Login | Register
Profile | Log out
logo

  • Home
  • News
  • Opinion
  • Other
    • Market Updates
    • Explainers
    • Satire
  • About
  • Contact Us
    • Contact
    • Get Covered
    • Posting Guidelines
  • Subscribe
Submit An Article

Latest Articles

  • Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    Nanoveu Secures $2 Million to Fast-Track Commercial Launch of ECS-DoT Chip and AIoT Platform
    • News

  • Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    Archer Unlocks Cryogenic Sensor Breakthrough for Quantum Computing
    • News

  • EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    EGL Secures $1.9M PFAS Plant Contract as Demand for Clean-Up Technologies Surges
    • News

  • RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    RocketDNA Secures Major Aerial Tech Contract with Vault Minerals at WA Gold Site
    • News

  • BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    BirdDog Boosts Buy-Back Offer by 40% Ahead of ASX Delisting Vote
    • News

  • AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    AML3D Launches High-Tech U.S. Facility to Power Submarine Supply Chain
    • News

  • Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    Vection Enters $520K Agritech Deal to Build AI-Powered Farming Robot
    • News

  • Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    Unith Achieves Strong Growth in Platform Usage and Strategic Partnerships
    • News

  • FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    FBR and Samsung Heavy Industries Execute Engineering Service Agreement for Shipbuilding Automation Project
    • News

  • Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    Bioxyne Lifts FY2025 Revenue Forecast as Psychedelics and Pharma Push Gains Pace
    • News

Osteopore and Singapore Government-backed medtech firm joins forces to market orthopaedic products in China

  • In News
  • September 12, 2023
  • Clara Venisha
Osteopore and Singapore Government-backed medtech firm joins forces to market orthopaedic products in China

The orthopaedic devices market is a multi-billion-dollar industry in China, particularly due to its large population facing orthopaedic challenges like arthritis, fractures, and sports injuries. Various treatments are growing in demand to improve mobility and reduce pain, and an ageing population with higher rates of osteoporosis is driving industry growth.

Recognising the immense potential of this lucrative market, global regenerative medicine company Osteopore (ASX: OSX) is now one step closer to expanding to China. The Company has signed a Memorandum of Understanding (MOU) with InnoVentures Inc, a China-based medical device innovation accelerator, to form a Joint Venture (JV). 

The JV’s goal is to introduce and market Osteopore’s orthopaedic products in China, including reconstruction, regenerative implants, and solutions for bone defects. This effort is aimed at tapping into a market that is projected to generate approximately US$2.31b in revenue in 2023. Furthermore, the orthopaedic devices market in China is expected to exhibit a strong annual growth rate (CAGR 2023-2028) of 7.13%, ultimately reaching a market volume of US$3.26b by 2028.

The JV partnership plans to establish the JV Company (JV Co) in Singapore. Osteopore will grant InnoVentures an exclusive, royalty-free licence for specific intellectual property (IP) and in exchange will receive a 30% equity stake in the JV. JV Co will initially prioritise on obtaining regulatory approval to commercialise Osteopore’s in-house developed High Tibial Osteotomy (HTO) implant, which is used for knee joint realignment surgery.

Commenting on the partnership, Osteopore Executive Chairman Mark Leong said: “We are delighted to announce our MOU with InnoVentures, representing a critical step in our strategy to commercialise our innovative orthopaedic products in China.”

“The potential JV not only leverages InnoVentures’ regulatory expertise and deep network but also demonstrates the importance of Chinese market expansion to our strategy.”

Osteopore and InnoVentures plan to finalise a formal agreement and address any related fees for the JV by 30 November 2023. The JV’s objectives include setting up manufacturing facilities, developing sales and distribution networks, and handling the overall management of the JV Company.

The JV will create a wholly-owned subsidiary in China to serve as the main operating entity. InnoVentures will focus on raising capital, recruiting, and maintaining a support team for the JV Co. Meanwhile, Osteopore is responsible for technology development and commercialisation support. 

The JV is expected to be managed by a Board of Directors consisting of an InnoVentures-appointed director (will also be the Chairperson of the Board), an Osteopore-appointed director, and an independent director mutually appointed by the parties.

