New Generation Healthcare Stocks To Look For- RAC, BOT, AVE, JHL, GLH, LSH

Digital healthcare service has evolved as one of the fastest-growing industries in the modern era. Introduction of technology in medical science has emerged as one of the biggest blessings for human. Digitally connected network systems have helped medical practitioners, doctors and patients with better communication and clarity. This domain consists of clinicians, researchers, scientists and so forth who are experienced across social sciences, public health, health economics, data management and such space.

Along with the core medicine and healthcare companies, the requirement of the digital health care services is growing, aided by an increasing population and growing chronic diseases across the world. To combat the diseases, USFDA has given approval to different pharmaceutical companies to develop a product as per their prescribed norms. Medicine companies across the globe engaged themselves to develop product as compatible with USFDA.

Let’s have a look at some of the Australian companies which are present in both manufacturing medicines and engaged in digital health care services. 

Race Oncology Limited

Race Oncology Limited (ASX: RAC) is a speciality pharmaceutical company based in Australia and introduces the market with the later-stage drug assets in the cancer field. The company formulated its first medicine named Bisantrene, that is now utilised as a chemotherapy drug. RAC received approval on its patent filings on Bisantrene and has secured Orphan Drug Designation in the U.S.

Placement worth $1.45 million led by investor Dr Daniel Tillett

Through a press release on 20th August 2019, RAC informed successful conclusion of $1.45 million capital placement. It consists of ~21.9 million new ordinary shares with an issue price of $0.066 /share. Dr Daniel Tillett, the founder and CEO of Nucleics, bought 8.5 million shares worth $561,000 followed by an investment of $375,000 in the placement by three RAC directors. Meanwhile, the company also received funding from other shareholders worth $510,000 (comprising of 7.7 million shares in total).

Daniel Tillett became the substantial holder in the company, on 20 August 2019, with 8,758, 421 person’s votes and with the voting power of 8.96 percent. Further, there was a change in the interests of another substantial holder in the company William James Garner, on 20 August 2019. After the change in the interests on 20 August 2019, he now holds 16,414,927 person’s votes with the voting power of 17.15 percent.

The shares issued under the above placement would have 1:2 unlisted options (one option for every two shares), exercisable at $0.099 (9.9 cents) on or before 31 August 2021.

RAC’s chief executive officer, Peter Molloy informed that the funds would be used in research and development programs required for value-creation of Bisantrene.

On 13th August, RAC has announced that it had gained a new patent from the United States Patent and Trademarks Office (USPTO) for the medicine – Bisantrene. This is the third patent granted to Bisantrene in the U.S.

Stock Update: On 21st August 2019, RAC’s stock last traded at A$0.083, down by 1.19% from its previous day’s closing price. RAC’s market capitalisation stood at A$7.33 million, with approximately 87.24 million outstanding shares. The 52-week trading range of the stock was noted at a low of A$0.045 to high of A$0.250. The stock has delivered a positive return of 12% and 3.7% in the last three and six months, respectively.

Botanix Pharmaceuticals Limited

Botanix Pharmaceuticals Limited (ASX: BOT) is a clinical stage cannabinoid therapeutics entity. The company focuses in developing products used for the treatments of skin with grave issues. The company is based in Perth, Australia and Philadelphia, PA.

Release of BOT’s Annual Report

With a press release on 20th August 2019, BOT announced is FY19 results for the period ending 30th June 2019.

The operational activities, during the period included of the beginning of the fully funded clinical study on BTX 1503 Phase 2, that is anticipated to conclude by 3Q CY2019 period. During August last year, BOT had hosted a Pre-Ind meeting with the US’ FDA Division of Dermatology and Dental Products for the BTX 1204. During the period, BOT had invested above A$16.7m (excluding employee costs) in R&D activities. Also, the company concentrated on investing in the development of crucial clinical programs.

On the financial front, the company posted total revenue from continuing operations standing at $194,800, down by 16.5% on y-o-y basis. The company’s net loss for the period attributable to members was recorded at $17,039,211, ~54.7% y-o-y. Employee expenses increased drastically to $2,372,800 vs $436,039 in FY18 period. Research and development expense stood at $16,630,237 against $11,041,427 in prior year. Professional consulting expense was at a loss of $1,130,929. Net cash used in operating activities during the year was recorded at $13,140,723 vs $9,909,009 in FY18. As on 30th June 2019, the company reported cash balance of $4,704,457. Total current asset of the company stood at $5,187,727 including trade & other receivables of $483,270. Trade and other payables of the company came at $4,484,575 followed by the total equity noted at $615,215.

(Source: Company’s Report)

Stock update: By the closure of the trading session, the stock of BOT was quoted at A$0.205, down by 4.651%. BOT’s market cap stands at A$207.37 million. The stock price of BOT has generated a return of 115% during the last six months period.

