According to the 2019–2020 Budget, the Australian Government is investing approximately $104 billion in health, aged care and sport in 2019-2020.
The leading trends driving Australia’s healthcare sector in 2019 are advancement in health care technology, Patient-centric care, investments in infrastructure. Other than these Ageing population trend in the direction of an older population, brings with it a number of challenges with the increase of chronic diseases and a growing requirement of serviceability.
According to some media reports the private health insurance industry in Australia to be in a "death spiral" and there is a requirement of urgent reform in this industry. Besides the political risk, in Australia, there are some private health insurance providers who somehow managed to grow and maintained their profit in a positive direction.
In 2019, cannabis stocks remained in the spotlight during the year after a significant relaxation in the restrictions on research and distribution (R&D) of medicinal cannabis. The companies are engaged in developing new treatments by using the main chemical constituents of the cannabis plant.
AVITA Medical (ASX: AVH)
One ASX listed health care sector player AVITA Medical (ASX: AVH) has outperformed in 2019 and proved that it is one of the superstars in this sector. AVITA has delivered an excellent return of approximately 680.49 per cent in last one year.
AVITA Medical a regenerative medicine company is engaged in developing treatments for addressing the unmet medical needs in aesthetics indications, burns and chronic wounds with its patented application technology. The company’s technology offers innovative therapy that is derived from the patient’s own skin regenerative properties.
The achievement of AVITA in 2019 are-
- Received approval FDA Investigational Device Exemption (IDE) Approval for evaluation of RECELL for stable vitiligo.
- Preclinical research collaboration with Colorado University to explore further advancement of a spray-on treatment for epidermolysis bullosa patients.
- AVITA medical has secured its place on the S&P/ASX 200 Index from 14 November 2019.
- Pivotal soft tissue trial approval for conducting evaluation of safety and effectiveness of the RECELL® combinedly with meshed autografting for treating acute full-thickness skin defects.
- AVITA medical has started trading on Nasdaq Capital Market (Nasdaq) on 1 October 2019 under the code “RCEL”.
- AVH’s health economic model which was developed in collaboration with BARDA and IQVIA has been published in the Advances in Therapy.
- The company collaborated with COSMOTEC for the distribution as well as the marketing of RECELL® Autologous Cell Harvesting Device for treatment of burns and other wounds in Japan.
Food and Drug Administration (FDA) has approved AVITA’s RECELL system in 2018 and after receiving FDA approval RECELL market in the United States has shown tremendous growth in 2019-
Want to read more about AVITA’s RECELL® system; Click here
On 06 January 2019, the AVH’s stock settled the day’s trade at $0.635, down by 0.781% compared to its last close. AVH’s market capitalisation stood at around $1.36 billion, with nearly 2.12 billion shares outstanding. The 52 weeks high and low price of the stock was noted at $0.740 and $0.078, respectively.
Now let us have a look on the most discussed stock from cannabis space-
Althea Group Holdings Limited (ASX: AGH)
An ASX listed medicinal cannabis manufacturer Althea Group Holdings Limited (ASX: AGH) is a licensed producer, supplier as well as exporter of medicinal cannabis. The company provides several products, access and management facilities to cater to eligible patients and to support healthcare professionals in directing treatment pathways related to medicinal cannabis.
- Althea’s medicinal cannabis products on the rise, CBD100 sales in Australia exceeds expectations.
- Althea’s MyAccess Clinics has been listed with the Care Quality Commission (CQC) and gets license with the UK health regulator.
- Althea has signed an Agreement with Cannabinoid Clinical and Research Excellence Australian Centre for providing product for clinical trials.
- Expansion in Europe with its proposed German market entry.
- In October 2019, Althea launched new full spectrum CBD (Althea CBD100) product for the high-demand market, CBD100 is highly concentrated oral oil product of cannabidiol.
On 06 January 2019, AGH’s stock settled the day’s trade at $0.460, zooming up by 9.524% compared to its last close. AGH’s market capitalisation stood at around $97.99 million, with nearly 233.31 million shares outstanding. The 52 weeks high and low price of the stock was noted at $1.445 and $0.220, respectively. Althea’s stock has delivered a positive return of approximately 61.54% in last one year.
Let us dig out two health insurance service providers who have managed to push their profit up beyond the biggest risk what the health insurers have faced in 2019-
In the financial year 2019, Medibank turned a profit of approximately $458.7 million, up by 3.1%. Meanwhile, NIB had not only achieved $149.3 million profit, up by 11.8% but also led the performance by adding 2.1% in its membership base which is a remarkable achievement in this sector.
Medibank Private Limited (ASX: MPL)
In Australia, private health insurance player Medibank Private Limited (ASX: MPL) is the second-largest provider of health insurance related services. Medibank offers health insurance, diversified insurance (travel, pet and life insurance) and other health services through its two brands- AHM and Medibank. Medibank is continuously engaged in boosting the health care system in Australia in partnership with the government as well as health care professionals.
In November 2019, the company updated the market with its annual general meeting presentation on the ASX and mentioned that it has delivered a good quality of results in FY2019 period. Some of the highlights from the same are as follows:
- Medibank generated a group revenue of approximately $6,655.8 million in FY2019, up by 2.9%.
- The Group net profit after tax for Medibank’s total operations was approximately $458.7 million.
- The Underlying NPAT of the company was reported at $447.9 million for FY2019, which was up by 2.6%.
- The company paid a fully franked complete year ordinary distribution/dividend of 13.10 cps.
In an announcement on 6 November 2019, the company updated the market with additional information, through its outlook for full-year 2020. Since the release of the full year 2019 financial results on 22 August 2019, the company experienced better than projected claims, leading to a $21 million under provision from the 30 June 2019 claims reserve. Due to this, Medibank is expecting the rise of claims per policy unit throughout the fiscal year 2020.
On 06 January 2019, the MPL’s stock settled the day’s trade at $3.180, down by 0.935%. MPL’s market capitalisation stood at around $8.84 billion, with nearly 2.75 billion shares outstanding. The MPL stock has delivered a positive return of approximately 27.28% in last one year.
nib holdings limited (ASX: NHF)
An Australia based health insurance company nib holdings limited (ASX: NHF) is a trusted health partner across the globe, empowering its policyholders to make better decisions, and improve health outcomes through greater accessibility to reasonable health services and information. The company is the third biggest travel insurer and global distributor of travel insurance through its business-nib Travel and providing financial protection as well as assurance to travellers wherever they are in the globe.
Financial year 2019 highlights- nib Holdings performed well in the financial year 2019 and delivered a positive return as compared to last year. The summary for FY2019 are-
- In FY2019 nib holdings has delivered revenue of approximately $2.4 billion which was up by 8.3% as compare to the previous corresponding period (pcp).
- The company reported NPAT of nearly $149.3 million, up by 11.8%.
- NHF reported a group UOP of approximately $201.8 million up by 9.2%.
- The statutory EPS of the company for the fiscal year 2019 was 32.9cps, up by 11.9%.
On 06 January 2019, the NHF’s stock settled the day’s trade at $6.370, down by 0.624%. NHF’s market capitalisation stood at around $2.92 billion, with nearly 456.08 million shares outstanding. The 52 weeks high and low price of the stock was noted at $8.200 and $5.060, respectively. The NHF stock has delivered a positive return of approximately 23.03% in last one year.
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