Health Check: Despite selling life-saving tech, Uscom faces its honourable demise

• Poor Chinese relations, Covid, war and US tariffs prove too much for device maker Uscom
• The Mayne Health takeover deal isn’t over, but the prognosis is dire
• Bioxyne strikes medical cannabis vape import deal

Uscom bows out

Uscom (ASX:UCM) chairman Prof Rob Phillips says the China-focused respiratory device maker’s “disappointing” decision to sell its assets at a fire-sale price resulted from a potent mix of factors beyond the company’s control.

Later this month shareholders will vote on the sale of its business to Singapore venture capitalist AXO VCC, for $2.59 million.

These funds will pay off debt owed to Phillips and another shareholder, which had kept the company on life support.

Phillips says the company hit break-even in the 2020-21 year.

However, this was followed by five years of sharply reduced revenue resulting from Covid, poor Australia-China relations, the Ukraine war and US tariffs.

“This resulted in three consecutive years of losses of $2-3 million and reduced Uscom’s 14-year compound annual growth rate to 19%,” Phillips said in a letter to shareholders.

Uscom lost $2.9 million in the year to June 2025.

Phillips says he never sold an Uscom share since the company floated in 2003, having converted $2.5 million into equity over ten years.

“I  can guarantee you that we have always been honest, frugal with investor funds and considered with our strategy,” he says.

“All while having developed and sold around $40 million of life-saving technologies to date.”

Used in 52 countries, Uscom’s non-invasive devices cover cardiac, vascular and pulmonary monitoring.

Meanwhile, the remaining Uscom is likely to be repurposed as a shell for someone able to avail of the $23 million of accumulated tax losses.

Uscom shares peaked at 94 cents in 2006, but today traded at 1.2 cents.

Investors seek FIRB Mayne ‘please explain’

A couple of weeks ago there seemed little chance of the Foreign Investment Review Board (FIRB) blocking reluctant suitor Cosette’s takeover offer for Mayne Pharma (ASX:MYX).

On Friday FIRB – a secretive arm of federal treasury – did just that.

Or at least FIRB said its preliminary view was that “the proposed acquisition  would be contrary to the national interest, on the grounds that it would negatively impact the Australian economy and community”.

FIRB cites Cosette’s intention to close Mayne’s flagship manufacturing site – Faulding’s previous premises – in Adelaide.

Mayne shares tumbled more than 30% on Friday’s news, but recovered around 55 today.

The stock rallied after the NSW Supreme Court in mid October ruled that Cosette’s scheme of arrangement was still enforceable.

FIRB has requested an extension to its statutory decision deadline of December 1, so this one could drag on until the new year.

Some investors believe federal treasurer Jim Chalmers has played into the hands of Cosette, in that they suspect the US-based Cosette has used the threat of the factory closure to precipitate the FIRB action.

Who really knows?

Pending any more unexpected development in this convoluted tale, the deal looks dead and investors should take a ‘back to basics’ approach to assessing Mayne.

On that note, Mayne reported workmanlike revenue of $408 million for the year to June 30, 2025, up 5%.

Underlying earnings came in at the bottom of the guided range of $47 million, but double the previous year’s tally.

Given the takeover goings-ons, the company has not offered current-year guidance.

Mayne shares are now trading at the same level as before Cosette lobbed its $7.40 a share cash offer in February.

Bioxyne strikes cannabis vapes deal

Via its subsidiary Breathe Life Sciences, medicinal marijuana and psychedelics play Bioxyne (ASX:BXN) has entered an exclusive deal to import cannabis vapes from Curaleaf International.

This follows Therapeutic Goods Administration and Office of Drug Control authorisation.

Known as the Que Medical Inhalation Device (QMID), the devices will be available via the TGA authorised prescribe scheme.

QMID is the first European approved device for use with medical cannabis liquid inhalants, “a key differentiator from other liquid dose form inhalation products on the market”

The company says the recurring revenue will support the company’s current-year revenue guidance of $65-$75 million and underlying earnings of $11.5-$13.5 million.

Bioxyne CEO Sam Watson says the deal was “an important step in expanding access to regulated, medically compliant inhalation technology in Australia”.

Meanwhile Tryptamine Therapeutics (ASX:TYP) shares have entered trading halt, pending a capital raising.

At clinical stage, Tryptamine is testing psilocin in combination with psychotherapy to treat diseases with unmet medical needs.

Orthocell treats first HK patient

Nerve-regeneration house Orthocell (ASX:OCC) reports the first surgical use case in Hong Kong of its Remplir device.

This follows a successful launch at the weekend’s Hong Kong Orthopaedic Association (HKOA) 45th Annual Congress.

“In partnership with [local distributor] Monts Med, Orthocell is well-positioned to drive market penetration through leading hospitals and specialist surgeons in Hong Kong,” the company says.

The Hong Kong launch is a springboard to the greater Guangdong–Hong Kong–Macao Greater Bay Area. This region has nine major cities and a population of about 100 million people.

Remplir is now selling in the US, Singapore, Australia, New Zealand, with Canada and Thailand sales expected in the “near term”.

Ooh la! la! – et merci

While biotechs gratefully pocket local research and development (R&D) tax incentives, the Australian government is not the only source of such largesse.

Immune-oncology drug developer Immutep (ASX:IMM) has received a €2.588 ($4.567 million) payment from the French government, under its Crédit d’Impôt Recherche scheme (CIR).

That’s Gallic for ‘research tax credit’.

The scheme reimburses 30% of eligible expenditure, in this case carried out by Immutep’s French lab. This compares with up to 43.5% for the Aussie program.

Immutep’s crowded program includes a phase III trial for lung cancer and phase II studies for breast and head and neck cancers.

Immutep specialises in understanding the lymphocyte activation gene-3, which can stimulate or suppress immune responses.

 At Stockhead, we tell it as it is. While Orthocell is a Stockhead advertiser, the company did not sponsor this article.