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Health & Biotech
Erectile dysfunction specialist LTR Pharma (ASX:LTP) and health supplements and beauty group EZZ Life Science (ASX:EZZ) are the local sector’s new flag bearers in the global MSCI World Microcap Index.
The index consists of more than 6350 companies, with market valuations of between US$1.43 billion (okay, not so small) and US$300,000. The median valuation is US$59 million.
As of November 25, LTR and EZZ join six other ASX newbies, with 12 local deletions including eye diseases house Opthea (ASX:OPT).
With market valuations of around $130 million, LTR and EZZ have recorded share surges of more than 300% over the last 12 months.
We’re not quite sure why the $1 billion Opthea was demoted, but the MSCI methodology considers factors such as momentum, quality (“sound balance sheets”), value (“relatively inexpensive”), volatility and, duh, size.
For the sake of completeness, the other non-biotech newcomers are Andean Silver (ASX:ASL), Bhagwan Marine (ASX:BWN), Canyon Resources (ASX:CAY), Liberty Financial Group (ASX:LFG), Vysarn (ASX:VYS) and Ricegrowers (formerly SunRice).
Meanwhile LTR today said it had entered a telehealth joint venture with the Restorative Sexual Health Clinic to create a healthcare platform for medical consultations and prescription treatments.
The platform is expected to launch in the March quarter, “providing a new channel for delivering healthcare services to Australian men”.
LTR is angling for local approval for Spontan, a nasal spray that does the job in 10 minutes, rather than perhaps an hour or more for oral pills such as Viagra.
LTP shares this morning gained 5% to $1.61 and EZZ shares were 2% off at $2.88.
AI-enabled cervical screening outfit Truscreen Group (ASX:TRU) reports promising sales progress in China, which is a tough market for life science companies to crack.
Come to think of it, it’s a hard for any Australian company to penetrate the Middle Kingdom.
In an update this morning, Truscreen also says it is progressing in several other tricky geographies, including Uzbekistan and Palestine, Jordan, Palestine and Rwanda.
One can’t accuse this mob of going only for the low-hanging fruit…
Truscreen is a screening device for detecting precancerous changes through optical and electrical measurements of cervical tissue.
An alternative to traditional pap smear tests, the tool is ideal for developing countries because the method doesn’t require lab facilities to diagnose the results.
Truscreen is also included in World Health Organisation (WHO) guidelines.
In October the WHO’s UNITAID arm selected Truscreen as one of six global companies (from a cohort of 580) that will have the biggest impact on global women’s health.
But on to business.
In China, the company sold 90,720 single-use sensors in the first half to September, exceeding its budget by 55%.
The company is targeting a capacious market of 476 million Chinese women of screening age.
The company’s Chinese distributor Beijing Siweixiangtai Tech Ltd. Co is honing in on China’s private health sector, with a further eight hospitals signed up in Jiangsu province following an initial installation at a hospital linked to Nantong University.
The company estimates monthly sensor use among these hospitals at 300 to 500 per month, double the company’s average Chinese take-up.
In Vietnam, Ho Chin Minh City has selected Truscreen as exclusive screener for a city-wide program which starts next year. Four public hospitals have obtained procurement approval, with a further two in the offing.
Elsewhere, product registration in Indonesia has been completed and it is in train in Uzbekistan.
Truscreen has also been included in Russia’s cervical cancer screening guidelines and is also recognised by Mexico’s health authorities.
Other markets of interest are Indonesia, Zimbabwe, Thailand, Malaysia and Singapore.
Truscreen shares were steady at 1.8 cents.
Surgical probe disinfector Nanosonics (ASX:NAN) says the sales turnaround apparent in the second (June) half has continued into the first four months of the 2024-25 year.
“While this positive start to the year is pleasing, we have to acknowledge there are eight months to go and we must continue to navigate a range of market conditions,” CEO Michael Kavanagh told holders at this morning’s AGM.
The company’s Trophon devices automate the hitherto slapstick manual approach of cleaning endoscopes – a welcome advance given the growing problem of hospital bacterial infections.
Unusually for an Australian medical device maker, Nanosonics has a dominant share of the US hospital markets.
Of its almost 35,000 units installed globally, 30,000 are in the US where the company estimates a total addressable market of 60,000.
Given that penetration, upgrades are becoming more important to drive growth. And on that note, the company estimates that 10,000 of the installed units globally are at least seven years old.
Nanosonics’ other growth ploy is by way of version 2.0 units called CORIS, which can clean tricky flexible probes without leaving gunky bits.
The company has lodged an approval application with the US Food & Drug Administration.
Reflecting the tale of two halves, Nanosonics eked out a 2% revenue gain to $170 million for the full year, but a 14% surge to $90.4 million in the second half.
About 70% of revenue was derived from attached consumables (such as hydrogen peroxide canisters) and service, rather than hardware sales. Full year net earnings were $12.97 million, down 34%.
Management this morning did not revise its previously enunciated expectations of 8-12% revenue growth in the current year, with a steady gross margin of 77-79%.
Nanosonics shares fell 0.6% to $3.26.
At Stockhead, we tell it as it is. While EZZ Life Sciences and LTR Pharma are Stockhead advertisers, they did not sponsor this article
Health & Biotech
Health & Biotech
Health & Biotech
