- A recent research reveals which biotech segments VCs are ploughing billions of dollars into
- We list the ASX companies that are operating within those thematics
- We also list the best and worst ASX biotech performers over the past week and month
Research by McKinsey showed that from 2019 to 2021, venture capitalists (VC) ploughed US$35 billion into biotech companies.
Funding peaked in the first quarter of 2021, before the gradual decline that we’ve seen until today.
The exuberance of these VCs gives a signal that they see potential breakthroughs from the current crop of biotechs.
So what potential discoveries are the VCs investing in?
According to McKinsey, VCs appear to focus on emerging technologies that can tailor treatments to individual patients, and deliver them to the target site with great accuracy.
The following platforms in particular are generating significant investor excitement:
Cell therapy 2.0
Cell therapy focuses on diseased tissues or cells that could in turn address a wider range of diseases.
Since the first chimeric antigen receptor (CAR) T-cell therapy was approved in 2017, they have revolutionised the treatment of hematologic malignancies, achieving unprecedented efficacy.
New cell therapy techniques have the potential to address diseases with significant unmet needs such as solid tumours, which represent more than 90 per cent of adult cancers, as well as non-oncological conditions.
Some significant challenges however still remain in CAR T-cell therapy that could hinder broader use.
This includes the inflammatory cytokine release syndrome that sometimes produces side effects from flu-like symptoms to organ failure, and sometimes death.
On the ASX, biotechs that have CAR T-cell programs include:
Chimeric Therapeutics (ASX:CHM), Prescient Therapeutics (ASX:PTX), Imugene (ASX:IMU), AdAlta (ASX:1AD), and Immutep (ASX:IMM).
Next-generation gene therapies
Gene therapies have recently transformed patient treatment, offering positive outcomes for genetic disorders.
According to the McKinsey analysis, gene therapies could comprise around 20% of new product launches by 2025.
The field continues to evolve, with several biotech start-ups developing new RNA-editing tools.
Obstacles to gene therapy remain, including safety concerns of inflicting permanent DNA damage, mutagenic effects, and even cell death.
On the ASX, biotechs that have gene therapy programs include:
Avita Medical (ASX:AVH), Osteopore (ASX:OSX), Orthocell (ASX:OCC), Aroa Biosurgery (ASX:ARX), Regeneus (ASX:RGS), Anteris Technologies (ASX:AVR), and Cynata Therapeutics (ASX:CYP).
Precision medicine
Precision medicine is an approach to maximise therapeutics’ effectiveness by using diagnostics devices and technology.
Advances in the ability to process enormous amounts of data combined with artificial intelligence (AI) have allowed the field to explode in recent times.
While existing diagnostics search for a few known mutations, advanced diagnostics tools can scan millions of circulating biomarkers to detect early signs of disease.
Current limits to broader use include the difficulty in translating complex genetic data into actionable clinical-care decisions.
On the ASX, biotechs that are in the precision medicine segment include:
Atomo Diagostics (ASX:AT1), Lumos Diagnostics (ASX:LMS), BCAL Diagnostics (ASX:BCL), and AnteoTech (ASX:ADO).
Machine learning–based drug discovery
There has been rapid advances in machine learning and AI that promise to accelerate drug discovery.
Machine learning allows drug development through computer-modeled simulations that predict molecular behaviour.
The technology is being increasingly used for phenotypic screening and genetic-profiling that can identify new genetic variants.
According to McKinsey however, challenges still remain including an insufficient number of high-quality data sets and uninterpretable algorithms.
On the ASX, biotechs that are using machine learning (not necessarily to discover new drugs per se) include:
LBT Innovations (ASX:LBT), Opyl (ASX:OPL), and PainChek (ASX:PCK), and ResApp Health (ASX:RAP).
Drug delivery technology
Drug delivery technology has seen significant advances as more therapies rely on new robust vehicles to target disease-specific cells.
The recent discovery of lipid nanoparticles used in mRNA-based COVID-19 vaccines are one of the most promising of such vehicles.
McKinsey believes that drug delivery is one of the biggest challenges for novel drugs, and significant scientific advances will be necessary to realise their full potential.
On the ASX, biotechs that focus on drug delivery technologies include:
Respiri (ASX:RSH),Suda Pharmaceuticals (ASX:SUD) , and Acrux (ASX:ACR).
