In February 2021, the biotech market was trading at peak levels as the world grappled with the biggest and most deadly wave of the pandemic.

Fast forward one year, and everything has changed as biotech investors stare down a correction market that has crippled stock performances.

Source: Nasdaq, Euronext data

On the ASX, the XHJ Healthcare sector index is also down 12% this year.

One reason for the surge last year might be what experts call “tourist investors” – traders who seek out quick profits to take advantage of market conditions.

Although the selloff has been pretty much broad-based (for example giant Moderna (NASDAQ:MRNA) is down 40% this year), most of the biotech losses are concentrated in small and mid-tier companies.

Analysts say smaller biotechs are more impacted due to the rising rates cycle we are in, which tends to recalibrate valuations downwards for non-revenue stocks.

Gerry Fowler, fund manager of Edinburgh investment house Abdrn, told the AFR that time is up for these stocks.

“Tech and biotech have benefited the most from low inflation, low-interest rates and quantitative easing. We think this cycle is over for that type of company,” Fowler said.

Capital raising has also dwindled significantly this year. In 2021, there were 240 new listings on the ASX raising $13 billion in capital, but that frenzy is nowhere to be seen this year.

One common prediction in the industry is there will be a wave of big pharmas opportunistically swallowing smaller biotech companies as share prices fall.
 

Best and worst performing ASX health stocks

To the ASX, here are the worst and best performing stocks this week.

