Check-up: What’s happening with ASX small cap health stocks?
Health & Biotech
Here’s our fortnightly wrap of all the news driving ASX small cap health stocks.
An election promise from Australian Prime Minister Scott Morrison solidified pain recognition app PainChek (ASX:PCK) as the biggest winner amongst the ASX’s small cap health and biotech stocks in the last fortnight.
The company was delighted that the Morrison government gave it $5 million in funding to sponsor a clinical trial of its app in aged care centres, announced by the minister for senior Australians and aged care, Ken Wyatt.
“This investment is set to trigger widespread and long-term use of the PainChek app,” Philip Daffas, company CEO, said.
“From a business perspective we have been focused on how best to facilitate national uptake. We have been making good progress by approaching aged care providers individually but this takes the implementation to a whole new level in double-quick time.”
And shareholders loved the news too, with the stock up 97 per cent in the past two weeks — which is more than double the gain of the next best company, dorsaVi (ASX:DVL), which makes movement trackers. That company’s shares are up 45 per cent, largely thanks to increased revenue the company reported for the March quarter.
Increased revenue has also been a good thing for software medtech Alcidion (ASX:ALC), whose share price has improved 39 per cent in the past fortnight and 106 per cent in the past year. The company has also been making significant gains with its clinic support software in the UK.
Other gains have included MGC Pharma (ASX:MXC), up 14 per cent after new distribution agreements increased patient access for its epilepsy and dementia drugs, Noxopharm (ASX:NOX), up 27 per cent on some positive trial data and PolyNovo (ASX:PNV), up 12 per cent after news it would work on treating wounds for members of the US military.
At the other end of the scale is Actinogen (ASX:ACW), which revealed that its big Phase II trial of its much-hoped Alzheimer’s drug, Xanamem, had failed to meet primary endpoints. Shares are down 72 per cent.
The company confirmed that a 10mg dose of its Xanamem treatment is safe. However, it’s not effective. But it said the results offer “great encouragement” to pursue studies at higher doses.
Early testing for dosages of 20mg and 30mg are in the works, which will provide indications around both safety and impact on cortisol production in the brain.