Check up: Cashing in on deals done long ago

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Here’s our fortnightly wrap of all the news driving ASX health stocks.

Of the ASX’s 134-odd small cap health stocks, 51 saw their share prices fall, 73 improved and 15 were flat.

The top mover was G Medical (ASX:GMV), which has finally begun following through on long delayed deals, and this has been reflected in its share price.

The company completed the clinical trials required to obtain National Medical Products Administration (NMPA) approval for the use of its Prizma device in China.

It’s also secured Taiwan Food and Drug Administration approval, and partner First Channel has until April 4 to provide ancillary Prizma product information such as packaging and labelling to allow it to collect the licence.

G Medical announced deals in 2017 with several distribution partners for the Prizma device that forecast more than $US168m ($245.5m) worth of revenue in the first year of operation.

But delays in getting Chinese manufacturing approval and then doing the requisite clinical trials needed to have a product approved in that country led to the ASX in October asking when, if ever, investors might see this money.

The Silverlake deal for China and the MEDTL deal for Cyprus relied on regulatory approval in China for manufacturing.

First Channel was to supply India and Taiwan and was reliant on finding appropriate partners.

G Medical said at the time all agreements were still current.

MedAdvisor (ASX:MDR) has signed its second US agreement to provide medication education programs for a top 10 pharmaceutical company.

It did not disclose the name of that company.

It will hold four, nine-month-long digital health pilot programs offering digital education to patients on any one of four different medications over the next 12 months.

Patients will be drawn from up to 4,000 US pharmacies starting in the third quarter of fiscal 2020 and the revenue attributable to MedAdvisor is about $825,000.

“These initial pilot programs represent the first material revenue from the US expansion and an important milestone in the commercialisation and scale of the US market opportunity,” the company said.

The initial program equates to 80 per cent of the total revenue from Australian health programs in fiscal 2019.

Anatara Lifesciences (ASX:ANR) says in vitro and in vivo preclinical data reported for its Gastrointestinal ReProgramming (GaRP) dietary supplement has been positive and it is confident of launching a human clinical study this year.

Anatara believes its GaRP supplement may be the “breakthrough product so desperately needed by patients suffering chronic bowel conditions”, such as irritable bowel syndrome and inflammatory bowel disease.

The company has data supporting the formulation’s ability to combat the three underlying causes of chronic bowel conditions, such as reducing gut inflammation by significantly reducing the production of pro-inflammatory proteins and promoting healing of the gut lining by increasing mucin genes.

Medlab Clinical (ASX:MDC) provided a market update, saying it made record quarterly revenue from cannabis sales, with an increase of approximately 50 per cent over the previous best quarter and 400 per cent over the previous corresponding period.

It also said the Royal North Shore Hospital (RNSH) clinical trial had been completed and it was awaiting results, but the initial feedback was encouraging.

And approximately 120 Australian doctors and 230 patients have been recruited for a trial on cancer pain drug Nanabis.

Managing director Dr Sean Hall said the nutraceuticals business was expanding into new revenue territories including the US, UK and Asia and they should see revenue flow over the next few months without material operating or capital expenditure.

“We also have licensing opportunities for our NanoCelle delivery platform,” he said.

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