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Orthocell hits record revenue thanks to Striate+™ and Remplir™ products

Orthocell Ltd (ASX:OCC, OTC:ORHHF) CEO and managing director Paul Anderson sits down with Proactive’s Tylah Tully to discuss the company’s quarterly results. Record revenue has been recorded for the second consecutive quarter, reaching A$2.03 million for the three months to September 30, 2024, a 7.82% increase on the previous quarter. The growth is attributed to strong demand for its flagship products, Striate+™ and Remplir™. Striate+, used for dental bone regeneration, is available in major markets including the US, Canada and Europe, while Remplir, focused on peripheral nerve repair, is sold in Australia and New Zealand, with global expansion planned. Orthocell is also preparing for the anticipated US Food and Drug Administration (FDA) approval of Remplir, which would give the company access to the US nerve repair market, valued at more than US$1.6 billion. FDA approval is expected by early 2025. Combined, Striate+ and Remplir are projected to tap into a global market worth more than US$4 billion. Orthocell’s partnerships with BioHorizons and Device Technologies have contributed to revenue growth and the company holds A$18.4 million in cash reserves to support its expansion plans. Anderson emphasised the company's potential for exponential growth and its goal to capture a significant share of the global market. #ProactiveInvestors #Orthocell #ASX #RecordRevenue, #MedicalTechnology, #RegenerativeMedicine, #DentalBoneRegeneration, #NerveRepair, #StriatePlus, #Remplir, #GlobalExpansion, #USMarket, #FDAApproval, #MarketGrowth, #SurgeonDemand, #RevenueGrowth, #BioHorizons, #DeviceTechnologies, #HealthcareInnovation, #USFDASubmission, #ClinicalPerformance, #CEOStatement #invest #investing #investment #investor #stockmarket #stocks #stock #stockmarketnews

Broadcast on:
08 Oct 2024
Audio Format:
other

Hello and welcome back to the Proactive Studio. I'm Tyler Tully and today I'm joined by author cell managing director and CEO Paul Anderson, who's going to talk us through the company's latest quarterly results where it's reported record revenue reaching just over two million dollars. Paul, thanks for joining us. Thanks for having me. So these are pretty encouraging financials that you've released this quarter. As we said two million dollars in revenue, which is a 7.82% increase from the previous quarter, run us through the numbers. Yeah, we're really excited about the continued growth of revenue within the company. And this really represents a really important inflection point. I mean, we're 10 years through our journey now. We've really de-risked these technologies. And really, the inflection point now is really this revenue generation. So we're really excited about the fact that, you know, we're up at over $2 million of revenue in this quarter up, you know, over 8% over the last quarter of $1.88 million. And this really represents, you know, over the last eight quarters, a 9% compound growth in the company. So what we're seeing is products getting into the markets surging uptake and as a result of that increasing revenue. So why do you think you are demonstrating such growth? Yeah, so this has really been driven by our product sales. And so, you know, our two lead products in markets, first of all is Striate Plus, which is a guided bone regenerative product, which is now available in the US, Canada, the European market, Australia, New Zealand. And, you know, we've got quite an aggressive expansion playing with that. And so Striate is working beautifully and beginning to get some real traction in multiple markets. And whilst Ren player out our nerve repair devices, as we've had a spectacular launch of that product here in the Australian marketplace, as we prepare for entry into the US marketplace. And what we've been able to show and demonstrate through clinical data and the certainty of using our products is that we get a more consistent, we get a more predictable, and we get a faster result. And so these are really great costs, and I'm making it cost economic outcomes. But most importantly, they make the surgeon's job easier, and they make the patient outcome better. So when you put those two products together, we're really starting to see some fantastic growth from a revenue perspective. You've just touched on them, but can you give us a bit of a refresher on your flagship products and how they're performing? Yeah, so we work in what's called a musculoskeletal space, and we predominantly focus on bone, nerve, and tendon regeneration. And our first two products in market, striate for bone regeneration, and Ren player is for nerve regeneration. Our third product that's coming through to the market is for tendon regeneration. So we have a unique, collagen-based, biological-based medical device that works to increase the surgical outcomes and increase the predictability and the consistency of outcomes. And these are such important things to surgeons in today's medical world. What role do partnerships, namely, with biohorizons and device technologies, play into your revenue growth this quarter? Yeah, look, it's a really important question. I mean, it's not our intention to build a workforce in the US. It's not our intention to build a global workforce. And certainly, we have what we call as product specialists, but those products specialists really work with our partners. And we've been able to attract some of the very best partners in the world for our products. First and foremost is biohorizons, which is a subsidiary in 66% owned by Henry Shine, one of the largest dental companies in the world. They have a global footprint. They have a global workforce. They have a global marketing department. So we really leverage our product into their infrastructure and allow them to distribute that product. And that's been a wonderful relationship. And we're really seeing them march forward into these international markets. And they've been so delighted with the product. They've asked us to, you know, approve in Brazil, Canada, and other jurisdictions to continue to expand the usage of that product. And then Ramclare, we've partnered with a company called Device Technologies. The device technologies here in Australia, probably one of Australia's most mature and oldest distribution partner. They really focus on education. They really focus on their surge in relationships. And so there's a great fit with our product. And there's a great fit with our company. And so again, with those two products, we've really seen an increasing surge in uptake, increasing numbers of products being used. And there's a consequence, increasing revenues. So these financials were really encouraging. So what can we expect from you next quarter? Yeah, well, I mean, you know, we expect to continue to grow in the same rate that we have. And we've been really aggressive in the market, you know, supporting our distribution partners. And really what's been very exciting about this is that it's given us great confidence. It's really built our confidence. We know that these products really work. And as a result of the fact that we know that they work and that surgeons will take them and that we can sell these products, that gives us great confidence to continue to build our commercial footprint. And it's a great segue if I may. Yesterday, we went into a trading hold around lunchtime after we announced these great revenue results. And the reason we went into that trading hold is because I'm delighted to announce that Renppler has now been approved in Singapore for usage in that market. So that's the first international market that's approved outside of Australia, New Zealand to prove Renppler. And that really provides us with an exciting new market, which gives us even greater confidence of our pathway towards the FDA. Sounds like very exciting times for the company. Paul, thanks so much for joining us. Thanks a lot for your pleasure.