Osteopore (ASX: OSX) has updated the market with strong company performance figures, declaring it recorded four straight quarters of revenue growth last year including a $429,700 result in the 2020 fourth quarter.
Despite the emergence of COVID-19 in 2020, Osteopore reported continued sales growth throughout the year, and in the fourth quarter, a 5% increase compared to the previous quarter combined with an 18% year-on-year improvement over the corresponding period in 2019.
In total, the medical technology company said it generated $1.5 million in revenue in 2020 – a 36% increase over 2019, amid some of the most challenging conditions the healthcare sector has ever experienced.
Maintaining healthy commercial performance throughout the COVID-19 pandemic was “a testament to the company’s sales team, our established and growing distribution network and highlights the ongoing demand for the company’s unique 3D printed bioresorbable implants,” Osteopore said in a statement.
Osteopore’s operations are conducted in both Australia and Singapore with the company confirming its production floor is now “fully operational” after the recent expansion of its manufacturing facility in Singapore.
Productivity and efficiency were reported to be “satisfactory” with the company confirming the receipt of government support to work with “A*Star SIMTech” to plan and execute automation initiatives over the next 12 months starting from January.
Furthermore, Osteopore continued to receive Singapore government funding aimed at providing business support due to COVID-19.
The medical technology company said it received grant funding and tax incentives totalling A$56,000 in the 2020 fourth quarter and stated it would be designated as an “essential service” in Singapore – a status that allows companies to operate with greater freedom during oppressive COVID-19 restrictions.
As an insight into its future steps, Osteopore said it expects to incur expenditure associated with regulatory approval for new products and markets in a bid to enhance market penetration of its Osteoplug, Osteomesh and Osteostrip products.
Osteopore intends to establish distribution networks in the United States and the European Union including obtaining all necessary regulatory approvals, as well as reaching into additional target jurisdictions such as Australia and China.
Thereafter, the company wants to develop and register “second-generation materials” to further enhance its market offering while liaising with regulators to ensure compliance.
To drive sales and revenue growth in Australia and New Zealand, Osteopore struck three distribution agreements in the fourth quarter of 2020.
In October, the company signed an exclusive three-year distribution agreement with LMT Surgical to promote and sell Osteopore’s range of products for oculoplastic and neurosurgical procedures and patient-specific implants.
Osteopore followed up by announcing an exclusive distribution agreement in November with MTG Medizintechnik Göhl to promote and sell its products in Germany and Austria, including its product range aimed at craniofacial procedures and patient-specific implants.
The company announced a further exclusive deal covering cranial and neurosurgery applications with Swedish-based Nords Medical in December, covering the promotion and sale of its Osteoplug and Osteomesh products in the Swedish, Norwegian, Danish, and Finnish markets.
In a statement, Osteopore declared that securing regulatory approval in Europe and Australia at an early stage allowed the company to capitalise on the available sales opportunities with doctors and hospitals across Asia and Oceania.
New cooperation agreement
Just today, Osteopore further cemented its Asia-Pacific status through a cooperation agreement with Terumo Blood and Cell Technologies.
The two companies have agreed to collaborate to promote and sell their respective regenerative products throughout the Asia-Pacific region.
Under the agreement, both groups will aim to establish commercial channels for the co-promotion of Terumo Blood and Cell Technologies’ Autologous Biologics (TAB) technology and Osteopore’s scaffolds.
TAB technology can be used to concentrate patient’s bone marrow with the “concentrated autologous biologic” then mixed into Osteopore scaffolds.
The collaboration could potentially yield tech innovations with neurosurgery, orthopaedics and reconstructive surgeries earmarked as the likely targeted applications.
The agreement is set to place Osteopore products in an advantageous position within Terumo Blood and Cell Technologies’ extensive network of blood centres, hospitals, therapeutic clinics, researchers and private medical practices in Asia Pacific.
The two companies also plan to co-sponsor several key events and workshops to promote their respective products.
Further afield, Osteopore said it “took an initial step” towards the Middle East market by “securing distributors” in the United Arab Emirates (UAE) and Qatar in the fourth quarter, but didn’t specify which distributors were committed to binding deals.