Medical technology company Osteopore (ASX: OSX) has made its ASX debut with a $20.2 million market capitalisation following a successful initial public offering which closed early due to strong investor demand.
The Australian and Singapore-based business raised $5.25 million before costs on the issue of 26,250,000 fully paid ordinary shares at $0.20 per share to institutional, high net worth and sophisticated investors.
It will use the funds in pursuit of its growth strategy is to become a world-leading producer of pioneering 3D-printed medical implants engineered to stimulate and facilitate natural tissue regeneration.
Osteopore is believed to have a strong advisory team which includes ResMed (ASX: RMD) chief financial officer Brett Sandercock, who has joined the board as its non-executive chairman.
ResMed specialises in the development of medical devices and technologies to assist patients with respiratory issues, with a focus on sleep-disordered breathing.
The company sells its products to customers in more than 70 countries through direct sales and a distributor network.
Mr Sandercock said there were similarities between Osteopore and ResMed in its early days.
“[I believe] there are global aspirations and market opportunities which have similarities to ResMed 20 or 30 years ago,” he said.
“The funds from the IPO will greatly accelerate Osteopore’s sales and marketing efforts and enable [us] to increasingly supply products to those key global markets.”
Osteopore is commercialising a range of patented 3D-printed scaffolds used for the regeneration of bone across several therapeutic areas.
The scaffolds are made from proprietary polymer formulations which naturally dissolve overtime to leave only healthy bone tissue.
They are reported to significantly reduce post-surgery complications commonly associated with permanent bone implants.
Osteopore currently has three primary products in market – Osteoplug, Osteomesh and Osteostrip – which have received FDA (US) and CE Mark (EU) certification and are being sold to hospitals worldwide.
The company also develops customised patient-specific solutions to address other therapeutic demands.
To date, Osteopore’s products have been successfully used in over 20,000 surgical procedures and contributed to a year-on-year revenue increase since 2016.
The company generated approximately $990,000 in revenue for the 12 months to 31 December 2018.
Products in focus
The current products in Osteopore’s range includes:
Osteoplug is a bioresorbable implant used for healing burr holes created during neurosurgery.
A fully interconnected porous matrix architecture allows the implant to be quickly saturated with marrow, blood and nutrients to encourage bone regrowth and remodelling, and its unique shape allows easy implantation without screws.
Long-term clinical trials have demonstrated significant bone regeneration of the burr hole as the Osteoplug is slowly resorbed by the body and replaced with natural healthy bone.
Used in craniofacial surgery to repair various types of fractures and to fill surgical defects, the product is flexible and can be easily cut to shape as required from standard-sized mesh products.
Osteopore said it offers a rigid yet flexible scaffold, with “sufficient mechanical strength” that supports bone during growth and degrades as bone regeneration and remodelling takes place.
Osteostrip provides a durable, biodegradable method of filling the void following a craniotomy – the surgical removal of bone from the skull to expose the brain.
It fills the void between the cranial flap and the cranium without the need for fixation through screws or other means, and provides “rapid and homogenous vascularisation” after the procedure.
Ultimately, the naturally osteoconductive and bioresorbable product results in high structural integrity and long-term integration with surrounding bone.
Osteopore said its growth strategy would include expanding its product line-up into the dental, orthopaedic and long bone market segments.
Osteopore’s shares closed the day at $0.725, up 262.5% on its IPO issue price, having reached an intra-day high of $0.80 per share.