Check up: Speeding tickets all round
Health & Biotech
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Here’s our fortnightly wrap of all the news driving ASX health stocks.
Of the ASX’s 132-odd small cap health stocks and of those which were trading on Wednesday, 71 were in positive territory over the last fortnight, 11 were flat and 50 saw their share prices fall.
Investors (ok, day traders) were all over the health sector this fortnight with several companies the unexpected recipients of “a mighty shove” that pushed their stock sky high.
That is to say, there were a lot of ASX speeding tickets being passed out.
Osprey Medical (ASX:OSP) shares surged 273 per cent on the back of no news.
“No, Osprey is not aware of any information concerning it that has not been announced to the market,” it promised the ASX after receiving its own ‘please explain’.
“As stated… on 19 June… Osprey expects a final contract with GE Healthcare to be executed in the near-term.”
However, it made the point that the extreme price rise was off a low base: just 0.9c, from 1.3c to 2.2c.
Allegra Orthopaedics (ASX:AMT), a company not known for overwhelming the market with news, came in at number two following a rare update.
After six years of collaborating with the University of Sydney on a synthetic bone substitute, the company finally acquired the intellectual property (IP) and finished Monday up over 500 per cent.
Allegra sells off-the-shelf implants and is researching synthetic bone for spinal cages and kangaroo tendons as replacements for dodgy human ones.
Motion detection company dorsaVi (ASX:DVL) announced a tie-up with major insurer QBE Insurance (ASX:QBE), as part of an initiative to improve worker safety, and saw its stock surge by more than 1000 per cent that morning.
Under the terms of the deal, dorsaVi will provide its ViSafe motion sensor technology to employees of QBE customers, to provide data insights on body movements in the workplace.
It wasn’t the only health company in the last fortnight to see an outrageous share price move. Alterity Therapeutics (ASX:ATH) also ran last week but for very little reason.
The company told the market the previous Friday that it had a fruitful meeting with the US drugs regulator about a Parkinson’s treatment it was developing.
“It came back to earth on Thursday. But you get these companies that say something, and it’s involved in Parkinson’s which is an interesting space, and for some reason a group of investors have given it a mighty shove which then brings day traders in,” Morgans analyst Scott Power said.
Rounding out the top five is Race Oncology (ASX:RAC), a company whose stock has been on a tear since mid-June.