Best and worst performing ASX biotechs in the past month
CODE | COMPANY | PRICE | 1 WEEK RETURN % | 1 MONTH RETURN % | 1 YEAR RETURN % | MARKET CAP |
---|---|---|---|---|---|---|
OSX | Osteopore Limited | 0.195 | 77% | 30% | -59% | $21,108,282.84 |
ALT | Analytica Limited | 0.0015 | 50% | 50% | -40% | $6,920,701.69 |
AN1 | Anagenics Limited | 0.03 | 43% | -6% | -50% | $6,409,617.79 |
IBX | Imagion Biosys Ltd | 0.042 | 40% | 2% | -56% | $49,333,615.50 |
ONE | Oneview Healthcare | 0.17 | 36% | -17% | -61% | $82,983,280.48 |
MDC | Medlab Clinical Ltd | 0.065 | 35% | -13% | -61% | $21,899,242.94 |
CAN | Cann Group Ltd | 0.32 | 33% | -3% | -21% | $115,310,315.34 |
EXL | Elixinol Wellness | 0.028 | 33% | -28% | -78% | $9,013,568.77 |
CYC | Cyclopharm Limited | 1.4 | 33% | 12% | -19% | $126,056,011.05 |
PCK | Painchek Ltd | 0.037 | 32% | -5% | -39% | $45,871,609.88 |
DOC | Doctor Care Anywhere | 0.195 | 30% | 0% | -78% | $39,763,519.25 |
IIQ | Inoviq Ltd | 0.55 | 28% | 4% | -72% | $50,610,286.10 |
4DX | 4Dmedical Limited | 0.585 | 27% | -3% | -54% | $121,194,342.54 |
TRU | Truscreen | 0.05 | 25% | -2% | -23% | $18,143,312.65 |
SHG | Singular Health | 0.115 | 24% | -23% | -63% | $7,508,242.94 |
CBL | Control Bionics | 0.185 | 23% | -24% | -73% | $9,311,217.61 |
RHT | Resonance Health | 0.07 | 23% | -21% | -60% | $32,259,638.67 |
BNO | Bionomics Limited | 0.054 | 23% | -10% | -73% | $73,080,940.18 |
OSL | Oncosil Medical | 0.049 | 23% | -4% | -25% | $49,562,113.10 |
VHT | Volpara Health Tech | 0.55 | 22% | -20% | -55% | $143,602,996.17 |
RAC | Race Oncology Ltd | 2.3 | 22% | 28% | -36% | $344,562,729.12 |
NOX | Noxopharm Limited | 0.23 | 21% | -22% | -67% | $67,214,728.50 |
AGH | Althea Group | 0.076 | 21% | -31% | -78% | $23,700,365.93 |
1ST | 1St Group Ltd | 0.006 | 20% | -33% | -68% | $7,729,042.90 |
MVP | Medical Developments | 1.775 | 20% | -30% | -61% | $122,644,698.04 |
BXN | Bioxyne Ltd | 0.013 | 18% | -19% | -50% | $8,321,890.17 |
IDT | IDT Australia Ltd | 0.13 | 18% | -10% | -60% | $30,127,724.63 |
RAD | Radiopharm | 0.165 | 18% | -11% | 0% | $19,596,501.38 |
RAD | Radiopharm | 0.165 | 18% | -11% | 0% | $19,596,501.38 |
IVX | Invion Ltd | 0.01 | 18% | 0% | -33% | $57,748,622.80 |
GLH | Global Health Ltd | 0.27 | 17% | -7% | -48% | $15,295,437.09 |
NXS | Next Science Limited | 0.88 | 17% | 21% | -46% | $181,497,663.23 |
VTI | Vision Tech Inc | 0.305 | 17% | -5% | -77% | $7,482,221.07 |
MEM | Memphasys Ltd | 0.042 | 17% | 5% | -40% | $33,271,490.15 |
PAR | Paradigm Bio. | 1.075 | 16% | -11% | -48% | $238,975,584.75 |
DXB | Dimerix Ltd | 0.145 | 16% | -15% | -33% | $44,922,313.24 |
ADR | Adherium Ltd | 0.008 | 14% | -11% | -56% | $17,666,008.74 |
ATH | Alterity Therap Ltd | 0.016 | 14% | -9% | -54% | $36,103,118.67 |
AT1 | Atomo Diagnostics | 0.066 | 14% | -15% | -67% | $38,249,696.40 |
ADO | Anteotech Ltd | 0.078 | 13% | -20% | -69% | $163,005,733.76 |
BIT | Biotron Limited | 0.07 | 13% | -3% | 11% | $46,327,559.06 |
MX1 | Micro-X Limited | 0.145 | 12% | -15% | -57% | $64,603,597.24 |
