Media thread, page-1096

While trawling for news on Orthocell this weekend, I stumbled upon this website (some relation to Shaw & Partners) that provides its members with a swathe of market related and company information. I found a few Q&A's in regard to Orthocell that I figured some of you might find... interesting, if nothing else. Perhaps some of the questioners below are on this HC forum too. I have omitted their names for privacy.



^{Question asked 22/03/2025}
Orthocell Ltd (OCC)

Do you follow this company, I have been since 2014 it is a medical group and has put submissions in to USA to sell its product into a 1.6 billion mkt will be accepted by early may 25 is already being used here in Australia and Singapore more submissions going in to Canada U.K. parts of Europe etc etc very good buying $1.20 -1.30 this company will flourish in the next 6 months $1.70-2.4
cheers. D
Answer

Hi D,
For subscribers not familiar with Orthocell (OCC) its an Australian biotechnology company which has boomed over the last 6 months growing its market cap to ~$350mn. The company’s core focus is biological therapies for tendon and ligament tissue repair & regeneration.
OCC as a business is already headed in the right direction, in FY24 Orthocell achieved annual revenue of A$6.76 million, reflecting a 30.8% increase from the previous year. Product sales revenue grew by 55.3% to A$3.01 million, from its regenerative medicine in Australia. A you said OCC is actively pursuing a global expansion strategy to enhance its presence in the regenerative medicine market:

• Remplir: Following successful early sales in Australia, New Zealand, and Singapore, OCC plans to submit regulatory applications in five additional countries during 2025, aiming to capture a significant portion of the global nerve repair market.
• Importantly OCC is preparing for a pivotal U.S. product registration for Remplir with FDA approval anticipated by March or April 2025.
• Striate: The company intends to launch this product for guided bone & tissue regeneration in Austria and Switzerland, further broadening its European footprint.

Importantly, the company also maintains a robust balance sheet, with around $31 million in cash at the end of  2024, and an expected R&D tax incentive refund of over $3 million in the March 2025 quarter.
We like OCC moving forward, great pick!

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^{Question asked 29/03/2025}
Orthocell Ltd (OCC)

Following on your favourable appraisal last week of this company, I wonder if you have a method of forecasting the share value based on the addressable market of its key products and the number of shares on the market. The OCC has suggested a US market value of $1.6bn if approval is given. OCC has 200m shares (I believe). This would imply revenue per share of some $7 per share. If costs can be managed, a $5-7 share price wouldn't be out of the question, would it?
Answer

Hi S,
As you say we did like Orthocell Ltd (OCC) last week and the market listened, at least short term, sending this $380mn Australian biotechnology company up +7.5% in a quiet market although we note 10% swings are common place for OCC.
This is the quandary on biotech’s, there are lots of assumptions involved, including the view that the U.S. market for peripheral nerve repair is exceeds US$1.6 billion annually but here are some back of the envelope calculations:

• There are 242mn shares of OCC, and with a strong balance sheet a capital raise appears highly unlikely.
• The million dollar question is if the $1.6bn estimate is close what % can OCC capture.
• If it’s just 10% and OCC can maintain its 46% margin this equals ~$74mn profit, which makes the stock cheap in our opinion.

We like OCC initially looking for new highs up towards $2, but, we are always nervous towards Biotech’s.

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^{Question asked 07/06/2025}
Opinion on Orthocell Ltd (OCC)

Thanks for your insightful opinions. It has assisted in developing my investing strategies. OCC has experienced significant growth in 2024 ahead of a raft of regulatory approvals including for the US. It appears to be consolidation ahead of actual revenue increases. Is this a case of buy the rumour sell the fact or is this pattern consistent with a pre-sales growth opportunity? Is this a familiar pattern?
Thanks P
Answer

Hi P,
We have discussed OCC, a $315mn biotech a couple of times in 2025, delivering a favourable outlook on a space we rarely venture into. Slowly but surely OCC is moving in the right direction; in last few months they’ve received regulatory approval for Remplir in Hong Kong & Canada, and they’ve added eight new distributors for its nerve repair product.

• We like OCC around $1.30 believing its consolidating recent stellar gains with the risk/reward now appealing after its recent pullback. That said, we are not big in this space, too many unknowns for us and binary outcomes.