•  S&P/ASX 200 Health Care closed flat in May
  • 2024 brings challenges, but hopes are high for biotech stocks
  • We take a look at the ASX biotech winners for the month

 

The  S&P/ASX 200 Health Care [XHJ] closed flattish for the month of May.

With half the year almost over, 2024 is so far shaping up to be a year of both challenges and exciting opportunities.

As investors and industry experts chart their course through this dynamic landscape, one thing is clear: science remains at the forefront of it all.

Stephanie Sirota, chief business officer of RTW Investments, shares her perspective on what lies ahead for biotech stocks.

For Sirota and her team, the journey in discovering biotech stocks with potential begins with a deep dive into the science behind each company.

First and foremost, Sirota says that she aims to seek out medical innovations with the potential to make a real difference, focusing on long-term value rather than short-lived gains.

“I would say that our favourite investment is where we identify an asset that we believe is going to have a meaningful transformational effect, not just a short-term momentum-driven step up,” said Sirota.

“We’re looking for stocks where we can get multiples of return, because we’re identifying value before the rest of the market has identified that.

“We really look for drugs that we think are going to be placing and disrupting that current standard of care or bringing a new standard of care,” she added.

But navigating the market isn’t without its hurdles.

Funding can be hard to come by, especially during market downturns.

“..When you have a market downturn, the competition for capital is fierce,” Sirota said.

Her strategy? Steering clear of crowded areas and backing ventures poised to disrupt the status quo.

Yet, amidst the challenges, there’s reason for optimism.

Mergers and acquisitions in the biotech space are on the rise, signalling a new era of collaboration between biotech firms and industry giants.

“…At some point, the large companies, whether it’s big pharma or large biotech, they have the ability to sell a drug and to properly commercialise it and to take those approved therapies and bring them to global markets.

“A biotech company, particularly a small or even a mid-sized biotech company, doesn’t always have the capability of doing it on its own,” Sirota noted.

Meanwhile, the IPO market has seen a flurry of activity this year, albeit with a cautious approach from investors.

Companies are treading carefully, opting to go public only when they’re confident in their ability to deliver results.

But perhaps the most exciting development of all is the wave of positive clinical data sweeping through the industry.

Breakthroughs in research are fuelling optimism, and with the US FDA adopting a more favourable stance towards innovation, the path to regulatory approval has never looked more promising.

“Hopefully, with a wave of positive clinical data from biotech companies, and then also a stable or hopefully a lower interest rate environment, all that capital is going to come crashing back,” Sirota said.

 

