Pinned straw:
OCC received some good media coverage following the FDA approval for Remplir and today announced the first 4 of 10 specialist distributors in the US. Last 4C showed revenue flat but further approvals should boost these figures. SP has pulled back from frothy highs but has shown support around the $1.20 mark.
Orthocell has appointed its first four US distributors of its flagship nerve repair product Remplir™, with first sales expected to follow shortly thereafter.
Distributors are experienced nerve specialists operating in Michigan, Virginia, Colorado and Indiana states.
The Company is targeting to appoint ~10 US distributors by 30 June 2025 in select regions to accelerate the US Remplir rollout and grow sales in the market quickly. These appointments would account for representation in ~25 states.
Distributor model represents the most efficient path to market in the US while also providing a cost effective operating structure for Orthocell. Distributor network to be managed by an in-house team of Sales Directors led by the US Vice President of Sales with a further 4 territory managers to support sales activities.
Recent 4C was boosted by $3M tax refund but outflow of $2.5M. On existing growth path @8% compounding would need another 2+ years for +ve cash flow but Remplir sales should accelerate that rate.
Held in RL and SM
@laoshi - I was just starting to write this one up, so you saved me the trouble. Thanks!
There's little doubt in my mind that the distributorship model is the right way for $OCC to go. But to be honest, I wish I knew more about how the relationship between the distributor agent and the HCP works in practice within this specialism. This is a new therapy type, and so the knowledge of the agent is going to be really important. In addition, what incentives will they have for Remplir to get the air-time needed beyond the rest of their product portfolios? (A perennial issue with the distributorship model.)
In dermal repair, $PNV have always made the case of the importance of the trained, skilled company rep. in working alongside the surgeon to faciliate first adoption. Certainly, the results for the business for many years supported that model, with direct markets far outperforming distributor markets.
I'd love to get some deeper insights into this from management.
In any event, it is good to see this early progress as evidence that $OCC were indeed following parallel tracks to get to market quickly after approval.
@Strawman did you ever get a response from Paul Anderson (MD) or John Van Der Wielen (Chair) about coming along to a SM meeting.
(This week is turning into a big biotech week for me ... hardly looked at anything else!)