The ASX Health sector gains momentum with expected Fed rate cuts. Picture Getty
Health & Biotech
The S&P/ASX 200 Health Care index [XHJ] saw a 5% increase in July, contributing to an overall 9.5% gain for the year.
This came after the Index saw a 4% increase in June.
The health sector has been gaining momentum recently, fuelled by expectations of possible Fed rate cuts starting in September. Lower interest rates benefit health stocks, particularly for emerging biotechs as they lower borrowing expenses.
However, investors should be mindful that the fortunes of health companies can change dramatically at the drop of a coin.
Take Moderna.
The company, which was a market darling during the pandemic, has been struggling recently.
In a recent release, Moderna drastically lowered its full-year sales forecast, and says that it anticipates 2024 revenue between US$3 billion and US$3.5 billion, down from its earlier estimate of US$4 billion.
The decline in revenue is mainly due to a drop in demand for its Covid vaccine and intense competition in the market for respiratory syncytial virus (RSV) vaccines.
According to a research report from AdviseVoice, ASX healthcare stocks are becoming an attractive buy due to their current undervaluation and strong long-term growth prospects.
Despite recent disruptions, the sector remains promising, especially in medical equipment and device suppliers, which are expected to grow well.
In contrast, healthcare providers could face challenges such as rising costs and high expectations.
AdviseVoice’s report singled out ResMed (ASX:RMD) as a strong investment choice within the sector.
While some analysts fear that weight loss drugs could reduce demand for ResMed’s sleep apnea devices, recent evidence suggests these drugs might actually complement rather than replace ResMed’s products.
Additionally, ResMed’s share price is currently low compared to its historical average, making it a potentially good value.
“In terms of ASX peers, ResMed appears attractively priced at around 23x earnings, materially below its 10-year average of 28x earnings,” said the report.
“In contrast, the ASX200 Industrials currently trades at approximately 19.8x earnings, meaningfully above their 10-year average (17.5x earnings).”
| CODE | COMPANY | PRICE | 1 MONTH RETURN % | 6 MONTH RETURN % | 1 YEAR RETURN % | MARKET CAP |
|---|---|---|---|---|---|---|
| OSL | Oncosil Medical | 0.014 | 238% | 104% | 10% | $45,408,286 |
| ZLD | Zelira Therapeutics | 0.590 | 111% | -32% | -66% | $6,808,293 |
| HXL | Hexima | 0.019 | 73% | 12% | 6% | $3,173,753 |
| CSX | Cleanspace Holdings | 0.430 | 72% | 30% | 30% | $32,885,859 |
| ALC | Alcidion Group | 0.079 | 68% | 49% | -37% | $103,370,438 |
