Health Care Sector Making Progress: A look at Five Stocks

  • Nov 16, 2019 AEDT
  • Team Kalkine
Health Care Sector Making Progress: A look at Five Stocks

In the health care industry, there is usually an urgent requirement to find innovative ways to improve a patient’s health condition because of the rise in aging population and increasing chronic diseases across the world. Introduction of digital health care services into the health care industry has made a revolution by advancing the detection and diagnosis of chronic diseases. Australian health care sector is one of the fastest progressing industries and has an energetic growth track.

Let’s now discuss the five ASX listed health care stocks :

ResApp Health Limited (ASX: RAP)

An Australian Securities Exchange listed health care company, ResApp Health Limited (ASX: RAP) is engaged in providing digital health services to patients by developing smartphone applications to diagnose and manage problems related to respiratory tract diseases. The machine learning algorithms by ResApp diagnose the disease by sound and identify the severity of disease without requiring any additional hardware system.

Collaboration with Sanofi

In the recent ASX announcement dated 15 November 2019, the company unveiled that it has inked an agreement, wherein it was granted an exclusive license to the consumer health care business unit of Sanofi, a pharma entity, to utilise the outcomes produced under the Startup Creasphere incubator program. , ResApp Health and Sanfoi also as part of this incubator program, are joining hands for creating a new smartphone appl to build on RAP’s new cough-based respiratory disease diagnostic algorithms for giving at-home support to costumers.

As per the agreement, Sanofi would receive an option to negotiate and obtain rights to manufacture, develop and commercialize a respiratory ailment self-assessment app exclusively for customers. After Sanofi chooses to exercise this option, both the companies would have a 6 months period for finalising the license terms.

Stock Performance

The company’s stock last traded flat at $0.270 on 15 November 2019, with nearly 790.01 million outstanding shares and a market capitalisation of nearly $213.3 million. The stock has a 52 weeks high price of $0.415 and a 52 weeks low price of $0.069. The stock has delivered a return of 145.45% on a YTD basis and 80.00% in the last six months.

AFT Pharmaceuticals (ASX: AFP)

An ASX listed pharmaceutical company AFT Pharmaceuticals (ASX: AFP) is into development, distribution and marketing of pharmaceutical products worldwide. The company has in-licensed and proprietary products, and its product portfolio also includes generic, branded and patented drugs. AFT Pharma has licensed products in 125 countries and more than 130 pharmaceutical products which are available in Australia.

The company has planned pipeline for its pharmaceutical products

Source: Company’s Report

Non-cash gain on Pascomer® assets

According to one recent announcement, AFT Pharmaceuticals mentioned that the company is expecting to a one-off non-cash increase of $9.8 million followed by its previously announced acquisition of taking complete control of Pascomer assets.

The company’s prediction of underlying operating profits before this accounting change is $9 million to $12 million for the year until 31 March next year.

Memorandum of understanding (MoU) medicinal cannabis

According to another ASX announcement AFT Pharma and SETEK (New Zealand medicinal cannabis company) have signed an MoU to work together in the R&D and commercialisation of medicinal cannabis related products.

Key Highlights FY2019 (year ended 31 March 2019)

  • The company’s product Maxigesic is registered in 42 countries and launched in 20 countries in FY2019.
  • The operating revenue for FY2019 was approximately NZ$85.1 million.
  • The available cash of the company on 31 March 2019 was ~NZ$6.9 million.
  • The operating profit for FY2019 was NZ$6.1 million.

Stock Performance

The company’s stock last traded at $2.660 on 14 November 2019 (AEST 03:38 PM), with ~97.31 million outstanding shares and a market capitilisation of nearly $258.84 million. The stock has a 52 weeks high price of $3.100. The stock has delivered a return of 40.00% on a year to date basis.

Monash IVF Group Ltd (ASX: MVF)

An ASX listed one of the world leaders in providing fertility solutions Monash IVF Group Ltd (ASX: MVF) is a pioneer in providing development of assisted reproductive technologies (ART) and prenatal diagnosis. Additionally, the company also actively supports R&D in ultrasound and reproductive medicine, and it has many states of the art labs with cost-effective fertility treatment options in Australia.

Financial Highlights- (year ended 30 June 2019)

  • The company generated group revenue of $152.0 million, which increased by $1.3m or 0.9% as compared to the previous corresponding period (pcp).
  • Revenue for the second half of FY2019 was $74.8 million, up by 1.5% as compared to 2H18.
  • The company’s underlying EBITDA for the complete year was down by $0.3 million or 0.8% however; second half EBITDA was up by 6.7% on pcp.

Source: Company’s Report

Stock Performance

The company’s stock closed the day at $1.090 on 15 November 2019, with a daily volume of 432,880 and a market capitilisation of nearly $255.83 million. The stock has a 52 weeks high price of $1.535 and a 52 weeks low price of $0.890. The stock has delivered a return of 10.15% on a YTD basis and has nearly 235.79 million outstanding shares.

Alcidion Group Limited (ASX: ALC)

A health care company Alcidion Group Limited (ASX: ALC) was founded in 2000 in Australia. The company is working with the objective to transform health care with smart, intuitive technology solutions and to ensure the highest quality of care for their patients for hospitals and allied healthcare globally. Alcidion has 215 hospitals over Australia, New Zealand and the United Kingdom.

Q1 2020 highlights (year ended 30 September 2019)

  • In the first quarter of FY2020, $2.5 million of new contracts were sold.
  • Alcidion has contracted $12.9 million revenue for FY2020, which increased by 16% as compared to Q1 FY2019.
  • The company has improved cash reserves of $4.4 million.
  • Alcidion received a cash surplus from operations of $136K for the first quarter of FY2020.
  • The company signed a strategically crucial contract with Healthscope, and it would be the first sale to a major private hospital group of company’s data and analytics capabilities.

Stock Performance

The company’s stock last traded flat at $0.195 on 15 November 2019, with a daily volume of ~990,052 and a market capitilisation of approximately $193.19 million. The stock has a 52 weeks high price of $0.305 and a 52 weeks low price of $0.038. The stock has delivered an excellent return of 314.89% on a YTD basis and 107.45% in last six months. The company has approximately 990.69 million outstanding shares.

Capitol Health Limited (ASX: CAJ)

An ASX listed health care company Capitol Health Limited (ASX: CAJ) is involved in delivering medical diagnostic imaging and related services. The company is headquartered in Melbourne, and its clinics are in Western Australia, Tasmania and Victoria. Capitol has its primary focus on providing a community-based infrastructure for medical practitioners and radiologists to deliver accurate and efficient services for patients.

Annual General Meeting (AGM)

The company announced that its annual general meeting would be on 19 November 2019 in Melbourne, Australia. The agenda of this meeting is to discuss financial and other reports, including some resolutions.

Financial year 2019 highlights (year ended 30 June 2019)

  • The company generated increased revenue for FY2019 period standing at $149.2 million.
  • The underlying EBITDA for FY2019 was $26.0 million.
  • The net cash from operations increased by 65% as compared to pcp.
  • NPAT for FY2019 was $27.5 million.
  • The final dividend payment remained at 0.5 cps fully franked.

Source: Company’s Report

Stock Performance

The company’s stock last traded flat at 0.240 on 15 November 2019, with a daily volume of nearly 564,555 and a market capitilisation of ~$184.42 million. The stock has a 52 weeks high price of $0.290 and a 52 weeks low price of $0.145 with approximately 768.4 million outstanding shares.


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