CGS, TTB & MEB: How these ASX mental health stocks fared in first half

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Highlights

  • Mental health is a very crucial component of human wellbeing.
  • During 2019-20, the Australian government spent AU$11 billion on mental health-related services.
  • Cogstate delivered strong results in the first half, with a record level of sales, revenue and profitability.
  • Total Brain noted one of the successful transformation and execution during H1.

Mental health is equally important as physical health for the overall wellbeing of a person. Poor mental health adds to the risk of many other diseases like diabetes, heart problems, and stroke. Anxiety disorder and depression are the most common mental health issues observed.

During 2019-20, the Australian government spent AU$11 billion on mental health-related services, accounting for nearly 7.6% of government health expenditure.

According to the Australian Government’s Department of Health, almost half of the adult population in Australia experiences mental health issues during their life. Nearly 3,000 Australians commit suicide each year. The estimated cost of suicide to the Australian economy stands at up to AU$220 billion.

On that note, let us discuss three ASX-listed mental health companies that have recently released their report cards for the half year ended December 2021.

Cogstate delivers record revenue and profit in H1

Cogstate Ltd (ASX: CGS) is a neuroscience technology company focused on optimising brain health assessments. The company provides computerised cognitive tests and support electronic clinical outcome assessment (eCOA) solutions as an alternative to expensive and error-prone paper assessments with real-time data capture.

The Company reported record revenue of US$23.1 million in H1 FY22 (period ended 31 December 2021), reflecting an increase of 67% from the previous corresponding period (PCP). Similarly, sales contracts executed increased by 141% year-on-year to US$54.5 million.

Cogstate registered a record EBIT performance of US$6.1 million. Overall, the Company reported a profit after tax of US$4.1 million in H1 as compared to a loss of US$0.4 million in the prior period.

 

Image source: © Moth | Megapixl.com

Cogstate expects group revenue in the range of US$44-$47 million in FY22. EBIT margins are anticipated to be in a range of 20%-24%, up from the previous guidance of 15%-18%.

CGS shares were trading at AU$1.895 at the time of writing on 28 February 2022.

Do read: How can firms take care of employees’ mental health in the workplace?

Total Brain reports 171% increase in H1 revenue

Total Brain Limited (ASX: TTB), a digital mental health SaaS company, has developed Total Brain, the world’s first mental health self-monitoring & self-care system powered by the largest standardised brain database.

In the first half ended 31 December 021, the Company’s revenues increased by 171% year-over-year to AU$5.407 million.

During the period, the Company also entered two major perpetual, non-exclusive deals in its pharma support segment with the following companies:

  • Janssen Research & Development, LLC, a division of Johnson & Johnson, for US$2.2 million or AU$3.006 million
  • Alto Neuroscience, Inc. for US$500K or AU$695k

Total Brain has a closing cash balance of AU$4.6 million as at 31 December 2021.

The Company remains bullish about the future prospects for its business, with reduced cost base, strengthened cash position, and tightened go to market strategy.

TTB shares were trading at AU$0.125, nearly 4% up from its last closing price, midday on 28 February 2022.

Also Read: Total Brain (ASX: TTB) announces new Contract signed by its affinity partner IBM

Medibio continues to advance IP development in H1 

Mental health technology company Medibio Limited (ASX: MEB) is a pioneer in using objective measures to aid in the early detection and screening of mental health conditions. The Company offers mental well-being solutions for businesses via its Corporate Health product. Moreover, it is engaged in developing products to serve the healthcare provider market.

For the half-year ended 31 December 2021, the Company reported a loss for the group after providing for income tax of AU$644,694. This has been attributed to the ongoing development of the Company’s intellectual property (IP), software, consumer app and product commercialisation.

As of 28 February 2022 at 1:56 PM AEDT, shares of MEB were trading at AU$0.003.

Related read: Medibio (ASX: MEB) Initiates Preliminary Trial of its Mental Health App


 


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