14.4% on the previous quarter and almost 10% more than the same time last year.<\/p>\n Orthocell (ASX:OCC)<\/strong><\/a> MD Paul Anderson says the current sales growth trajectory will smash revenue records across the board for OCC in FY24, with the projected $6.72mn \u2013 a massive 30.4% beyond last year\u2019s $5.15mn.<\/p>\n In fact, following the Striate+ US and Remplir (ANZ) product launches in November 2022, the Aussie medtech\u2019s regenerative medicines or \u2018biological substitutes\u2019, which restore and enhance existing tissue function, have now generated seven straight quarters of compound growth by an average of 9%.<\/p>\n And that near-term growth is still ahead of its exponential uptake as global markets begin to adopt the OCC medical technology, which effectively leverages the body\u2019s ability for self-repair as a simple, non-invasive and pretty elegant solution to reduce pain, return function and heal the nerves, which historically doctors have failed to do even with prolonged surgery.<\/p>\n \u00a0<\/p>\n While the numbers demonstrate a clear watershed moment for existing market traction, Anderson says the company is also accelerating approvals \u2013 especially for Orthocell\u2019s breakthrough nerve repair solution Remplir \u2013 for new market and geographic expansion where the need for the breakthrough nerve repair product is aligning demand with technology.<\/p>\n \u201dOrthocell currently has two products in the market:\u00a0 Striate+ \u2013 which is a non-invasive treatment for dental bone regeneration, and Remplir \u2013 which is an entirely game-changing solution for the people every year who endure damaged nerves or suffer from peripheral nerve pain.<\/p>\n \u201cFor all of those millions of people, Remplir will provide a life-changing solution. And that\u2019s why Orthocell is where it is.\u201d<\/p>\n \u00a0<\/p>\n The global market opportunity for these two products alone is estimated to be somewhere around the US$3 billion mark \u2013 a number which can only grow as target populations age and demand for nerve pain treatment spikes.<\/p>\n Striate+ is already a market-leading solution in maturing markets, both at home and across Europe, the UK and in the US, while (Remplir) Orthocell\u2019s nerve repair solution is currently only available at home and in New Zealand.<\/p>\n According to Paul Anderson, Orthocell aims to secure a 20% market share for Striate+, which he says would generate circa $50 million in recurring revenue.<\/p>\n Now apply that formula to Remplir, and a similar market share would generate $255mn in recurring revenue.<\/p>\n Further market expansion would naturally supercharge these projections, too.<\/p>\n OCC\u2019s dental bone solution Striate+ is already distributed globally by strategic partner\u00a0 BioHorizons, one of the world\u2019s largest dental implant providers, and Anderson says Orthocell and its partners have been focused on driving uptake of Striate+ and Remplir into key regulatory markets.<\/p>\n \u00a0<\/p>\n Anderson has been developing emerging medical technologies \u2013 with a sharp focus on cellular therapy \u2013 for almost 20 years.<\/p>\n He says the milestones already achieved by Orthocell in 2024 will change both the Australian regenerative medtech landscape, as well as the outlook for nerve pain sufferers everywhere.<\/p>\n \u201cOrthocell has completed a record quarter and a record year of revenue, which is an outstanding effort and the results show the company is on track to being a key global player in an extraordinary field.<\/p>\n \u201cI am very pleased with the performance of our distribution partners and the continued increase in product adoption. This revenue growth is evidence our products are achieving traction in their respective markets, underpinned by their ongoing excellence in clinical practice and performance.\u201d<\/p>\n Anderson says the significant revenue growth Orthocell has achieved is set to increase with regulatory strategy in place for both products to expand access into other geographical regions as well as additional approvals in other markets.<\/p>\n \u201cWith a highly respected and experienced Board in place, and with market-leading products, our company is in a strong position to continue to gain commercial traction and drive Remplir, our breakthrough nerve repair device, into global markets.\u201d<\/p>\n \u00a0<\/p>\n And that board certainly is highly respected.<\/p>\n Among the various medical luminaries is the 33rd Governor of Western Australia and the former ambassador to the US, the Hon Kim Beazley AC.<\/p>\n As well as non-exec dir, the legendary reconstructive surgeon Professor Fiona Wood AM (Australian National Living Treasure), who was Australian of the Year in 2005, and WA Citizen of the Year \u2013 two years running \u2013 2003 and 2004.<\/p>\n Prof. Wood is behind the amazing \u201cspray-on skin\u201d treatment for burns, (co-invented with Marie Stoner), which was used to help victims of the 2002 Bali bombings.<\/p>\n Prof. Wood was also pivotal in taking the creation to a world in terrible need of a burns solution \u2013 which she did via the $450mn market capped Avita Medical, now operational in over 30 countries.<\/p>\n \u00a0<\/p>\n Orthocell recently reported the successful completion of all Nerve Repair Surgeries in the Remplir US Market Authorisation Study.<\/p>\n Top-line results from this study are expected in Q4 CY24, and Orthocell remains on schedule to submit its US 510(K) market authorisation application in Q4 CY24 and progression into sales soon thereafter.<\/p>\n Orthocell, meanwhile, has a strong balance sheet with $20.6 million in cash and looks ideally placed to accelerate its global market expansion strategy and already start planning beyond the pivotal US product registration for Remplir, which is expected in Q1 CY25.<\/p>\n Following OCC\u2019s application last month to the Therapeutics Goods Australia (TGA) for Australian market approval of SmartGraft (a tendon repair device), Petra Capital forecast Orthocell\u2019s share price could potentially reach $1.28 per share on the back of the product\u2019s additional potential market share.<\/p>\n We see distribution as well as manufacturing synergies with OCC\u2019s Remplir nerve product, Petra wrote last month.<\/p>\n \u201cAs such, it represents a potential attractive revenue stream without much additional cost. With OCC on track for US approval of Remplir in 1QCY25, our TP of $1.28\/sh offers >3x upside.\u201d<\/p>\n \u00a0<\/em><\/strong><\/p>\n This article was developed in collaboration with Orthocell, a <\/em>Stockhead advertiser at the time of publishing.<\/em><\/p>\n \u00a0<\/em>This article does not constitute financial product advice. You should <\/em>consider obtaining independent advice before making any financial <\/em>decisions.<\/em><\/p>\n \u00a0<\/p>\n The post Investors are all ears as Orthocell\u2019s nerve and tissue solutions deliver record revenue<\/a> appeared first on Stockhead<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"Accelerating approvals<\/strong><\/h2>\n
A lot of nerve<\/strong><\/h2>\n
An Aussie world leader in regenerative med<\/strong><\/h2>\n
A board to write home about<\/strong><\/h2>\n
Looking ahead<\/strong><\/h2>\n