ASX health stocks: CSL leads another round of strong earnings, but FY22 outlook remains subdued
Health & Biotech
Health & Biotech
The ASX 200 health stocks index (XHJ) fell by 0.76% this morning, compared to the broader index which rose by 0.04%.
It’s all about earnings today as some of the larger health caps reported their results.
Australia’s biggest health company, CSL (ASX:CSL), has delivered a strong full year net profit of US$2.375 billion.
This was 13% higher than the previous year’s results (or 10% on a constant currency basis), and came off the back of 13% increase in top line revenues $US10.3 billion.
“Despite the uncertainty and complexities we have faced, our CSL Behring and Seqirus businesses maintained all critical operations,” says CSL’s CEO, Paul Perreault.
CSL will pay its biggest dividend on record, after declaring a final payment of $US1.18 a share.
Despite the strong results, the company says there will be tough times ahead in FY22.
It expects FY22 profits to come in lower than this financial year, of between $US2.15 billion and $US2.25 billion, as a result of increased plasma costs.
CSL stock price fell by 2%.
The pharmaceutical distributor reported another record result, with a 5% increase in full year revenue to $9.2 billion.
This is the first time that the company has surpasssed the $9bn revenue mark.
Bottom line NPAT came in at $188.2 million, up 15.5% on the previous corresponding period (pcp).
During the year, Ebos saw strong performances from both its Healthcare and Animal Care segments.
Looking ahead, the company ecpects further growth in FY22. Underpinning that will be its $30m capital investment on a new state of the art pet food manufacturing facility, as well as its strong balance sheet, according to the company.
Final dividend declared was NZ 46 cents per share, bringing total dividends declared for the year to NZ 88.5 cents per share (up 14.2%).
The company said that revenue for the first four months of FY22 was $583m, which was 2% below pcp.
The company does not expect sales for the rest of the year to exceed previous figures.
It will also not be releasing earnings guidance for the rest of FY22, given the uncertainties surrounding COVID-19 cases.
“With the ongoing global vaccination activity, and most countries now having experienced a COVID- 19 hospitalisation surge resulting in a corresponding boost in hospital treatment capacity, we do not expect our Hospital hardware revenue to continue at this elevated level for the remainder of the financial year,” said CEO Lewis Gradon.
The imaging company reported a 19.5% increase in full year revenue to $67.9m, for a bottom line net profit of $30.9m, up 33.7% on pcp.
Pro Medicus announced a final fully-franked dividend of 8c per share, taking total dividends for the year to 15c per share.
“It was also our biggest year in terms of both sales and implementations, laying the foundation for a further step-up in exam volumes in FY22,” says Pro Medicus CEO, Dr Sam Hupert.
The dental company reported a 27% increase in full year revenue to $153.2 million, for an underlying NPAT of $14.0 million, up by 72.8% on pcp.
Drivers of growth include 1 million patient appointments during the year, with 15 new dental centres opened throughout NSW and Victoria.
Given the continued uncertainty created by COVID-19, PSQ says it is unable to provide guidance for FY 2022 at this time.
The company announced it has entered into a pan-cancer clinical collaboration with Merck of Germany.
The two companies will conduct combination studies with one of Merck’s investigational proprietary DNA Damage Response Inhibitor (DDRi) molecules, in combination with each of Telix’s TLX591 and TLX250.
TLX591 and TLX250 are late-stage products in development for prostate and renal cancer therapy, respectively.
“Pre-clinical studies provide evidence that the combined effect of Merck’s DDRi compound with Telix’s MTR candidates has potential to significantly impact cancer by improving efficacy and reducing the required radiation dose for tumour reduction and remission, compared to MTR only,” commented Telix CEO, Dr. Christian Behrenbruch.
Island has been granted a key patent from IP Australia covering a method of treating or preventing dengue and other mosquito borne viruses.
The patent will underpin Island’s drug repurposing strategy to rapidly and efficiently develop antiviral therapies with a key focus being mosquito borne viral diseases, such as dengue fever.
The company has filed a registration statement with the US SEC as it prepares for a listing in the US.
The filing relates to a proposed US public offering of American Depositary Shares , each of which will represent 50 ordinary shares of Incannex.
Incannex plans to list the ADS on the Nasdaq under the ticker symbol “IXHL”.