Why Osteopore (ASX:OSX) reports record implant sales while its funding rests on a convertible note facility

Sonal Goyal

12 November 2026 02:06 PM AEDT

Why Osteopore (ASX:OSX) reports record implant sales while its funding rests on a convertible note facility

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

Sales Revenue reached a record of about $859,000 in the September quarter, up on both the previous quarter and the same quarter of 2025.
Cash fell to about $712,000 at 30 September after net operating outflows of $559,000.
The reported funding runway of 26.32 quarters depends on $14 million of undrawn capacity under a redeemable convertible note facility.
The exclusive Singapore orthopaedic arrangement with DKSH will end on 31 December 2026, with the company taking over sales from 1 January 2027.

Osteopore (ASX:OSX), a Singapore-founded maker of 3D-printed bioresorbable bone implants, reported record quarterly sales revenue of about $859,000 for the September quarter, according to its Quarterly Report and Appendix 4C released on 30 October 2026. That is the commercial side of the story: a revenue-generating medical device Business expanding into new Asian and Middle Eastern markets.

The financial side is less comfortable. Cash fell to about $712,000 at 30 September 2026 after net operating outflows of $559,000. The company's reported funding runway of 26.32 quarters depends almost entirely on $14 million of undrawn capacity under a redeemable convertible note facility, rather than cash in hand.

What Osteopore does

Osteopore develops and sells patented scaffolds, made from biomimetic and bioresorbable materials, that guide bone regeneration in craniofacial, neurosurgical, orthopaedic and dental applications. It sells through distributors, including Zimmer Biomet for craniofacial products across Europe, the Middle East, Africa and Asia-Pacific, and is building direct sales in some markets. It also runs clinical studies, including cleft lip and jaw reconstruction trials, which are separate from its existing product approvals.

Sales growth and market access

According to the quarterly report, sales revenue of $859,000 was up on both the previous quarter and the same quarter of 2025. Customer cash receipts, a different measure, were $678,000. Recent announcements include craniofacial market access in Saudi Arabia with Zimmer Biomet in July, an orthopaedic distribution deal with Al-Umnia Medical covering five Gulf countries in August, for which product registrations are still under way, and orthopaedic market access in Thailand in September.

On 2 November 2026 Osteopore said its exclusive Singapore orthopaedic sales arrangement with DKSH will end early on 31 December 2026, with its own Subsidiary taking over sales from 1 January 2027. The company links this to its new 3D printing services and injectable bone fillers aimed at the same customers. Distribution agreements and market access are not the same as recognised revenue, and the financial contribution of the newer markets has not been quantified.

Cash flow and the convertible note facility

The Appendix 4C shows the main quarterly outflows were staff costs of $399,000, administration of $387,000, Marketing and business development of $316,000 and Manufacturing of $190,000, partly offset by $102,000 in government grants. The company said operating outflows fell from $691,000 in the June quarter. There were no financing inflows in the quarter.

The facility, agreed in December 2024 with Advance Opportunities Fund entities, provides for up to $20 million of 4% redeemable convertible notes in four $5 million tranches, issued in $250,000 sub-tranches. About $6 million had been drawn by quarter end. Cash alone covered roughly 1.3 quarters of September-quarter outflows, so ongoing access to the Facility is important.

Risks and what to watch

The key risks are funding and dilution: the business is still loss-making, and its runway depends on further note subscriptions whose terms and availability are set out in the subscription agreement. Commercial risks include execution in new regions, the transition away from DKSH in Singapore and dependence on distribution partners. Clinical studies may not lead to expanded approvals.

Upcoming items include the Singapore direct-selling transition from 1 January 2027, Gulf product registrations under the Al-Umnia deal, further note drawdown notices, and the December quarter report.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.