Players In Healthcare Space – MXC, OCC, CPH, ZLD and OVN

The healthcare industry of Australia is a key contributor in developing the economy. The companies who are in this industry, have to update them with the new medicine for the treatment of the diseases. The healthcare space of Australia is primarily run by Australian states and territories along with local government. Let’s have a look at 5 healthcare stock with their recent updates.

MGC Pharmaceuticals Ltd

European based specialist medical cannabis biopharma company, MGC Pharmaceuticals Ltd (ASX: MXC) is registered in Australia. It got listed on Australian Stock Exchange in 2006. Recently, the company, via a release dated 8th August 2019, announced that it has inked a long-term lease agreement with Malta Industrial Parks. The objective behind the signing of agreement is construction of large-scale pharma production facility. It was mentioned in the release that Malta Enterprise has issued one of the first binding letters of intent to the company in order to research, cultivate and produce cannabis for medical purposes. It was also mentioned in the release that MXC is first company in the industry to ink a long-term lease agreement with the government. It will also develop a Good Manufacturing Practice compliant medical cannabis production in Malta.

The company further stated that the Malta will be allowing the company to materially improve its capacity of current production as well as future revenue generation potential, which is currently centered on its research and manufacturing facility in Slovenia. When it comes to regulatory side of things, the company has received planning and construction approval with preliminary site works to start immediately and construction has been scheduled to begin this quarter.

On 30th June 2019, the net cash outflow from the operating activities stood at A$41.627 million after settling major payments for research & development and administration & corporate costs amounting to A$0.536 million and A$0.504 million.

At the time of writing on 16 Aug 2019 (AEST 4:00 PM), the stock of MGC Pharmaceuticals Ltd traded at a price of $0.050 per share, with a market capitalisation of $60.67 million. The stock of MXC has provided returns of -9.09%, -20.63% and 25.00% in the time span of one month, three months and six months period, respectively.

Orthocell Limited

Orthocell Limited (ASX: OCC) is engaged into commercialisation and development of cell therapies and related technologies.  As per the release dated 31st July 2019, the company published its results for June 2019 quarter. In the quarter ended 30th June 2019, the company updated the market with clinical trial results of CelGro® nerve regeneration. The results of the clinical trial indicated that CelGro® has successfully supported as well as guided nerve regeneration in strictly damaged peripheral nerves of the upper limb as well as hand. The company is anticipating further clinical update for clinical trial of CelGro® in Q3 CY 2019.

It was also mentioned in the release that CelGro® halves the timing of dental implant treatment. During the quarter, the company has successfully wrapped up the placement amounting to $10.6 million, which was well supported by current shareholders, new institutions and other sophisticated investors of the company. The company witnessed YTD total product revenues for the 12 months to 30 June 2019 with a rise of 53% in comparison to the 12 months to 30 June 2018. The cash balance of the company stood at A$11.2 million at the end of quarter. It would enable OCC to continue investing in resources in order to grow the value of its leading regenerative medicine product portfolio etc.

At the time of writing on 16 August 2019 (AEST 4:00 PM), the stock of Orthocell Limited traded at a price of $0.415 per share, up 3.75% during the day’s trade, with a market capitalisation of $61.72 million. The stock of OCC has provided returns of -12.09%, -25.23% and 175.86% in the time span of one month, three months and six months period, respectively.

Creso Pharma Limited

Creso Pharma Limited (ASX: CPH) is involved into developing, registering as well as commercializing of pharmaceutical-grade cannabis and hemp based products. Creso Pharma Limited via a release dated 6th Aug 2019 updated the market with the inking of comprehensive Distribution Agreement in partnership with Medleaf Therapeutics in order to develop its New Zealand-based cannabis business. It was stated that the comprehensive distribution agreement provides New Zealanders a chance to gain access to affordable, high quality, broad spectrum, Good manufacturing practice (GMP) products. The company further stated in combination with Medleaf about placement of second orders for its CBD-based cannaQIX® 50. Going forward, the company through a release dated 8th Aug 2019 updated the market with additional information comprehensive Distribution Agreement with Medleaf Therapeutics.

