Orthocell Share Price Up 11.4% With Clinical Trial Update

Shares of regenerative medicine company Orthocell Ltd [ASX:OCC] have soared in today’s trading, currently up over 11% at time of writing.

Orthocell focuses on regenerating mobility for patients through products that can facilitate tendon and soft tissue repair.

One such product developed by the company is CelGro — a sort of next-gen collagen scaffold that is ‘bio-compatible, bio-absorbable and mechanically strong…mak[ing] it ideal for use as a tissue reconstruction and repair device’.

The biotech small-cap released the final results today of their CelGro clinical trial, which was successfully completed back in May.

We covered this initial announcement here at Money Morning, noting that the future results of the trial — if positive — could provide a boon for the company.

And it looks like it has.

A breakthrough in tendon regeneration

The final results report notes that 89% of patients participating in the clinical trial were able to return back to work after their CelGro tendon regeneration surgery with pain-free function.

It was also noted that no patients needed follow-up re-tear surgery, even two years post-CelGro surgery.

One patient was so impressed with the results that he has now ‘gone back to get [his] other shoulder done’.

These findings round out CelGro’s trials, with positive data announced in nerve, tendon and bone applications.

Orthocell Managing Director Paul Anderson notes that the results show that ‘CelGro is proving to be a breakthrough soft tissue reconstruction platform technology’.

A breakthrough in a billion dollar industry

As per this latest announcement, Orthocell claims to have a ‘clear commercialisation strategy’ for their CelGro product.

Its recent European regulatory approval means the product can now be marketed and sold within the EU, and this process is being ready to also be done in the US.

Combining nerve, tendon and bone regeneration, CelGro has an addressable market of approximately US$2.7 billion.

In rotator cuff tendon repair alone, the addressable market is worth around US$1 billion, with nearly $500,000 procedures per annum that could use CelGro.

And Orthocell believe this market could expand even further, once surgeons develop a preference for Orthocell products, which can ‘achieve better results in the shortest possible time for their patients’.

Hopefully this clinical preference will be reflected in the company’s share price.

Regardless, a 46.67% year-on-year return is commendable, particularly for a developing small-cap biotech.

But that’s the beauty of the biotech sector…it’s a mixture of fizzers and winners, and it can be hard to pick the latter.

Luckily for you, we have a free report on how to invest in biotech stocks to help get you started. Download now.


Ryan Clarkson-Ledward

For Money Morning

Ryan Clarkson-Ledward is an Editor at Money Morning.

Ryan holds degrees in both communication and international business. He helps bring Money Morning readers the latest market updates, both locally and abroad. Ryan tackles all the issues investors need to know about that the mainstream media neglects.

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