Orthocell Reported 82% Success Rate For Ortho-ATI® Stem Cell Treatment – Zoomed up by 10% on ASX

Orthocell Reported 82% Success Rate For Ortho-ATI® Stem Cell Treatment - Zoomed up by 10% on ASX

The Murdoch, Australia-based regenerative medicine company, Orthocell Limited (ASX: OCC) is engaged in developing and commercialising cell therapies and products for the repair and regeneration of various soft tissue injuries, thus supporting mobility for patients. It was established in 2006. The company’s range of products includes cell therapies, compliant with Therapeutic Goods Administration (TGA) license, comprising Autologous Tenocyte Implantation (Ortho-ATI®) and Autologous Chondrocyte Implantation (Ortho-ACI®), which are designed to treat damaged and degenerated tendon and cartilage tissue respectively.

Besides, the company also offers a new platform technology CelGro®, a unique collagen medical device which facilitates tissue repair and healing in a distinctive range of orthopaedic, gynaecological, reconstructive and surgical applications. CelGro® has recently received sanction from the European regulators (CE Mark) for use in the Birmingham Dental Hospital, following which it is now eligible for commercialised sale within the European Union for different kinds of dental bone and soft tissue regeneration procedures.

On February 13th, 2019, the company pleasingly reported the result of its Annual Quality Study, which is an essential measure of customer satisfaction with the Ortho-ATI® stem cell treatment and essentially captures patient feedback and outcomes for reduction of pain and functional improvement in patients suffering from chronic tendon injuries. A reassuring 82% of the 47 patients responded as ‘extremely satisfied’, ‘very satisfied’ or ‘satisfied’ post their respective treatments using the Ortho-ATI® stem cell therapy. The annual study also complements the company’s formal clinical studies that are usually published in world-renowned scientific journals, including the American Journal of Sports Medicine.

Ortho-ATI® is a technological breakthrough and has a significant market opportunity at the backdrop of increased cases of Tendinopathy with an ageing population and the need for affordable treatment that is safe and effective. Plus, physicians and insurers are always seeking innovations in medicine. The addressable market is estimated to be USD 7.7 billion and growing across the US, Japan, Europe and Australia.

For the quarter ended December 31st, 2019 (1H FY 2019), Orthocell reported many millstones including a 65% increase in the year-to-date total revenue receipts for 1H FY 2019 as compared to 1H FY 2018. It also had significant progress in studies required by the FDA for CelGro® to get 510(k) clearance in the US.

Moreover, for the concerned period, there were large cash burns from operating activities amounting to AUD 1.19 million mainly resulting from expenditure in research and development, marketing, business development & investor relations as well as staff cost. The company reported investment cash outflow of AUD 27K while the financial activities contributed largely to cash inflows at AUD 1.67 million. Overall, the cash and cash equivalents stood at ~AUD 3.5 million. The company forecasts cash outflows for the next quarter at AUD 1.29 million.

On the ASX, Orthocell has a market capitalisation of AUD 18.12 million with ~ 120.77 million outstanding shares. With the close of the trading session on February 13th, the OCC stock was trading at a market price of AUD 0.165, up 10%. The stock has generated a negative YTD return of 3.23% so far.


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