Why Orthocell has blown my mind this morning

When I read Orthocell’s (ASX: OCC) company announcement I had to do a double take. 

Why? 

Because they are casually RESTORING FUNCTION TO PARALYSED LIMBS. Go back, read that again. Scoop your jaw off the floor. 

That’s right, regenerative medicine company Orthocell (ASX: OCC) has received final data for their nerve reconstruction study were they used their product, Remplir (previously CelGro) to repair nerves in 19 patients following injury to the spinal cord, brachial plexus and other peripheral arm and hand nerves. Patients had suffered traumatic nerve injuries in all manner of accidents with some even having complete loss of use of all four limbs and torso (quadriplegia). 

The results were astounding with functional gains maintained 12 and 24 months post treatment. Patients continued to improve, with one man – Damien Hall even returning to competitive rock climbing at the same level prior to his injury (!!). 

Don’t believe me? Here’s a picture of him traversing a rock face, with fully functional hands.

Patient outcomes and recovery were assessed by grading muscle strength closest to the site of the repaired nerve. 76% of nerve reconstructions allowed functional recovery of muscles controlled by the target nerve. 85% of reconstructions resulted in functional recovery of muscles closest to the reconstruction site. 

A total of 17 nerves were repaired in the five quadriplegic patients treated where the procedures achieved better results in restoring muscle function than those in published studies. 13 of the 17 (76%) nerve repairs achieved the best-case clinical outcome for target muscles with a Medical Research Council (MRC) grade of 3-4, the maximum level of recovery expected, 12 months post procedure. This improved to 92% of nerve repairs 2 years post treatment.

“Consistently returning function to paralysed upper limbs was the primary goal in this study,” said Orthocell Managing Director, Paul Anderson. “I am delighted by the results showing early recovery and continued improvement in arm and hand function in these difficult to treat patients. This study has demonstrated higher quality outcomes, improved predictability, and consistency of return of muscle function following remplir nerve reconstruction treatment.”

Clinical trial lead and orthopaedic nerve specialist, Dr Alex O’Beirne, said: “Remplir is increasing the success rate and efficiency of nerve transfer surgery. The quadriplegic results are particularly promising with functional gains now only maintained, but continuing to improve between 12 and 24 months post- treatment. Seeing patients regain enough independence so that they can be involved in family life and return to work is very rewarding.” 

The results are set to be a key launch pad for Orthocell as they move to commercialise Remplir in a global addressable market worth over USD $7.5 billion each year. 

Recently, the Company obtained regulatory approval in Australia and is beginning to explore marketing and distribution opportunities. The Company is also using this momentum to begin discussions with the FDA for entrance into the lucrative US healthcare market. These discussions are bolstered by a cash balance of $11.2 million to fund the product’s journey to becoming the gold standard. 

Orthocell has submitted their data from this study for publication which will see the Company name reach more key opinion leaders and field experts, opening them up for collaborations and further use-cases. 

At the time of reporting, Orthocell’s stock price has stayed stuck at the $0.40 mark,only 3.9% up since market open, despite what I deem to be pretty major news and a massive market opportunity. 

Savvy investors, take note.