On Monday, the Allegra Orthopaedics Ltd (ASX: AMT) share price soared 502.27% as it announced the acquisition of patents from the University of Sydney.
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What were the patents?
The patents acquired were related to a bio ceramic material that can be used as a synthetic bone substitute. The material is known as Sr-HT-Gahnite.
Allegra Orthopaedics issued 4,806,000 ordinary shares to the University of Sydney in exchange for the patents.
The company has been working with the University of Sydney since 2014, exclusively licensing the Sr-HT-Gahnite material.
According to the announcement, the material is able to simulate the performance of natural bone by achieving the mechanical strength required for load-bearing application. It is also capable of the bioactivity required for bone regeneration. The material can be reabsorbed, which reduces long term complications. Additionally, it is suitable for 3D printing.
With the use of this material, Allegra is working towards developing and commercialising implants that it says will offer a revolutionary approach to surgeries.
Allegra has previously commenced the commercialisation of an interbody cervical spinal cage that utilises the material. This device could be the world's first fully synthetic spinal cage that will be able to regenerate bone under spinal load conditions and be completed absorbed by the body which will leave the body free of foreign materials.
Commenting on the news, Allegra CEO Jenny Swain stated:
We are very excited about the acquisition of these patents as we believe this material will enable us to create and commercialise highly desirable implants with unique properties that we can bring to the market. The acquisition of these patents is recognition of our ability to identify and work collaboratively with academic organisations such as the University of Sydney to bring innovative products to market and strengthens our company's innovative capacity.
About the Allegra Orthopaedics share price
Allegra Orthopaedics develops and supplies various bone replacement technologies. Its primary product is the Active Total Knee, which works as a prosthetic knee. It is also licensed to distribute hip, knee and lower limb replacements.
The company reported in June that it expects sales revenue for the 2020 financial year to be 20–25% higher than sales revenue in the 2019 financial year. Sales growth was driven by the company's LINK orthopaedic implant product range and the introduction of a new face shield product in April 2020, which has seen high demand due to the coronavirus pandemic. However, Allegra expects only marginal improvement in its net profit or loss for the 2020 financial year due to costs from its innovations division.
As at yesterday's close, the Allegra Orthopaedics share price has risen 783% from its 52-week low of $0.06, and is up 165% since the beginning of the year. Since this time last year, the Allegra Orthopaedics share price is up by 382%.
