Bone healing biotech company Osteopore (ASX: OSX) has secured an agreement with American cranial bone fixation specialist Bioplate Inc to promote and sell Osteopore products into the US market.
It is the first US distribution deal signed by Osteopore since making its ASX debut in September.
Under the terms of the two year, non-exclusive agreement, Bioplate will market Osteopore’s range of bespoke products for specialist cranial and neurosurgery procedures in regions where Bioplate has existing sales networks.
The products are engineered to facilitate bone healing across multiple therapeutic areas using a patented technology which fabricates micro-structured scaffolds for bone regeneration through 3D printing and bio-resorbable material.
The scaffolds dissolve over time to leave only natural, healthy bone tissue and Osteopore claims they can significantly reduce post-surgery complications commonly associated with permanent bone implants.
Bone graft market
Osteopore’s products sit within the bone graft substitute market, currently worth around $5.81 billion, with sales of permanent implants estimated at over $145 billion annually.
Bioplate has already received small orders from the University of California and the University of Stanford and will also market to clinical institutions in Arizona, Texas, Ohio, Wyoming, Indiana and Puerto Rico.
It will cover all technical support and training requirements for the products, and provide Osteopore with quarterly forecasts for demand throughout the agreement period.
Osteopore will be involved in initial product promotions to notable neurosurgeons over the coming weeks.
Cranial fixation is a process designed to assure the structural stability of replaced skull flap following a craniotomy procedure, whereby bone flaps, bone fragments or grafts are fixed to the cranium in order to provide stable closure.
Used commonly during neuro or spinal surgeries, it is considered one of the most delicate and demanding procedures in modern medicine.
The global cranial fixation and stabilisation devices market was valued at $2.45 billion in 2017 and is expected to experience a compound annual growth rate of 5.6% from now until 2025.
Increasing demand for minimally-invasive neurosurgeries teamed with rising incidence of brain cancer and other head trauma worldwide is expected to fuel demand for these devices while road accidents and related demand for reconstructive surgeries will enable positive market growth.
With more than 20 years experience providing cranial fixation solutions to neurosurgical applications worldwide, Bioplate offers Osteopore an established network of health professionals, hospitals and health services, as well as the sales and client support needed to successfully penetrate the US market.
Osteopore chief executive officer Khoon Seng Goh said the company would continue to grow its underlying revenue base from its strong Asian distribution network, while exploring additional distributors for other regions.
“A large portion of our opportunity sits within the US market so penetrating this region is a major milestone for [us],” he said.
“We will continue to focus on development and manufacturing, and signing additional commercial partnerships to distribute our products into other US regions.”
Mr Goh said a distributor’s network and existing relationships – as demonstrated with Bioplate – would be critical to getting his company’s products “through the door”.