Ann: OCC Signs Striate Global License And Manufacturing Agreement, page-161

Hilarious isn't it? It was with some 'fear' I sold my tech stocks in the US late 2021 with admittedly very poor grasp on measuring exuberance. I just knew they were ridiculously valued, but then again, they were half a year before too! OCC had long been under-valued given its products. Then it started looking a bit shaky with management's ability to commercialise, hence the price falls. I don't know where the 2H 2022 low is in OCC, but I do know its ridiculously under-valued with this deal and these prices.

On Thursday I was sat on a very decent sized holding in a stock I knew had brilliant products, for which the regulatory pathways had eased and many of which it had already succeeded in. However, like most I was becoming increasingly concerned about management's ability to convert regulatory success into commercial success.

Paul delivered in style Monday. He will be scratching his head at the share price. This now, as I have previously alluded to, explains why they took much higher 'out of the money' stock option award exercise prices in exchange for larger denominations - insto's and intelligent investors would have baulked at lower strikes. I've often wondered if their apparent nonchalance to investors at times because they knew they had a deal(s) near in the bag - the raising of the manufacturing capacity was a big signal that the market ignored.

This company has gone from very much from needing a capital raising come year end if they had not negotiated this or another deal, to now having some 15 quarters worth of cash at their present run rate, whilst the revenues from BioHorizons sales moving them towards positive free cash flow anyway and certainly that cash run rate will be signficantly reduced by manufacturing revenues.

They were a shoo-in for FDA 510K approval in April last year. Now they go instead a more lucrative avenue (probably 'de novo') with the FDA, who they are already in regular discussion with, armed with 24 months of convincing human trial data. They are already 510K approved in the same technology in bone regeneration. Nothing is a sure thing in investing, but I think FDA approval of Remplir will be and no doubt another US Pharma' as keen as BioHorizons to partner in the approaching $10 billion USD global mkt it represents (OCC of course only a slice of, but nonetheless).