Health care system in Australia ranks well internationally with the presence of big pharmaceutical companies. With the push created by improvements in medical technology, such as advances in diagnostic and therapeutic-new radiological scanners, biological therapeutics, surgical procedures and prostheses, which frequently come at considerable expenditure, the health care costs are facing an upsurge.
Listing these for funding by way of Medicare or the Pharmaceutical Benefits Scheme (PBS) significantly enhances their accessibility and use, and therefore the cost to the community.
The health sector includes pharmaceutical/biotech companies, medical device manufacturer and supplier and the companies which provide diagnostic services. Almost every health care company in the contemporary scenario is striving for advancement in their business through the development of required technology via investing a significant amount of money. for the development of new pharmaceutical molecule, and
Following the successful completion of clinical trial and commercialisation of the product, the pharma companies anticipate receiving an outstanding amount of return.
In this article, we are highlighting six ASX listed health care stocks which have an excellent contribution in the health care sector and have their market capitalisation in billions.
CLINUVEL PHARMACEUTICALS LIMITED (ASX: CUV)
An ASX listed health care player CLINUVEL PHARMACEUTICALS LTD (ASX: CUV) is a biopharmaceutical company which is focused on the development of therapies for various severe genetic and skin disorders. The company is a pioneer in photomedicine, and its R&D has led to new treatments for patient populations with a clinical need for genetic defects, repigmentation and photoprotection in groups of patients from 5,000 to 45 million at the global level. SCENESSE® is the lead compound of CLINUVEL and was approved for the prevention of phototoxicity in adult patients with erythropoietic protoporphyria (EPP) by the European Commission and by the Food and Drug Administration (FDA) in 2014 and in 2019, respectively.
Change in CUV’s Board Composition
Recently, CUV unveiled changes to its Remuneration Committee and Audit & Risk Committee, wherein:
- Jeffrey Rosenfeld would be a new voting member of the Audit & Risk Committee following the retirement of Stan McLiesh from the Board of Directors, and
- Sue Smith and Karen Agersborg would join as voting members, replacing Stan McLiesh and Philippe Wolgen (Chief Executive Officer) in the CUV’s Remuneration Committee.
On 6 December 2019, CUV stock closed the day’s trade at $26.360 down by 1.971%. With a market cap of $1.33 billion, the stock has 52-weeks low price of $15.750 and a 52-weeks high price of $45.880. The stock has delivered a positive return of 49.39% on year to date basis till 05 December 2019.
Healius Limited (ASX: HLS)
An ASX listed leading health care company, Healius Limited (ASX: HLS) is engaged in delivering world-class facilities to the radiologist, independent general practitioners and healthcare professionals, supporting them to provide excellent care to their patients by offering imaging, pathology services and health technology. The principal businesses of the company are imaging, pathology and medical centres, including three emerging dental, day hospitals and IVF businesses.
Update on Tax Case for Financial Years 2003 to 2007
Recently, Healius Limited mentioned that the Federal Court of Australia opted in support of HLS concerning a court case related to the tax treatment of lump-sum payments to the healthcare practitioners by HLS.
HLS stock settled the day’s trade on 6 December 2019 at $2.920 up by 0.69%, with a market cap of $1.81 billion. The stock has a 52-weeks low price of $2.190 and a 52-weeks high price of $3.315.
The stock has delivered a positive return of 19.26% on a year to date basis till 04 December 2019.
Nanosonics Limited (ASX: NAN)
Sydney based health care player Nanosonics Limited (ASX: NAN) is an innovator in the prevention of infection and the unique, automated disinfection device trophon® EPR which is a global solution for the reduction of cross-contamination between patients.
The company functions with the aim of reducing the spread of Healthcare Acquired Infections. Nanosonics has grown further in offering highly advanced ultrasound high-level disinfection solution at a global level with the release of trophon2. Trophon2 offers smart protection, smart flexibility, smart functionality, smart traceability and smart integration for multiple utilities.
Annual General Meeting Held
Lately, NAN held its AGM in November, which included the following quick highlights-
- Growth in the revenue for the financial year ended 30 June 2019, with total revenue of $84.3 million, up by 39% on pcp.