Here are the ASX Biotech Winners and Losers for May 2024

Code Name Price % Month Change Market Cap
LTP LTR Pharma 0.605 133% $42,595,320
BDX Bcal Diagnostics 0.175 90% $44,151,575
CU6 Clarity Pharma 5.080 81% $1,579,950,104
CYP Cynata Therapeutics 0.335 60% $60,176,648
DXB Dimerix 0.495 48% $272,088,943
MDR Medadvisor 0.440 47% $242,144,446
VTI Vision Tech Inc 0.160 45% $8,805,835
COV Cleo Diagnostics 0.250 35% $18,525,000
TD1 Tali Digital 0.002 33% $6,590,311
BOT Botanix Pharma 0.290 32% $456,789,815
AGN Argenica 0.770 32% $94,569,664
SOM SomnoMed 0.280 30% $60,510,311
OIL Optiscan Imaging 0.115 29% $96,064,192
BMT Beamtree Holdings 0.230 28% $66,465,643
ILA Island Pharma 0.067 26% $7,673,948
CTE Cryosite 1.070 26% $52,226,232
SNT Syntara 0.020 25% $23,880,636
PGC Paragon Care 0.390 22% $260,468,590
TLX Telix Pharmaceutical 18.150 21% $5,259,157,375
NC6 Nanollose 0.024 20% $4,128,153
EZZ EZZ Life Science 1.065 20% $47,300,058
NOX Noxopharm 0.080 19% $23,379,036
PEB Pacific Edge 0.090 18% $73,014,421
ACR Acrux 0.081 17% $23,548,065
PER Percheron 0.081 17% $73,025,143
EBR EBR Systems 1.100 17% $338,899,284
EMD Emyria 0.059 16% $24,130,374
ARX Aroa Biosurgery 0.570 14% $196,198,465
EOF Ecofibre 0.068 13% $25,763,425
ATX Amplia Therapeutics 0.070 13% $19,012,646
NEU Neuren Pharmaceut. 21.640 13% $2,645,854,407
MSB Mesoblast 1.110 12% $1,267,380,367
AVH Avita Medical 2.990 11% $185,928,127
1AI Algorae Pharma 0.011 10% $18,561,342
PNV Polynovo 2.250 10% $1,518,512,052
MAP Microbalifesciences 0.200 10% $89,570,395
CDX Cardiex 0.058 9% $17,062,125
ONE Oneview Healthcare 0.320 8% $215,996,048
PYC PYC Therapeutics 0.105 8% $489,938,758
PME Pro Medicus 120.120 8% $12,538,295,582
ALC Alcidion Group 0.058 7% $77,863,447
CUV Clinuvel Pharmaceut. 15.900 6% $758,571,002
PBP Probiotec 3.030 6% $246,409,920
HLS Healius 1.270 5% $922,146,928
FPH Fisher & Paykel H. 27.200 5% $15,434,583,365
IDT IDT Australia 0.100 5% $35,147,947
SHG Singular Health 0.105 5% $20,538,321
IMM Immutep 0.450 5% $534,975,552
TRI Trivarx 0.027 4% $10,650,885
VLS Vita Life Sciences.. 2.250 4% $125,423,568
DOC Doctor Care Anywhere 0.065 3% $23,831,746
HMD Heramed 0.018 3% $7,078,497
CAJ Capitol Health 0.245 2% $261,181,637
NSB Neuroscientific 0.049 2% $7,085,639
PSQ Pacific Smiles Grp 1.900 2% $303,205,682
IBX Imagion Biosys 0.074 1% $2,383,198
CSL CSL 280.100 1% $134,498,899,535
REG Regis Healthcare 3.970 1% $1,180,056,882
AFP Aft Pharmaceuticals 2.800 0% $293,625,528
AMT Allegra Medical 0.029 0% $3,468,720
CAN Cann Group 0.062 0% $27,123,891
HGV Hygrovest 0.046 0% $9,674,288
IVX Invion 0.005 0% $32,122,661
MX1 Micro-X 0.092 0% $53,462,095
MEM Memphasys 0.009 0% $12,309,680
MDC Medlab Clinical 6.600 0% $15,071,113
EPN Epsilon Healthcare 0.024 0% $7,208,496
DVL Dorsavi 0.013 0% $7,756,601
CBL Control Bionics 0.043 0% $8,569,331
OSL Oncosil Medical 0.005 0% $16,660,548
LGP Little Green Pharma 0.130 0% $39,228,879
IXC Invex Ther 0.080 0% $6,012,308
AHI Advanced Health 0.092 0% $22,600,111
COH Cochlear 322.560 -1% $20,952,891,987
SIG Sigma Health 1.255 -1% $2,023,514,007
4DX 4Dmedical 0.590 -2% $230,919,902
EBO Ebos Group 31.140 -2% $6,307,255,876
IMR Imricor Med Sys 0.485 -2% $98,391,015
ANR Anatara Ls 0.047 -2% $8,983,755
OCA Oceania Healthc 0.525 -3% $381,872,675
UBI Universal Biosensors 0.145 -3% $43,219,778
