Orthocell (ASX:OCC) share price jumps 17% on positive clinical trials

The Orthocell Ltd (ASX: OCC) share price has rocketed more than 17% after positive results for the company's nerve repair study were announced.

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The Orthocell Ltd (ASX: OCC) share price is 17% higher this morning, after the company released positive results in its CelGro nerve repair study. At the time of writing, Orthocell shares are trading at 44 cents per share.

About Orthocell 

Orthocell is a regenerative medicine company dedicated to the development of novel collagen medical devices and cellular therapies for the repair and regeneration of human tendons, bone, nerve and cartilage defects. 

The company's regenerative medicine products include CelGro, a naturally derived collagen medical device for tissue repair. CelGro is designed for use in multiple indications to augment the surgical repair of tendons, bone, peripheral nerves and articular cartilage.

The product is approved for sale within the European Union for a range of dental bone and soft tissue procedures and is being readied for its first approval in the US and Australia. 

Positive results in CelGro nerve repair study 

On Friday, the company announced that its patient enrolment for the CelGro nerve regeneration trial is now complete. To date, this includes the repair of 35 nerves in 19 patients. Positive long-term clinical data shows nerve repair with CelGro results in predictable and consistent restoration of upper limb function. 

Patients in the clinical trial suffered traumatic nerve injuries following motor vehicle, sporting and/or work-related incidents, resulting in partial or total loss of use of their arms and, in more severe cases, also their legs and torso. 

Results from 10 participants (19 nerves) 24 months after treatment with CelGro showed upper limb function was restored in 17 of 19 (89%) nerve repairs. These results follow the clinical data of the same ten participants 12 months after surgery, announced on 9 October 2019. Patients ceased, or significantly reduced, prescription pain medication, and in many cases returned to work and participation in recreational activities. 

This news was well received by the market, with the Orthocell share price up 17.33% at the time of writing. 

Next steps 

Orthocell managing director Paul Anderson said:

Following these positive results validating the interim data, our team is progressing regulatory applications in Australia and will commence the US regulatory study shortly to make this treatment accessible to the millions of people who experience nerve damage annually.

CelGro's global addressable market in peripheral nerve repair is estimated to be worth more than US$7.5 billion per annum, with approximately 3,000,0000 procedures that could use CelGro completed each year. 

Motley Fool contributor Lina Lim 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.

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