• The Healthcare sector has been struggling as the pandemic wanes
  • But most money managers are still bullish on the sector
  • The biggest movements and news from ASX healthcare stocks this week 

Dr Anthony Faucci, America’s top infectious disease doctor, told the World Economic Forum that there are five stages of the pandemic.

The five stages, in this exact order are: acceleration, deceleration, control, elimination, and finally eradication.

Speaking in January at the height of the Omicron wave, Dr Faucci said the world was still stuck in the first stage, where “the whole world is really very negatively impacted as we are right now.”

But since then, progress has been made and most experts believe that we have now reached the Control stage.

This is the phase of the pandemic that’s often referred to as endemicity, meaning that COVID-19 would become integrated into the broad range of infectious diseases we commonly experience, like the flu or the common cold.

For investors, regardless of where we’re at, the gradual easing of the pandemic has resulted in the dumping of health and biotech stocks globally.

In the US, the benchmark Healthcare Index (INDEXNASDAQ: IXHC) is down 22% this year. On the ASX, the S&P/ASX 200 Health Care [XHJ] is also down 11%.

But now global fund managers are warning against giving up on the sector too soon, especially as we enter into a high inflation cycle.
 

What the experts say about Healthcare/Biotech

Here’s a quick compilation of what the global asset managers are saying about the healthcare/biotech sector:

JP Morgan:

“With the outlook for healthcare innovation unchanged, waning enthusiasm for those stocks have driven sector valuations to the cheapest in years, cheaper than defensive peers and growth peers,” said JP’s analyst Dubravko Lakos-Bujas.

“While rising energy and inflation costs could be a concern for crowding out healthcare spending in the short term, demographic trends, excess savings, and rising wages all suggest otherwise.

“Based on consensus estimates, healthcare is expected to generate healthy mid-single-digit revenue growth this year and next.”

Citigroup Inc:

“The healthcare sector is an important growth opportunity,” wrote Citi’s Chuck Adams in an investors’ memo.

“We at Citi are committed to continuing to invest in the healthcare business, and attracting and retaining best in class talent is a top priority of our global health-care, consumer and wellness franchise.”

UBS:

“We downgraded consumer discretionary, financials and industrials from most preferred to neutral,” said a note from UBS.

“To accommodate these changes, we upgraded healthcare from neutral to most preferred, and utilities from least preferred to neutral. That leaves us with most preferred views on energy and healthcare, offset by a least preferred view on consumer staples.”

Morgan Stanley:

The bank admitted they are at “a loss for new ideas” this week, but recommended investors to stick with pharmaceutical and biotech companies due to their “defensive attributes” in this market.

Great Hill Capital:

“With Big Pharma losing their patents on many blockbuster drugs, but having tons of cash on their balance sheets, they will be forced to aggressively buy innovation in the biotech sector to maintain and accelerate growth,” Thomas Hayes, chairman of Great Hill Capital in New York, told The Street.

According to data from FactSet, FTSE Russell and Jefferies, the current combined cash balance of Russell 3000 Health Care companies has exceeded $500 billion, an increase of 400% in the past 20 years.

Dakota Wealth Management:

“As far as healthcare is concerned, it is a prime candidate for an inflationary environment,” senior portfolio manager, Rober Pavlik, told Yahoo Finance Live.

“And so I do believe that there are some opportunities in healthcare. Again, there are some very pricey stocks within the group. But I think you could look to the blue chip companies, and probably do quite well in a very choppy trading environment.”
 