ZNO | Zoono Group Ltd | 0.15 | 11% | -21% | -77% | $24,961,755.75 |
ALC | Alcidion Group Ltd | 0.1275 | 11% | -6% | -66% | $164,848,976.89 |
AHC | Austco Healthcare | 0.11 | 10% | 15% | -19% | $31,579,423.59 |
PAB | Patrys Limited | 0.022 | 10% | 0% | -57% | $47,310,994.41 |
LBT | LBT Innovations | 0.083 | 9% | -11% | -1% | $26,551,828.15 |
RGS | Regeneus Ltd | 0.06 | 9% | 30% | -23% | $18,386,214.84 |
DVL | Dorsavi Ltd | 0.012 | 9% | -25% | -60% | $4,277,856.62 |
BPH | BPH Energy Ltd | 0.012 | 9% | -33% | -84% | $7,979,379.01 |
RNO | Rhinomed Ltd | 0.125 | 9% | -26% | -16% | $35,714,961.75 |
CHM | Chimeric Therapeutic | 0.1 | 9% | -5% | -70% | $31,005,190.10 |
EYE | Nova EYE Medical Ltd | 0.2 | 8% | -5% | -39% | $29,115,958.20 |
CPH | Creso Pharma Ltd | 0.04 | 8% | -22% | -70% | $51,855,718.12 |
M7T | Mach7 Tech Limited | 0.55 | 8% | -8% | -45% | $131,354,326.40 |
PNV | Polynovo Limited | 1.515 | 8% | 28% | -42% | $972,681,424.68 |
TLX | Telix Pharmaceutical | 5.12 | 8% | 25% | -11% | $1,501,998,436.80 |
IMC | Immuron Limited | 0.086 | 8% | -14% | -46% | $19,590,657.76 |
PIQ | Proteomics Int Lab | 0.85 | 7% | -8% | -11% | $93,021,170.00 |
NYR | Nyrada Inc. | 0.16 | 7% | 0% | -56% | $24,961,392.00 |
LDX | Lumos Diagnostics | 0.165 | 6% | -28% | -87% | $34,634,563.59 |
ACW | Actinogen Medical | 0.051 | 6% | -28% | -59% | $95,169,122.30 |
BWX | BWX Limited | 0.73 | 6% | -43% | -85% | $123,180,226.95 |
IMU | Imugene Limited | 0.2275 | 6% | 34% | -35% | $1,319,782,487.63 |
1AD | Adalta Limited | 0.055 | 6% | 4% | -60% | $17,280,161.03 |
NSB | Neuroscientific | 0.185 | 6% | -21% | -39% | $26,542,253.96 |
NTI | Neurotech Intl | 0.075 | 6% | 14% | 36% | $52,327,434.45 |
BDX | Bcaldiagnostics | 0.08 | 5% | -17% | 0% | $10,567,576.80 |
CDX | Cardiex Limited | 0.325 | 5% | -26% | -57% | $35,751,202.50 |
PBP | Probiotec Limited | 2.35 | 4% | 4% | 14% | $191,110,004.10 |
UBI | Universal Biosensors | 0.37 | 4% | -15% | -60% | $76,263,996.60 |
ALA | Arovella Therapeutic | 0.025 | 4% | -29% | -60% | $16,745,880.65 |
TRP | Tissue Repair | 0.255 | 4% | 0% | 0% | $11,928,990.53 |
CU6 | Clarity Pharma | 0.51 | 4% | 7% | 0% | $91,196,858.19 |
RAP | Resapp Health Ltd | 0.1325 | 4% | 20% | 208% | $116,059,105.40 |
PAA | Pharmaust Limited | 0.08 | 4% | -7% | -14% | $25,352,990.64 |
MVF | Monash IVF Group Ltd | 0.975 | 4% | -10% | 15% | $377,945,794.80 |
ANP | Antisense Therapeut. | 0.085 | 4% | -13% | -60% | $60,191,458.02 |
BOT | Botanix Pharma Ltd | 0.059 | 4% | -21% | -33% | $56,442,240.29 |
EZZ | EZZ Life Science | 0.32 | 3% | -3% | -30% | $4,083,200.00 |
HCT | Holista CollTech Ltd | 0.035 | 3% | 0% | -41% | $9,637,218.05 |
PTX | Prescient Ltd | 0.175 | 3% | -3% | -33% | $117,778,149.54 |
CYP | Cynata Therapeutics | 0.375 | 3% | -1% | -28% | $53,728,722.75 |
SDI | SDI Limited | 0.83 | 2% | 4% | -7% | $98,658,389.90 |
OIL | Optiscan Imaging | 0.1 | 2% | -29% | -56% | $61,960,560.20 |
CAJ | Capitol Health | 0.28 | 2% | -10% | -26% | $291,820,903.36 |
RSH | Respiri Limited | 0.059 | 2% | 59% | -21% | $44,948,934.41 |
