Onwards and upwards for Osteopore as record growth builds momentum
Health & Biotech
Health & Biotech
Natural tissue regeneration specialist Osteopore (ASX:OSX) believes the company’s best quarterly results and growth strategy provides a solid foundation to build upon.
Osteopore achieved record revenue of S$431,171 ($453,052) for Q2 calendar year 2022. Revenue was up 16% on Q1 CY22, resulting in the third consecutive quarter of revenue growth and 39% increase on the previous year’s revenue.
The company has ended Q2 with $2,336,000 cash on hand with executive chairman Mark Leong saying the company has been ticking all the right boxes for growth.
“Everything we’ve done here for the last quarter and indeed last few quarters has been positive,” he said.
“We’ve entered new markets, entered collaborations for further technological development, appointed new distributors with surgical specialisations which are the all the right steps for growth.”
Osteopore’s history goes back to 1996 at the National University of Singapore, National University Hospital and Temasek Polytechnic. Researchers initiated research to identify suitable bioresorbable material, microarchitecture, and manufacturing techniques.
Used successfully in cranial and maxillofacial surgeries, Osteopore’s scaffolds are also being adopted in orthopaedics, particularly in regenerating larger bones with a bright future for regeneration of cartilage, tendons, and ligaments.
Another advantage of its scaffolds is a reduction in complications from complex bone surgeries.
“Our science is really strong and starting to be recognised globally by the medical profession,” Osteopore CEO Khoon Seng said.
“We have sales and a presence on every continent now with surgeons and hospitals adopting our products.”
While its history dates back more than 20 years, Osteopore only listed on the ASX in September 2019.
Then came 2020 and the company was forced to navigate international Covid-19 lockdowns and associated elective surgery cancellations.
“We really only started work on commercialising the technology about two and a half years ago when we listed,” Leong said.
“There is a process to commercialising medical products and unfortunately for us it was interrupted by the Covid-19 pandemic.
“But notwithstanding that we have delivered a strong three quarters of growth so we are back on the growth path.”
And while the bull market of 2020 and 2021 was good for its share price early on, it has felt the pinch of volatile markets this year.
The S&P/ASX 200 Healthcare index (ASX:XHJ) is down more than 7% year to date and while Osteopore’s share price has also taken a hit it has rallied more than 20% in the past month.
“We are being more aggressive in pushing things forward and we are positive about growth in the future,” Leong said.
“We are soldiering on despite the market volatility as we know the market runs in cycles.”
Leong said Osteopore’s sales team and distribution partners are gaining increased access to hospitals and surgeons as they adapt to navigate the ever-changing Covid-19 landscape.
Medical trade shows have reverted to being back in-person, further boosting Osteopore’s access to healthcare decision makers.
The company has been expanding in new and existing markets, including Colombia in Latin America, South Africa and Spain with distribution partners signed up and products shipped and implanted.
During the quarter, Osteopore’s chief technology officer Dr Lim Jing was also appointed chief operating officer to improve efficiency and support business growth and expansion as it breaks into new markets.
Osteopore also signed a collaboration agreement with SGX Catalist-listed Livingstone Health Holding Limited to jointly develop new applications and products for regenerating bone and tissue.
And to top it off, Osteopore’s groundbreaking tech has featured in the media and documentaries on the future of medicine in the USA.
Leong says the team has a laser focus to drive further commercialisation, revenue generation and value for existing and future shareholders.
“We are putting more focus on our existing key markets like the US and working to enter new lucrative key markets like China,” he says.
“We are also focusing on higher volume and higher margin product segments as our technology has many applications and is highly adaptable.”
Khoon Seng shared that Osteopore is leveraging on AI and best available technology to enhance its interactions with distributors and medical specialists to quicken product adoption.
“Using AI we can get a customised implant to a surgeon in a fraction of the time,” he said.
“Virtual reality really helps the surgeons understand how best to use the implants during surgical procedures.”
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.