The Orthocell Ltd (ASX: OCC) share price is edging higher today following the inclusion of CelGro Dental on the Australian Prostheses List.
When news broke out, the regenerative medicine company's shares raced higher to 54 cents, before easing back in late trade. At the time of writing, the Orthocell share price is swapping hands for 51.5 cents apiece, up 0.9%.
Australian Prostheses List inclusion
The Orthocell share price is in positive territory as investors seem pleased with the company's latest update.
According to its release, Orthocell advised that the Australian Government Department of Health has added CelGro onto the Australian Prostheses List.
The latest inclusion allows dental practitioners to be reimbursed for CelGro products by private health insurance agencies. This eventually flows onto the patient in which can act as an incentive to keep outgoing costs low.
CelGro can benefit a variety of orthopaedic, reconstructive, and surgical applications. Dental specialists in particular use the collagen medical device for dental bone and soft tissue regeneration procedures. This includes dental bone repairs, growth around dental implants in extraction sockets, and tissue regeneration in intrabony defects.
Orthocell estimates that the global market for CelGro is around US$1 billion per year. Recently, the company received United States and Australian regulatory approvals to sell its collagen medical device.
Orthocell stated that the reimbursement program will help support its pursuit in striking deals with multi-national dental companies. It further noted that with Australia, Europe, and the United States given the green light, the company is well-positioned to grow CelGro.
Words from the managing director
Orthocell managing director, Paul Anderson, commented:
Inclusion of CelGro Dental on the Prostheses List is the culmination of translational research and a regulatory program to bring this product to the Australian market. I am delighted that patients now have access to a premium dental membrane product designed, manufactured and reimbursed in Australia.
Orthocell share price performance
The Orthocell share price has gained over 50% in the past 12 months. The company's shares hit a low of 18 cents last March before storming higher at the start of the year.
Based on the current share price, Orthocell commands a market capitalisation of more than $97 million.