Significant  ASX Healthcare moves this week

CODE COMPANY PRICE 1 WEEK RETURN % 1 MONTH RETURN % 1 YEAR RETURN % MARKET CAP
CTE Cryosite Limited 0.59 20.4% 25.5% 118.5% $28,065,499
ARX Aroa Biosurgery 0.9225 16.8% 29.0% -21.2% $311,879,029
HCT Holista CollTech Ltd 0.04 14.3% 21.2% -20.0% $11,013,963
ONE Oneview Healthcare 0.24 14.3% 4.3% -36.0% $121,585,415
IMC Immuron Limited 0.12 14.3% 0.0% -35.1% $26,196,810
MDC Medlab Clinical Ltd 0.11 13.4% 20.9% -45.0% $37,639,324
NXS Next Science Limited 0.895 10.5% 3.5% -44.9% $189,311,120
PSQ Pacific Smiles Grp 2.38 9.2% 13.9% -15.6% $382,996,651
AT1 Atomo Diagnostics 0.125 8.7% 4.2% -41.9% $65,388,748
VBS Vectus Biosystems 1.28 5.8% -1.5% 34.7% $45,951,530
ICR Intelicare Holdings 0.1 5.3% 19.0% -63.9% $8,638,026
BDX Bcaldiagnostics 0.11 4.8% -15.4% 0.0% $15,130,787
AHC Austco Healthcare 0.125 4.2% -3.8% 34.4% $35,885,709
PAA Pharmaust Limited 0.091 3.4% -5.2% -3.2% $28,205,202
TSN The Sust Nutri Grp 0.175 2.9% 52.2% -58.8% $18,693,990
ATH Alterity Therap Ltd 0.0195 2.6% 2.6% -40.9% $45,730,617
RAP Resapp Health Ltd 0.1125 2.3% 38.9% 104.5% $94,511,678
ACW Actinogen Medical 0.095 2.2% -9.5% 63.8% $174,405,094
IPD Impedimed Limited 0.1225 2.1% -18.3% -2.0% $213,345,568
GSS Genetic Signatures 1.34 1.9% 8.1% -6.0% $194,120,682
NSB Neuroscientific 0.275 1.9% -5.2% -3.5% $40,172,060
CMP Compumedics Limited 0.275 1.9% -10.6% -38.9% $48,719,811
OSL Oncosil Medical 0.061 1.7% 69.4% -37.8% $48,332,941
TRP Tissue Repair 0.34 1.5% -5.6% 0.0% $14,623,371
AHK Ark Mines Limited 0.465 1.1% 66.1% 1267.6% $16,821,602
PBP Probiotec Limited 2.35 0.9% 11.9% 16.9% $191,110,004
SDI SDI Limited 0.84 0.6% -3.4% 2.4% $99,847,045
MVF Monash IVF Group Ltd 1.215 0.4% 0.0% 35.0% $471,458,156
PXS Pharmaxis Ltd 0.1 0.0% 13.6% 19.0% $54,892,316
AMT Allegra Orthopaedics 0.19 0.0% 11.8% -42.4% $19,847,249
EXL Elixinol Wellness 0.056 0.0% 1.8% -68.9% $17,394,606
SCU Stemcell United Ltd 0.014 0.0% 0.0% -30.0% $14,696,981
JTL Jayex Technology Ltd 0.013 0.0% 0.0% -71.1% $3,239,971
ICS ICSGlobal Limited 0.575313 0.0% 0.0% 4.8% $6,054,605
FFC Farmaforce Ltd 0.035 0.0% 0.0% -63.2% $4,573,834
1ST 1St Group Ltd 0.011 0.0% 0.0% -49.5% $5,541,538
BPH BPH Energy Ltd 0.037 0.0% 0.0% -58.0% $24,603,085
ALA Arovella Therapeutic 0.04 0.0% 0.0% -2.4% $26,793,409
PAL Palla Pharma Ltd 0.295 0.0% 0.0% -34.4% $47,764,383
MDR Medadvisor Limited 0.26 0.0% -5.5% -31.1% $98,322,328
CYC Cyclopharm Limited 1.5 0.0% -8.5% -41.9% $140,995,983
DVL Dorsavi Ltd 0.021 0.0% -8.7% -40.0% $7,431,507
ADR Adherium Ltd 0.01 0.0% -9.1% -37.5% $22,082,511
ZNO Zoono Group Ltd 0.25 0.0% -10.7% -71.8% $38,274,692
ILA Island Pharma 0.195 0.0% -11.4% -58.5% $8,433,034
EZZ EZZ Life Science 0.32 0.0% -22.9% -49.2% $4,083,200
IDT IDT Australia Ltd 0.16 0.0% -23.8% -59.0% $38,563,488
CGS Cogstate Ltd 2.2 -0.5% -3.5% 144.4% $381,336,996
NEU Neuren Pharmaceuticals 3.84 -1.0% -5.0% 201.2% $484,967,853
PGC Paragon Care Limited 0.36 -1.4% -18.2% 60.0% $231,363,684
HGV Hygrovest Limited 0.063 -1.6% 3.3% -40.0% $14,487,101
RCE Recce Pharmaceutical 0.89 -1.7% -7.3% -17.6% $150,975,238
GLH Global Health Ltd 0.285 -1.7% -3.4% -45.2% $16,145,184
DOC Doctor Care Anywhere 0.265 -1.9% 0.0% -74.3% $61,349,430
PAR Paradigm Bio. 1.29 -1.9% 15.2% -46.0% $290,184,639
RAC Race Oncology Ltd 2.4 -2.0% -12.1% -26.2% $362,109,905
AN1 Anagenics Limited 0.046 -2.1% 7.0% -32.4% $10,166,980
VHT Volpara Health Tech 0.86 -2.3% 12.4% -33.3% $219,183,520
S66 Star Combo 0.2 -2.4% -2.4% -25.9% $26,228,081
EPN Epsilon Healthcare 0.039 -2.5% -18.8% -79.5% $8,685,571
SOM SomnoMed Limited 1.94 -2.5% 2.1% 0.0% $164,691,037
CAN Cann Group Ltd 0.385 -2.5% 51.0% -24.5% $134,412,557
CYP Cynata Therapeutics 0.38 -2.6% -9.5% -35.6% $55,161,489
CAJ Capitol Health 0.33 -2.9% -5.7% -10.8% $343,931,779
AC8 Auscann Grp Hlgs Ltd 0.065 -3.0% 0.0% -50.0% $29,516,656
OPT Opthea Limited 0.975 -3.0% -14.1% -33.4% $346,660,191
PYC PYC Therapeutics 0.094 -3.1% -3.1% -44.7% $292,645,201
NOX Noxopharm Limited 0.31 -3.1% -17.3% -50.8% $94,977,334