VLS | Vita Life Sciences.. | 1.83 | 2% | -4% | 66% | $97,241,829.96 |
PSQ | Pacific Smiles Grp | 1.85 | 2% | 19% | -32% | $295,226,585.30 |
KZA | Kazia Therapeutics | 0.625 | 2% | -21% | -54% | $86,722,110.00 |
IMM | Immutep Ltd | 0.325 | 2% | -24% | -39% | $272,865,541.73 |
HGV | Hygrovest Limited | 0.066 | 2% | 3% | -26% | $15,176,963.01 |
ARX | Aroa Biosurgery | 0.66 | 2% | -14% | -44% | $226,197,977.28 |
NEU | Neuren Pharmaceut. | 3.8 | 1% | 0% | 130% | $478,669,568.80 |
GSS | Genetic Signatures | 1.165 | 1% | -4% | -7% | $167,044,685.34 |
RCE | Recce Pharmaceutical | 0.86 | 1% | 23% | -10% | $152,776,342.60 |
CMP | Compumedics Limited | 0.16 | 0% | -9% | -61% | $28,346,071.68 |
AMT | Allegra Orthopaedics | 0.18 | 0% | 0% | -18% | $18,802,656.54 |
ACR | Acrux Limited | 0.056 | 0% | -22% | -60% | $15,980,421.46 |
TSN | The Sust Nutri Grp | 0.14 | 0% | 0% | -67% | $16,884,893.90 |
SCU | Stemcell United Ltd | 0.014 | 0% | 0% | -18% | $14,696,980.89 |
MEB | Medibio Limited | 0.002 | 0% | -33% | -75% | $5,512,980.23 |
ICS | ICSGlobal Limited | 0.575313 | 0% | 0% | 0% | $6,054,604.94 |
FFC | Farmaforce Ltd | 0.035 | 0% | 0% | -48% | $4,573,834.30 |
AVE | Avecho Biotech Ltd | 0.013 | 0% | -28% | -28% | $23,891,562.84 |
AC8 | Auscann Grp Hlgs Ltd | 0.038 | 0% | -28% | -67% | $16,740,790.18 |
MXC | Mgc Pharmaceuticals | 0.017 | 0% | -15% | -58% | $46,380,995.48 |
OVN | Oventus Medical Ltd | 0.02 | 0% | -9% | -79% | $4,834,530.70 |
RHY | Rhythm Biosciences | 1.17 | 0% | -3% | 30% | $250,476,109.65 |
ZLD | Zelira Therapeutics | 1 | 0% | -14% | -88% | $9,577,116.00 |
GTG | Genetic Technologies | 0.0035 | 0% | 0% | -61% | $32,318,878.00 |
EPN | Epsilon Healthcare | 0.03 | 0% | -19% | -77% | $7,210,620.24 |
S66 | Star Combo | 0.155 | 0% | -3% | -38% | $20,925,462.06 |
PAL | Palla Pharma Ltd | 0.295 | 0% | 0% | -21% | $47,764,383.09 |
ICR | Intelicare Holdings | 0.04 | 0% | -31% | -78% | $4,818,652.28 |
OSP | Osprey Med Inc | 0.2 | 0% | 0% | -86% | $5,131,708.40 |
LCT | Living Cell Tech. | 0.009 | 0% | 50% | -41% | $10,282,909.78 |
OPT | Opthea Limited | 1.165 | -1% | -14% | -8% | $412,018,474.14 |
PXS | Pharmaxis Ltd | 0.069 | -1% | -18% | -25% | $36,239,158.76 |
CTE | Cryosite Limited | 0.65 | -2% | 0% | 67% | $32,702,407.21 |
OCC | Orthocell Limited | 0.38 | -3% | 6% | -37% | $76,879,886.07 |
CGS | Cogstate Ltd | 1.555 | -3% | -7% | 14% | $260,919,338.16 |
MDR | Medadvisor Limited | 0.155 | -3% | -14% | -48% | $60,926,390.24 |
IPD | Impedimed Limited | 0.06 | -3% | -30% | -43% | $106,678,034.10 |
ILA | Island Pharma | 0.125 | -4% | -32% | -57% | $5,405,791.00 |
NC6 | Nanollose Limited | 0.063 | -5% | -26% | -29% | $9,230,954.82 |
SOM | SomnoMed Limited | 1.15 | -5% | -20% | -53% | $99,311,178.00 |
IHL | Incannex Healthcare | 0.225 | -6% | -44% | -8% | $288,525,156.30 |
IRX | Inhalerx Limited | 0.07 | -7% | -7% | -30% | $11,792,686.99 |
PGC | Paragon Care Limited | 0.27 | -7% | -7% | -4% | $173,952,433.17 |
ATX | Amplia Therapeutics | 0.096 | -9% | -26% | -58% | $18,624,531.46 |