PCK Painchek 0.029 -3% $47,439,046
NAN Nanosonics 2.810 -4% $824,102,834
IDX Integral Diagnostics 2.440 -4% $552,150,313
ALA Arovella Therapeutic 0.120 -4% $126,018,748
GLH Global Health 0.115 -4% $6,385,449
RMD ResMed Inc. 31.400 -4% $19,882,547,249
ANN Ansell 24.450 -4% $3,555,195,450
PAA Pharmaust 0.210 -5% $83,141,359
FRE Firebrickpharma 0.060 -5% $12,304,324
OCC Orthocell 0.365 -5% $76,404,289
BIT Biotron 0.054 -5% $48,722,877
CVB Curvebeam Ai 0.180 -5% $39,344,290
ACL Au Clinical Labs 2.290 -6% $452,108,194
FCG Freedomcaregrouphold 0.160 -6% $3,821,425
IMC Immuron 0.094 -6% $21,431,845
IRX Inhalerx 0.030 -6% $5,693,009
AT1 Atomo Diagnostics 0.030 -6% $19,176,069
IIQ Inoviq 0.465 -7% $42,788,696
PAR Paradigm Bio. 0.250 -7% $87,449,004
AHC Austco Healthcare 0.180 -7% $64,938,305
CMP Compumedics 0.240 -8% $42,519,108
TRP Tissue Repair 0.230 -8% $13,302,265
SPL Starpharma Holdings 0.115 -8% $47,384,671
SDI SDI 0.790 -9% $93,903,769
HXL Hexima 0.010 -9% $1,670,396
GTG Genetic Technologies 0.100 -9% $13,221,725
SHL Sonic Healthcare 24.330 -9% $11,529,695,352
IPD Impedimed 0.076 -10% $153,755,138
RGT Argent Biopharma 0.370 -10% $16,753,675
RHC Ramsay Health Care 47.110 -10% $10,768,592,196
M7T Mach7 Tech 0.655 -10% $158,012,886
MVP Medical Developments 0.425 -11% $36,679,718
RCE Recce Pharmaceutical 0.585 -11% $119,332,538
HIQ Hitiq 0.023 -12% $8,092,434
CGS Cogstate 1.240 -12% $211,765,732
EYE Nova EYE Medical 0.245 -13% $56,061,702
RSH Respiri 0.028 -13% $28,616,461
AHX Apiam Animal Health 0.350 -13% $63,503,690
SNZ Summerset Grp Hldgs 9.160 -13% $2,158,224,029
TRJ Trajan Group Holding 0.930 -13% $141,560,959
AVR Anteris Technologies 19.000 -13% $365,224,004
CTQ Careteq 0.013 -13% $3,062,115
RHY Rhythm Biosciences 0.071 -13% $17,650,369
PTX Prescient 0.045 -13% $36,239,391
EMV Emvision Medical 1.885 -14% $161,025,906
1AD Adalta 0.025 -14% $13,372,579
ECS ECS Botanics Holding 0.018 -14% $23,193,892
CSX Cleanspace Holdings 0.280 -15% $21,654,487
IME Imexhs 0.480 -16% $21,857,712
NXS Next Science 0.260 -16% $75,840,727
ATH Alterity Therap 0.005 -17% $26,225,577
ICR Intelicare Holdings 0.010 -17% $2,348,245
OPT Opthea 0.510 -18% $338,032,403
CYC Cyclopharm 1.435 -18% $155,373,587
AYA Artrya 0.265 -20% $20,856,558
BP8DD Bph Global 0.004 -20% $1,563,293
NTI Neurotech Intl 0.071 -21% $72,234,590
RHT Resonance Health 0.064 -22% $28,601,147
PAB Patrys 0.007 -22% $14,402,131
ACW Actinogen Medical 0.029 -23% $73,280,717
IMU Imugene 0.067 -23% $490,427,477
ADR Adherium 0.016 -24% $11,681,279
CMB Cambium Bio 0.006 -25% $4,596,554
AVE Avecho Biotech 0.003 -25% $9,507,891
LDX Lumos Diagnostics 0.037 -26% $17,808,355
RAD Radiopharm 0.032 -27% $14,731,746
MYX Mayne Pharma 5.040 -28% $427,072,926
VFX Visionflex Group 0.005 -29% $7,084,956
LBT LBT Innovations 0.014 -30% $18,773,382
UCM Uscom 0.021 -30% $5,136,340
ZLD Zelira Therapeutics 0.470 -31% $5,333,163
ZLD Zelira Therapeutics 0.470 -31% $5,333,163
VIT Vitura Health 0.081 -33% $46,645,777
NYR Nyrada Inc. 0.057 -39% $10,226,296
CHM Chimeric Therapeutic 0.018 -40% $15,415,319
VBS Vectus Biosystems 0.130 -48% $6,917,368
ME1 Melodiol Glb Health 0.002 -50% $1,646,275
ENL Enlitic Inc. 0.250 -58% $19,678,657
JTL Jayex Technology 0.001 -80% $281,279
OSX Osteopore 0.053 -85% $6,020,959
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LTR Pharma (ASX:LTP)