| SOM | SomnoMed | 0.400 | 58% | 4% | -39% | $86,443,301 |
| MEM | Memphasys | 0.011 | 57% | 10% | -27% | $15,210,230 |
| AYA | Artrya | 0.340 | 55% | 58% | 36% | $24,398,238 |
| LDX | Lumos Diagnostics | 0.047 | 52% | -37% | -25% | $25,027,959 |
| TRP | Tissue Repair | 0.375 | 50% | 53% | 34% | $22,674,316 |
| CVB | Curvebeam Ai | 0.235 | 47% | -15% | 0% | $51,385,908 |
| CAN | Cann Group | 0.040 | 43% | -49% | -70% | $17,746,234 |
| OCA | Oceania Healthc | 0.705 | 41% | 9% | -1% | $499,719,411 |
| PCK | Painchek | 0.038 | 41% | 15% | 23% | $65,433,167 |
| ATX | Amplia Therapeutics | 0.085 | 37% | 9% | 3% | $23,582,231 |
| EOF | Ecofibre | 0.041 | 37% | -59% | -76% | $15,533,830 |
| SNT | Syntara | 0.032 | 33% | 68% | -36% | $35,820,953 |
| TRI | Trivarx | 0.032 | 28% | 33% | 7% | $14,168,199 |
| IMC | Immuron | 0.110 | 25% | 45% | 43% | $22,799,835 |
| AVH | Avita Medical | 3.020 | 25% | -40% | -45% | $202,250,585 |
| VBS | Vectus Biosystems | 0.095 | 23% | -68% | -81% | $5,054,999 |
| IDT | IDT Australia | 0.135 | 23% | 32% | 104% | $57,994,343 |
| ICR | Intelicare Holdings | 0.017 | 21% | 6% | 55% | $5,092,494 |
| UCM | Uscom | 0.018 | 20% | -56% | -62% | $4,488,201 |
| TRU | Truscreen | 0.019 | 19% | -16% | -22% | $10,499,231 |
| OPT | Opthea | 0.415 | 19% | -3% | -18% | $510,904,266 |
| IXC | Invex Ther | 0.071 | 18% | -13% | 43% | $5,260,769 |
| ALA | Arovella Therapeutic | 0.165 | 18% | 10% | 237% | $173,542,984 |
| IMM | Immutep | 0.345 | 17% | -1% | 12% | $501,151,240 |
| AHC | Austco Healthcare | 0.210 | 17% | 11% | 20% | $75,761,356 |
| GLH | Global Health | 0.140 | 17% | 27% | -18% | $8,126,935 |
| SNZ | Summerset Grp Hldgs | 10.000 | 16% | 3% | 0% | $2,349,071,351 |
| SDI | SDI | 0.905 | 15% | 24% | 3% | $106,978,977 |
| ANR | Anatara Ls | 0.048 | 14% | 129% | 38% | $9,258,899 |
| CU6 | Clarity Pharma | 6.130 | 13% | 153% | 591% | $1,988,300,823 |
| ACW | Actinogen Medical | 0.070 | 13% | 122% | 100% | $200,366,502 |
| NXS | Next Science | 0.265 | 13% | -27% | -52% | $77,422,462 |
| MAP | Microbalifesciences | 0.180 | 13% | 0% | -41% | $85,091,876 |
| RSH | Respiri | 0.029 | 12% | 12% | -28% | $33,249,532 |
| RMD | ResMed Inc. | 32.180 | 11% | 11% | -4% | $19,994,724,476 |
| VIT | Vitura Health | 0.095 | 10% | -61% | -81% | $52,980,388 |
| 1AI | Algorae Pharma | 0.011 | 10% | 10% | -31% | $15,186,553 |
| OCC | Orthocell | 0.390 | 10% | -3% | -1% | $79,544,191 |
| CBL | Control Bionics | 0.057 | 10% | 24% | -20% | $10,562,199 |
| IMR | Imricor Med Sys | 0.580 | 9% | -3% | 36% | $146,381,998 |
| DVL | Dorsavi | 0.012 | 9% | 0% | -8% | $7,382,130 |
| EBO | Ebos Group | 32.540 | 9% | -7% | -7% | $6,270,894,550 |
