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Digitalisation in the health care industry has reduced the workload of the health practitioners as the management and keeping a record of patient activities and providing patient care in a quicker way has become more accessible than before.
Digital technology mega-trends which can drive a decent growth to the health care sector in upcoming years are-
- E-health programs- e-health system includes electronic health record(EHR), which is a digital version of a paper chart of patients and contain their medical and treatment histories.
EHRs are a crucial part of health IT and can provide-
- Access to evidence-based tools that providers can utilise to make decisions related to the patient’s care.
- Also, EHR comprises of a record of all medication information, diagnoses, medical history, immunisation dates, and laboratory test results of patients.
- Further, e-health programs could be an essential data source for clinical developments, testing clinical hypotheses, as well as supporting clinical studies.
- Nanorobotics- Nanorobotics is changing the face of healthcare sector and is defined as the technology of creating robots or machines close to the scale of a nanometer. Nanorobots would be a future device, which can be used for diagnosis and detection as well as treatment of a few diseases such as cancer, diabetes, heart diseases etc.
- Cloud Computing- In the healthcare sector, cloud computing technologies are on the rise. These technologies can make operations cost-effective and more convenient. Machine learning and AI support the health care practitioners to manage the huge amount of data.
Cloud computing allows its users to access the information remotely and includes automation of backups as well as recovery options. In this way, if there is an incident of data breach health care providers don't lose any information and can reduce the downtime.
Amid the current reporting season wherein the companies are publishing mixed earnings results and guidance, on the backdrop of coronavirus and bushfire impact on their businesses, we are laying emphasis on the four ASX listed health care stocks and their performance for the first half of 2020.
Let us zoom lens for SHL, ANN, MVP, ALC:
Sonic Healthcare Limited (ASX:SHL)
Sydney Headquartered ASX listed health care company Sonic Healthcare Limited (ASX:SHL) is a global healthcare service provider. The company is focused on providing laboratory, imaging and primary medical care services to doctors, hospitals, community health services, and patients. Sonic Healthcare operates in New Zealand, Germany, Australia, the USA, Switzerland, Belgium, the UK and Ireland.
Results for H1 FY2020 (ended 31 December 2019)-
- Revenue growth up by 15% on actual currency and 12% on constant currency;
- Organic revenue growth ~5% constant currency;
- The underlying EBITDA growth of nearly 14% actual currency and 11% on constant currency;
- Interim dividend for the financial year 2020 was recorded at $0.34 per share to be paid on 25 March 2020.
Guidance for FY2020-
- EBITDA growth 6-8% on underlying FY2019 EBITDA of $1,052 million;
- Tax rate of nearly 25%, interest to drop by ~5%;
- Capital expenditure expected to decrease in the financial year 2020.
Stock Information-
On 25 February 2020, the SHL stock last traded at $29.990, down by 1.993% from its previous close. With almost 475.05 million shares outstanding, the company’s market capitalisation stood at nearly $14.54 billion.
A world-leading superior health and safety protection provider Ansell Limited (ASX:ANN) is into improving human well-being. The company is continuously working on the development of product innovation and technology. Ansell is operating in two primary business segments that are healthcare and industrial. The company employs over 12,000 people globally and operates in Latin America/Caribbean, Asia Pacific, North America, and EMEA.
Half-year performance FY20 (year ended 31 December 2019)
- The company delivered 2.4% organic revenue growth that is preceded by improved IGBU performance of +1.3% and continued HGBU momentum at +3.4%.
- The EBIT margins of Ansell has been enhanced due to GPADE benefits from transformation program.
- The earnings per share of the company increase by 25.7% on a constant currency basis.
Coronavirus update-
Ansell is engaged in the activities to keep China safe and the crisis to be minimal, by manufacturing Personal Protective Equipment. The company is working in partnership with Chinese authorities to produce and distribute protective clothing where it is required most in China.
Outlook FY2020-
- The company anticipates the net financial effects on operations from the Coronavirus crisis to be minimal.
- Given the views of Ansell on drug pipeline and strategic initiatives underway, the company maintains its EPS guidance for FY20 at the range 112¢ to 122¢.
Stock information-
On 25 February 2020, the ANN stock last traded at $30.680 down by 0.39% from its previous close. With almost 130.21 million shares outstanding, the company’s market capitalisation stood at nearly $4.01 billion.
Medical Developments International Limited (ASX:MVP)
An ASX listed health care player Medical Developments International Limited (ASX:MVP) is engaged in providing emergency medical solutions to improve patient outcomes. The company is a leader in offering emergency respiratory products and pain relief.
MVP is involved in manufacturing of Penthrox®, which is a fast-acting trauma & emergency pain relief product and is used in Australian Hospitals, Emergency Departments and in other medical applications.
Key Achievements for the first half of FY20-
- Global gross sales were increased by 17%, driven by development within the pharmaceutical as well as in medical segments.
- In market sales of Penthrox® in the United Kingdom grew 42%;
- Penthrox® sale in Australia increased by 18% and in Europe up by 35%;
- New five-year agreement for continuous flow technology with CSIRO;
- The company received research and development tax incentive concession of nearly $431,000.
Stock information-
On 25 February 2020, the MVP stock last traded at $9.500 down by 1.656% compared to its last close. With almost 65.61 million shares outstanding, the company’s market capitalisation stood at nearly $633.77 million.
An Australian health care sector player Alcidion Limited (ASX:ALC) is working to change the health care industry with smart, intuitive technology solutions to meet the requirements of allied healthcare and hospital across the globe. The company provides several software products which offer a unique contribution to the health care market at the global level.
H1 FY2020 Results, ended 31 December 2019
For the first half of FY2020, the company reported revenue of nearly $8.2 million, up by 12.3% as compared to the previous corresponding period:
- In the areas of product development, marketing as well as sales investment for growth, is underway for capitalisation on rapidly increasing digital healthcare opportunity in ANZ and the UK;
- After the successful innovation Proof of Concept at Murrumbidgee Local Health District, Miya MEMRe was launched.
- Revenue of nearly $15.4 million is already set to be acknowledged in the fiscal year 2020, versus FY2019’s complete year revenue standing at $16.9 million along with total sold revenue of approximately $37.2 million out to the fiscal year 2025.
- The cash reserve of the company was approximately $17.2 million and has strengthened balance sheet from nearly $16.2 million placement.
Stock information-
On 25 February 2020, the ALC stock last traded at $0.18, down by 5.263% compared to its last close. With almost 990.69 million shares outstanding, the company’s market capitalisation stood at nearly $188.23 million.