- Cash and cash equivalent of $72.2 million as of 30 June 2019, fuelling the ongoing growth and expansion.
- Effective February 2019, NAN signed a new agreement with GE Healthcare which was for distribution in Finland, Spain, Denmark and Portugal.
- For Switzerland, appointed a new distributor.
On 6 December 2019, NAN stock closed at $6.680 up by 2.141% inching closer to its 52-weeks high price of $7.600. The stock has a market cap of $1.96 billion and has increased by 51.39% in the last six months till 05 December 2019.
Summerset Group Holdings Ltd (ASX: SNZ)
ASX-listed company Summerset Group Holdings Ltd (ASX: SNZ) operates in aged care and retirement village sector in New Zealand and was founded in 1997. The company has a total of 25 retirement villages across New Zealand and provides independent living and various care options.
SNZ is New Zealand’s biggest constructor of retirement units in 2018 and has won a silver award of the Reader’s Digest Quality Service in 2019.
Approval for St Johns village
Recently, Summerset that the proposal for the retirement village in St Johns, Auckland has been approved and after resource consent approval by the Environment Court. Besides, the company mentioned that no appeals were obtained on the decision.
Currently, the company operates five villages in the Auckland region with another two (Milldale and Parnell) in the planning stages; moreover, SNZ has recently procured land in Melbourne for its first Australian village.
On 6 December 2019, the SNZ stock was trading at $7.320 with a market cap of $1.66 billion. The SNZ’s stock has 52 weeks high price of $7.480.
AVITA Medical Limited (ASX: AVH)
One of the major health care players, AVITA Medical Limited (ASX: AVH), is an international regenerative medicine company offering a novel method for regeneration of the skin. The proprietary technology of AVITA has evidence for additional skin treatments such as vitiligo, scar revision and chronic & traumatic wounds, other than burns.
The highlights from the recently held AGM of AVITA are as follows:
- AVH’s cash balance of $134.5 million as of 22 November 2019.
- AVITA recorded global sales of worth $7,705,398 for FY 19 (year ended 30 June 2019).
- The company generated total net revenue worth $14,723,422 for FY19.
- Current RECELL Platform addresses opportunities exceeding USD 2 billion in the United States.
Milestones through 2020
- The company expects growth in US revenue (RECELL in burns).
- For Pediatric Scalds Clinical Study, the first patient enrolled in the US.
- For Soft-Tissue Repair Clinical Study, the first patient enrolled in the US.
- First patient enrolled in the US for Vitiligo Pilot Clinical Study.
- PMDA approval of RECELL in Japan.
- Early research in pipeline and progress reports on Gene Therapy (EB) and Rejuvenation Field.
The AVH stock settled at a price of $0.605 on 6 December 2019, with a market cap of $1.24 billion. The stock increased by 3.419% during the day’s trade, nearing to its 52-weeks high price of $0.740.
PolyNovo Limited (ASX: PNV)
An ASX listed medical device company PolyNovo Limited (ASX: PNV) is engaged in designing and development of unique medical devices by using its biodegradable polymer technology- NovoSorb.
Recently, PolyNovo held its investor presentation, the key highlights are-
Clinical Trial update
- PolyNovo has completed CE Burn trial, with results expected to be published by the end of Feb/March 2020.
- The company expects BARDA funded Feasibility trial results to be published in March 2020.
- BARDA-funded Pivotal burn trial would start after the approval of protocol from the US FDA.
Strategy for FY20
- The company expects a significant increase in the sales of BTM in Australia, the United States and New Zealand.
- The company looks forward to launching a new product pipeline in hernia and breast.
- The company is expecting to increase its manufacturing capacity commission hernia production.
- PolyNovo anticipates to filing Hernia US FDA 510(K) by the end of the year 2020.
The company’s stock closed at a price of $1.775, up by 0.852% on 6 December 2019. The stock has a market cap of $1.16 billion and has increased by 35.58% during the last six months till 05 December 2019.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.