| PTX | Prescient | 0.041 | 8% | -28% | -45% | $33,018,112 |
| GSS | Genetic Signatures | 0.770 | 8% | 57% | 29% | $174,460,565 |
| CTQ | Careteq | 0.014 | 8% | -44% | -54% | $3,556,781 |
| PNV | Polynovo | 2.635 | 8% | 38% | 67% | $1,780,800,498 |
| LBT | LBT Innovations | 0.015 | 7% | 0% | -12% | $23,482,754 |
| IIQ | Inoviq | 0.600 | 7% | 17% | -29% | $64,511,871 |
| EYE | Nova EYE Medical | 0.235 | 7% | -12% | -7% | $54,917,586 |
| EBR | EBR Systems | 1.115 | 6% | 62% | 30% | $354,330,390 |
| MDR | Medadvisor | 0.530 | 6% | 83% | 141% | $291,788,273 |
| BOT | Botanix Pharma | 0.365 | 6% | 115% | 181% | $678,764,171 |
| FPH | Fisher & Paykel H. | 29.350 | 6% | 32% | 30% | $17,026,669,497 |
| MVF | Monash IVF Group | 1.355 | 5% | -5% | 11% | $520,162,511 |
| ARX | Aroa Biosurgery | 0.630 | 5% | 2% | -31% | $216,850,935 |
| CSL | CSL | 309.040 | 5% | 4% | 16% | $149,465,236,552 |
| NOX | Noxopharm | 0.069 | 5% | 3% | 92% | $20,164,419 |
| SHL | Sonic Healthcare | 27.470 | 4% | -15% | -21% | $13,081,400,185 |
| AHX | Apiam Animal Health | 0.360 | 4% | 18% | -31% | $67,132,472 |
| BDX | Bcaldiagnostics | 0.130 | 4% | 43% | 86% | $46,448,313 |
| COH | Cochlear | 344.900 | 4% | 14% | 44% | $22,491,373,868 |
| NAN | Nanosonics | 3.100 | 4% | 5% | -35% | $921,113,458 |
| CGS | Cogstate | 1.160 | 4% | -15% | -16% | $200,665,109 |
| AGN | Argenica | 0.810 | 4% | 43% | 116% | $95,249,790 |
| TRJ | Trajan Group Holding | 1.055 | 3% | -5% | -43% | $160,587,970 |
| ANN | Ansell | 27.280 | 3% | 11% | 13% | $3,968,216,925 |
| MVP | Medical Developments | 0.405 | 3% | -51% | -64% | $36,248,192 |
| PGC | Paragon Care | 0.450 | 2% | 109% | 96% | $744,887,425 |
| LGP | Little Green Pharma | 0.097 | 2% | -28% | -48% | $29,270,779 |
| IME | Imexhs | 0.500 | 2% | -22% | -17% | $22,996,135 |
| PAR | Paradigm Bio. | 0.260 | 2% | -31% | -72% | $90,946,964 |
| NTI | Neurotech Intl | 0.071 | 1% | -21% | 25% | $71,217,201 |
| HLS | Healius | 1.515 | 1% | 8% | -44% | $1,067,366,916 |
| SIG | Sigma Health | 1.288 | 1% | 30% | 70% | $2,096,947,983 |
| TLX | Telix Pharmaceutical | 18.765 | 1% | 61% | 67% | $6,465,252,992 |
| PSQ | Pacific Smiles Grp | 1.910 | 1% | 32% | 32% | $300,811,953 |
| AMT | Allegra Medical | 0.029 | 0% | -6% | -50% | $3,468,720 |
| VLS | Vita Life Sciences.. | 2.280 | 0% | 20% | 54% | $128,026,316 |
| BP8 | Bph Global | 0.003 | 0% | -40% | -76% | $1,189,924 |
| IRX | Inhalerx | 0.025 | 0% | 25% | -29% | $4,744,174 |
| JTL | Jayex Technology | 0.001 | 0% | -89% | -90% | $281,279 |
| AC8 | Auscann Grp Hlgs | 0.040 | 0% | 0% | 0% | $17,621,884 |
| PIQ | Proteomics Int Lab | 0.880 | 0% | -9% | 10% | $115,282,392 |
| PAB | Patrys | 0.007 | 0% | -22% | -30% | $14,402,131 |
