Highlights

  • Orthocell secures firm commitments for a USD 30 mn institutional placement at USD 1.30 per share.
  • Funds to support US rollout of Remplir and advance regenerative medicine pipeline.
  • The company will hold over USD 50 mn in cash and remain debt-free post placement.

Orthocell Limited (ASX:OCC) has secured firm commitments to raise USD 30 million before costs through an institutional placement. The new shares are priced at USD 1.30 each, representing a 9.1% discount to the last traded price of USD 1.43. The placement attracted broad interest from both international and domestic investors, including new US institutional participants. Canaccord Genuity (Australia) Limited acted as the Sole Lead Manager for the placement.

Use of Funds

The proceeds from the capital raise will be used to accelerate the US launch of Orthocell’s flagship product, Remplir, which focuses on nerve repair. Additionally, the funds will support clinical studies to extend Remplir’s application in prostate cancer surgeries. Orthocell also plans to invest in commercialising tendon and ligament repair products, alongside a significant expansion of manufacturing capacity at its Western Australia facility, increasing output from 100,000 to 400,000 units annually. Further investment will be made in new regenerative medicine applications, and some funds will be allocated for general working capital. Upon completion of the placement, Orthocell expects to hold over USD 50 million in cash with no debt, supporting its ongoing global commercialisation efforts.

Progress in Remplir’s Commercialisation

Remplir has recorded six consecutive quarters of increasing revenue, reaching USD 3 million in the September quarter, mainly from markets in Australia and Singapore. The US commercial rollout, which began after FDA clearance in April 2025, is progressing faster than anticipated. Orthocell has set up a specialist distributor network covering 25 US states and approximately 40% of the US population. The product has been used in over 40 surgeries across multiple hospitals and introduced to over 100 surgeons. Orthocell has also submitted 51 Value Analysis Committee applications to hospitals, with 11 already approved. The company expects US revenue to grow further starting from the December quarter, supported by its expanding clinical and distribution activities.

Management Commentary

Orthocell CEO and Managing Director, Paul Anderson, said:

“We have built significant momentum in the commercialisation of Remplir and the funds from the capital raising will be focused on accelerating that process. We greatly appreciate the support we have received from new and existing institutional and high net worth investors and particularly welcome our new investors from the US. We see that as a significant endorsement of our strategy and progress to date as well as the near-term revenue that can be generated from the US market.”

Share Performance

The company is currently trading at AUD 1.340, down by 6.293%from previous close of AUD 1.430.