Health: Resonance Health says cash receipts continue to grow, but investors are looking for more
Health & Biotech
Health & Biotech
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Healthcare company Resonance Health (ASX:RHT), which specialises in medical imaging technology, was one of the company to kick off this week’s reporting season with its latest 4C filing.
Resonance said it booked cash receipts of $891,000 for the quarter. That’s 31 per cent higher than the prior-year comparative period, but lower than each of the prevailing three quarters in the 2019 financial year, highlighted by Q4 cash receipts of $991,000.
Shares in the company fell by around 10 per cent on the news, but Resonance has been a solid performer for the most part in 2019.
While Resonance’s stock price has climbed steadily so far this year, the real move was last November when the stock soared from 2c to 10c almost overnight.
That move followed the development of a new artificial intelligence product — Ferrismart. And the stock jumped following news it had been approved by US regulators.
Resonance said Ferrismart was an upgrade on its existing Ferriscan technology — which uses magnetic resonance imaging to measure iron concentrations in the liver.
The company has also been developing AI technology for the purpose of measuring fatty acids in the liver.
To that end, it licensed a number of patents and has been carrying out R&D throughout 2019. In its market update today, Resonance said it remained “strongly committed to several R&D streams”.
“In addition to imaging projects, the company is expanding its AI ambitions, and is also investing in a small number of molecular projects,” Resonance said.
Pharmaceutical research company Pharmaxis Ltd (ASX:PXS) gave an update on the US regulatory front. The company said the review by the US Food & Drug Administration of its Bronchitol product — a treatment for adult cystic fibrosis patients — is now expected to be completed by the June quarter next year. Shares in Pharmaxis were up 5 per cent to 21c.
Regenerative medicine company Cynata Therapeutics (ASX:CYP) has scored a federal government grant to continue development of its Cymerus technology, used in the treatment of coronary artery disease. The $50,000 grant will be matched by the company, and the funds will be used to continue research at the University of New South Wales.
In cannabis news, Althea Group (ASX:AGH) announced the launch of its CBD100 product, which it says is the only “full spectrum” cannabinoid (CBD) profile in the market. This contrasts with existing “CBD only” products, “which are generally purified or isolate CBD”, Althea said. Shares in the company — which have slumped from above $1.20 after a major shareholder announced it was selling the bulk of its stake in the company — edged higher in morning trade to 41c.
And agtech company CropLogic (ASX:CLI) announced the first biomass shipments from its hemp farm were underway in the US, in connection with a $15m contract the company signed in August. The shipment “caps off a seed to sale story for the hemp trial farm”, CEO James Cooper-Jones said. Shares in CLI were unchanged at 5.2c.