Avecho Biotechnology Limited

Avecho Biotechnology Limited (ASX: AVE) is a research-based biotechnology company which develops innovative ways to enhance the delivery, effectiveness of successful medicine, consumer and animal health products. AVE has utilised its proprietary drug delivery system – TPM® (Targeted Penetration Matrix) to develop innovative and distinguished products, that has not been developed by other entities. AVE was earlier known as Phosphagenics Limited and is headquartered in Melbourne.

Announcement of quarterly cash flow:

On 22nd July 2019, AVE declared its quarterly cash flow numbers for the period ending 30th June 2019. The company posted net cash from operating activities standing at A$3,477,000. The company posted A$4,690,000 of cash balance as on 30th June 2019.

 

 (Source: Company’s Report)

Also, the total estimated cash outflows for next quarter stands at A$761,000 including the Staff costs and Administration and corporate costs of A$179,000 and A$270,000, respectively. It also comprises of patent portfolio costs of A$152,000.

Stock update: On 21 August 2019, the stock price of AVE was last quoted at A$0.005, surging up by 25% from its previous close. AVE has a market capitalisation of A$6.31 million and shares outstanding at 1.58 billion. The stock has given mixed returns of 14.29% and -77.78% in the last six and twelve months, respectively. The 52-week trading range of the stock is at A$0.002 to A$0.033.

Jayex Healthcare Limited

Jayex Healthcare (ASX : JHL) is a leading name in integrated healthcare services delivery platforms across United Kingdom and Australia. The company has five proprietary technologies namely- Jayex Connect, Enlighten, Appointuit, Pharmacy Delivery and BluePoint®.  

Half- year review and June quarter cash flows

On 26th of July 2019, JHL published its quarterly and half-year report for the period ended 30 June 2019. From the cash flows perspective, the company reported A$153,000 of net cash from operating activities. It further recorded A$586,000 cash balance as on 30th June 2019. The estimated cash outflows stood at A$1,925,000 for the upcoming quarter with Staff costs & Administration and corporate costs at A$800,000 each followed by Product manufacturing and operating costs at A$300,000.

Besides for the six months period, JHL reported Net Profit of $757,993 (up by ~50% y-o-y) from UK operations and Acute sales rising by 244% at $577,865. Robust sales growth from New Zealand was recorded at 480% on y-o-y basis. The company also informed on the completion of Medical Cannabis research facility in Papamoa, New Zealand on 19 July 2019.

 (Source: Company’s Report)

Stock update: On 21st August 2019, the stock price of JHL last traded at A$0.038, with no change from its previous closing price. JHL has a market capitalisation of A$6.56 million and shares outstanding of 172.61 million. The stock has given positive returns of 11.76% and 35.71% in the last three and six months, respectively.

Global Health Limited

Global Health Limited (ASX : GLH) operates in Digital Health solutions in the Australasian Healthcare Industry. Global Health provides innovative delivery solutions in healthcare services. GLH offers a range of solutions including electronic medical records, patient administration systems, practice management systems, clinical records, secure message exchange, patient engagement platforms and consumer health records.

Strategic Association between Global Health and Telstra Health:

GLH on 30th April 2019 reported its strategic collaboration with Telstra health to enhance interoperability of clinical data exchanged between its subscribers of ReferralNet from SMD platform and Telstra Health’s Argus Connect SMD platform, which has received substantial momentum throughout Victoria region.

Interoperability is growing approximately 15% per month. As per the recent trend, healthcare professionals are utilising secure messaging platforms. Global Health and Telstra Health have collaborated and implemented a platform where commonly used documents like discharge summaries, referrals, progress notes and diagnostic reports can be shared.

(Source: Company’s Website)

Stock update: The shares of GLH last traded at A$0.150 on 12 August 2019. The stock delivered mixed returns of 7.14% and -6.25% in the last three and six months, respectively. Global Health has a market capitalisation of ~A$5.05 million.

Lifespot Health Ltd

Lifespot Health Ltd (ASX : LSH) is engaged in diagnostic devices and digital medicine delivery through Bluetooth systems and cloud-based applications. Its Bodytel TM system is based on advanced internet-based technologies like document-based databases and biological neural networks. The company has collaboration with German-based Seng-Vital, specialising in the development of hardware in both the medical and non- medical cannabis space.

LSH’s Quarterly cash-flow

On 30 July 2019, LSH posted its quarterly cash flows for the period ended 30th June 2019. The company posted Net cash used in operating activities at A$457,000 followed by a cash balance of A$1,332,000 from A$1,789,000 in its previous quarter.

(Source: Company’s Report)

Stock update: The stock of LSH last traded at A$0.064 on 20th August 2019. LSH has a market capitalisation of A$4.96 million and ~77.57 million shares outstanding. The stock has given a negative return of 29.67% in the last twelve months.


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