Orthocell Ltd (ASX: OCC) shares are edging higher in mid-afternoon trade after the company announced it has been recommended for inclusion on the Australian Prosthesis List. At the time of writing, the Orthocell share price has risen 3.85% to 54 cents.
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What's driving the Orthocell share price?
Investors appear to be pleased with the latest news from the company, pushing the Orthocell share price higher on Friday.
According to its release, Orthocell advised it has received word from the Australian Government Department of Health, that its CelGro Dental product has been recommended for inclusion on the Australian Prosthesis List.
Once on the list, this allows the company to be reimbursed for its products by private health insurance agencies when patients have hospital cover. In a way, it acts as an incentive program that can further promote the take up on CelGro Dental.
Originally, Orthocell expected to be included on the Prosthesis List sometime between the middle and the end of FY21. However, with the date significantly brought forward, the company could achieve its inclusion within the first quarter of the 2021 calendar year.
Orthocell stated that the latest update further advances its position in securing a global distribution partner.
Quick take on CelGro
Orthocell's lead product, CelGro, facilitates tissue repair and healing in a variety of orthopaedic, reconstructive and surgical applications. This includes treating defects in areas of the body such as tendons, bones, nerves, and cartilage.
Most notably, the collage medical device can be used in dental bone and tissue regeneration procedures. These include dental bone repairs, growth around dental implants in extraction sockets, and tissue regeneration in intrabony defects.
Words from the managing director
Orthocell managing director Paul Anderson hailed the importance of today's update. He said:
Inclusion on the prothesis list is an important step in gaining reimbursement from private insurers for Striate + (previously named CelGro Dental). This is a significant milestone for our Company that is made possible by our recent Australian TGA approval and clinical data enabling progression towards reimbursement.
How has the Orthocell share price performed lately?
The Orthocell share price has been tracking higher since the start of November, up around 65% over the last three months.
Orthocell shares reached a 52-week high mid-last month on the back of receiving regulatory approval for entry to the United States market.
Based on the current Orthocell share price, the company commands a market capitalisation of roughly $101 million.
