Why the Orthocell (ASX:OCC) share price is flying higher today

Orthocell reports promising results on nerve repair for patients following serious injury.

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The Orthocell Ltd (ASX: OCC) share price is gaining in morning trade, up 3.3%.

Below we take a look at the regenerative medicine company’s latest clinical update.

What did Orthocell report?

Orthocell’s share price is gaining after the company updated the market on the interim results of its clinical CelGro nerve regeneration trial 12 months post treatment.

The results of the trial showed evidence of nerve repair using CelGro following serious injuries, including spinal injuries, as well as for the restoration of arm and hand function. Hence, Orthocell said its trial shows the potential for “breakthrough nerve treatment to return function to paralysed upper limbs”.

The data indicated that 75.8% (25 out of 33) of the nerve repairs in the trial resulted in functional recovery of muscles 12 months after treatment. 76.5% (13 out of 17) of nerve repairs in the quadriplegic patients also resulted in functional recovery 12 months after treatment.

Commenting on the results, Orthocell’s managing director, Paul Anderson said:

Consistently returning function to paralysed upper limbs is the primary goal in this study. I am delighted by the 12-month follow up results, our most complete data set to date, demonstrating higher quality outcomes, improved predictability, and consistency of return of muscle function following CelGro nerve regeneration treatment.

Clinical trial lead, Dr Alex O’Beirne added: “The quadriplegic patient results are particularly promising, with improved results at 12 months post treatment compared to the literature. CelGro is increasing the success rate and efficiency of nerve transfer surgery.”

Looking ahead

Orthocell said it expects the final 24 month results of the CelGro study in the second quarter of the 2022 calendar year. Its currently preparing to meet with the United States Food and Drug Administration (FDA) to get CelGro approved for use in the US.

According to the release, the global addressable market for CelGro is worth more than US$7.5 billion (AU$10 billion) per year, spanning some 3 million potential nerve repair procedures.

Orthocell share price snapshot

Over the past 12 months, Orthocell’s shares have gained 74%, far outpacing the 24% gains posted by the All Ordinaries Index (ASX: XAO).

Year-to-date the Orthocell share price has continued to outperform, up 28% so far in 2021.

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