Orthocell Ltd (ASX: OCC) shares are having a good session on Tuesday.
In morning trade, the small cap ASX share has risen 3% to $1.13.
Why is this small cap ASX share charging higher?
Investors have been buying the regenerative medicine company's shares following the release of a quarterly update.
According to the release, the small cap ASX share achieved record quarterly revenue of $3.2 million for the three months ended 31 December 2025. This was the seventh quarter in a row of record sales and represents a 7% increase over the previous quarter and a 45.2% increase on the prior corresponding period.
Importantly, this record revenue performance was primarily driven by increased market penetration in existing markets, particularly in Australia. Approximately $90,000 in Remplir U.S. sales were generated in December, which was in line with expectations.
North America entry
Management appears to believe that it won't be long until its US sales start to become more meaningful.
The small cap ASX share revealed that its early U.S. results indicate that its hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum.
It also notes that the anticipated growth in Remplir adoption by U.S. surgeons represents the potential for a strong increase in revenue going forward, with momentum expected to build through 2026.
In addition, growth in Remplir sales is expected to be further supported by its entry into the Canadian market. Following the recent appointment of a second Canadian distributor, initial sales are targeted for the March quarter of FY 2026. It expects market adoption to grow steadily throughout 2026.
The small cap ASX share also highlights that with $49.4 million in cash reserves, no debt, and an R&D tax incentive refund of approximately $3.0 million expected soon, it is well-positioned to drive rapid product adoption and deliver a step change in revenue in FY 2026.
Commenting on the quarter, Orthocell's CEO and managing director, Paul Anderson, said:
The seventh consecutive record revenue result for the December quarter is particularly pleasing, driven by strong performance in existing markets and early Remplir unit sales in the U.S. Early U.S. results show our hybrid market entry strategy, combining specialist distributors with internal field leadership, is successful and delivering positive momentum. With the U.S. momentum building and Canada coming online, we see significant upside as we replicate the successful Australia and Singapore approach on a larger scale in the U.S.
