Never-ending demand for healthcare services and products make healthcare one of the popular investment options. This is very well highlighted by the fact that despite unprecedented impact of the COVID-19 outbreak on the global economy, several healthcare sector players have maintained their business continuity, as the scenario has created an opportunity for them. Given advanced technologies and favourable tailwinds, numerous ASX-listed healthcare companies also hold the potential for significant development.
In this article, we are discussing recent significant market updates of three ASX-listed healthcare stocks- ZNO, TLX and MVP.
Zoono, RestorX Sign Distribution Agreement for Sanitiser Products
ASX-listed and New Zealand-headquartered healthcare company, Zoono Group Limited is mainly focused on the development, manufacturing and distribution of antimicrobial products that are suitable for disinfecting surfaces, skincare along with mould remediation treatments. The Company offers Z-71 Microbe Shield surface and Germ Free24 hand sanitisers, which have demonstrated an efficacy of more than 99.99% against feline coronavirus (a surrogate for the COVID-19 virus).
Zoono Group Limited (ASX:ZNO), at the end of April 2020, announced to have entered an exclusive distribution agreement for the business to business (B2B) market in Australia with RestorX Australia Pty Ltd, which is a subsidiary of Johns Lyng Group (ASX:JLG).
Johns Lyng plans to make Zoono products broadly available in commercial markets in Australia, starting with a specific focus on their use within more than 70,000 strata developments. It is noteworthy to mention that RestorX has already registered solid demand in domestic and commercial buildings and educational and healthcare facilities in the wake of the ongoing pandemic. Given the solid demand, it plans to use Zoono products into its microbial control and deep hygiene cleaning protocols.
The agreement has an initial five-year term with a right of renewal for a period of next five years, while minimum annual target purchases for the first 12 months, second year and third year are AU$5.0 million, AU$6.0 million, and AU$7.0 million, respectively. During this agreement, all the products would be distributed under the brand name of Zoono.
Sales Revenue Jumps to NZ$15.7mn in Third Quarter
In early April 2020, ZNO updated the market that revenues (unaudited) for the third quarter ended 31 March 2020 were recorded at NZ$15.7 million, compared with NZ$1.715 million in the first two quarters of FY20.
- Sales in the United Kingdom increased to NZ$3.5 million for the quarter, with noteworthy business in the pipeline with airports, airlines, transport as well as commercial cleaning companies.
- Unaudited online sales for the quarter stood at NZ$3.9 million.
- Available cash resources grew to NZ$5.7 million.
ZNO stock closed the day’s trade at AU$1.770 on 15 May 2020, down by 1.117% with the Company boasting a market cap of approximately AU$292.33 million and 163.31 million outstanding shares. The stock has delivered outstanding return of 704.55% in the last six months.
FDA Grants pre-IND meeting for Telix’s Phase III ProstACT Study
Using Molecularly Targeted Radiation (MTR), clinical-stage biopharmaceutical company, Telix Pharmaceuticals Limited (ASX:TLX) develops diagnostic and therapeutic products. Recently, the Melbourne-headquartered Company entered a commercial distribution agreement for prostate cancer imaging with Pharmalogic Holdings Corp. for the US market.
According to a company announcement dated 14 May 2020, Telix secured a Type B pre-IND meeting with the US FDA in relation to the planned Phase III ProstACT trial for TLX591 for the treatment of prostate cancer (metastatic castrate-resistant). The Company disclosed that the meeting has been scheduled for 7 July 2020. Telix Pharmaceuticals further updated that the Phase III ProstACT trial would be performed in men with prostate cancer (metastatic castrate-resistant), whose cancer has progressed subsequent to the initial treatment.
The aim of study is to examine the effectiveness of TLX591 in combination with the standard of care, compared with the best standard care alone. Recruitment of the patients for the study would be carried out primarily in the US and Australia and is subject to regulatory approvals to conduct the study.
Telix CEO Dr Chris Behrenbruch stated that the Company spent several months preparing for this meeting request and after the feedback from the FDA on the planned trial activity, TLX would provide a complete update to shareholders on the future development strategy for this asset.
INTERESTING READ: Is the Australian health care sector prepared for COVID-19 pandemic?
TLX stock rose by 4.029% to close the day’s trade at AU$1.420 on 15 May 2020 with the Company boasting a market cap of AU$346.22 million and 253.64 million outstanding shares on ASX. The stock has delivered a positive return of 18.33% in the last one month.
MVP’s Penthrox® Approved in the Netherlands, Bosnia & Herzegovina, and Thailand
ASX-listed healthcare company, Medical Developments International Limited (ASX: MVP) is into providing emergency medical solutions to improve patient outcomes. MVP is involved in the manufacturing of a fast-acting trauma & emergency pain relief product-Penthrox® that is used in Australian hospitals as well as in emergency departments.
According to a company announcement dated 5 May 2020, Medical Developments’ pain relief product Penthrox® has been approved for sale in The Netherlands and Bosnia & Herzegovina. The Marketing Authorisation issued by the Medicines Evaluation Board of the Netherlands and the Agency for Medicinal Products and Medical Devices of Bosnia & Herzegovina is for application of Penthrox® for emergency relief of moderate to severe pain in conscious adult patients having trauma and associated pain.
Moreover, the Company notified that approval in the Netherlands is part of a set of 4 European countries including Greece, Hungary, and Malta.
While the European Decentralised Procedure is complete for Greece, Malta and Hungary, the next step to start the sales of Penthrox® in these markets is to complete the National Phase. Moreover, the approvals are anticipated during 2020.
Approval in Thailand
On 28 April 2020, Medical Developments announced to have secured market authorisation of Penthrox® in the Kingdom of Thailand. In the Asian country, the marketing authorisation was issued by the TFDA (Thailand Food and Drug Administration) for the use of Penthrox® as an emergency relief medication for moderate to severe pain in conscious adult patients having trauma and related pain.
Impact of COVID-19
During mid-March 2020, the Company provided an update to the market regarding limited impact of the COVID-19 pandemic on its business.
- Medical Developments has been building stock to cater for an expected rise in sales throughout the calendar year 2020;
- The Company has adequate stocks of raw materials as well as finished goods on hand for meeting the projected demand;
- Some raw materials are directly imported from China, and those materials are in sufficient quantities for continuous production throughout the calendar year 2020;
- Till the announcement period, the Company did not experience a decline in demand for its pharmaceutical and medical formulations;
MVP stock fell by 1.507% to close the day’s trade at AU$7.190 on 15 May 2020 with the Company boasting a market cap of AU$479.05 million and 65.62 million outstanding shares on ASX. The stock has delivered a positive return of 24.61% in the previous six months.
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