The Orthocell share price is going nuts on claims of a blockbuster medical breakthrough

Orthocell Ltd (ASX: OCC) is reporting a blockbuster medical breakthrough.

Tom Richardson

Tom is a holder of the CFA Society of the UK administered Investment Management Certificate (IMC) and has more than a decade's professional experience in the investment management industry in Australia and the UK. Tom now works as a writer and editor for TMF Australia and has two easy to remember rules of investing he likes to follow. Avoid overpaying for growth stocks and avoid paying at all for stocks that are cheap for a reason. Tom prefers growth investing over value investing and says it's not rocket science, just avoid overpaying for the best returns.

Published October 9, 2019 3:59 pm AEDT

The Orthocell Ltd (ASX: OCC) share price is up 25% to 50 cents today after the regenerative medicine researcher announced trial results showed its medical device CelGro® had helped quadriplegics regain arm and hand functions.

CelGro® is reportedly used by surgeons to help patients regain muscle function via nerve regeneration treatment.

According to the company 12 patients undertook the trial with 86% of them subsequently reducing or ceasing to need prescription medication for chronic nerve pain 12 months after their treatment with CelGro®.

While 96% of "nerve repairs restored voluntary movement to previously paralysed muscle" in allowing previously quadriplegic patients to now undertake some common everyday tasks.

Orthocell estimates CelGro®'s addressable market to be worth around US$1.1 billion annually, with 700,000 procedures completed each year that could be improved by CelGro®.

All this sounds exciting and at 50 cents per share Orthocell now has a market value around $74 million. For the 12 months to June 30 2019 it posted a net loss of $5.8 million on sales of $945,657.

I would not suggest buying Orthocell shares myself, but the share price action shows it's exciting risk on investors.

Other speculative biotech picks exciting investors include Althea Group Holdings Ltd (ASX: ATH) Paradigm Biopharmaceuticals Ltd (ASX: PAR) and Opthea Ltd (ASX: OPT).

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