ASX Health Stocks: Adherium races ahead 30pc on FDA clearance, Epsilon jumps 20pc on new cannabis partnership

The ASX Health Care index (XHJ) was down by 0.11% this morning, compared with the broader ASX 200 index which fell by more than 1% at the time of writing.

Medicinal cannabis company, Epsilon Healthcare (ASX:EPN), jumped by 20% out of the blocks this morning, after coming out of yesterday’s trading halt.

The company had put itself under a voluntary trading suspension, pending the announcement that was just released.

Epsilon announced that it has entered into en exclusive partnership with The Valens Company, which would give Valens access to Epsilon’s Southport manufacturing facility.

Under the deal, Valens will fund all operational and capital expenditure of the Southport Facility, in return for preferential access for up to 85% of the facility’s operational capacity over the next five years.

This includes lending its expertise by bringing intellectual property, technology and team to the facility.

Valens will be able to utilise Epsilon’s facility for all production of medicinal cannabis products for sale in Australia or New Zealand, taking advantage of Epsilon’s GMP (good manufacturing practice) capability.

Based in Canada, Valens is a manufacturer of cannabis products and is currently listed on the Toronto Stock Exchange, with plans to list on the Nasdaq.

Other ASX healthcare stocks with notable announcements

Adherium (ASX:ADR) +33%

The medtech company announced a US FDA 510(k) approval to market its the Hailie Sensor with physiological measures, for use in monitoring Asthma and Chronic Obstructive Pulmonary Disease (COPD).

Adherium’s Hailie Sensors are devices that attach to a patient’s asthma or medication inhaler to allow caregivers to provide advanced patient monitoring.

The latest Hailie Sensor was designed for use with AstraZeneca’s Symbicort aerosol inhaler.

“Adherium will expand its addressable respiratory medication market coverage, and establish a preeminent business partnering position for providers, payors and digital health affiliates,” commented Adherium’s CEO, Rick Legleiter.

Doctor Care Anywhere (ASX:DOC) +4%

The UK-based teleheath company has acquired 100% of telehealth provider GP2U Telehealth for $11 million.

The acquisition represents Doctor Care Anywhere’s first entry into the Australian telehealth market, following its ASX IPO in December 2020.

GP2U Telehealth provides virtual GP services under the brand GP2U, and tele-mental services under the brand Psych2U.

Doctor Care Anywhere says that it sees significant opportunities to grow national mental health and GP telehealth services in Australia, and will focus on the growing mental health space particularly in rural and remote areas.

The company says that it’s serving a huge addressable market, with approximately half of all adults in Australia to experience mental health concerns at some point with an estimated cost to the economy of up to $220 billion each year.

AusCann Group (ASX:AC8) +2%

The cannabis company has engaged Knoell Animal Health to advise on the CPAT-01 clinical program and US regulatory strategy, ahead of the company’s meeting with the US FDA.

CPAT-01 is a Phase 2 veterinary drug candidate derived from THC and CBD extracts, developed to treat pain and inflammation in dogs.

Dr Laura Treml will be AusCann’s technical manager for the project, bringing over her 20 years of experience.

The initial scope of work in the agreement includes providing guidance for the design and technical requirements for a Phase 2C clinical trial in accordance with the Veterinary Medicinal Products Good Clinical Practices.

Universal Biosensors (ASX:UBI) +3%

UBI’s market update highlighted its ongoing work in the electrochemical cell technology.

UBI says it has now moved away from defining itself as a Research and Development company, and ready to ramp up its commercialisation efforts.

Amongst its various products, the company says its portable wine-tasting sensor device, Sentia, is expected to see additional global distribution agreements throughout 2022, with two new products also expected to be launched next year.