Code Company Price %Week %Month %Year Market cap
4DX 4Dmedical Limited 0.7 22.8% -24.3% -55.1% $136,866,025
OIL Optiscan Imaging 0.14 16.7% -6.7% -31.7% $89,781,912
MX1 Micro-X Limited 0.18 16.1% -18.2% -47.8% $85,159,069
RAC Race Oncology Ltd 2.63 14.3% -8.0% -32.0% $413,156,235
NC6 Nanollose Limited 0.12 14.3% 17.1% 22.4% $17,866,364
LBT LBT Innovations 0.089 14.1% -10.1% -10.1% $24,632,419
M7T Mach7 Tech Limited 0.835 12.1% 5.7% -29.8% $196,643,740
PAR Paradigm Bio. 1.145 11.7% -15.2% -53.3% $267,425,059
DVL Dorsavi Ltd 0.022 10.0% 0.0% -37.1% $7,785,388
LCT Living Cell Tech. 0.006 9.1% 20.0% -58.1% $5,656,000
CYC Cyclopharm Limited 1.62 8.7% -1.8% -36.5% $152,200,961
NTI Neurotech Intl 0.05 8.7% -2.0% -21.9% $32,094,160
RHT Resonance Health 0.135 8.0% -10.0% -20.6% $62,215,017
IIQ Inoviq Ltd 0.97 7.8% -6.7% -74.7% $91,098,515
ACW Actinogen Medical 0.085 7.6% -29.2% 214.8% $147,644,267
IHL Incannex Healthcare 0.605 7.1% 8.0% 195.1% $652,605,122
PNV Polynovo Limited 1.005 6.9% -14.1% -61.0% $664,996,484
PIQ Proteomics Int Lab 1.085 6.9% -14.6% -13.2% $116,276,463
CTE Cryosite Limited 0.47 6.8% 11.9% 95.8% $21,964,303
MVF Monash IVF Group Ltd 1.1575 6.2% 5.2% 65.4% $446,131,892
PBP Probiotec Limited 2.23 6.2% -0.9% 3.2% $181,351,195
AHK Ark Mines Limited 0.26 6.1% 30.0% 664.7% $8,327,526
VTI Vision Tech Inc 0.72 5.9% -9.4% -57.6% $17,061,698
NSB Neuroscientific 0.295 5.4% -7.8% 15.7% $39,454,702
ARX Aroa Biosurgery 0.695 5.3% -18.7% -41.1% $229,338,409
BXN Bioxyne Ltd 0.02 5.3% 0.0% 81.8% $12,802,908
NYR Nyrada Inc. 0.21 5.0% 2.4% -31.1% $32,761,827
IMC Immuron Limited 0.105 5.0% -8.7% -48.8% $23,918,826
SHG Singular Health 0.21 5.0% -8.7% -69.8% $13,710,704
NOX Noxopharm Limited 0.33 4.8% -21.4% -50.7% $97,899,713
MXC Mgc Pharmaceuticals 0.023 4.5% -20.7% -69.7% $62,523,942
RHY Rhythm Biosciences 1.265 4.5% 6.3% -15.4% $267,597,824
AT1 Atomo Diagnostics 0.115 4.5% -34.3% -58.9% $49,042,840
DOC Doctor Care Anywhere 0.305 4.3% -24.7% -70.8% $65,637,286
IMU Imugene Limited 0.245 4.3% -10.9% 113.0% $1,432,696,039
AHC Austco Healthcare 0.13 4.0% 0.0% 38.3% $36,389,863
RSH Respiri Limited 0.052 4.0% 10.6% -66.5% $37,587,721
PGC Paragon Care Limited 0.44 3.5% 18.9% 87.2% $278,244,168
CMP Compumedics Limited 0.31 3.3% -15.1% -26.2% $54,920,514
RGS Regeneus Ltd 0.063 3.3% -14.9% -40.0% $19,305,526
PTX Prescient Ltd 0.16 3.2% -15.8% 61.6% $104,014,913
OPT Opthea Limited 0.83 3.1% -19.4% -50.6% $297,388,692
AMT Allegra Orthopaedics 0.17 3.0% 3.0% -43.3% $17,758,065
ALC Alcidion Group Ltd 0.185 2.8% -15.9% -27.5% $221,912,084
1AD Adalta Limited 0.075 2.7% -2.6% -56.7% $23,563,856
OCC Orthocell Limited 0.385 2.7% -8.3% -26.0% $73,922,967
IDT IDT Australia Ltd 0.195 2.6% -9.3% 11.4% $45,765,142
TLX Telix Pharmaceutical 4.75 2.6% -18.7% 16.4% $1,492,057,920
S66 Star Combo 0.205 2.5% -22.6% -29.3% $27,573,111
OVN Oventus Medical Ltd 0.044 2.3% -33.3% -78.0% $10,635,968
NEU Neuren Pharmaceut. 3.97 2.3% 0.3% 204.2% $503,862,704
PSQ Pacific Smiles Grp 2.25 2.3% -16.7% -12.8% $352,676,083
NXS Next Science Limited 0.91 2.2% -14.2% -25.7% $183,324,738
ILA Island Pharma 0.235 2.2% -6.0% 0.0% $10,162,887
CAN Cann Group Ltd 0.25 2.0% -5.7% -58.3% $87,280,881
CPH Creso Pharma Ltd 0.052 2.0% -35.0% -74.0% $66,100,718
HGV Hygrovest Limited 0.056 1.8% 14.3% -51.3% $12,877,423
BOT Botanix Pharma Ltd 0.062 1.6% 5.1% -41.0% $60,334,809
CU6 Clarity Pharma 0.5325 1.4% -25.0% 0.0% $92,850,818
MVP Medical Developments 3.69 1.4% -2.9% -33.2% $258,746,607
IRX Inhalerx Limited 0.097 1.0% 15.5% -19.2% $16,341,295
PAA Pharmaust Limited 0.098 1.0% 3.2% 2.1% $31,057,414
ALT Analytica Limited 0.002 0.0% 0.0% -33.3% $9,227,602
ADR Adherium Ltd 0.011 0.0% -15.4% -47.6% $24,290,762
PXS Pharmaxis Ltd 0.085 0.0% -7.6% 4.9% $45,011,699
VLS Vita Life Sciences.. 2.27 0.0% 12.9% 120.4% $119,521,429
SCU Stemcell United Ltd 0.014 0.0% 0.0% -48.1% $14,696,981
MEB Medibio Limited 0.004 0.0% -20.0% -55.6% $9,587,960
IVX Invion Ltd 0.016 0.0% -5.9% 77.8% $99,455,961
