ASX Health October Winners: When CSL sneezes, sector catches flu

• ASX healthcare sector fell 4.83% in October and is down more than 19% YTD
• CSL shares fall more than 15% on October 28 after management trims FY26 guidance
• Nyrada surges 165% in October on board changes and progress in phase 2a trial 

With just two months of 2025 remaining, the ASX healthcare sector is in need of a stronger prescription to turn its fortunes around after another dose of weakness in October.

The ASX 200 Health Care Index (ASX:XHJ) fell 4.83% in October and is now deep in red territory for 2025, down more than 19% YTD. In comparison the ASX 200 rose a modest 0.39% in October and is up 11.88% YTD.

Weighing on the growth-focused healthcare sector was the rising risk of stagflation in Australia, with unemployment climbing to a four-year high of 4.5% in September.

Inflation also surprised to the upside, with consumer prices jumping 3.2% in the September quarter — up from 2.1% in the June quarter 2025.

And then there was yet another steep fall in the sector’s biggest name CSL (ASX:CSL), after its shares tumbled more than 15% on October 28 after management trimmed FY26 guidance at its AGM.

Morgans’ healthcare analyst Iain Wilkie told Stockhead that the strong start to 2025 seemed to have led to a pullback in October, including for Pro Medicus (ASX:PME), 4D Medical (ASX:4DX) and Botanix Pharmaceuticals (ASX:BOT).

Morgans’ healthcare analyst Iain Wilkie told Stockhead there was a probable reason for the pullback in October for stocks including Pro Medicus (ASX:PME),  4D Medical (ASX:4DX) and Botanix Pharmaceuticals (ASX:BOT).

“Investors have likely been taking profits,” Wilkie said.

“Looking at a lot of the names on the October gainers lists, there’s been a bit of a mixed crowd with some running on good results like Clarity Pharmaceuticals (ASX:CU6) and others bouncing for no other reason than being too oversold.”

How ASX biotechs performed in October

Nyrada (ASX:NYR) surged 165% in October with several announcements during the month including a board transition and appointment of Accelagen as contract research organisation to oversee its planned phase 2a clinical trial evaluating Xolatryp as a potential treatment for acute myocardial infarction.

Nyrada non-executive director Dr Gisela Mautner – also CEO and managing director of Noxopharm (ASX:NOX) – advised that she will not stand for re-election at the AGM on November 12. Meanwhile, CEO James Bonnar was appointed to the board as managing director.

Vectus Biosystems (ASX:VBS) was up 133% in October after signing a binding term sheet with Canadian biotech company XORTX Therapeutics for the sale of its VB4-P5 renal small molecule compound, which targets renal fibrosis.

Under the agreement – subject to final closing conditions – Vectus will receive US$3m (~A$4.5m) in consideration, to be satisfied through the issue of XORTX shares and pre-funded warrants.

The transaction will provide Vectus with a direct shareholding in XORTX,  dual-listed on the Nasdaq and TSX Venture Exchange (TSXV) and focused on renal drug development.

Artrya (ASX:AYA) rose 45.7% in October after completing a capital raise and signing up Huntsville Hospital Heart Centre in Alabama to participate in its trial dubbed Sapphire.

Sapphire tests Artrya’s Salix, the company’s AI-based platform to assess and manage coronary artery plaque.

During the month Artya also announced it had completed a the capital raising by way of an oversubscribed $8.7m share purchase plan and tranche two of a share placement for $14.7m.

Clarity Pharmaceuticals (ASX:CU6) rose 37.6% in October after several positive announcements including an investigator-led trial of its radioimaging agent in prostate cancer met its primary endpoint of superior lesion detection.

Carried out at the St Vincent’s Hospital Sydney, the trial compared Clarity’s copper isotope agent to the standard-of-care gallium isotope-based technique.

Clarity also signed a three-year supply agreement with Nusano for copper-67 (Cu-67) with automatic renewal for successive two-year periods.

Under its terms, Nusano will produce Cu-67 radioisotopes at its 190,000 sq-ft facility in West Valley City, Utah, which will open in late 2025 with supply set to start in mid 2026.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.