Healthcare is one of the most lucrative sectors in Australia which attracts investors towards it for gaining high returns. On Australian Securities Exchange, S&P/ASX 200 Health Care (Sector) index, there has been an increase of 18.9% in the past 6 months.
In the present era of AI or artificial intelligence, Australia has been taking measures to improve its digital literacy in healthcare sector. As per the latest market refport, healthcare is one of the top three sectors, where Australia has witnessed significant automation owing to the sector’s size and diversity. It has an integrated approach to diagnose real-time health risk and forecast possible health outcomes.
Also, AI has been gaining traction as the Australian government has recently in December 2019 announced to invest $7.5 million for exploring the benefits of AI in the healthcare industry. Also, the Australian Government is providing training to develop expertise, making huge investments in R&D, setting up of institutions and much more.
Zooming the lens over major Healthcare stocks – MSB, MEQ, PNV, EOF and OPT, lets figure out if they are trending as per market expectation.
Mesoblast Limited (ASX: MSB)
An ASX listed regenerative medicine company, Mesoblast Limited (ASX: MSB) is dedicated to cure some life-threatening and inflammatory diseases by bringing innovative cellular medicines. The company was founded in 2004 by Dr Silviu Itescu. Mesoblast offers a varied product portfolio comprising of three programs in Phase 3 clinical studies.s
Biologics License Application for remestemcel-L
On 2 January 2020, Mesoblast announced its submission of safety data and clinical efficacy for its leading product candidate remestemcel-L to United States Food and Drug Administration (US FDA). US FDA confirmed the receipt for MSB’s filing of clinical efficacy and secure data for its product candidate in its rolling Biologics License Application for treating the kids suffering from SR-aGVHD.t It is expected that remestemcel-L will be introduced to the US market in 2020, subject to receiving an approval.
aGVHD- Significant market opportunity for remestemcel-L
Source: Company’s Report
Stock Performance –
On 3 January 2020, the stock of MSB last traded at $2.100, moving upwards by 2.439% compared to its previous closing price. The company has outstanding shares of around ~536.68 million. Also, MSB has a market capitalisation of nearly $1.1 billion, while the 52 weeks low and high price of the stock was noted at $1.135 and $2.230, respectively. The stock has delivered a positive return of 44.88 percent in the last six months period.
Metlifecare Limited (ASX: MEQ)
New Zealand based, ASX listed MEQ provides services by owning, operating and managing nursing homes, retirement villages, hospitals for senior citizens. The company specialises in creating thoughtful, innovative and unique designed villages for delighting the residents. Since the company’s inception in 1984, they have 25 villages, 3984 independent living homes, 440 care beds and suites, 494 care apartments. It has more than 5600 residents with around 1000 staffs working with them.
Deal with Asia pacific Village Group Limited
On 23 December 2019, MEQ notified the market that its securities would be placed in trading halt at its request, pending a release of an announcement. However, on 27 December 2019, the company again notified that its securities would be suspended from the quotation, pending the release of an announcement related to scheme implementation agreement.
On 30 December 2019, MEQ updated the market that it has entered into a Scheme Implemented Agreement, as per which Asia Pacific Village Group Limited will acquire all the shares of MEQ for $7/share.
PolyNovo Limited (ASX: PNV)
A medical device company, PolyNovo Limited (ASX: PNV) uses its patented biodegradable polymer technology named as NovoSorb® for designing and manufacturing of NovoSorb BTM- dermal regeneration solutions. The company pioneers in treating Hernia, Breast Sling and Orthopaedic applications. The company was listed on ASX in 1998 and has six 100% owned subsidiaries.
NovoSorb BTM to patients
The company has delivered NovoSorb BTM to a few hospitals in New Zealand and Australia for treating patients injured in White Island tragedy (occurred recently in New Zealand).
Stock Performance –
On 3 January 2020, the stock of PNV last traded at $1.870, moving upwards by 0.809 percent from its last close, with outstanding shares of around ~ 661.09 million. The company has a market capitalisation of nearly $ 1.23 billion, while the 52 weeks low and high price of the stock was noted at $0.580 and $2.660, respectively. The stock has delivered a positive return of 19.68 percent in the last six months period.
Ecofibre Limited (ASX: EOF)
ASX-listed hemp products provider, Ecofibre Limited (ASX: EOF) operates in United states and Australia. Company’s product portfolio consists of salves, tropical creams and hemp nutraceutical products for the consumption of pet and human in United States region. In addition to this, the company produces hemp food products in Australia which is 100 percent grown and treated natively.
Release of escrowed shares
The company announced the release of fully paid ordinary shares of 2,259,212 in number from ASX (imposed escrow) on 31 December 2019. EOF presently has 314,962,257 shares on issue.
Stock Performance –
On 3 January 2020, the stock of EOF last traded at $ 2.740, moving upwards by 3.008 percent compared to its last close, with outstanding market shares of around ~ 314.96 million. EOF has a market capitalisation of nearly $837.8 million, while the 52 weeks low and high price of the stock was noted at $1.450 and $3.900, respectively. The stock has delivered a positive return of 10.83 percent in the last six months period.
Opthea Limited (ASX:OPT)
An ASX listed biologics drug developer, Opthea Limited treat patients suffering from retinal eye illnesses. The company’s on-going clinical development program is for the product OPT-302, which aims to address wet Age-related Macular Degeneration (wet AMD) and Diabetic Macular Edema (DME).
Private Placement of $50 million
On 6 December 2019, the company notified the market that it has raised $50 million by the conclusion of the private placement via issue of around 18.9 million fully paid ordinary shares at an issue price of $2.65 per (New) share.
Stock Performance –
On 3 January 2020, the stock of OPT last traded at $2.860, falling downwards by 2.055 percent from its previous close, with outstanding market shares of around ~ 269.16 million. The company has a market capitalisation of nearly $785.94 million, while the 52 weeks low and high price of the stock was noted at $ 0.565 and $ 4.150, respectively. The stock has delivered a positive return of 335.82 percent in the last six months period.
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