| PAA | Pharmaust | 0.195 | 0% | 0% | 141% | $97,223,911 |
| MDC | Medlab Clinical | 6.600 | 0% | 0% | 0% | $15,071,113 |
| VFX | Visionflex Group | 0.004 | 0% | -45% | -52% | $11,667,965 |
| ATH | Alterity Therap | 0.004 | 0% | -33% | -43% | $21,281,344 |
| EPN | Epsilon Healthcare | 0.024 | 0% | 0% | 9% | $7,208,496 |
| NSB | Neuroscientific | 0.040 | 0% | 18% | -60% | $5,784,195 |
| DOC | Doctor Care Anywhere | 0.068 | 0% | 5% | 11% | $24,931,673 |
| SPL | Starpharma Holdings | 0.095 | 0% | -37% | -71% | $38,763,024 |
| FCG | Freedomcaregrouphold | 0.145 | 0% | -12% | 0% | $3,463,167 |
| EMD | Emyria | 0.041 | 0% | -20% | -62% | $16,973,060 |
| COV | Cleo Diagnostics | 0.340 | 0% | 143% | 0% | $26,112,000 |
| AHI | Advanced Health | 0.092 | 0% | 7% | -52% | $22,733,170 |
| ACL | Au Clinical Labs | 2.495 | -1% | -18% | -21% | $496,511,677 |
| M7T | Mach7 Tech | 0.635 | -2% | -9% | -34% | $153,188,065 |
| AFP | Aft Pharmaceuticals | 2.800 | -2% | -17% | -17% | $293,625,528 |
| LTP | Ltr Pharma | 0.765 | -2% | 135% | 0% | $54,916,281 |
| BMT | Beamtree Holdings | 0.225 | -2% | 5% | -2% | $63,588,514 |
| PME | Pro Medicus | 140.110 | -2% | 38% | 102% | $14,429,430,195 |
| REG | Regis Healthcare | 4.260 | -2% | 30% | 91% | $1,264,346,660 |
| EZZ | EZZ Life Science | 1.798 | -3% | 188% | 213% | $79,499,628 |
| MSB | Mesoblast | 0.963 | -3% | 263% | -12% | $1,147,493,035 |
| CUV | Clinuvel Pharmaceut. | 14.890 | -3% | -4% | -19% | $730,634,810 |
| RHC | Ramsay Health Care | 45.935 | -3% | -9% | -20% | $10,322,868,517 |
| ENL | Enlitic Inc. | 0.135 | -4% | -81% | 0% | $10,232,902 |
| VTI | Vision Tech Inc | 0.130 | -4% | -43% | -41% | $7,154,741 |
| 1AD | Adalta | 0.025 | -4% | 4% | 9% | $14,890,588 |
| 4DX | 4Dmedical | 0.500 | -4% | -19% | -32% | $209,368,343 |
| CAJ | Capitol Health | 0.303 | -4% | 21% | 29% | $319,814,249 |
| AT1 | Atomo Diagnostics | 0.024 | -4% | 4% | -20% | $14,701,653 |
| MX1 | Micro-X | 0.079 | -5% | -25% | -34% | $44,201,886 |
| RGT | Argent Biopharma | 0.285 | -5% | -19% | -91% | $13,795,597 |
| CHM | Chimeric Therapeutic | 0.019 | -5% | -27% | -51% | $18,397,170 |
| RAD | Radiopharm | 0.036 | -5% | -50% | -61% | $37,012,422 |
| ADR | Adherium | 0.017 | -6% | -65% | -70% | $12,895,859 |
| PEB | Pacific Edge | 0.078 | -6% | -22% | -42% | $63,329,446 |
| UBI | Universal Biosensors | 0.140 | -7% | -26% | -44% | $41,729,441 |
| IDX | Integral Diagnostics | 2.460 | -8% | 24% | -19% | $563,848,413 |
| MYX | Mayne Pharma | 4.320 | -8% | -18% | -9% | $362,416,467 |
| CYC | Cyclopharm | 1.550 | -8% | -13% | -34% | $172,262,118 |
| OIL | Optiscan Imaging | 0.215 | -9% | 176% | 162% | $179,598,273 |
| HGV | Hygrovest | 0.042 | -9% | -14% | -7% | $9,043,356 |
