ASX Quarterly Health Wrap: Regulatory wins and record revenue

It’s the quarterly season again as the ASX market announcements page becomes increasingly flooded with update lodgements.

Here, we wrap up report highlights from three standout stocks in the ASX health sector.

EZZ Life Science (ASX:EZZ)

Receipts from customers of $15.4m for Q1 FY25, up 128.4% on pcp, during China’s retail off-season
Cash position remained strong with a balance of $18.2m at September 30, 2024 and no debt
Launched four new functional food products in August, targeting children and adults

The genomic life science company continued efforts to expand its product offerings, enter new markets, and execute marketing strategies during the quarter.

Despite challenges presented by the retail off-season in China, EZZ said it successfully leveraged its digital channels and partnerships to maintain robust sales growth.

Receipts from customers for the quarter totalled $15.4m, reflecting a 128.4% increase on the pcp, with growth primarily driven by EZZ’s continued success on Chinese e-commerce platforms, including Douyin, Tmall, and Omall.

Sales on Douyin accounted for $8.4m, a significant increase of 678.5% on pcp, while Tmall recorded sales of $2m, marking a 113.7% increase on pcp.

From July to September, EZZ also started direct sales efforts into Australian pharmacies, which also contributed to the total receipts.

During the quarter EZZ inked a three-year regional sponsorship with the Australian Open (AO) to increase brand reach in China and Southeast Asia, starting in 2025.

EZZ hosted a variety of events and key activities in Sydney to promote EZZ and EAORON products, including an influencer engagement campaign, a concert, a symposium, and livestream shopping campaigns, all aimed at increasing brand awareness.

The company transitioned to a new multi-purpose company headquarters containing office facilities as well as showroom displays and purpose-built studios for livestream events to showcase EZZ’s product range.

And the company joined AusBiotech, Australia’s biotechnology sector body, to enhance industry engagement.

Race Oncology (ASX:RAC)

Race completed its Phase 1/b trial of the drug bisantrene in combination with clofarabine and fludarabine in relapsed or refractory acute myeloid leukemia patients
New appointments made to Race board during quarter along with appointment of clinical researcher Professor Daniel Von Hoff to clinical advisory board
RAC completed all regulatory paperwork required for ethics submission for its Phase 1a/b human trial of RC220 bisantrene in solid tumour patients

RAC successfully concluded its Phase 1b/2 trial of bisantrene in combination with clofarabine and fludarabine in relapsed or refractory acute myeloid leukaemia (AML) patients during the quarter, having achieved the pre-specified trial endpoints for efficacy.

The trial was conducted at the Chaim Sheba Medical Centre in Israel under the supervision of AML key opinion leader Professor Arnon Nagler.

The company said board renewal continued during the quarter with the retirement of chair Mary Harney and non-executive director Philip Lynch, and appointment of Dr Pete Smith as executive chair, Dr Daniel Tillett as managing director, and Serge Scrofani as a non-executive director.

Clinical researcher Professor Daniel Von Hoff, considered a pioneering world leader in translational medicine, was also appointed to the RAC to clinical advisory board during the quarter.

RAC made significant progress through the quarter in advancing the Phase 1a/b clinical trial of RC220 bisantrene as a cardioprotective anticancer treatment in solid tumour patients with all paperwork required for submission of the human ethics application completed.

Submission of the ethics application is expected to be made before the end of CY2024, subject to receiving final written approval from the primary clinical trial site.

The company also received an R&D Tax Incentive Advance and Overseas Finding Assessment for up to $20m over three years for eligible R&D activities conducted outside of Australia.

RAC’s cash and cash equivalents totalled $14.62m as of September 2024.

Orthocell (ASX:OCC)

OCC achieved second consecutive quarter of record revenue, reporting $2.03m in the September 2024 quarter
First major international regulatory approval for nerve repair product Remplir in key market of Singapore during quarter
Product to support dental guided bone and tissue regeneration procedures Striate+ designed received regulatory approval and first sales in Canada

The regenerative medicine company said revenue grew by 7.96% on the previous quarter to a record $2.03m in the September quarter.

OCC’s quarterly revenue has grown by an average of 9.10%, compounded for the last eight quarters, following the product launches of Striate+ and Remplir in Australia in November 2022.

OCC received its first major international regulatory approval for its nerve repair product Remplir in the key market of Singapore during the quarter.

Singapore is a strategic regulatory jurisdiction, both as an important destination for medical treatment in the region and as a regulatory gateway to other substantial ASEAN markets.

The company said Global market expansion of Striate+, designed to support dental guided bone and tissue regeneration procedures, continued during the quarter with regulatory approval and first sales in Canada.

OCC’s exclusive global distribution partner BioHorizons recorded first sales of Striate+ in the key market of Canada, after receiving regulatory approval only two months earlier in July.

Striate+ is gaining excellent traction and growing revenue in US, Europe, UK and Australia, supported by its 98.6% success rate from the Striate+ dental implant post-market clinical study and BioHorizon’s established network of distributors and customers.

With Striate+ gaining traction OCC is accelerating market access into Brazil and Singapore with regulatory approval anticipated within 6-12 months. Further applications are planned.

The company also plans to accelerate Remplir into other other new markets with a further three regulatory applications in Canada, Thailand and EU/UK planned in the next 6-12 months. Top-line results from Remplir US market authorisation study expected in Q4 CY24.

OCC remains on schedule to submit its US FDA 510(K) market authorisation application in Q4 CY24.

The company remains well funded with $18.4m in cash to support its global market expansion strategy and beyond the pivotal US product registration for Remplir.

At Stockhead, we tell it like it is. While EZZ Life Science, Race Oncology and Orthocell are Stockhead advertisers, they did not sponsor this article.