VBS | Vectus Biosystems | 0.875 | -10% | -24% | -33% | $31,730,700.75 |
AHK | Ark Mines Limited | 0.18 | -10% | -33% | 429% | $5,995,818.54 |
PYC | PYC Therapeutics | 0.064 | -12% | -27% | -60% | $203,579,270.59 |
TD1 | Tali Digital Limited | 0.006 | -14% | -14% | -82% | $7,348,750.00 |
JTL | Jayex Technology Ltd | 0.005 | -17% | -29% | -81% | $1,246,142.70 |
HXL | Hexima | 0.024 | -20% | -93% | -86% | $3,993,468.78 |
The company was up over 70% in the past week, continuing its meteoric rise of recent times as it continues to grow its presence in vital overseas markets.
Osteopore announced recently that it was collaborating with Singapore-based Livingstone Health to jointly develop new products for regenerating bone and tissue.
The two companies will co-develop products that improve healing in the musculoskeletal segment, with two upcoming surgeries that will see Osteopore implants being used for orthopaedic applications for the first time in Singapore.
The cannabis company surged this week after being granted a GMP (good manufacturing practice) licence to manufacture therapeutic goods at its Mildura facility.
The Mildura GMP Licence will enable Cann to manufacture Active Pharmaceutical Ingredients (API) and hard capsules, and to conduct GMP-approved activities at the facility’s existing chemistry and microbiology laboratories.
It will also allow the production of capsules for Satipharm, the company acquired by Cann in 2021.
The medical equipment manufacturer reported record revenues for the half year to 30 June (unaudited).
CYC says unaudited group sales revenue is expected to be approximately $11.3 million, an increase of approximately 36% compared to pcp.
It’s also 74% higher than pre-COVID revenues recorded in the first half of 2019.
Revenues were predominantly generated from its Technegas device, and recurring revenues from consumables.
Following its extension contract with New Zealand Rugby a couple of weeks ago, HitIQ has this week secured a deal with Shock Doctor, arguably the world’s pioneer in sports performance mouthguards based in the US.
The collaboration will see the development of an off-the-shelf, self-fit mouldable mouthguard embedded with HitIQ impact sensor technology.
It’s also set to expand HIQ’s traction in consumer markets on the back of Shock Doctor’s access to over 20,000 retail locations, as well as international markets.
Prescient Therapeutics (ASX: PTX)
The clinical stage oncology company was granted a US patent for its OmniCAR portfolio titled: “SpyCatcher and SpyTag: Universal Immune Receptor For T Cells”.
OmniCAR is a universal immune receptor (UIR) platform that creates modular cell therapies which according to Prescient are controllable, flexible and adaptable.
The key component of the system enabling modularity is a two-part covalent binding system called SpyTag and SpyCatcher, developed by and licensed from Oxford University.
At Stockhead we tell it like it is. While Osteopore is a Stockhead advertiser, it did not sponsor this article.