Orthocell Ltd (ASX:OCC, OTC:ORHHF) has received firm commitments to raise A$30 million (before costs) via an institutional placement that attracted strong demand from both international and domestic investors, including several new US institutions alongside other institutional and high-net-worth participants. The placement comprises 23,076,923 new fully paid ordinary shares at $1.30 per share. The offer price represents a 9.1% discount to the last traded price of $1.43.
The money raised will strengthen OCC’s balance sheet to “well over” A$50 million in cash with no debt, leaving the company fully funded to execute its global commercialisation strategy with a near-term focus on the United States rollout of its flagship nerve repair device, Remplir.
The addressable US nerve repair market is estimated at around US$1.6 billion.
Remplir continues to grow in existing markets, recording six consecutive quarters of record revenue and reaching A$3 million in the September quarter, with minimal contribution from the US to date.
“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," Orthocell CEO and MD, Paul Anderson, said.
“We have recently announced our sixth consecutive quarter of record revenue primarily from our existing markets of Australia and Singapore, and we continue to track ahead of schedule in our US rollout of Remplir. That means we’re in a position of strength, and our capital raising is all about driving our growth plans.
“We’re also seeing some exciting prospects in other applications and technologies in regenerative medicine and will be continuing to invest in the expansion of our markets. We’re particularly focused on the potential for Remplir to be used in prostate cancer surgeries and will be investing further to support the work we’ve already done to date. In addition, we see some very interesting applications in bone, tendon and ligament regenerative medicines that we’re working on.”
Use of proceeds
Funds will be directed to:
- scaling manufacturing capacity at the company’s Western Australian facility from 100,000 to 400,000 units per year;
- accelerating Remplir’s US sales ramp-up;
- a clinical study supporting Remplir’s use by urological surgeons in prostate cancer procedures;
- advancing commercialisation of pipeline products targeting tendon, ligament and bone repair; and
- general working capital and offer costs.
US commercialisation update
Following FDA clearance in April 2025, Remplir’s US launch is running ahead of plan and will be further accelerated with the placement proceeds. Orthocell reports that:
- its specialist distributor network now spans 25 states, covering about 40% of the US population;
- more than 40 surgeries have been completed across multiple hospitals, with over 100 surgeons introduced to the product and 14 Medical Advisory Board members engaged;
- 51 Value Analysis Committee (VAC) submissions have been lodged, with 11 approvals in place and state licensing processes underway; and
- initial US revenue is expected to begin ramping in the December quarter.
Post-placement, Orthocell expects to be fully financed to pursue global commercialisation of Remplir and advance its broader regenerative medicine portfolio.