ASX health stocks: 4D Medical leads after ramping up its game in the US
Health & Biotech
Health & Biotech
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ASX 200 health stocks index rose by 0.68% this morning, compared to the broader index which rose by 0.24%.
Respiratory device specialist, 4D Medical (ASX:4DX), led the pack, rising by 7%.
In its quarterly update, the company said it has ramped up commercialisation activities following the rapidly growing vaccination uptake in the US.
This, 4DX says, will allow for greater access to key decision makers at hospitals and medical institutions, where it plans to commence several clinical trials for its of XV Lung Ventilation Analysis Software (XV LVAS).
4DX also reported a cash balance of $80.9 million as at 30 June, with net operating cash outflows for the quarter of $0.6 million, which includes $7.1 million received in government grants and tax incentives and $0.6 million in receipts from customers.
4DX has dropped by 40% this year, as investors are concerned that their stake might be diluted with the expectations that the company might be raising further capital to develop its technology.
Patrys (ASX:PAB) rose 6% after announcing new data from a successful preclinical study that has shown its deoxymab antibody PAT-DX1 is able to slow tumour growth.
This study was conducted at the Garvan Institute of Medical Research, and showed that twice weekly treatment with PAT-DX1 for 4 weeks reduced the growth of pancreatic tumours by 26%, and increased median survival by 47%.
PAT-DX1 has now been shown to significantly reduce tumour growth in multiple animal models of difficult-to-treat solid cancers including glioblastoma (brain cancer), triple negative breast cancer (TNBC) and pancreatic cancer.
In June, the company announced that new preclinical data for its deoxymab antibody, PAT-DX1, has been published in a leading, peer-reviewed journal The Journal of Clinical Investigation—Insight.
The company said it is now on track for the first human study of PAT-DX1, pencilled in for the first half of 2022.
Medical imaging company, IMEXHS (ASX:IME), rose 1.6% after announcing it will acquire Colombia-based radiology services provider RIMAB for 24.3 billion Colombian pesos (or around A$8.5 million), in a combination of cash and IMEXHS ordinary shares.
The company said that RIMAB will strengthen its customer offering with imaging and teleradiology services, and provide a test bed for artificial intelligence (AI) development.
“The Board of IMEXHS has undertaken extensive due diligence on RIMAB, and on the radiology services sector in Latin America. RIMAB has shown strong growth in recent years and continues to do so in 2021,” said IMEXHS chairman, Doug Flynn.
The acquisition is subject to shareholder voting approval in mid September.
Medicinal cannabis company, ECS Botanics (ASX:ECS), has entered into a 5-year agreement with Polish company Alivio Spolka for the supply of medicinal cannabis products.
The deal will generate a minimum of $4.5 million in revenue for ECS.
Under the deal done through ECS’s Murray Meds licence, ECS will supply Alivio Spolka with a minimum of $0.9m of GMP manufactured medicinal cannabis products per annum.
These products will be used to supplement the group’s existing medicinal cannabis CBD range currently being sold in Poland.
“This agreement highlights the increasing demand for our Australian grown product and marks the scale up of our global export sales initiatives,” says CEO, Alex Keach.
Cann Group (ASX:CAN) dropped 13% after announcing a capital raising of up to $20 million to accelerate growth opportunities.
Funds will be used to invest in initiatives which are expected to deliver substantial cost savings as Cann moves to large scale production with the commissioning of its new manufacturing facility near Mildura.
It will also strengthen Cann’s in-house extraction, laboratory and manufacturing capabilities, which are expected to de-risk Cann’s supply chain and lower costs by reducing the company’s reliance on third party manufacturers and service providers.
At Stockhead we tell it like it is. While ECS Botanics is a Stockhead advertiser, it did not sponsor this article.