ICS ICSGlobal Limited 0.575313 0.0% 0.0% 7.4% $6,054,605
FFC Farmaforce Ltd 0.035 0.0% 0.0% -64.6% $4,573,834
AN1 Anagenics Limited 0.048 0.0% -11.1% -40.0% $10,609,023
GSS Genetic Signatures 1.14 0.0% -9.9% -28.8% $164,596,620
EZZ EZZ Life Science 0.3 0.0% -30.2% -62.0% $3,828,000
CHM Chimeric Therapeutic 0.15 0.0% -24.1% -49.0% $38,238,908
EXL Elixinol Wellness 0.043 0.0% -31.7% -79.5% $13,283,154
1ST 1St Group Ltd 0.009 0.0% -30.8% -72.8% $4,987,384
ZLD Zelira Therapeutics 0.018 0.0% -33.3% -71.0% $30,151,835
GTG Genetic Technologies 0.0045 0.0% 0.0% -50.0% $46,169,826
OSX Osteopore Limited 0.185 0.0% -17.8% -59.8% $21,694,624
BPH BPH Energy Ltd 0.037 0.0% 0.0% -70.4% $24,602,017
BIT Biotron Limited 0.066 0.0% 1.5% -7.0% $46,327,559
CBL Control Bionics 0.355 0.0% -17.4% -45.4% $17,867,472
ALA Arovella Therapeutic 0.041 0.0% 0.0% -2.4% $26,450,648
PAL Palla Pharma Ltd 0.295 0.0% 0.0% -42.2% $47,764,383
ICR Intelicare Holdings 0.069 0.0% -13.8% -75.9% $6,046,618
ANP Antisense Therapeut. 0.13 0.0% -16.1% -25.7% $83,599,247
OSP Osprey Med Inc 0.335 0.0% -25.6% -84.0% $8,980,490
KZA Kazia Therapeutics 0.875 0.0% -19.0% -33.7% $115,532,558
VHT Volpara Health Tech 0.68 -0.7% -16.6% -49.4% $173,835,206
VBS Vectus Biosystems 1.29 -0.8% -7.9% 3.2% $45,598,057
ACR Acrux Limited 0.089 -1.1% -15.2% -44.4% $25,298,735
TRP Tissue Repair 0.355 -1.4% -21.1% 0.0% $15,913,669
AC8 Auscann Grp Hlgs Ltd 0.064 -1.5% -20.0% -58.7% $27,754,468
MEM Memphasys Ltd 0.063 -1.6% 1.6% 0.0% $49,907,235
CGS Cogstate Ltd 1.835 -1.9% 2.2% 97.3% $331,069,846
RCE Recce Pharmaceutical 0.91 -2.2% -15.7% -10.8% $157,504,252
CAJ Capitol Health 0.35 -2.8% 0.0% 6.1% $359,565,042
IMM Immutep Ltd 0.35 -2.8% -6.7% 4.5% $311,846,333
DXB Dimerix Ltd 0.175 -2.8% -27.1% -31.4% $56,152,892
IPD Impedimed Limited 0.145 -3.3% -21.6% 38.1% $257,664,364
LDX Lumos Diagnostics 0.385 -3.8% -54.7% 0.0% $62,572,446
EPN Epsilon Healthcare 0.049 -3.9% -22.2% -78.7% $10,689,934
PAB Patrys Limited 0.024 -4.0% -4.0% -3.6% $47,305,244
CYP Cynata Therapeutics 0.43 -4.4% -2.3% -32.8% $61,608,935
RAP Resapp Health Ltd 0.062 -4.6% -16.2% -13.9% $53,270,219
SDI SDI Limited 0.825 -4.6% -11.3% -1.8% $97,469,735
ONE Oneview Healthcare 0.2 -4.8% -23.1% -7.0% $105,953,380
MDC Medlab Clinical Ltd 0.1 -4.8% -23.1% -66.7% $37,639,324
ATH Alterity Therap Ltd 0.018 -5.3% -10.0% -47.1% $43,323,742
HXL Hexima 0.34 -5.6% -12.8% 134.5% $56,707,257
BNO Bionomics Limited 0.067 -5.6% -21.2% -74.7% $92,027,851
PYC PYC Therapeutics 0.091 -6.2% -20.9% -37.2% $283,102,423
JTL Jayex Technology Ltd 0.015 -6.3% -16.7% -70.0% $3,738,428
BDX Bcaldiagnostics 0.085 -6.6% -34.6% 0.0% $11,183,625
TSN The Sust Nutri Grp 0.14 -6.7% -15.2% -68.9% $16,884,894
ATX Amplia Therapeutics 0.14 -6.7% -11.1% -41.0% $26,170,290
GLH Global Health Ltd 0.28 -6.7% -23.3% -31.7% $15,861,935
RAD Radiopharm 0.275 -6.8% -19.1% 0.0% $33,799,051
RAD Radiopharm 0.275 -6.8% -19.1% 0.0% $33,799,051
BWX BWX Limited 2.02 -6.9% -41.3% -57.8% $322,783,804
UBI Universal Biosensors 0.88 -7.4% -7.9% 72.5% $153,070,113
AVE Avecho Biotech Ltd 0.012 -7.7% -14.3% -47.8% $22,053,750
SOM SomnoMed Limited 1.75 -7.9% -7.4% -5.4% $144,828,801
OSL Oncosil Medical 0.035 -7.9% -12.5% -63.5% $27,732,015
HCT Holista CollTech Ltd 0.033 -8.3% -17.5% -52.2% $8,811,171
MDR Medadvisor Limited 0.255 -8.9% -26.1% -27.1% $96,371,287
PCK Painchek Ltd 0.038 -11.6% -15.6% -45.7% $44,140,387
CDX Cardiex Limited 0.425 -12.4% -9.6% -39.3% $47,280,091
RNO Rhinomed Ltd 0.185 -14.0% -22.9% 48.0% $48,064,689
IBX Imagion Biosys Ltd 0.043 -14.0% -31.7% -75.4% $49,333,615
EYE Nova EYE Medical Ltd 0.205 -14.6% -24.1% -39.7% $31,294,065
AGH Althea Group 0.12 -20.0% -42.9% -77.1% $39,440,987
TRU Truscreen 0.057 -20.8% -21.9% -36.7% $20,683,376
ZNO Zoono Group Ltd 0.155 -22.5% -46.6% -77.4% $27,457,931
TD1 Tali Digital Limited 0.012 -36.8% -52.0% -75.5% $11,182,869
ADO Anteotech Ltd 0.0945 -42.7% -52.8% -52.8% $186,636,977
ONT 1300 Smiles Limited 0 -100.0% -100.0% -100.0% $168,827,115

