Healthcare Charter Amid COVID-19 Threat- COH, ALC, RHC

Healthcare Charter Amid COVID-19 Threat- COH, ALC, RHC

Humanity is against a battle with time as the pandemic coronavirus is hastening. According to the World Health Organization (WHO), the total number of incidents across the world has surpassed 7,00,000, while the number of deaths has exceeded 35,000 in more than 200 countries.

Coronavirus has impacted businesses, households and policymakers all over the world, but this lockdown may not be enough to contain the coronavirus spread.

All the pharmaceutical and biotech companies are upping their game in the race for virus care, providing medical apparatuses like ventilators and essentials like sanitizers and masks, with the need to circle the wagons to safeguard the humankind with the current COVID-19 pandemic to ensure that the globe is better able to weather the storm.

Do Read: Ray of Hope amid Coronavirus- Potential Vaccine For COVID-19 is Underway

In recent weeks, markets have been volatile, seeing sharp movements in both directions as agencies throughout the world revealed massive amounts of stimulus to stem the economic impact of the COVID-19.

On 1 April 2020, the S&P/ASX 200 Index was leading gains as it surged to 5,258.6 points, up by 3.58% from its last close. The S&P/ASX 200 health care sector traded higher at 42,657 points, with a rise of 3.42% compared to the previous close.

Let us deep dive in the three ASX listed healthcare stocks that ended the trading session in the green zone today- COH, ALC, RHC

Cochlear Limited (ASX:COH) Updates on Capital Raising

An ASX listed medical device company Cochlear Limited is into development and supply of implantable hearing solutions to provide a lifetime of hearing outcomes. Currently, the Company is operating through the segments spanning across Americas, EMEA and the Asia Pacific regions and sells its products in more than 100 countries.

Consequent to sharing Share purchase plan (SPP) initiative, on 1 April 2020, Cohlear disclosed the SPP is now open to eligible shareholders to apply for up to $30k fully paid ordinary shares.

The company earlier completed $880 million placement to institutional investors, which was conducted at a per-share price of $140.00.

Furthermore, the Company mentioned that shareholders are eligible to participate in the SPP if they had a registered address in New Zealand or Australia on Cochlear’s register on Tuesday, 24 March 2020 (at 7.00 PM Sydney time).

SPP share price will be determined by lower of the below two mentioned prices-

  • the placement price of $140.00 per share;
  • two per cent discount to the volume weight average price of Cochlear shares traded during the five ASX trading days up to, and including, the closing date of the SPP which is anticipated to be Thursday, 23 April 2020.

On 1 April 2020, COH stock closed the day’s trade at $195.500 up by 4.294%, with a market cap of approximately $12.02 billion. The P/E ratio of COH stock stands at 35.410x, with an annual dividend yield of 1.79%.

Also Read: COVID-19 Uncertainty forces Companies to Withdraw Guidance and Dividend

Alcidion Limited (ASX:ALC) Expanded Renewal Agreement with NHS for Patientrack-

An Australian health care sector player Alcidion Limited is working to change the health care industry with smart, intuitive technology solutions to meet the requirements of allied healthcare and hospital across the globe. The Company provides several software products which offer a unique contribution to the health care market at the global level.

On 1 April 2020 Alcidion disclosed that the Company signed an extension and renewal agreement with NHS Fife for an additional five-year term, extending the Board’s use of the electronic bedside monitoring system within the whole estate of at least 10 hospitals.

Moreover, the Company highlighted that total value of the new contract is $1.47 million for five years, to 2025.

NHS Fife is a regional hub in Scotland that serves approximately 370,000 residents. Under this expanded renewal agreement, now NHS Fife will implement Patientrack across the entire estate, a minimum of 10 hospitals with two leading acute hospitals and a network of the community along with day hospitals, amounting to nearly 1342 beds.

NHS Fife intends to build on the accomplishment it has had with Patientrack in its major acute hospitals and move into rapid implementation of the solution through their paediatrics specialty and community hospitals.

Also Read: Alcidion's Growth Trajectory

On 1 April 2020, ALC stock closed the day’s trade at $0.145, up by 11.538%, with a market cap of approximately $128.79 million. The Company has delivered a positive return of 124.14% over past one year.

Ramsay Health Care Limited (ASX:RHC) Aiding Government’s COVID-19 Initiatives

A global health care company Ramsay Health Care Limited is engaged in providing high-quality services and offering outstanding patient care including hospital management. Ramsay is one of the biggest and most diverse private health care companies across the globe and provides primary and acute health care services from its 480 facilities throughout 11 countries.

The forefront behind the achievement of Ramsay is delivering high-quality outcomes for patients and focusing on relationships with staff and doctors.

Ramsay Healthcare confirms that the conversations are ongoing with the Australian Government pertaining to the potential capacity and aid that Ramsay is able to provide as part of the Government’s virus containment initiative.

Moreover, the Company disclosed that a letter had been received from the Minister for Health, the Hon Greg Hunt MP, concerning the viability of Australian Government for the capacity guarantee for the private hospital sector during the COVID-19 pandemic.

It was mentioned in the letter that all territories and states would complete private hospital COVID-19 partnership agreements in the upcoming days which will outline the integration plan and activity requirements and the Australian Government would contribute funding of 50% towards this activity.

Additionally, and in return, the Australian Government will guarantee the viability of private hospitals. This is on the anticipation that all private hospitals maintain capacity for responding to the COVID-19 pandemic and non-COVID-19 and are able to recommence operations at the end of this pandemic situation.

Furthermore, it was also stated that the Australian public needs to have confidence that deferred activities, such as non-urgent elective surgery, will be able to recommenced and accelerated at the appropriate time.

On 1 April 2020, RHC stock closed the day’s trade at $61.870 up by 8.013%, with a market cap of approximately $11.58 billion. The P/E ratio of RHC stock stands at 22.080x, with an annual dividend yield of 2.69%.


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