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Singapore and Vietnam market approvals notch Osteopre shareholder confidence

27 March 2024 15:03

Following this morning’s announcement detailing approvals of its orthopaedic products in the Singaporean and Vietnamese markets, Osteopore (ASX:OSX) saw its Australian Securities Exchange-listed share price increase tenfold, peaking at 1076%.

The product

The surge in market approvals and the subsequent spike in the biotech company’s share price can be attributed to its groundbreaking product: the High Tibial Osteotomy (HTO) Wedge.

This innovative product, developed by Osteopore, is a 3D-printed scaffold meticulously crafted to accommodate bioresorbable implants. It serves a dual purpose of preserving and facilitating the recovery of knee surgeries.

The recent approval has empowered Osteopore to cater to the needs of Singapore and Vietnam by offering a diverse range of off-the-shelf products for HTO, bone grafting, and customisable implants, particularly beneficial for patients dealing with complex bone loss.

Context

In recent years, the demand for HTO procedures has sharply risen, exemplified by the doubling of HTO or Knee preservation surgeries between 2020 and 2021 at the Singapore General Hospital, from 50 cases annually to 100.

Looking ahead to 2025, research conducted by CETAS Healthcare indicates a significant escalation in HTO procedures within the Asia Pacific Region (APAC), with projections increasing to 35,000 cases. Additionally, 250,000 bone grafting procedures are anticipated during the same period.

Moreover, market analysis indicates promising trends, with the HTO market in APAC projected to experience robust growth at a Compound Annual Growth Rate (CAGR) of 9.2%, while the broader bone grafting market is expected to expand at a CAGR of 2.3%.

Future outlook

The approval of Osteopore orthopaedic products in Vietnam and Singapore highlights the company’s presence as a fierce competitor in the growing global orthopaedic market.

Notably, Vietnam and Singapore have consistently generated significant revenue for Osteopore, ranking among the top three contributing countries over the past four years.

By focusing on these markets, Osteopore aims to leverage established sales and distribution channels, facilitating market access and managing expansion costs more efficiently.

Company Commentary

Osteopore’s Chief Executive, Lim Yujing, enthusiastically outlined the strategic advantage the biotech company holds in light of the anticipated growth of the HTO market in the Asian Pacific Region.

“We are delighted to share another positive step in the ongoing transformation of the Company,” he said.

“The orthopaedic market is a high-value and high-volume segment with the HTO market expected to grow at a CAGR of 9.2%.

“These approvals enable Osteopore to supply off-the-shelf and customisable implants, positioning us to capture the potential of these high-growth market segments.”

OSX’s Australian Security Exchange-listed share price is up 361% and is currently trading at $0.300 (02:45 pm UTC+ 8 hours).

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