A Trending Check for these 4 Healthcare Sector Stocks - Resmed, Clinuvel Pharmaceuticals, Cochlear, Pro Medicus

  • Nov 12, 2019 AEDT
  • Team Kalkine
A Trending Check for these 4 Healthcare Sector Stocks - Resmed, Clinuvel Pharmaceuticals, Cochlear, Pro Medicus

Health care sector in Australia is growing tremendously due to the increasing demand for new treatments/therapies for rare and chronic diseases. The health care sector is backed by government at all levels such as national, state, and local levels. The health care companies invest an enormous amount of money in their research and development, which includes the pre-clinical and clinical trial activities. As a result, some of the health care companies are providing the solution to the unmet medical needs for the rare and chronic diseases, which leads to the generation of good revenue for the companies. The health care sector (ASX: XHJ) has reported green indices on the Australian Securities Exchange (ASX) which added the highest value of 2.77% as the market closed on 11 November 2019 whereas the index is in red zone on 12 November 2019, with investors moving ahead for booking profit.

Let’s discuss four ASX listed health care stocks which have generated a good revenue as compared to their last financial year- RMD, CUV, COH, PME

ResMed (ASX: RMD)

An United States headquartered medical device company ResMed (ASX: RMD), provides services for the treatment of obstructive pulmonary disease, sleep apnea, and various other respiratory diseases. By delivering good quality care to the patients, the company helps to reduces the impact of chronic disease and improve quality of life. The company offers its health care services in more than 120 countries across the world.

On October 24, 2019 the company announced results for its quarter ended September 30, 2019-

Key highlights for First Quarter of Fiscal Year 2020-
  • ResMed’s generated good revenue in the first quarter which was 13% high as compare to the previous year period.
  • The company received a revenue of USD 681.1 million which was increased by 16% as compared to the last fiscal year.
  • ResMed’s gross profit margin for this quarter expanded 120 bps to 59.5%.
  • The net operating profit and non-GAAP operating profit of the company increased by 19% and 22% respectively.
  • RMD’s GAAP diluted earnings per share for the first-quarter 2020 was USD 0.83 per share.
  • The non-GAAP diluted earnings of the company for first quarter of 2020 was USD 0.93 per share.
  • The cash flow of RMD was USD 162.4 million from operations.
  • During this quarter, ResMed paid in dividends worth USD 56.1 million.
  • ResMed had a balanced growth both in its product portfolio and the global markets.


Source: Company’s Report

The company’s board of directors announced about the quarterly cash dividend of USD 0.39 per share, which will be payable on December 12, 2019.

Stock performance-

The company’s stock ended the day at AUD 21.010 down 0.285% on 12 November 2019 with a daily volume of nearly 560,726 and a market capitalisation of approximately AUD 30.2 billion. The stock has a 52 weeks high price of AUD 21.740 and a 52 weeks low price of AUD 12.650.

Clinuvel Pharmaceuticals Ltd (ASX: CUV)

Clinuvel is a global Australian based biopharmaceutical company which is listed as CUV in ASX and is engaged in developing treatments for skin disorders. The company’s lead product SCENESSE® has completed Phase 2 and phase 3 trials for EPP in the US & Europe. The trials are in process for pigmentary disorder vitiligo. SCENESSE® is approved to provide treatment in United States to adult patients having erythropoietic protoporphyria (EPP).

Quarterly highlights (period ended on 30 September 2019)
  • The company received cash receipts of $9,782,000
  • The net cash from operating activities going up by $5,385,000.
  • The company’s cash and cash equivalents increasing by $4,067,000 to $58,336,000
  • The product manufacturing expenditures have met the clinical demand for SCENESSE® in the quarter ending September 2019.

Clinuvel Pharmaceuticals Ltd Source: Company’s Report

Priority registration pathway for SCENESSE®

The Australian Therapeutic Goods Administration (TGA) granted Clinuvel’s lead compound SCENESSE®, rights to file under the priority registration process and the scientific dossier for SCENESSE® would be provided to the TGA in the first quarter of 2020.

Stock performance-

The company’s stock ended at $0.750 on 12 November 2019, down by 3.423%, with a market cap of ~$1.57 billion. In the past six months, the company’s stock has provided a return of 15.04%. The stock has a 52 weeks high price of $45.880 and 52-weeks low price of $15.750.

Cochlear Limited (ASX: COH)

A Sydney based global leading medical device company Cochlear Limited (ASX: COH) designs, manufactures and supplies implantable hearing solutions. In each financial year, the company invests more than $180 million in the research and development (R&D) activities. The company has its regional offices in the US, Asia Pacific and Europe.

Financial year 2019 highlights (ended 30 June 2019)
  • The company has increased its investment in R&D by 10%.
  • In the fiscal year 2019, Cochlear launched Nucleus® ProfileTM Plus Series cochlear implant, ForwardFocus feature, Nucleus 7 Android audio streaming capability, CochlearTM Research Platform ECochG surgical tool and Remote Check.
  • The company delivered a net profit of approximately $266 million, which excludes innovation fund revaluation gains.
  • The net profit margin for the last financial year was 18%.
  • Cochlear received an operating cash flow $296 million for FY2019 which was $258.1 million in last financial year.

Cochlear Limited

Source: Company’s Report

FY2020 financial outlook
  • For the upcoming year, the company expects strong growth in implant units driven by the recent launch of new implants.
  • The company expects capital expenditure to increase approximately $180 million, which also includes the development of the China manufacturing facility.
  • For the fiscal year 2020, COH expects to deliver a net profit of nearly $290-300 million, a 9-13% increase from net profit for financial year 2019.
  • Due to the product development and market growth initiatives in the fiscal year 2019, the company expects to deliver growth in revenue and earnings in upcoming years.
Stock performance-

The company’s stock closed the day at $221.030 on 12 November 2019, up by 1.241%, with a market cap of ~$12.63 billion. The stock has a 52 weeks high price of $226.710 and a 52 weeks low price of $155.220. The company has delivered a return of 22.25% on year to date basis.

Pro Medicus Limited (ASX: PME)

Pro Medicus Limited (ASX: PME), founded in 1983 in Australia, provides radiology information systems, advanced visualization solutions, and Picture Archiving and Communication Systems worldwide. Pro Medicus purchased Visage Imaging in January 2009, and now is a leader in providing advanced visualization solutions.

Contract with The Ohio State University Wexler Medical Center-

According to one recent ASX update the company announced that it had signed an agreement with The Ohio State University Wexler Medical Center (OSUWMC), which will be a five years deal for implementation of Visage 7 in all the radiology departments of OSUWMC. This execution would start in the second quarter of the financial year 2020 and is expected to complete in mid-2020.

Financial highlights (ended 30 June 2019)
  • PME’s net profit after tax has increased by 91.9% worth $19.13 million.
  • Company’s cash reserves increased by 28.0%, which is $32.32 million.
  • In FY2019 the company generated a revenue of ~$50.11 million up 47.9%.
  • The EBIT margins of PME was up by 51.6% for the last financial year.
  • Underlying net profit after-tax of the company increased by 83.1% worth $22.74 million.
  • This year remains financially strong for the company and after this achievement Pro Medicus has increased its dividends to 10.5 cents per share fully franked from 6.0 cents per share which show 75.0% of increment.

Pro Medicus Limited

Source: Company’s Report

Stock performance-

The PME’s stock closed at $25.580 on 12 November 2019. The market capitalization of the company stands at nearly $2.66 billion with 103.98 million outstanding shares.


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