| IMU | Imugene | 0.052 | -9% | -50% | -48% | $389,510,119 |
| EMV | Emvision Medical | 1.960 | -9% | 6% | 58% | $172,558,266 |
| ACR | Acrux | 0.062 | -10% | -11% | 22% | $18,024,445 |
| NEU | Neuren Pharmaceut. | 19.110 | -10% | -20% | 47% | $2,478,345,958 |
| RHT | Resonance Health | 0.053 | -10% | -4% | 6% | $23,685,325 |
| CMP | Compumedics | 0.300 | -10% | -23% | 76% | $55,131,027 |
| DXB | Dimerix | 0.455 | -11% | 107% | 532% | $239,537,011 |
| ECS | ECS Botanics Holding | 0.015 | -12% | -32% | -38% | $19,328,244 |
| IVX | Invion | 0.004 | -13% | -13% | -42% | $23,115,863 |
| RHY | Rhythm Biosciences | 0.054 | -13% | -56% | -88% | $13,424,225 |
| ONE | Oneview Healthcare | 0.345 | -14% | 35% | 47% | $232,914,852 |
| IPD | Impedimed | 0.062 | -14% | -52% | -70% | $123,408,729 |
| ILA | Island Pharma | 0.066 | -14% | -22% | -26% | $8,366,628 |
| HIQ | Hitiq | 0.018 | -14% | 6% | -10% | $6,333,209 |
| RAC | Race Oncology | 1.555 | -15% | 130% | 18% | $276,008,469 |
| FRE | Firebrickpharma | 0.045 | -15% | -12% | -77% | $8,788,803 |
| CYP | Cynata Therapeutics | 0.250 | -15% | 79% | 72% | $46,705,083 |
| NC6 | Nanollose | 0.021 | -16% | -5% | -62% | $3,612,134 |
| BIT | Biotron | 0.031 | -16% | -67% | 15% | $27,970,671 |
| SHG | Singular Health | 0.082 | -16% | -13% | 116% | $17,988,059 |
| PER | Percheron | 0.071 | -16% | 18% | 31% | $63,108,148 |
| AVE | Avecho Biotech | 0.003 | -17% | -29% | -58% | $7,923,243 |
| CDX | Cardiex | 0.059 | -17% | -51% | -65% | $17,356,300 |
| AVR | Anteris Technologies | 15.150 | -17% | -6% | -28% | $291,218,087 |
| AGH | Althea Group | 0.019 | -17% | -51% | -58% | $7,701,316 |
| OSX | Osteopore | 0.047 | -18% | -51% | -77% | $5,746,914 |
| CMB | Cambium Bio | 0.400 | -20% | -50% | -60% | $4,772,402 |
| PYC | PYC Therapeutics | 0.095 | -21% | 26% | 66% | $443,277,924 |
| RCE | Recce Pharmaceutical | 0.465 | -23% | -8% | -34% | $104,229,565 |
| NYR | Nyrada Inc. | 0.043 | -26% | 87% | -14% | $8,746,018 |
| HMD | Heramed | 0.016 | -30% | -6% | -78% | $12,031,747 |
| TD1 | Tali Digital | 0.001 | -33% | 0% | 0% | $3,295,156 |
| ME1 | Melodiol Glb Health | 0.002 | -33% | -100% | -100% | $1,215,473 |
| CTE | Cryosite | 0.750 | -40% | 12% | 25% | $35,630,981 |
| GTG | Genetic Technologies | 0.044 | -41% | -60% | -82% | $6,252,942 |
| IBX | Imagion Biosys | 0.048 | -44% | -73% | -92% | $1,819,821 |
OncoSil, a company focused on developing treatments for pancreatic cancer, successfully arranged for a $2.7 million investment from an Australian institutional investor.
This deal involves issuing new shares at a price of $0.007 each.
OncoSil’s CEO, Nigel Lange, pointed out that this new investment shows investors really believe in the company’s future.
