ASX Health Stocks: Mach7 jumps 6.5pc on US sales, while large cap health companies slump
Health & Biotech
Health & Biotech
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The ASX 200 health stocks index (XHJ) is falling sharply by 2.40% at the time of writing, compared to the broader ASX 200 index which fell by 0.60%.
Imaging tech company, Mach7 Tech (ASX:M7T), jumped 6.5% higher this morning after receiving a purchase order for its medical imaging platforms.
The order was for the full suite of its products : the Mach7 Enterprise Imaging Platform, eUnity Diagnostic Viewer, eUnity Enterprise Viewer, and the Mach7 Universal Worklist.
The $3.6m order was received from US-based Trinity Health, and adds to the the 7-year deal Trinity already signed in November to purchase the eUnity Enterprise Viewer.
The agreement today also means that Mach7 will be supplying Trinity with a full diagnostic PACS (Picture, Archiving and Communication System) solution, for a potential maximum contract value of $15.6m over seven years.
Mach7’s imaging platform creates a complete view of the patient to perform diagnosis, and reduce care delivery delays and costs.
The company has licensed the platform to other clients such as St Luke’s Boise Medical Centre.
Mach7 has also just come off a strong FY21, reporting a 95% increase in sales to $25.6 million.
Elsewhere in health, there were some notable dips at the big end of town, led by radiology group Pro Medicus (ASX:PME) which fell more than 5% on no news.
While still well up on the year, shares in PME have fallen by around 17% over the past month.
The pathology services provider has upgraded its profit guidance from the IPO prospectus.
The company says total revenue for the first half will now come in between $398.1 million and $414.0 million, vs the prospectus forecast of $307.4 million.
Australian Clinical Labs, which listed in May, is the third largest pathology network in Australia. Pathology is a branch of medicine that conducts testing for diseases including (but not limited to) COVID-19.
Another medical devices company, Imricor, also announced a sales agreement with US-based MiRTLE Medical.
Under the terms, Imricor will be a non-exclusive distributor of MiRTLE’s 12-lead ECG (electrocardiography) system.
MiRTLE’s 12-lead ECG monitoring device presents interference-free ECG signals to a cardiologist and gates the MRI during a heartbeat, thereby enabling the MRI to produce sharp images of the heart.
The company has received a $12.1M Research & Development (R&D) tax refund from the ATO in relation to its activities during the financial year ended 31 December 2020.
Telix also said that its application for an expanded overseas finding to enable partial recovery of essential overseas R&D expenditure, has been accepted by the Department of Industry, Science, Energy and Resources.