Orthocell Ltd (ASX: OCC) shares are down more than 35% over the past year, but the analysts at Bell Potter believe a recovery is on the cards.
They have a bullish share price target on the company, which I'll get to shortly.
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Biotech focused on bone and soft tissue repair
So what does the company actually do?
In their own words:
Orthocell is a regenerative medicine company focused on regenerating mobility for patients by developing products for the repair of a variety of bone and soft tissue injuries. Orthocell's portfolio of products include a platform of collagen medical devices which facilitate tissue reconstruction and healing in a variety of dental and orthopaedic reconstructive applications.
Now let's look at the company's recent full-year results release.
Orthocell generated $13.2 million in revenue for FY26, up 45%, but its net loss also increased, jumping 59% to $13.6 million.
Chief Executive Officer Paul Anderson said:
FY26 was an important step in Orthocell's evolution as a global regenerative medicine company, with record revenue and continued progress across established markets and selected international opportunities. We delivered record revenue of $13.2 million, up 45% on FY25, including a record June quarter of $3.8 million. Remplir and Striate were the principal drivers, supported by continued strength in Australia and growing contributions from the United States and other international markets.
Mr Anderson said Australia was the company's most established market and was expected to continue growing, while FY26 was the first full year of Remplir's availability in the US.
He said further re the US market:
We are very pleased with this first-year progress, while recognising that the path from surgeon interest to hospital approval, first use and repeat ordering can extend over several months. In FY27, our priority is to deepen adoption within the established footprint by investing in targeted sales, education and marketing initiatives that support distributors and surgeons as Remplir becomes part of routine clinical practice and repeat use grows.
Shares looking cheap according to broker
Bell Potter said in its note to clients that the US would be the market to watch.
They said:
US access expanded strongly in FY26, but revenue has yet to scale in line with the footprint. The key watchpoint now shifts to repeat utilisation and revenue conversion, which management has highlighted as a core FY27 priority. This is consistent with our prior view and leaves the broader thesis intact. We maintain our Buy (speculative) rating and reduce valuation to $1.13 from $1.19 following earnings adjustments.
Orthocell shares are currently changing hands for 72.5 cents. The company is valued at $196.1 million.
