This morning NDF Research initiated coverage on Orthocell, an emerging player in the multi-billion-dollar field of regenerative medicine.
Orthocell's unique foundation products (Ortho-ATI® for tendon repair and Ortho-ACI® for cartilage repair) provide early commercial opportunities with large addressable markets. But, the big payday may occur this financial year with European approval (CE Mark) achieved for CelGro® and US approval to follow. CelGro® is the company’s collagen scaffold that facilitates rapid tissue regrowth across a range of indications. We regard CelGro® as a potential breakthrough product due to its mechanical strength, natural collagen structure and versatility. CelGro® could also enjoy rapid initial revenue in dental and orthopaedic markets - potentially accelerated by commercial partnerships with large healthcare companies. CelGro®’s potential market is well in excess of US$2bn. Orthocell has further related and ground-breaking opportunities including its ‘Cell Factory’ project to harness stem cell growth factors. Our target price for the company is A$1.75 per share (midpoint of base case: A$0.89 and optimistic case: A$2.63).
You can download a copy of NDF Research's initiation report by clicking here or visiting ndfresearch.com. Note - the usual disclaimers apply - click here.