Osteopore share price storms 270% higher on distribution deal

The Osteopore Ltd (ASX: OSX) share price was up more than 260% at one point today, after the company signed a US distribution agreement.

| More on:
Rocket launching into space

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Osteopore Ltd (ASX: OSX) share price rocketed as much as 270% higher at one point today, after the company announced it has signed a distribution agreement that opens up the potentially lucrative US market.

Why is the Osteopore share price surging?

Earlier this morning, Osteopore announced that the company has signed a non-exclusive, 2-year agreement with established US market leader Bioplate Inc. The agreement will see Bioplate help Osteopore sell its patented 3D printed, bioresorbable products for cranial and neurosurgery procedures. The distribution agreement covers 6 states in the US market and Bioplate will cover all technical support requirements for Osteopore's products.

The agreement with Bioplate is Osteopore's first distribution agreement since the company's IPO in 2019. Bioplate has over 20 years of experience in providing cranial fixation solutions and will provide Osteopore with an established network of health professionals, hospitals and health services in the US.

According to Osteopore, the graft substitute market is worth around US$4 billion, with sales of permanent implants estimated at over US$100 million annually. Osteopore believes that penetrating the US market is a key strategic objective, with US demand accounting for a large portion of the global demand.

What does Osteopore do?

Osteopore is an Australian and Singapore-based medical technology company that has commercialised a range of patented, 3D printed bioresorbable products. These 3D printed implants act as a scaffold for bone growth and can be used across various surgeries. As opposed to traditional bone grafts, Osteopore's implants naturally dissolve over time, leaving only health bone tissue.

According to Osteopore, the company's protective implants can reduce post-surgery complications by reducing the risk of secondary infections. All 3 of Osteopore's products (Osteoplug, Osteomesh and Osteostrip) have received FDA approval in the US and are being sold to hospitals around the globe.

Earlier this year, Osteopore reported a 60% increase in revenue for the quarter ending March 2020. The company generated $321,00 in revenue for the quarter whilst also receiving approval from the Australian Therapeutic Goods Administration for several of its craniofacial products.

Foolish takeaway

Following a pause in trading mid-morning, shares in Osteopore resumed trading and are up more than 150% at the time of writing. The Osteopore share price hit an intra-day high of $1.49 earlier, representing a gain of more than 270% for the day.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

A smiling businessman in the city looks at his phone and punches the air in celebration of good news.
Broker Notes

These ASX 200 shares could rise 50% to 60%

Brokers believe these shares could deliver big returns for investors.

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

8 ASX All Ords shares that tripled in value in FY25

Just 8 out of the 500 companies making up the ASX All Ords achieved share price growth of 200% or…

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why DroneShield, Gentrack, Metals X, and Northern Star shares are tumbling today

These shares are ending the week in the red. But why?

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »