How Are The Healthcare Stocks RAP, FPH and EHH Performing Amid COVID-19 fear?

How Are The Healthcare Stocks RAP, FPH and EHH Performing Amid COVID-19 fear?

The World Health Organization (WHO) has warned that COVID-19 is spreading at a rapid pace with the Director-General of WHO highlighting that the third 100,000 cases were reported in only four days, as compared to 11 days for the second 100,000 reported cases and 67 days for the first 100,000 reported cases.

By observing the severity of the disease, the (WHO) has also created a health alert on WhatsApp for keeping individuals aware and updated about the coronavirus pandemic and combat misinformation.

However, in the current scenario where economies are struggling with the effects of COVID-19, the demand for medical devices, sanitizers, and masks is increasing. At the same time, various companies are focusing on developing laboratories to detect and diagnose the deadly virus.

Also Read: Australia’s Way of Handling and Containing the Coronavirus

In this article, we are highlighting three ASX-listed healthcare stocks - RAP, FPH, EHH

ResApp Health Limited (ASX:RAP)

A digital healthcare player, ResApp Health Limited, offers smartphone applications for the management and diagnosis of diseases related to the respiratory system. The machine learning algorithms of ResApp analyses and gauges the severity of the condition by the sound of a patient’s cough with no necessity of any additional hardware.

Phenix to Deploy ResAppDx-EU on its Telehealth Smartphone App

On 24 March 2020, ResApp revealed that it has entered into a joint development agreement (JDA) with Phenix Health to integrate ResAppDx-EU into Phenix’s telehealth smartphone application.

Respiratory disease is involved in up to half of all telehealth consultations, and ResAppDx-EU is the only solution for accurately diagnosing respiratory disease during a telehealth consultation that does not require additional hardware.

ResAppDx-EU is a software application of ResApp used by clinicians for respiratory diseases diagnosis. ResAppDx-EU uses machine learning algorithms to examine a patient’s cough sounds for the diagnosis of lower respiratory tract diseases like asthma exacerbations, and pneumonia.

The acute respiratory disease diagnostic test ResAppDx-EU is TGA approved in Australia and CE Marked in the European Union. Under this agreement, both the companies will work together for the upcoming three months for the integration of ResAppDx-EU into the telehealth app of Phenix

During this period, ResApp and Phenix will negotiate the specifics of the fee-per-test payment model of using ResAppDx-EU on the telehealth App of Phenix.

Stock Information:

RAP stock closed the day’s trade at $0.130 on 25 March 2020, a decline of 10.345% compared to its previous close. The Company has a market cap of ~$105.27 million and approximately 726.03 million outstanding shares. The 52-week low and high price were $0.055 and $0.415, respectively. The stock has delivered a positive return of 93.33% in the last 12 months.

Fisher & Paykel Healthcare Corporation Limited (ASX:FPH)

Healthcare sector player Fisher & Paykel Healthcare Corporation Limited is a dual-listed Company supplying innovative products used in respiratory care. The Company is a significant player in manufacturing, designing, and promoting these systems and products to assist clinicians for improving patient care and outcomes. Fisher & Paykel is listed on both the ASX and NZX.

F&P confirms status as Essential Service:

Following the announcement, on 25 March 2020, by the Prime Minister of New Zealand which stated that the COVID-19 alert status would be elevated to Level 4 within two days, FPH recommends that the Company has been selected as an essential service by the Government of New Zealand and will continue operations in its facilities in Auckland.

As an essential service, the Company is continuing to focus on meeting the demand across the globe for its respiratory products that are directly involved in the treatment of COVID-19 infected persons.

Managing Director and CEO of F&P, Lewis Gradon stated that this is a rapidly changing situation and the Company is monitoring any developments closely and will proactively share further updates.

Stock Information:

FPH stock closed the day’s trade at $27.360 on 25 March 2020, a decline of 8.157% compared to its previous close. The Company has a market cap of ~$17.12 billion and approximately 574.56 million outstanding shares. The 52-week low and high price were $14.000 and $29.890, respectively. The stock has delivered positive returns of 42.06% on a YTD basis and 88.07% in the previous six months.

Eagle Health Holdings Limited (ASX:EHH)

Eagle Health Holdings Ltd is an ASX-listed, China-based healthcare Company, engaged in the development and production of health and nutritional dietary supplements. The Company distributes its products into 26 provinces in China.

Eagle has a good manufacturing practice (GMP) certified manufacturing facility and its Head Office is in Xiamen, China, which is a central hub for distribution into all the Chinese pharmacies, supermarkets, trading companies and health food stores.

On 16 March 2020, Eagle Health updated the market with its Company presentation on ASX.

The quick highlights from its presentation are:

  • During 2019, the Company established 100 new exclusive health centres in China.
  • Continued expansion of franchised Zhang Lao San stores as well as growing the vast network to 271 third-party distributors reaching more than 30,000 outlets for retail.
  • Launched 50 newly developed Eagle TCM products via Eagle’s wholly-owned GMP Pharmaceutical R&D and Production facility in Xiamen.

 

New Technologies, Products and Services

  • In 2019, the Company has initiated the development of an online health platform to connect patients, families and consumers to digital diagnostics for vital health parameters.
  • Eagle health is launching existing brands into the new and high consumer demand markets.
  • The Company expects to utilise its expansive Health Centre infrastructure as the conduit between the consumer and unmet health care technologies, products as well as services.
  • Eagle is continually expanding the product range and offerings within both personal care as well as clinical & commercial use.

Eagle expanded Medical Mask manufacturing facilities

 

Eagle revealed that the Company had expanded its production facilities at its wholly-owned GMP pharmaceutical facility in Xiamen China for manufacturing BFE>95% disposable medical masks.

Brand new medical mask production lines added to Xiamen facility having the production capacity of approximately 300 million units per year.

Moreover, Eagle also mentioned that it is well-positioned to participate in the fast-growing medical mask market.           

“Green Channel” facility status is anticipated to be granted imminently by the government of China.

Financial Performance FY2019:

  • The Company reported revenue of approximately $103 million, down by 7% on prior corresponding period, this is impacted by the economic downturn in China across retail markets and modifications to consumer habits and online competition.
  • The net profit after tax (NPAT) was nearly $8.5 million, down by 55% compared to pcp.
  • Eagle reported EBIT of ~$12.9 million, down by half compared to pcp. The reason for the decline is the high research & development, COGS, and marketing costs, higher depreciation and non-cash share-based payment expenditures.

Stock Information:

EHH stock closed the day’s trade at $0.145 on 25 March 2020, in line with its previous close. The Company has a market cap of ~$53.45 million and approximately 368.62 million outstanding shares. The 52-week low and high price were $0.086 and $0.345, respectively. The stock has delivered a positive return of 20.83% on year to date basis.

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


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