The health stocks still taking a hit from COVID-19
Health & Biotech
Health & Biotech
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COVID-19 has resulted in radical shifts in the health sector such as the adoption of tele-health, but the pandemic hasn’t been without financial impact.
With the deadline for lodging 4C reports looming next Friday the first results trickled onto the ASX this morning.
Anti-snoring device maker Somnomed (ASX:SOM) was one of the first to admit it took a big hit.
Its revenues were down 46 per cent on the same period last year. But May’s 47 per cent decline and June’s 14 per cent drop were an improvement over April’s 73 per cent slide.
Somnomed says the level of business in the US is back to 60-65 per cent of pre-COVID levels. Meanwhile in Europe, it’s up to 75-80 per cent.
CEO Neil Verdal-Austin said the company remained cautiously optimistic.
“While we remain cautious about the future and how difficult it remains to forecast how long it will take to fully restore the business back to levels pre-COVID-19, we are also optimistic as customers continue to return to the treatment of their obstructive sleep apnea patients with the SomnoDent appliance,” he said.
His words had a calming effect with shares edging slightly higher in the morning’s trade.
Meanwhile, telehealth stock 1st Group (ASX:1ST) also gave shareholders an insight into how it has fared during the pandemic.
It has told shareholders and Stockhead that the pandemic accelerated the adoption of telehealth at a rate it had thought unprecedented a few months ago.
Results were mixed but positive overall, with its annual recurring revenue and total revenues both slightly higher than the previous quarter.
While subscription revenues were unaffected, it reported booking fees and advertising revenue took a hit.
1st Group told shareholders the financial year ahead would be positive with the adoption of telehealth in the industry and new clients consequently coming onboard.
While shareholders panicked in June when the Therapeutic Goods Administration’s examination of them didn’t go to plan, its traditional anti-aging pharmaceuticals –including its anti-hair loss products — have had a solid run.
Group revenue for the quarter more than doubled from last year’s June quarter to over $3m.
In Australia sales were up 45 per cent for the full financial year. While in Japan sales were down 6 per cent overall, Cellmid witnessed a windfall in the last quarter with Chinese export opportunities re-opening as the Asian heavyweight emerged from lockdowns.
Cellmid told shareholders the impact would lessen over time as channels opened. But in the interim sales would be helped through its ecommerce activities.