Scott Power: ASX health stocks shaken by US tariff talk, but HealthInvest highlights opportunities

Healthcare and life sciences expert Scott Power, who has been a senior analyst with Morgans Financial for 27 years, gives his take on the ASX healthcare sector for the week, including HealthInvest 2025.

• Second HealthInvest 2025 event in Sydney this week showcased five emerging ASX-listed healthcare companies to investors
• Several ASX healthcare companies have hit major operational, clinical and regulatory milestones bringing greater focus to sector
• Morgans’ Scott Power believes falling interest rates should boost investor interest in growth and speculative stocks yet to shine on share price

Amid turbulent times for the healthcare market (thanks, Donald), silver linings and growth stories remain, according to Morgans’ senior healthcare analyst Scott Power.

The ASX healthcare sector fell on Friday after the US President took to his Truth Social platform to warn that he planned to impose a 100% tariff on branded or patented pharmaceutical products unless companies built their manufacturing plants in America.

While Trump’s latest remarks rattled markets, the focus at this week’s HealthInvest in Sydney was firmly on opportunity.

Stockhead, in partnership with IR Department and Morgans, hosted the second HealthInvest 2025 event in Sydney this week, showcasing five emerging ASX-listed healthcare companies to investors.

Power said recent company milestones were helping to refocus attention on the sector.

“There’s been a number of companies that have hit major operational, clinical and regulatory milestones which see them being rewarded by the market which is bringing a greater focus on the sector,” Power said.

“Having said that there’s still quite a few companies yet to shine in terms of share price performance and our expectation is that over the next six to 12 months with falling interest rates there will be increasing interest rates into the growth and speculative end of the market.

He said companies presenting at the latest HealthInvest were ticking a number of important milestones which should “well and truly see them back on the radar of investors”.

Cogstate strengthens position in CNS clinical trial space

Speaking at HealthInvest CogState (ASX:CGS) CEO Brad O’Connor said the neuroscience tech company had built a strong position in central nervous system (CNS) research, including a big pharma pivotal Alzheimer trial, through a focus on operational excellence and strategic partnerships.

CogState’s technology delivers fast, reliable, and sensitive computerised cognitive tests across a growing range of areas.  It also supports partners with electronic clinical outcome assessment (eCOA) solutions, replacing costly, error-prone paper assessments with real-time digital data capture.

Cogstate’s clinical trial services combine innovative operations, advanced analytics, and scientific consulting to ensure high-quality study endpoints.

“Brad gave a very bullish presentation in terms of expectations of continued investment by large pharmaceutical companies into central nervous systems research,” Power said.

“He highlighted a major clinical trial that Eli Lilly into early stage Alzheimer’s disease is doing with an expectation that could read out within the next six months.

“If it is positive that could be a growth driver for Cogstate cognitive tests performs.”

Cogstate delivered record FY25 revenue of US$53.1 million, up 22% on previous corresponding period (pcp) strong profit growth and declared its first dividend.

“Brad sees the revenue growing substantially over the next three to five years towards US$100m,” Power said.

Clever Culture grows list of Big Pharma clients

Based in Adelaide Clever Culture Systems (ASX:CC5) has a growing list of ‘Big Pharma’ clients for its Automated Plate Assessment System (APAS Independence) – the only US Food and Drug Administration (FDA) cleared AI technology for automated culture plate reading.

APAS uses artificial intelligence (AI) and machine learning software to automate the imaging, analysis and interpretation of microbiology culture plates with the product currently being sold to microbiology laboratories in the pharmaceutical manufacturing sector for the reading of environmental monitoring culture plates.

Clever Culture continues to gain international traction, as several Big Pharma companies commit to purchase, evaluate and standardise APAS Independence globally including Astra Zeneca, Pfizer,  Novo Nordisk, Bristol Myers Squibb and Patheon (Thermo Fisher).

CEO and managing director Brent Barnes told HealthInvest the company was seeing positive industry trends with customers seeking new AI solutions to improve their operations and was well positioned to capitalise on the growing market opportunity.

“This is a company that has achieved a major milestone in that it has posted its first maiden profit and their APAS system is gaining traction across a number of the top 10 pharamceutical companies,” Power said.

“The expectation ist that the pipeline for their APAS product is expected to grow over the next couple of years and the continue to see the profitability of the company continue to increase.”

Upcoming catalysts for new kid Tetratherix

Following its ASX IPO on June 30,  Tetratherix (ASX:TTX) CEO Will Knox told HealthInvest the wound management company had achieved key milestones while strengthening its foundations to support long-term, sustainable growth.