IVX Invion Ltd 0.015 -3.2% -6.3% 87.5% $89,831,191
4DX 4Dmedical Limited 0.735 -3.3% -14.0% -53.8% $157,761,601
OIL Optiscan Imaging 0.145 -3.3% -9.4% -68.5% $89,781,912
OCC Orthocell Limited 0.4 -3.6% -5.9% -20.8% $80,822,444
LBT LBT Innovations 0.08 -3.6% -8.0% -11.1% $25,592,124
MVP Medical Developments 3.5 -3.8% -11.8% -38.9% $251,618,601
RHT Resonance Health 0.12 -4.0% -7.7% -38.5% $55,302,238
PAB Patrys Limited 0.023 -4.2% -8.0% -11.2% $47,310,994
1AD Adalta Limited 0.068 -4.2% -9.3% -55.7% $21,364,563
IBX Imagion Biosys Ltd 0.0555 -4.3% 0.9% -61.7% $61,667,019
RNO Rhinomed Ltd 0.205 -4.7% 3.2% 72.0% $56,896,776
PCK Painchek Ltd 0.04 -4.8% 2.6% -39.4% $44,140,387
RHY Rhythm Biosciences 1.39 -4.8% 6.9% 24.4% $278,303,584
M7T Mach7 Tech Limited 0.695 -4.8% -13.1% -43.7% $164,789,973
ALC Alcidion Group Ltd 0.195 -4.9% 2.6% -50.9% $247,273,465
SHG Singular Health 0.195 -4.9% -2.5% -54.7% $12,404,923
CBL Control Bionics 0.38 -5.0% 2.7% -49.3% $18,119,126
OVN Oventus Medical Ltd 0.038 -5.0% -13.6% -80.0% $9,185,608
BXN Bioxyne Ltd 0.017 -5.6% 0.0% -15.0% $10,882,472
BWX BWX Limited 1.875 -5.8% -12.0% -60.9% $308,258,533
TRU Truscreen 0.063 -6.0% 5.0% -21.3% $22,860,574
MXC Mgc Pharmaceuticals 0.0225 -6.3% -16.7% -62.5% $59,825,310
MEM Memphasys Ltd 0.058 -6.5% -27.5% -17.1% $46,738,522
RGS Regeneus Ltd 0.056 -6.7% -5.1% -55.2% $17,466,904
VLS Vita Life Sciences.. 2.05 -6.8% -10.9% 73.7% $108,932,105
ACR Acrux Limited 0.081 -6.9% -10.0% -46.0% $23,608,271
OSX Osteopore Limited 0.2 -7.0% 17.6% -59.2% $23,453,648
EYE Nova EYE Medical Ltd 0.26 -7.1% 15.6% -18.8% $37,843,986
BOT Botanix Pharma Ltd 0.077 -7.2% -1.3% -10.5% $73,958,798
ADO Anteotech Ltd 0.125 -7.4% 25.0% -69.9% $228,507,606
CU6 Clarity Pharma 0.5 -7.4% -15.3% 0.0% $91,830,226
BIT Biotron Limited 0.072 -7.7% -13.3% 18.0% $51,241,088
RAD Radiopharm 0.235 -7.8% -7.8% 0.0% $29,648,290
RAD Radiopharm 0.235 -7.8% -7.8% 0.0% $29,648,290
NYR Nyrada Inc. 0.165 -8.3% -21.4% -46.8% $25,741,436
MX1 Micro-X Limited 0.21 -8.7% 5.0% -33.3% $94,365,455
ANP Antisense Therapeut. 0.105 -8.7% -16.0% -50.0% $70,223,368
IMM Immutep Ltd 0.315 -8.7% -23.2% -25.9% $277,196,741
PIQ Proteomics Int Lab 1.01 -9.0% -16.5% -15.1% $108,877,051
TD1 Tali Digital Limited 0.01 -9.1% -9.1% -80.2% $12,247,917
HXL Hexima 0.3 -9.1% -11.8% 71.4% $47,921,625
TLX Telix Pharmaceutical 4.38 -9.7% 4.0% 15.3% $1,352,022,582
VTI Vision Tech Inc 0.51 -9.7% -25.0% -66.0% $12,255,586
AVE Avecho Biotech Ltd 0.018 -10.0% 38.5% -10.0% $33,080,625
PTX Prescient Ltd 0.125 -10.7% -21.9% 28.9% $81,292,901
NTI Neurotech Intl 0.049 -10.9% -22.2% -22.2% $34,884,956
IIQ Inoviq Ltd 0.6325 -10.9% -26.5% -79.5% $61,192,437
MEB Medibio Limited 0.004 -11.1% 0.0% -50.0% $10,786,456
GTG Genetic Technologies 0.004 -11.1% -20.0% -50.0% $36,935,861
BNO Bionomics Limited 0.062 -11.4% 1.6% -75.2% $86,614,448
IMU Imugene Limited 0.2075 -11.7% -23.1% 9.2% $1,257,333,511
PNV Polynovo Limited 0.98 -11.7% -11.7% -67.9% $674,921,805
IHL Incannex Healthcare 0.41 -11.8% -35.9% 54.7% $484,151,201
CPH Creso Pharma Ltd 0.057 -12.3% 0.0% -70.0% $75,184,965
LCT Living Cell Tech. 0.007 -12.5% 7.7% -43.7% $7,198,546
DXB Dimerix Ltd 0.14 -12.5% -20.0% -45.1% $44,922,313
AGH Althea Group 0.165 -13.2% -13.2% -64.5% $55,217,382
KZA Kazia Therapeutics 0.92 -13.2% -5.2% -33.8% $129,396,465
CHM Chimeric Therapeutic 0.125 -13.8% -16.7% -54.5% $39,650,277
UBI Universal Biosensors 0.675 -14.0% -17.7% -10.0% $124,591,953
LDX Lumos Diagnostics 0.325 -14.5% -20.7% 0.0% $48,248,633
CDX Cardiex Limited 0.34 -15.0% -19.0% -50.0% $38,483,795
NC6 Nanollose Limited 0.092 -16.4% -20.0% -16.4% $14,144,205
IRX Inhalerx Limited 0.1 -16.7% 5.3% -4.8% $17,689,030
ATX Amplia Therapeutics 0.125 -16.7% -7.4% -50.5% $25,201,020
RSH Respiri Limited 0.051 -19.0% -10.5% -55.7% $36,864,880
ALT Analytica Limited 0.0015 -25.0% -25.0% -62.5% $6,920,702
ZLDDG Zelira Therapeutics 2.2 -30.2% -33.8% -79.0% $21,069,655
OSP Osprey Med Inc 0.21 -32.3% -37.3% -88.3% $6,158,050

