Healthcare stocks from ASX listed companies often take substantial time to show their colours. Nevertheless, once done thru initial wrangling, open up to their true market opportunity. Two such stocks from potential growth companies are
Orthocell Limited (ASX: OCC)
Orthocell Limited (ASX: OCC) is advancing its global commercialisation strategy, highlighted by the early sales of its innovative peripheral nerve repair device, Remplir™, in Singapore. The company has achieved rapid progress, moving from regulatory approval by Singapore’s Health Sciences Authority in October 2024 to first sales within two months—well ahead of the planned Q1 CY25 launch. This acceleration demonstrates the strong market demand for Remplir and the effectiveness of Orthocell’s distribution partner, Device Technologies Asia, which is spearheading marketing and surgeon adoption efforts in Singapore. Singapore represents a key milestone as the first major international market beyond Australia and New Zealand, where sales of Remplir™ have been growing rapidly, driven by endorsements from leading surgeons. The region’s strategic importance lies in its role as a sophisticated medical hub and regulatory gateway to ASEAN markets, contributing to the global nerve repair market valued at over US$3.5 billion. Orthocell’s commitment to expansion is further reinforced by the anticipated submission of its 510(k) application to the U.S. FDA in Q4 CY24, with clearance and commercial distribution expected in Q1 CY25, opening access to the US$1.6 billion U.S. peripheral nerve repair market.
Financially, Orthocell is in a robust position, with ~$33 million in cash and no debt as of October 31, 2024. This provides the company with the resources needed to scale its operations in Singapore, prepare for a U.S. launch, and progress regulatory initiatives in Canada, the U.K., Europe, and ASEAN. The company recently completed a $17 million capital raise to fund its U.S. market entry and expand its manufacturing capacity, underscoring investor confidence in its growth potential.
Orthocell is among high growth stocks, exemplified by its strong revenue growth, including a 30.8% year-on-year increase in FY24, which reflects the successful execution of its strategy. With a proven distribution network, expanding product pipeline, and rapid market adoption of Remplir™, the company is well-positioned to capture significant market share globally. Orthocell’s focused approach to regulatory approval, surgeon engagement, and commercialisation supports its long-term vision to redefine the nerve repair landscape and deliver value for shareholders. Its strategic entry into Singapore and the U.S. marks critical steps in unlocking new revenue streams and establishing leadership in a growing multi-billion-dollar market.
Cogstate Limited (ASX: CGS)
Cogstate Limited (ASX: CGS), one of the best growth stocks to buy now, delivered robust financial performance in FY24, with Group Revenue rising 7% YoY to $43.4 million and Profit Before Tax soaring 135% YoY to $7.1 million. This was largely driven by strong growth in the Clinical Trials segment, where revenue increased 9% YoY to $39.4 million, underpinned by operational restructuring and disciplined cost management that elevated contribution margins to 55% (up from 49% in FY23). However, new contract sales for Clinical Trials fell 21% YoY to $27.0 million, reflecting a slowdown in deal activity. Despite these challenges, Cogstate achieved diversification milestones, onboarding three new Alzheimer’s trial customers and expanding into non-Alzheimer’s indications, which saw 60% YoY growth. The Healthcare segment experienced a 9% revenue decline to $4.0 million, driven by the strategic renegotiation of Cogstate’s licensing agreement with Eisai. This agreement enabled Cogstate to regain full control of its intellectual property, positioning the company to directly scale its digital cognitive assessment solutions within community settings.
Operating cash flow improved significantly to $5.8 million (from $0.7 million in FY23), reflecting margin gains and cost discipline. Net cash strengthened to $29.4 million as of June 30, 2024, enhancing financial flexibility. Looking ahead, Cogstate reported a strong start to FY25, with $9.3 million in net new contracts signed as of August 21, 2024, contributing to gross contracts of $29.6 million. Total contracted revenue stood at $110.9 million, with $33.6 million allocated to FY25. Notably, the restructuring of multiple Phase 3 Alzheimer’s trials into a larger protocol is expected to boost near-term revenue. While Alzheimer’s-related Clinical Trials sales declined to $13 million in FY24 (from $26 million in FY23 and $74 million in FY22), management anticipates recovery in FY25, supported by early contracts and ongoing customer engagement.
Beyond Alzheimer’s, Cogstate is making strategic inroads into mood disorders, sleep disorders, and rare diseases, which present high-growth opportunities and contribute to portfolio diversification. Despite a YoY decline in future contracted revenue, the company’s disciplined operations, focus on community-driven solutions, and diversified therapeutic focus position it well for sustainable growth. Management expects revenue and profit growth in FY25, contingent on further contract execution, and remains optimistic about long-term opportunities in both core and emerging markets.
Source: Company’s Report
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