Orthocell (ASX:OCC) raises $17 million for US expansion in regenerative medicine
October 25, 2024Regenerative medicine company Orthocell (ASX:OCC) is making headlines with a notable $17 million institutional placement, setting the stage for its US market entry with the nerve repair product, Remplir.
This pivotal move aims to tap into the lucrative US$1.6 billion American market, as well as expand Orthocell‘s footprint into Canada, Southeast Asia, and Europe.
Strategic Market Expansion
The funds raised are earmarked to accelerate the US launch of Remplir, a device designed for peripheral nerve reconstruction.
Orthocell’s recent placement, priced at A$0.60 per share, brought in a mix of new and existing institutional investors.
“We are extremely pleased to announce this significant Placement following on from our second consecutive quarter of record revenue,” stated John Van Der Wielen, Orthocell’s Chair.
This move isn’t just about securing funds, the $17 million placement also enhances manufacturing capabilities, increases automation, and boosts marketing resources — all vital for scaling up in high-demand regions. “
This allows us to grow the USA market quicker, invest in volume manufacturing, and speed up the progress of our promising pipeline products,” Van Der Wielen added.
Riding on Success and Expanding Reach
Orthocell’s journey towards global prominence has gained momentum over the past year.
The company celebrated regulatory approval for Remplir in Singapore and launched Striate, another of its bone repair devices, in the Canadian market.
This wave of regulatory and commercial success underscores Orthocell’s ambition to dominate the regenerative medicine space.
Financials and Market Dynamics
The placement, offered at a 5% premium to the 60-day VWAP and a 12% discount to the 10-day VWAP, highlights investor confidence in Orthocell’s growth trajectory.
Notably, the capital injection positions Orthocell with over $35 million in cash reserves, ready to fund ongoing product development and regulatory approvals.
Focused on Innovation
Orthocell’s innovation lies not only in its products but also in its aggressive market strategy.
The company’s timeline remains on track, with the submission of the Remplir US 510(K) market authorisation application scheduled for Q4 CY24.
This step will pave the way for FDA product registration, anticipated in Q1 CY25, cementing Orthocell’s role as a major player in the sector.
This isn’t just another capital raise; it is a calculated push to gain a strong foothold in some of the world’s most challenging yet rewarding markets.
For a company focused on giving patients a new lease on life, Orthocell’s $17 million placement represents more than just growth—it’s a commitment to innovative healthcare.
Please note the following valuable information before using this website.
Independent Research
Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.