Cryosite Limited (ASX:CTE) was the biggest mover this week. The clinical trials logistical company hasn’t released any news in a month, but back in March it did announce a change in chairmanship and buying of shares from its directors.

Aroa Biosurgery (ASX:ARX), a soft tissue regeneration company, reported a FY22 full year product revenue of NZ$37.7 million on a constant currency basis. This represents a growth of approximately 84% on FY21, and exceeds the company’s guidance of NZ$34-37 million.

Holista Colltech (ASX:HCT) has received its first commercial order from Country Farms for its innovative food ingredients to be used by Starbucks Malaysia, and sold into Country Farm’s modern trade channels in Malaysia. The initial order was worth $43k AUD for Holista’s low glycaemic index (GI) food ingredient GI Lite, and its sugar reduction substitute, 80Less.
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Immuron’s (ASX:IMC) sales of Travelan in North America were up by 185%, and worldwide gross sales grew by 216% YoY in the third quarter of FY22, reaching $193k. Travelan is an orally administered passive immunotherapy that reduces the likelihood of contracting travelers’ diarrhea.

MedLab Clinical (ASX:MDC) announced a northern hemisphere trade deal with the former contract manufacturer of NRGBiotic. The three-year trade deal with UK-based Cultech Limited will see CulTech market NRGBiotic to UK pharmacies and health food stores