Race Oncology (ASX:RAC) was one of the best performers this week, after releasing compelling pre-clinical kidney cancer results for its lead drug, Zantrene.

The study concluded that Zantrene on its own, and in combination with known drugs, can kill kidney cancer cells at clinically relevant concentrations.

Race says these results support advancing Zantrene into the clinic as a possible new treatment option for advanced kidney cancer patients.

LBT Innovations (ASX:LBT) has this week announced the first purchase order placed by Thermo Fisher for five APAS Independence instruments.

Under the terms, the instruments are expected to be shipped progressively over the next four months, with full order shipment expected no later than 31 July.

No figures were disclosed.

Mach7 Tech (ASX:M7T) has also received deals from two existing customers, Trinity Health and Penn State Milton S. Hershey Medical Center.

Trinity Health signed a $0.9m statement of work (SOW) contract, which will involve the first deployment of its imaging platform.

Penn State meanwhile signed a $1.5m contract renewal and licence expansions for the Mach7 Enterprise Imaging Platform.

The US FDA has agreed for EBR Systems (ASX:EBR) to include leadless (wireless) pacemakers as a co-implant in the pivotal SOLVE-CRT IDE clinical trial.

Pairing leadless pacemakers with the WiSE CRT System is expected to deliver better cardiac resynchronisation therapy (CRT) for eligible patients.

If approved for final labelling, the opportunity to pair leadless pacemakers could potentially expand EBR’s addressable market by US$400m in 2024.

AnteoTech’s (ASX:ADO) share price has plunged by 40% this week on no news, which led to an enquiry by the ASX.

In its response, ADO said it wasn’t aware of any material information that could affect the share price.

The company had earlier released an investor presentation where it discussed its patented nano-technology.