He said that the additional funds will bolster OncoSil’s efforts to enhance its distribution network and increase monthly sales revenue.
The investment will result in the issuance of approximately 386 million new shares, each accompanied by an option that can be exercised until June 2025.
Zelira, a company known for developing cannabis-based medicines, has made important progress with its HOPE autism drug program after a successful meeting with the US Food and Drug Administration (FDA).
The FDA provided a positive response to Zelira’s preliminary questions this month, offering clear guidance on treating irritability in autism patients with Phelan-McDermid syndrome and Smith-Magenis syndrome.
The meeting, which included experts from iNGENu CRO, helped refine the design for a Phase 1 study involving healthy volunteers.
The FDA’s feedback will assist Zelira in preparing for the next steps, including submitting for Investigational New Drug (IND) approval.
Zelira has also announced that it has obtained patents for its HOPE 1 and HOPE 2 drug formulations from both the Australian and US patent authorities, aimed at treating symptoms related to Autism Spectrum Disorder.
The new patents has significantly boosted Zelira’s patent portfolio.
CleanSpace, a company that makes respiratory protection equipment, recently shared its unaudited sales update for the year ending June 30.
The company reported preliminary sales of $15.7 million, marking a 30% increase from the previous year and a 33% rise in the second half of the year.
This growth continues a strong trend seen over the past 18 months and aligns with CleanSpace’s goal of 30% annual revenue growth. The company has achieved consistent revenue growth over the last four half-year periods.
CleanSpace has performed exceptionally well in Europe and has also seen significant growth in Asia Pacific and North America during the second half of the year.
Around 97% of the company’s revenue now comes from industrial sectors, reflecting a shift from its previous focus on healthcare markets.
A key driver of this growth has been the launch of new technology. In April, CleanSpace introduced CleanSpace WORK, its lightest powered respirator, designed for small businesses and tradespeople.
Alcidion jumped over 20% last week after announcing that it has been chosen as the preferred supplier for North Cumbria Integrated Care (NCIC) NHS Foundation Trust’s new Electronic Patient Record (EPR) system, following a rigorous competitive tender process.
This selection marks a significant milestone in Alcidion’s relationship with NCIC, expanding upon its existing collaboration where Alcidion’s Patient Administration System (Silverlink PCS) has been instrumental in meeting operational needs.
Located in the north of the UK, NCIC serves approximately half a million people across multiple hospitals and community health facilities.
The Trust is an integral part of the North East and North Cumbria Integrated Care System, collaborating closely with primary care networks and support services.
Alcidion will deploy its comprehensive Miya Precision platform, integrating a suite of solutions including the Silverlink PCS already operational within the Trust.
Meanwhile, fertility-focused biotech company, Memphasys, has updated the market on its product development and clinical trial progress.
Memphasys says it has achieved repeat commercial sales in Japan and witnessed multiple successful live births in both Japan and India.
Securing exclusive distribution agreements for Japan, Canada, and New Zealand through Vitrolife Group subsidiaries were keys to its strategic expansion into key global markets, the company said.
Japan, representing approximately 14.5% of the global IVF market, remains a pivotal focus area for Memphasys despite the current absence of insurance reimbursement for its flagship Felix System.
Meanwhile, progress in the clinical trial of the Felix System has gained momentum throughout the June quarter.
Key trial phases, including the “Swim-up” and Density Gradient Centrifugation (DGC), are advancing steadily, with the trial expected to conclude by the end of the current calendar year.
Following completion, Memphasys plans to promptly analyse results and submit regulatory filings to the Therapeutic Goods Administration (TGA).
Memphasys also says it’s prioritising its Oxidative Stress Measurement System, recognising its potential to revolutionise reproductive health diagnostics by offering unique product differentiation.
The company is currently finalising a study to establish baseline levels and thresholds for oxidative stress, crucial for evaluating reproductive performance.
Health & Biotech
Health & Biotech
Health & Biotech
