Orthocell Limited (ASX: OCC) is a world leading regenerative medicine company based in Murdoch, Australia. The healthcare sector player develops and commercialises cell therapies and products for the repairment of soft tissue injuries, thus supporting mobility for patients. It has an advanced product portfolio comprising of as follows:
- Therapeutic Goods Administration (TGA)-licensed cell therapies Autologous Tenocyte Implantation Ortho-ATI®.
- Autologous Chondrocyte Implantation, Ortho-ACI®, has been developed to regenerate damaged cartilage tissue and tendon. Clinical studies underway for the US (FDA) approval while pre-IND meetings with the FDA completed.
- The collagen medical device, CelGro®, supports tissue repair and healing in wide-ranging orthopaedic, surgical and reconstructive applications. European regulatory approval (CE Mark) has been received, and the device can now be marketed and sold within the European Union.
Source: Company’s Investor Update
The total addressable market (US, Japan, European and Australian markets) for Ortho-ATI® and CelGro® is estimated to be over US$ 10 billion per annum. Orthocell is well positioned to capitalise on these near-term opportunities.
At the onset of the trading today (28 May 2019), the securities of Orthocell were placed in a trading halt at the request of the company, pending it releasing an announcement. The halt is expected to last until the earlier of the commencement of normal trading on Thursday, 30 May 2019 or when the announcement is released to the market.
Orthocell has a market capitalisation of circa AU$ 58.24 million with approximately 125.25 million outstanding shares. The OCC stock last traded on the market at a closing price of AU$ 0.465 on 27 May 2019 with 1.88 million shares traded. In addition, the stock has generated excellent positive return yields. These include 244.44% for the last three months, 121.43% for the last six months and 200% YTD.
Recently, the company’s Director, Stewart Washer acquired a direct and indirect interest in Orthocell upon purchase of 366,742 ordinary shares issued in lieu of fees for the period January 2019-April 2019 as approved by shareholders at a general meeting on 20 May 2019. The value consideration included- 85,851 for AU$ 0.1456; 86,266 for AU$ 0.1449; 94,625 for AU$ 0.1321; and 100,000 for AU$ 0.125.
Orthocell, in a recent announcement, has also informed that it is seeking to raise AU$ 10 million through a placement of 25 million new shares at 40 cents each, to investors. Melbourne-based private investments advisor, Bell Potter Securities, the stockbroker for the placement, initiated the capital raising on Tuesday (28 May 2019) and the terms were sent to the potential buyers.
Bell Potter Securities has called for the bids by midday Wednesday (29 May 2019). The proceeds of the placement are indicated to be utilised to accelerate the regulatory approvals for CelGro® and promote commercialisation in the European, US and Australian markets.
Recently, CelGro® successfully finished the first nerve regeneration clinical trial (reported on 8 May 2019) with four patients that experienced 83% improvement in their muscle power. The company is expected to shortly update on its recent application submitted to obtain TGA approval of CelGro® for entry into the prospective Australian commercial market.
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