Osteopore has had a productive quarter as it explored new markets and maintained profit margins, continuing along the path to profitability.
Bone healing specialist Osteopore (ASX:OSX) has continued its revenue growth momentum, delivering S$372k (or $375,386) in revenue for Q1 CY22.
This represents a 21% growth over the last quarter, and a 13.5% increase over the previous corresponding period (pcp).
During the quarter, the company expanded into new distribution networks, where it now has a number of highly successful distributor agreements in place across many major world markets.
The first of these agreements saw Osteopore expand its footprint to the Middle East, where the first shipment of its cranial regenerative implants were made to the United Arab Emirates (UAE). That agreement has opened the door to potentially new regulatory access across other Middle East territories.
The quarter also saw Osteopore making continuous improvements to existing systems and processes, as well as exploring and leveraging new technology to “sharpen its saw”.
In early March, the company commenced a study in partnership with Singular Health Group (ASX: SHG) , aimed at improving the accuracy and workflow efficiency of Osteopore’s customised cranial implants.
The study was part of Osteopore’s announced strategy to collaborate with a range of technologies to improve the efficacy of its regenerative implants.
Superior products
The lifting of COVID restrictions across key markets during the quarter enabled the sales team to be on-ground in both the US and EU, to support existing and sign up new partners.
As the pandemic eases, Osteopore expects to emerge stronger as it restarts suspended training programs and re-engages with key medical stakeholders and decision makers.
The company has also worked towards maintaining and improving its margins.
In Q1, gross margin of over 70% of sales revenue was maintained as it tracks a path to profitability.
“While our revenue growth is encouraging, equally important is continuing to build on our clinical data, global regulatory clearances and securing distribution partners in as many countries as possible,” says Osteopore executive chairman, Mark Leong.
Leong said that in time, more surgeons will select Osteopore’s superior products as they gain more visibility.
“We know that our products are superior over traditional bone regeneration products, so we are moving rapidly to expand our global network,” Leong said.
“We are confident that as we execute our strategy and achieve various key milestones, revenue will continue to grow as more and more surgeons switch to using our products.”
3D cranial implants
In early March, Osteopore commenced a study in partnership with Singular Health (ASX: SHG), aimed at improving the accuracy and workflow efficiency of Osteopore’s customised cranial implants.
These customised implants are developed through CT scans of patients, which are then processed by software that converts them into 3D models. These 3D models are in turn used to create the 3D print implants.
Osteopore has tested an automatic cleaning and feeding mechanism for its 3D printers, allowing it to print implants with continuous material feed without operator intervention.
Osteopore advanced a number of other development programs in the quarter, including one at a Vietnam hospital which used its implant.
Positive feedback from the Vietnamese surgeons performing the procedures illustrated that Osteopore’s products were easy and straightforward to use.
In the quarter, the company also conducted its first-in-human study in high tibia wedge osteotomy, with 38 patients already receiving Osteopore’s wedge implants.
Expansion of distribution and markets
In addition to the Middle East, encouraging progress was also made in Europe during the quarter.
Shipments of its cranial regenerative implants were made to Switzerland, a key milestone for which displays the team’s ability to penetrate new markets.
Further sales across Europe are expected to continue this quarter, with a fully dedicated sales team now ready to take advantage of a significant backlog of elective surgeries.
Device registration with the UK’s MHRA (Medicines and Healthcare products Regulatory Agency) post-Brexit was completed, meaning that Oseteopore’s products can be placed on the UK market and distributed for specific surgeries.
In the Middle East, the company also obtained clearance from the UAE’s regulator for import and supply of craniofacial, nasal, and dental products, as well as patient specific implants.
Osteopore’s vision
Osteopore’s stated vision is to evolve into the world’s most valuable regenerative medical technology company.
The company has proven, superior products that empower tissue regeneration and is currently embarking on a global expansion with regulatory clearance and distribution partners secured in many major markets.
The company also has a complementary pipeline of products for additional bone regeneration applications, and is continually working to diversify that product range.
For the rest of 2022, Osteopore says its priorities include executing additional collaborative partnerships, gaining further regulatory clearances, and launching complementary products for additional bone regeneration applications.
This article was developed in collaboration with Osteopore, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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