Orthocell (ASX:OCC) Surges 7% on First Hong Kong Sales: Is This Healthcare Stock a Buy as Asian Expansion Accelerates?

Orthocell (ASX: OCC) jumped 7% to A$1.09 on Wednesday after announcing its first commercial sales of Remplir in Hong Kong. The sales, made through distributor MontsMed, follow last month’s first surgical case in the region and a strong debut at the Hong Kong Orthopaedic Association’s 45th Annual Congress. For investors, this milestone shows the company is now turning regulatory approvals into actual revenue and doing so faster than many expected.

What makes Hong Kong particularly important is its role as a gateway to the Greater Bay Area, a cluster of nine major cities with roughly 100 million people. Under regional healthcare rules, Hong Kong-registered devices can be imported into designated hospitals across this broader market. If Orthocell gains traction here, it could unlock a much larger growth opportunity in Asia.

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Remplir’s Global Reach is Growing Fast

Remplir is a collagen wrap that helps nerves heal after surgery. It addresses a real problem: nerve damage during operations like prostate surgery can cause complications such as erectile dysfunction and loss of bladder control. Surgeons are increasingly adopting the product because it improves patient outcomes.

The product is now approved in seven markets: the US, Canada, Hong Kong, Singapore, Thailand, Australia, and New Zealand. For a company of Orthocell’s size, this geographic spread is impressive and shows management is executing well.

In Australia, surgeons have used Remplir in more than 100 prostate procedures, which validates the clinical case. In the US, the company has appointed 14 specialist distributors covering around 25 states, beating its original target of 10 by mid-2025. Canada now has full national coverage with two distributors in place.

We believe this momentum matters. Orthocell is no longer just a story about future potential. Revenue is now flowing from multiple markets, and the US ramp-up is ahead of schedule.

Hong Kong is the Entry Point for a US$3.5 Billion Opportunity

Orthocell estimates its target markets in Asia represent more than US$3.5 billion in total opportunity, with management aiming for a 20% market share over time. The US remains the biggest prize at US$1.6 billion, potentially rising to US$2 billion if the prostate surgery application gains wider adoption.

CEO Paul Anderson called the Hong Kong sales “an important commercial milestone and a strong validation of Remplir’s clinical value.” To accelerate growth, Orthocell has hired an Asia-Pacific Commercial Director with 20 years of regional healthcare experience, who will start in early 2026.

What we find smart about this approach is the capital efficiency. Rather than building expensive sales teams, Orthocell partners with local distributors who already have surgeon relationships. This keeps costs low while the company focuses its resources on cracking the US market.

The Investor’s Takeaway

Orthocell’s growth story is looking stronger. It delivered record revenue and has approvals in seven markets, 14 US distributors, and about A$50 million in cash with no debt. This gives it a strong base to expand globally.

At a market value of A$270 million and revenue of A$9.19 million, the stock trades at about 29× sales. This high valuation is based on growth expectations. If US sales increase as planned, that valuation could quickly look more reasonable.
The main risk is execution. Turning distributor deals into steady sales takes time, so the next two US sales updates will be important. If growth slows, the investment case weakens.

Overall, Orthocell looks appealing for growth-focused investors who can handle early-stage risk. The Hong Kong sale supports the strategy. More cautious investors may want to wait for Q2 FY26 US sales data before investing.