2 ASX Healthcare Stocks to Watch

These two ASX healthcare stocks showed signs of a turnaround on Monday after a prolonged downturn as positive company updates helped stabilise investor sentiment.

Orthocell Limited (ASX: OCC)

Orthocell Limited (ASX: OCC) showed early signs of stabilisation on Monday as the stock rose 3.26% after a long correction which has seen shares fall by almost 40% over the past 12 months and has taken a large amount of risk away.

This weakness has come despite impressive operational progress as the company reported its seventh straight quarter of record revenue of $3.2 million in the December 2025 quarter which represents 45% year-on-year growth.

Orthocell finished December with a strong cash balance of $49.4 million after the successful completion of a $30 million capital raising which provides enough funding to support the commercial rollout.

The company believes it already has sufficient funds to make the investments needed to reach profitability with market access plans clearly defined and the current market capitalisation is $257.74 million.

Orthocell estimates that selling around 10,000 Remplir units per year in the US which is less than 1% of the total addressable market would be enough to reach cash breakeven.

International expansion also continued with early sales in Canada and Hong Kong and regulatory submissions lodged for entry into the EU and UK nerve repair markets which together represent a massive long-term opportunity.

Biome Australia Limited (ASX: BIO)

Biome Australia Limited (ASX: BIO) showed signs of a sentiment turnaround on Monday as the share price rose 6.67% after a prolonged correction which saw the stock fall 22.6% over the past 12 months.

The move followed a series of positive operational updates including the announcement of a major distribution partnership with Fullscript which is North America’s leading practitioner platform and gives Biome access to more than 100,000 healthcare practitioners and five million patients.

Biome delivered its strongest quarter to date in December 2025 as sales revenue came in at $6.5 million which was up 41% year-on-year and marked its eighth consecutive quarter of positive EBITDA at around $1 million.

Rolling 12-month revenue reached $22 million while gross margins stayed above 61% which highlights the scalability and quality of the underlying business model.

The company also generated a net operating cash inflow of about $1.24 million during the quarter and lifted its cash balance to $3.36 million.

Biome currently has a market capitalisation of $106.85 million and international expansion remains a key growth pillar with Canada now established as a meaningful opportunity and further progress underway across Ireland, New Zealand and the UK.

(Source: Company Announcements)