Check Up: Joining ‘observational study’ sends Avecho shares soaring
Health & Biotech
Health & Biotech
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Here’s our fortnightly wrap of all the news driving ASX health stocks.
It’s been a dismal two weeks in the small cap health space, with 80 companies losing ground and just 41 advancing. Another nine were flat.
Cannabis companies were among the most volatile shares, represented among both gainers and losers.
Avecho Biotechnology (ASX:AVE) has been the biggest gainer, rising 71 per cent over the fortnight.
AVE shares, which traded around 0.8c from March through to late October, have more than tripled this month, rising as high as 4.5c on Wednesday before closing at 4.1c.
CA Clinics hopes to enroll 3000 patients nationwide in its study. They will be surveyed via questionnaire about medicinal cannabis side effects, dosage response, and treatment satisfaction.
The data may well help cannabis products gain greater acceptance – but still, that’s a pretty dramatic share price rise for what amounts to mailing out surveys to cannabis patients.
On the flip side, medical cannabis company Stemcell United (ASX:SCU) has been the biggest loser in the 14-day period (December 9 through December 23).
Its shares spiked from around 1.4c at the start of the month to as high as 4.9c on December 9, but have been mostly in retreat since, closing Wednesday at 1.7c.
The share spike was the subject of two ASX queries.
In its first response, issued December 9, the company said it had no explanation for the recent trading in its securities.
The next day SCU asked for a trading halt and issued a $1.9 million placement at 1.9c a share – a 38.7 per cent discount off their last closing price of 3.1c – to 180 Markets Pty and CS Third Nominees.
In a follow-up letter to the ASX, issued Monday, the company said it only became aware the two parties might be interested in investing in the company the evening of December 9, when its managing director and chief executive received calls from their representatives.
“SCU believes it has promptly and without delay released the information to ASX,” the company said.
The second-biggest loser is Creso Pharma (ASX:CPH), although it was coming off a stellar run in the first part of the month.
CPH shares are down 38 per cent for the fortnight, but are still up by 311 per cent so far for the month.
Another cannabis company, Elixinol Global (ASX:EXL), was the third-biggest loser, dropping 36 per cent.
At Stockhead we tell it like it is. While Creso Pharma is a Stockhead advertiser, they did not sponsor this article.