Tetratherix has developed a proprietary polymer platform enabling the targeted delivery of cells, drugs and biologics, to treat a range of conditions across tissue spacing, bone regenerative and tissue healing.

Barrenjoey Markets and Morgans Financial were joint lead managers and underwriters to the Tetratherix IPO.

“The company listed three months ago and is up 60%,” Power said.

“Their novel polymer has application across a number of different areas and they’ve formed strategic alliances with several major medical device companies to help with not only getting through the regulatory hurdles but also to launch their product with sales and marketing.”

“Its a capital light model and the expectation is there will be a number of key catalysts over the next six to 12 months, which will keep investors interested in the stock.”

The key catalyst Knox called out was US FDA approval for Tetratherix’s dental product and they have a collaboration with Henry Schein, which is one of the major dental supply groups globally.

Neurizon confident of progressing into HEALEY trial

Neurizon Therapeutics (ASX:NUZ), which is advancing new treatments for neurodegenerative diseases, is looking to lift a US FDA  clinical hold on its Investigational New Drug (IND) application for its lead drug NUZ-001 to initiate enrolment in the prestigious HEALEY ALS Platform Trial before year end.

NUZ-001 is in development for amyotrophic lateral sclerosis (ALS), the most common form of motor neurone disease.  The drug is designed to target key pathological mechanisms such as TDP-43 protein aggregation and impaired autophagy, which are common features across multiple neurodegenerative diseases.

Neurizon’s strategy is to accelerate access to effective ALS therapies while assessing NUZ-001’s potential in other neurodegenerative disorders.

The HEALEY ALS Platform Trial is a significant ongoing program in the US aimed at accelerating ALS treatment development.

CEO and managing director Dr Michael Thurn told HealthInvest the drug had demonstrated favourable oral bioavailability, central nervous system (CNS) penetration and a strong safety profile in preclinical and phase I studies, supporting its continued development.

“They hit a bit of a road block with the FDA and are currently on what is called a clinical hold, which is expected to come off in early October which will be a major catalyst for the company,” Power said.

“Assuming the clinical hold comes off Neurizon can then move into a Phase 2/3 trial for ALS in the US and they’re using what is known as a HEALEY platform, a group which will conduct the trial for them.

“They’ve completed a small capital raise to ensure they’re well funded to start that trial hopefully before the end of this calendar year.”

EBR at heart of innovation with WiSE tech driving growth

President and CEO John McCutcheon of Silicon Valley-based medical device company EBR Systems (ASX:EBR) made his way to Sydney for Health Invest, with the company having a strong 2025 after achieving FDA approval in April for its proprietary Wireless Stimulation Endocardially (WiSE) technology.

WiSE technology is the world’s only wireless, endocardial pacing system in clinical use for stimulating the heart’s left ventricle. By eliminating the need for cardiac pacing leads, historically a major source of complications, WiSE offers a potentially safer and more physiologically effective solution for patients requiring Cardiac Resynchronisation Therapy (CRT).

The company’s pipeline also targets bradycardia and other indications, broadening future growth opportunities.

With more than 40 years of leadership in medical devices, McCutcheon has overseen multiple start-ups through acquisition and served on the boards of several high-growth companies.

“John was very upbeat with the company recently announcing it had done more than 10 commercial implants,” Power said.

“The device has also been approved for reimbursement from Medicare and Medicaid in the US enabling reimbursement in inpatient and outpatient settings, which is very important to help speed up adoption.

EBR has now entered what McCutcheon describes as a targeted market launch, working with key opinion leaders who have been involved in clinical trials or trained extensively in the device’s use to carry out initial commercial procedures.

“They’re wanting to get the feedback from these doctors on the success of the operation and the view is in the next quarter we are going to see an increase in the number of implants being done,” Power said.

“The regulatory and clincial risk is now behind EBR and it’s now about building the number of implants across key hospitals in the US in the next 12 to 24 months.

“EBR is in a very good position and certainly John’s presentation was very upbeat.”

The views, information, or opinions expressed in the interview in this article are solely those of the interviewee and do not represent the views of Stockhead.

Stockhead has not provided, endorsed or otherwise assumed responsibility for any financial product advice contained in this article.

At Stockhead, we tell it like it is. While Clever Culture Systems and EBR Systems are Stockhead advertisers, the companies did not sponsor this article.

Morgans Financial, IR Department and Stockhead were co-sponsors of the HealthInvest event.