InnoVentures is a China-based medical device company that oversees the entire product development process, from creation to regulatory approval and market launch. Established in 2014, InnoVentures also has a sister company called Gateway Medical, which operates in Shanghai and Beijing. One of InnoVentures’ key investors is Singapore-based Vertex Ventures HC – the venture capital offshoot of global investment company Temasek Holdings. The Government of Singapore is the sole equity shareholder of Temasek Holdings.

InnoVentures has found a potential investor, a major Chinese medical device and pharmaceutical company, who is keen on joining the JV. InnoVentures is currently navigating partnership opportunities with this investor and additional agreements will be established between the prospective investor and the JV Co in the future. However, this agreement doesn’t create a formal relationship between the investor and the JV Co at this stage.

Another pathway to enter the Chinese market, in late July, Osteopore signed a non-binding licensing agreement with CellHeal to set up manufacturing facilities, attain regulatory approvals and commercialise select Osteopore regenerative medicine technology applications in China. CellHeal is committed to raising $10 million to fund these commercialisation activities.

For the half year ending 30 June 2023 (Osteopore reports its financials on a full-year basis ending in December), Osteopore recorded a revenue of $997k compared to $816k revenue in the previous corresponding period (pcp). However, this was offset by increased expenditure within the half and unfavourable foreign exchange rates, thus resulting in $3.02m Net Loss After Tax (NLAT) compared to $1.98 NLAT on pcp. The Company ended the half with $1.85m cash at bank.

  • About
  • Latest Posts
Clara Venisha
Clara is a Business Reporter for The Sentiment.
Latest posts by Clara Venisha (see all)
  • IPO Watch: The Australian Wealth Advisory Group set for ASX entrance - December 15, 2023
  • Harris Technology gears up for Christmas as consumer electronics and household tipped to be among most popular purchases - November 27, 2023
  • Linius Technologies sprints into the US college sports with automated game highlight technology - November 23, 2023
  •  
  •  
  •  
  •  
  • CellHeal
  • InnoVentures
  • JV Company
  • mark leong
  • Osteopore
  • Temasek Holdings
  • Vertex Ventures
  • News

Leave a Comment

You must be logged in to post a comment.

  • About
  • Latest Posts
Clara Venisha
Clara is a Business Reporter for The Sentiment.
Latest posts by Clara Venisha (see all)
  • IPO Watch: The Australian Wealth Advisory Group set for ASX entrance - December 15, 2023
  • Harris Technology gears up for Christmas as consumer electronics and household tipped to be among most popular purchases - November 27, 2023
  • Linius Technologies sprints into the US college sports with automated game highlight technology - November 23, 2023

Login or register for free to access unlimited reading

Register Now!
  • About
  • Latest Posts
Clara Venisha
Clara is a Business Reporter for The Sentiment.
Latest posts by Clara Venisha (see all)
  • IPO Watch: The Australian Wealth Advisory Group set for ASX entrance - December 15, 2023
  • Harris Technology gears up for Christmas as consumer electronics and household tipped to be among most popular purchases - November 27, 2023
  • Linius Technologies sprints into the US college sports with automated game highlight technology - November 23, 2023
  • News

  • Opinion

  • Satire

  • About

  • Contact Us

  • Subscribe

The content published on this website is solely for general information purposes and is not to be construed as financial advice. Should you seek financial advice you should consult with an appropriately qualified person. Opinions expressed on this site are subject to change without notice and The Sentiment who produced this content is under no obligation to keep the information current. The Sentiment, affiliated companies & associates may have a conflict of interest with companies discussed on the website due to commercial arrangements, for example they may be shareholders in the company, be engaged by them to assist in investor communications or receive commission/brokerage for funds raised.

Copyright © 2020 The Sentiment. All rights reserved.
Subscribe

Enter your email address below to subscribe to The Sentiment’s weekly newsletter, highlighting the top news, research, opinion and satire articles shaping ASX investor sentiment.

The Sentiment respects your privacy and will not spam you. View our privacy policy here.