Are these the top 5 Exciting Opportunities in Healthcare Space

In the health care sector innovation is required to find out the solutions for rare diseases and unmet medical needs. Many health care companies in Australia are investing an enormous amount of money in their R&D and developing new treatments and solutions for curing rare diseases. The companies are generating decent revenues by delivering effective treatments to the patients. Australia’s health care system offers a variety of services from general as well as preventive healthcare by treating complex conditions which may also need hospital care.

Here are top exciting opportunities in the health care space-

• Healthcare Chatbot- For chatbots, there are endless options in the health care space form the consumer service to offering a potential diagnosis of mild diseases, and there is a lot to be excited concerning the technology. Chatbot is helpful from instruction on nutrition and diet to remind patients to take medications or providing psychological assistance and following up.
• Artificial intelligence- With rapid growth and exciting opportunities surrounding artificial intelligence, it has led to quite an impressive evolution in the health care domain. According to some media reports, AI in the health care domain is anticipated to increase briskly at a yearly rate of 40% through 2021 – to $6.6 billion, from nearly $600 million in 2014.
• Virtual reality in healthcare- Healthcare is one of the biggest adopters of Virtual Reality, and it is being used to change lives, train & support healthcare professionals and heal patients. VR technology is used in non-surgical ways, such as in diagnostic tool.
• Blockchain in health care- In health care space, blockchain technology is one of the highly disruptive and valuable technologies across the globe. Blockchain could offer a different model for exchanging health information by creating EMR- electronic medical records, which are more disintermediated, efficient and secure.
• Uber and health care- Uber is collaborating with hospitals and pharmacies to get patients to checkups as well as for pharmacy deliveries. The combined services with telemedicine can respond as required to a genuine house phone call that leverages a blend of hands-on care with home diagnostics. Some startups are delivering on-need physicians via house calls and have raised millions in funding.

Let us now discuss ASX listed health care stocks with their recent activities- COH, ANN, VRT

Cochlear Limited (ASX:COH)

Sydney headquartered, an ASX listed medical devices company Cochlear Limited (ASX:COH), is engaged in providing implantable hearing solutions for providing a lifetime of hearing outcomes. The company offers Cochlear implants, services as well as acoustics. 60% of the sales revenue come from Cochlear implants, 29% of sales revenue come from services (Sound processors) and the remaining 11% come from acoustics that includes bone conduction implants and acoustic implants.

The company updated the market with its results for the half year 2020, including financial highlights and outlook for the remaining half of FY20. The quick highlights are-

• Cochlear reported strong growth in cochlear implants with units up by 13 per cent; the developed market units increased by 7% and Emerging market units increased by 20%.
• Services revenue of the company increased by 5% in constant currency; for Nucleus® 7 Sound Processor the rate of penetration is high at this point in the upgrade cycle.
• The company also discussed about the decline in Acoustics ahead of Osia launch; Sales revenue decreased by 13% in constant currency.

Market-leading portfolio of electrodes-

Cochlear has a market-leading portfolio for Slim Modiolar Electrodes and Slim Straight Electrodes; both the electrodes are the World’s thinnest Electrodes.

• Slim Modiolar Electrode is the most advanced true perimodiolar electrode and is designed for most CI candidates to fit the natural shape of the inner ear.
• Slim Straight Electrode is the most advanced lateral wall electrode and is flexible to reduce trauma for preserving structure.

FY2020 Outlook-

The net profit guidance for FY2020 is of $270 million-290 million, an increase of 2-9% on underlying net profit, and the key guidance considerations are-

• Cochlear anticipates strong growth in cochlear implant units in the second half of the year in developed markets.
• The company has given a ballpark figure of $180 million for Capex and investments in the financial year 2020 and nearly $100 million in the financial year 2021.
• Cochlear assumes a significant drop in sales for Greater China in the second half of the year due to hospitals deferring surgeries, including cochlear implants because of Coronavirus.

Stock information-

On 18 February 2020, the COH stock closed the day’s trade at $226.620 down by 3.385 %. The company’s market capitalisation stood at nearly $13.56 billion, with almost 57.83 million shares outstanding. COH stock’s 52 weeks high and low prices were noted at $245.430 and $164.000, respectively.

Ansell Limited (ASX:ANN)

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 which 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 (period 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.
• Because of the change in new lease accounting standard Net Debt of the company has increased.

Coronavirus update-

Ansell is engaged in the activities to keep China safe and 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.

Stock information-

On 18 February 2020, the ANN stock closed the day’s trade at $31.420 down by 2.875%. The company’s market capitalisation stood at nearly $4.21 billion, with almost 130.21 million shares outstanding. ANN stock’s 52 weeks high and low prices were noted at $33.430 and $24.100, respectively.

Virtus Health Ltd (ASX:VRT)

An ASX listed health care company Virtus Health Ltd (ASX:VRT) is engaged in providing various fertility care, specialist pathology and day hospital services. In Australia, Virtus Health is currently the largest in-vitro fertilization provider and operates in around 127 of the world’s leading fertility clinics. The company provides its day hospital services in Queensland, Tasmania, New South Wales, Denmark, Ireland, the United Kingdom and Singapore.