Orthocell Ltd (ASX:OCC, OTC:ORHHF) has delivered record revenue for the June quarter and for the 2024 financial year as it experiences continuing impressive sales growth of its market-leading medical devices, Striate+™ and Remplir™.
For the quarter, Orthocell achieved revenue of A$1.84 million — a 14.41% increase from the A$1.61 million achieved in the prior quarter and up 9% from a year earlier.
Quarterly revenue has now grown on average by 9% compounded for the last seven quarters, following Striate+ US and Remplir AUS product launches in November 2022.
Clear traction in markets
Annual revenue is expected to hit a record of A$6.72 million for FY24, up 30.40% from A$5.15 million in FY23, demonstrating clear traction in existing markets.
Orthocell managing director Paul Anderson said: “Orthocell has completed a record quarter and a record year of revenue, which is an outstanding effort.
"These results show the company is on track to being a key global player. I am very pleased with the performance of our distribution partners and the continued increase in product adoption.
“With a highly respected and experienced board in place, and with market-leading products, our company is in a strong position to continue to gain commercial traction and drive Remplir, our breakthrough nerve repair device, into global markets.”
More growth ahead
Orthocell currently has two products in market – Striate+ for dental bone regeneration and Remplir for peripheral nerve repair.
Notably, the global market opportunity for these products is estimated to be worth more than US$3 billion.
Orthocell is aiming to secure a 20% market share for Striate+, which would generate an estimated A$50 million in recurring revenue. A similar market share for Remplir would generate A$255 million recurring revenue.
Striate+™ is distributed by BioHorizons Implant Systems Inc — one of the largest global dental implant companies and currently sold in the US, Europe/UK, Australia and New Zealand.
Remplir™ is distributed by Device Technologies — a respected name in the provision of medical devices and healthcare solutions across Australia, New Zealand and Asia — and while it is currently sold only in Australia and New Zealand, the company is accelerating approvals to expand into new markets.
Orthocell has been working with its distributor partners to drive uptake of Striate+ and Remplir in key regulatory markets. Such expansion would see an increase in the above revenue projections, demonstrating enormous growth potential for the company in the immediate future.
Orthocell is well funded, with a strong balance sheet of A$20.6 million in cash, for its global market expansion strategy and beyond the pivotal US product registration for Remplir expected in the March quarter of 2025.