The company stated that agreement between CPH and Medleaf includes exclusive distribution of Creso’s cannaQIX® 50 till 31 December 2022 along with the distribution of 10% of CBD Oil in New Zealand by Medleaf.

In another updates, the company stated that James Ellingford has made a change to his holdings by acquiring 100,000 Fully Paid Ordinary Shares as well as by disposing 100,000 CPHPERR13 Performance Rights. The change in director’s holding was made on 31st July 2019.

At the time of writing on 16 August 2019 (AEST 4:00 PM), the stock of Creso Pharma Limited traded at a price of $0.400 per share, down 3.614% during the day’s trade, with a market capitalisation of $62.89 million. The stock of CPH has provided returns of -4.60%, -11.70% and 7.79% in the time span of one month, three months and six months period, respectively

Zelda Therapeutics Limited

Zelda Therapeutics Limited (ASX: ZLD) is an Australia registered company, which is focused on developing numerous cannabinoid-based formulations. Zelda Therapeutics Limited got listed on Australian Stock Exchange in 2003. Recently, the company, via a release dated 31st July 2019 updated the market players with its results regarding quarter ended 30th June 2019. The company started the results by providing updates on clinical trials related to Insomnia, opioid reduction and autism. The insomnia trial of the company is assessing the efficacy and safety of a cannabinoid extract, which contains Tetrahydrocannabinol (or THC) and cannabidiol (or CBD) with symptoms of clinically diagnosed chronic insomnia in patients. The trial would happen to be on-track to report final results by the end of Q4 FY19. The company further stated in the release that phase 1 trial of Opioid Reduction Study will be started by the company on immediate basis. In addition, the final results of the study are anticipated to come by Q4 FY19. When it comes to Autism Observational Trial, it stated that the preliminary results are anticipated in early Q3 FY19. The following picture provides a broader overview of the company’s product pipeline:

Coming to cash flows of the company, it reported net cash outflow from the operating activities amounting to A$0.154 million after meeting major payments for research and development and administration and corporate costs of A$0.586 million and A$0.175 million respectively.

At the time of writing on 16 August 2019 (AEST 4:00 PM), the stock of Zelda Therapeutics Limited traded at a price of $0.068 per share, up 6.25%, with a market capitalisation of $48.47 million. The stock of ZLD has provided returns of -20.99%, 33.33% and 10.34% in the time span of one month, three months and six months period, respectively

Oventus Medical Limited

Oventus Medical Limited (ASX: OVN) is into the development of oral devices for the therapeutic treatment of breathing disorders. Oventus Medical Limited was listed on Stock exchange of Australia in 2016. Recently, the company with the help of a release dated 8th August 2019 updated the market that it has dispatched entitlement offer booklet and accompanying personalised entitlement & acceptance form to eligible shareholders. The following picture provides idea of key dates for the same:

A Look at Q4 FY19

In the Q4 FY19, the company rolled out valve technology ExVent™ in Canada and Australia. The company has announced fund raising amounting to A$7.0 million through equity placement from institutional and sophisticated investors in two tranches after the quarter. The company also rolled out a fully underwritten 1 for 20 pro-rata non-renounceable Entitlement Offer in order to raise an amount of around A$2.3 million.

When it comes to the use of proceeds from fund raising, which will be utilized to provide a strength to the company’s balance sheet and support widespread launch of OVN’s O2VentTM sleep treatment platform. Moreover, it will allow the adoption of the company’s ‘lab in lab’ business model in the sleep and dental channels.

At the time of writing on 16 August 2019 (AEST 4:00 PM), the stock of Oventus Medical Limited was trading at a price of $0.450 per share, down 8.163%, with a market capitalisation of $59.63 million. The stock of OVN has provided returns of 51.90%, 114.04% and 68.17% in the time span of one month, three months and six months period, respectively.


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