Orthocell (ASX:OCC) has deepened its investment in Western Australian biotech innovator Marine Biomedical, securing global distribution rights to an innovative bone regeneration technology as part of a strategic expansion of its regenerative medicine portfolio.
Under a newly signed memorandum of understanding, Orthocell will increase its equity stake in Marine Biomedical from 1.7 per cent to 12 per cent for a total investment of $1 million. In exchange, the company will secure exclusive first right of refusal for global distribution of PearlBone, which is a next-generation bone substitute derived from sustainably sourced pearl shells collected off Western Australia’s Kimberley coast.
The technology represents a breakthrough in bone repair and regeneration, particularly in trauma and reconstructive procedures where multi-tissue regeneration is often required. PearlBone is designed to address the bone graft and substitute market valued at approximately US$1.6 billion in the US alone. Marine Biomedical is nearing completion of its pivotal study to support a US FDA 510(k) submission in the first quarter of 2026.
Orthocell Chair John Van Der Wielen said the partnership reflects a deliberate strategy to invest in biologically advanced technologies with strong commercial potential. “This partnership delivers exactly what we look for — breakthrough science, a clear regulatory path, and immediate commercial synergy. With our strong surgeon relationships and global distribution channels, we are ideally positioned to bring this first-in-class product to market,” he said.
The investment is designed to strengthen Orthocell’s position as a leader in regenerative medicine, complementing its established nerve and tendon repair technologies with a bone substitute platform that can be rapidly commercialised. The company’s extensive US distribution networks, built around its nerve repair product Remplir, are expected to accelerate PearlBone’s market entry.
“This is a purposeful investment with outstanding potential to enhance patient outcomes, grow revenue, and deliver shareholder value,” Mr Van Der Wielen added.
Marine Biomedical’s bone regeneration technology has been supported by grants from the Western Australian Government, and the company has been working for several years to develop its proprietary pearl-based biomaterial. Its operational independence means Orthocell will not need to allocate significant internal resources to its development.
vOrthocell Managing Director Paul Anderson — who abstained from board deliberations due to his role as a director of Marine Biomedical — said the agreement aligns closely with the company’s strategic vision. “Orthocell is committed to building a biologically driven regenerative repair portfolio across bone, nerve, and tendon. PearlBone represents an exciting addition that broadens and strengthens that offering,” he said.
Formal agreements between Orthocell and Marine Biomedical are expected to be finalised by the end of November 2025, setting the stage for what both companies describe as a transformative next chapter in biologic repair and reconstructive medicine.