Orthocell soars 356% on test results

Shares in Perth biotech Orthocell more than quadrupled in value today after the company released positive results from a trial of its nerve regeneration product.

Its shares closed at 52 cents, up 356 per cent from yesterday’s close of 11.5 cents.

Today’s big jump follows a two-year slide in the company’s share price.

Managing director Paul Anderson, who helped establish the company as a spin-out from the University of Western Australia, said the share price trend had not reflected progress behind the scenes.

“The company has validated its technology and is in the strongest position of its existence,” he told Business News.

Today’s news related its CelGro collagen medical device, which has a range of potential uses in soft tissue regeneration and repair.

Othocell said the first four patients have successfully completed participation in a clinical trial for nerve regeneration.

The company said that following surgery with CelGro, the four patients regained muscle  function and/or sensation in the affected limbs and have returned to work and other daily activities.

The trial was undertaken with orthopaedic nerve specialist, Dr Alex O’Beirne of St John of God Subiaco  Hospital and Professor Ming Hao Zheng of the University of Western Australia.

Dr O’Beirne said the nerve injuries suffered by the four patients meant they needed microsurgery to regain normal use of the limbs.

The trial results showed that CelGro successfully guided and supported the nerve regeneration in severely damaged peripheral nerves of the hand and upper limb.

Orthocell is planning to conduct trials on 20 patients and has commenced treating 15.

Mr Anderson told Business News that CelGro was a platform technology with multiple applications.

It already has regulatory approval in Europe for use in dental applications.