Healthcare stars tapping coronavirus-led market opportunity- COH, MX1, ZNO, GMV, ANN

  • Apr 15, 2020 AEST
  • Team Kalkine
Healthcare stars tapping coronavirus-led market opportunity- COH, MX1, ZNO, GMV, ANN

The impact of the COVID-19 pandemic continues to worsen day by day with a rising number of cases and continues to hurt the share markets. While there is no way to explain what the economic damage from the SARS-CoV-2 global outbreak will be, there is widespread agreement among economists that it would have severe negative impacts on the global economy and would take months or even years to recover from the current recession.

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

However, all is not gloomy in the current scenario and some companies are doing significantly well compared to their peers. One sector of the market which might have an outstanding growth potential in long term prospects is the healthcare sector. This is owing to the mounting requirement for healthcare facilities across the globe because of ageing populations and snowballing chronic disease problems.

Let us now discuss ASX-listed healthcare stocks leading the market opportunity during this pandemic - COH, MX1, ZNO, GMV, ANN

Cochlear Limited (ASX:COH) Received approval from the US FDA for its Remote Check solution

Headquartered in Sydney, Australia, the medical device Company Cochlear Limited develops and supplies implantable hearing solutions for offering a lifetime of hearing outcomes.

On 08 April 2020, Cochlear unveiled that the Company obtained the US FDA clearance for its Remote Check solution- the first telehealth patient assessment tool for Cochlear’s implant recipients.

Remote Check solution for cochlear implants is created as a convenient testing device at-home that allows people with a Cochlear™ Nucleus® 7 Sound Processor to complete a sequence of hearing tests by using the Nucleus Smart Application from their iOS device. After this, the findings can be sent remotely to the clinic of the user to analysed by their clinician.

COH stock closed the day’s trade at $197.560 on 14 April 2020, an increase of 4.253% compared to the previous day’s close. The Company’s market cap was ~$12.15 billion.

Surge in the Sale of Carestream DRX Revolution Nano of Micro-X Limited

Hi-tech Company Micro-X Limited (ASX:MX1) is engaged in the development and commercialisation of several innovative products for global health and security markets, which are based on proprietary cold cathode, carbon nanotube emitter technology. The Carestream DRX Revolution Nano, the first product of Micro-X, is an ultra-lightweight digital medical X-ray system for the quickly expanding mobile X-ray market in hospitals.

The Company updated the market with its results for the quarter ended 31 March 2020 and reported that in response to COVID-19 demand, Carestream DRX Revolution Nano orders grew substantially. This quarter witnessed a significant shift in the international market for mobile X-ray in response to the rapidly spreading COVID-19 pandemic.

The infectious disease has generated a massive surge in demand for mobile X-ray in almost every global market with delivery times required to be less than four weeks to meet the urgent requirement for imaging of infected patients.

Carestream DRX Revolution Nano is well suited: It is noteworthy that the Company has received feedback that the Carestream DRX Revolution Nano is compatible to the workflow of a high volume of COVID-19 imaging in temporary or crowded isolation facilities, as a consequence of its battery durability, mobility and ease of infection control cleaning. The Carestream DRX Revolution Nano embraces FDA, CE Mark and Therapeutic Goods Administration (TGA) approvals and is currently being utilised in 12 nations.

MX1 stock closed the day’s trade at $0.175 on 14 April 2020, an increase of 9.375% compared to the previous day’s close. The Company’s market cap was ~$40.00 million.

Zoono Group Limited’s Sales revenues in Q3 jump to NZD 15.7 million

New Zealand headquartered biotech Company Zoono Group Limited (ASX:ZNO) is mainly into the development and distribution of antimicrobial formulations suitable for disinfecting a surface, skincare along with mould remediation treatments.

With the global impact of the COVID-19 pandemic and the efficacy of Zoono Group’s formulations against viruses and bacteria, the most crucial problem the company is facing this year has been managing the level of enquiry for its products from all over the world and the influx of orders, especially online.

The Company updated the market with its revenues for the quarter ended 31 March 2020-

  • Positive operational cash flow for the quarter of NZ$3.1 million.
  • Online sales for the quarter were nearly NZ$3.9 million.
  • Gross margins on sales also increased in line with the growth in sales revenues.
  • Sales in the UK have climbed to NZ$3.5 million for the quarter, with significant business in the pipeline with airlines, airports, transport and commercial cleaning companies.

ZNO stock closed the day’s trade at $1.910 on 14 April 2020, a decline of 3.535% compared to the previous day’s close. The Company’s market cap was ~$323.36 million.

G Medical Received FDA Clearance for Prizma OTC Authorisation in the US

Mobile and e-Health Company G Medical Innovations Holdings Limited (ASX:GMV) is aiming to be at the forefront of the digital health revolution, developing the next generation of mobile health (mHealth) technologies. The Company focuses on pioneering next-generation mobile and e-health solutions using its suite of proprietary devices and software solutions.

GMV revealed that, for its Prizma device, it had received Over-the-counter (OTC) authorisation by the US Food & Drug Administration (FDA).

In consideration of the FDA COVID-19 Policy, the Company directly contacted the FDA seeking acknowledgement that the Prizma medical device satisfied the Policy scope for authorization, defined as “noninvasive remote monitoring devices that measure or detect common physiological parameters and that are used to support patient monitoring during the COVID-19 public health emergency.”

Moreover, the Company believes the Prizma device can assist in alleviating pressure on the US healthcare systems, which are undergoing capacity challenges directly related to the COVID-19 public health emergency.

In an ASX update dated 14 April 2020, the Company provided a corporate and business update. It highlighted that the recent regulatory approvals in the US, Taiwan and Italy leave the Company well-positioned for further growth and developments. It is noteworthy that in Italy, GMV has started the fulfilment of Prizma units to its partner.

GMV stock closed the day’s trade at $0.150 on 14 April 2020, in line with the previous day’s close. The Company’s market cap was ~$44.81 million.

Ansell Limited Experiencing Strong Demand for AlphaTec®

A provider of superior health and safety protection, Ansell Limited (ASX:ANN) is into improving human well-being. The Company continues to work on product innovation and technology advancement and operates in two primary business segments including industrial and healthcare.

ANN manufactures personal protective equipment (PPE) including face masks and gloves, among others, which can be used in the battle against the deadly COVID-19.

Also Read: Ansell- A Star in the Pandemic-Stricken ASX Boat

The Company updated the market about the impact of COVID-19 on its business operations & financial performance. Ansell is facing increasing requirement of AlphaTec® hand as well as body protection products which are tested and certified to recognised standards for security from infective agents.

Also, the Company mentioned that it has a high demand for Microflex® & TouchNTuff® single-use examination gloves as well as for Encore® and Gammex® surgical gloves.

Guidance Affirmation:

Also, Ansell provided FY2020 guidance affirmation and mentioned that the Company is reiterating its FY20 EPS guidance range of 112 - 122 US cents. Moreover, Ansell is continually monitoring the impact of COVID-19 on its business.

ANN stock closed the day’s trade at $29.620 on 14 April 2020, an increase of 0.989% compared to the previous day’s close. The Company’s market cap was ~$3.78 billion.

Interesting Read: How FDA approvals can change the fate of healthcare stocks?

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