LTR Pharma rose in May on no specific news.

However the company’s shares have been rising after announcing in late March that all patients recruited for its pivotal bio-equivalence clinical study of SPONTAN nasal spray received their second and final dose, completing the recruitment and dosing stage of the clinical study.

SPONTAN is a unique nasal delivery technology that bypasses the digestive system and is designed to overcome the issues of oral tablets for ED (erectile dysfunction).
The spray works by having a significantly faster onset of action of just 10 minutes.

The study is a critical milestone in LTR’s path to commercialisation. Data collected from the study will used to support the pre-submission meetings with the FDA and prescriptions of SPONTAN via the early access scheme in Australia.

 

BCAL Diagnostics (ASX:BDX)

BCAL recently announced some exciting news regarding its commercialisation efforts.

The company is gearing up to launch its new tests, and to make sure everything goes smoothly, it has brought on board a new CEO, Shane Ryan.

Ryan’s appointment comes at a pivotal time as the company prepares to launch its new tests and accelerate its commercialisation efforts.

With his prior experience as the COO and a strong track record in biotechnology product commercialisation, gained from his tenure at GenesisCare, BCAL believes that Ryan is well-positioned to lead BCAL through this critical phase.

 

Clarity Pharma (ASX:CU6)

Clarity has signed a Supply Agreement with SpectronRx for Cu-64 production.

This adds a new Cu-64 manufacturer to Clarity’s network, addressing supply constraints and benefiting patients, especially in the US oncology market.

Cu-64’s longer half-life overcomes limitations of other isotopes, providing broader access to PET imaging for cancer diagnosis.

 

Cynata Therapeutics(ASX: CYP)

Cynata has published new data in a top medical journal about its treatment, CYP-001, for a serious condition called steroid-resistant acute graft versus host disease (SR-aGvHD).

Graft versus host disease (GvHD) is a dangerous complication that can happen after bone marrow transplants, where the transplanted immune cells attack the recipient’s body. SR-aGvHD is even more challenging because it doesn’t respond to standard steroid treatment.

The published study followed patients for two years after receiving CYP-001 treatment.

The results are promising: 60% of patients survived, with no serious side effects related to the treatment. This survival rate is much better than what’s been seen before in similar cases.

For comparison, other treatments like ruxolitinib only had survival rates of around 38% after 18 months.

This is significant progress in treating a condition that has historically had very poor outcomes.

 

Dimerix (ASX:DXB) 

Dimerix says Taiba has acquired the exclusive rights to register and commercialise DMX-200 for the treatment of focal segmental glomerulosclerosis (FSGS) kidney disease in the United Arab Emirates (UAE), Saudi Arabia, Oman,  Kuwait,  Qatar,  Bahrain  and  Iraq.

Under the deal DXB will receive up to US$80.4m (~$120.5m) from Taiba in upfront and milestone payments on certain development and sales milestones being achieved.

The company will also receive tiered royalties starting at 30% on net sales.

Taiba also has a right to negotiate a licence to develop and commercialise DMX-200 in any additional indications in the licensed territories that DXB may achieve for DMX-200. The minimum term for the deal is 15 years, or until the last valid patent claim covering the product expires.

DXB retains all rights to commercialise DMX-200 in all other unlicensed territories, including the US and China.

 

At Stockhead we tell it like it is. While Dimerix and LTR Pharma are Stockhead advertisers, they did not sponsor this article.