ASX Health Stocks: CBL to advance DROVE wheelchair in US; Nanosonics dives 32pc after H1 update
Health & Biotech
Health & Biotech
Control Bionics (ASX: CBL) announced that its 100% owned US subsidiary has received a research grant of US$379k from the Amyotrophic Lateral Sclerosis Association (the ALS Association) to further the development of CBL’s DROVE technology in the US.
DROVE is an autonomous, self-driving wheelchair module that allows people with advanced ALS to move safely and independently around their homes or other locations.
The grant, which will be provided over the next 18 months, will assist CBL in bringing the product to the US, the largest potential market.
Under the agreement, the grant will be used to examine the practicality for technicians, family, and caregivers to install and use the DROVE system, and test navigation and collision avoidance.
The funds will also help to determine the FDA regulatory requirements necessary for market introduction, and create a roadmap for establishing third-party funding.
DROVE is unique in several ways when compared to conventional powered wheelchairs.
Conventional powered wheelchairs only offer independence to the extent that a person can use a joystick, and can only navigate in relatively open spaces.
With DROVE, users can navigate better around doorways and tight hallways, and detect and stop for unexpected obstacles.
Users can also use multiple assistive technology inputs (e.g. switch scanning, eye gaze) to select from an array of predetermined locations.
Once selected, the wheelchair will independently traverse a path, including turning, entering doorways, and reversing, without the need for any additional user input before stopping at the target location.
Sensors designed to detect obstacles will trigger the system to independently stop the wheelchair.
Nanosonics (ASX:NAN) cratered by -32% today after providing a H1 FY24 update.
The company said total revenue for the half year is expected to be approximately $79.6 million, representing a decrease of 2.4% on the pcp, primarily related to lower than expected capital unit sales (in particular upgrade sales).
Operating expenses are expected to be approximately $60.8 million for the half, representing an increase of 12% compared to the pcp.
NAN now expects to report profit before tax of approximately $4.9 million for the half, compared with $11.4 million in the pcp.
Based on these expected H1 results, NAN has issued an updated outlook for the remainder of FY24.
Total revenue and gross margins guidance are still being reviewed, however increases in operating expenses are expected to be below the bottom of the range of the company’s previously communicated outlook of 17-22%.
Meanwhile, Mach7 Tech (ASX:M7T) has released its preliminary unaudited results for the half, and provided a guidance for the full year FY24.
Sales orders for the half ending December (H1 FY24) was $49.5m, up 92% on the pcp.
Annual Recurring Revenue (ARR) was $18.6m, up 9% on 30 June.
The company is well funded, with cash on hand of $22.7m.
Based on this strong half, Mach7 has now released a few FY24 guidance revisions: Sales Orders to exceed $60m; and Revenue of $27m-30m.
The company has also reiterated its guidance of becoming operating cash flow positive in FY24.
Mach7 makes medical imaging systems that enable image management and viewing solutions for healthcare organisations.