ASX Health Stocks: Mach7 signs $10m deal; Volpara agrees to $300m takeover from South Korean outfit
Health & Biotech
Health & Biotech
Medical imaging systems provider, Mach7 Technologies (ASX:M7T), rose 6% in early trading after announcing a new 5-year subscription agreement with Sentara Healthcare for its Enterprise Imaging Platform and eUnity Diagnostic Viewer.
The total minimum value of the renewal is $10.2m and will generate Annual Recurring Revenue (ARR) of approximately $2.0m.
This represents an additional $1 million in ARR compared to the current contract, with the new agreement effective 1 January 2024. This contract offers further upside to Mach7 should volume continue to exceed current contract minimums.
Sentara Healthcare is one of the largest health systems in the Mid-Atlantic and Southeast of the US. It is among the top 20 largest non-profit integrated health systems in the country with 30,000 employees and 12 hospitals in Virginia and northeastern North Carolina.
“Our pipeline remains strong and reflects opportunities across multiple geographies and product combinations,” commented CEO of Mach7, Mike Lampron.
Brain-focused biotech, Argenica Therapeutics (ASX:AGN), has provided an update on the progress of the company’s Phase 2 clinical trial in acute ischaemic stroke (AIS) patients.
Argenica said the manufacturing of the ARG-007 drug substance required for the Phase 2 clinical trial has now been completed, with the finalised sterile drug product manufacturing to be completed by the end of this year.
Melbourne based peptide manufacturer, Auspep Clinical Peptides, has completed the manufacturing of the ARG-007 drug substance (in powder form).
This has since been sent to Argenica’s European based contract manufacturer, CordenPharma, to be finished as sterilised vials of the ARG-007 drug product solution under Good Manufacturing Practices (GMP) ready for dosing of patients in the Phase 2 clinical trial.
The completion of the batch of ARG-007 will ensure Argenica can commence first patient dosing in Q1 of 2024.
The final approval for the clinical trial sites remains on-track, with one hospital ready to commence patient dosing, and several others in the final stages of approval. The clinical trial will be held in a number of hospitals across Australia.
ARG-007 was designed to reduce brain tissue death after brain injury and other neurological conditions, and has been granted Orphan Drug Designation status by the US FDA for the treatment of Hypoxic Ischaemic Encephalopathy (HIE).
Meanwhile, breast cancer imaging device company, Volpara Healthcare (ASX:VHT) jumped by 40% this morning after the company’s Board says the takeover offer from Lunit, Inc.provides the most compelling value for shareholders.
Lunit had earlier offered Volpara shareholders $1.15 per share in cash, worth around $300 million.
Volpara has now entered into a scheme implementation agreement with Lunit, but a final shareholder approval will still need to be sought at a Scheme meeting of shareholders expected to be held in early Q2 2024.
Volpara chairman Paul Reid said: “Volpara’s Board has assessed the proposed Scheme as providing compelling, risk-adjusted value and certainty for shareholders and unanimously support the proposed transaction.”
Founded in 2013 and headquartered in Seoul, South Korea, Lunit is a deep learning-based medical AI company. Its flagship Lunit INSIGHT suite is clinically used in approximately 3,000+ hospitals and medical institutions across 40+ countries.
Meanwhile, Volpara’s breast density imaging device has been used by women across 40 countries.