Perth's Orthocell lists on ASX

Orthocell (ASX:OCC) has completed an ASX listing following its $8 million IPO and has commenced royalty generation in China for cartilage repair product Ortho-ACI.

The regenerative medicine company has commenced trading on the ASX after listing yesterday.

Orthocell Managing Director Paul Anderson said that “listing on the ASX marks an exciting day in the history of our company. While we already have products in market, an ASX listing will be invaluable in assisting us to increase marketing of Orthocell’s therapies and prepare for regulatory approval of our products, both domestically and overseas.”

Orthocell raised $8 million via an oversubscribed IPO last month, selling 20 million new shares at $0.40 apiece.

Proceeds from the offer will be used to finalise the development of CelGro, a collagen-based scaffold to aid tissue repair in reconstructive surgeries, and lodge it for regulatory approvals.

The funds will also be used to maintain regulatory approvals for Ortho-ACI and Ortho-ATI - a stem cell therapy for damaged tendons and ligaments - in Australia, and seek regulatory approval in the first international market for Ortho-ATI.

Orthocell separately announced it has received the first royalties from Grandhope Biotech under the licensing agreement granting Grandhope the rights to Ortho-ACI in China. This marks the first use of Ortho-ACI in Chinese patients.

Grandhope has now also paid Orthocell the last tranche of its licence payment, following an upfront payment issued upon the signing of the licensing agreement.

Anderson said the company views China as a key market for regenerative medicine technologies due to its ageing population of over 1 billion people.

“Our licensing agreement with Grandhope provides us with a further pathway into the Chinese market for our other products should we choose to take advantage of the relationship,” he said.

Orthocell (ASX:OCC) shares were trading 1.39% higher at $0.365 as of around 1.30 pm on Wednesday.