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A lot of innovation in the healthcare industry arises from the medical technologies and pharmaceuticals (MTP) sector with data-driven insights providing platforms for innovative and efficient MTP solutions, thereby lowering the expenses that are associated with their integration into the healthcare system.
Though Australian medical device, biotech and pharmaceutical industries have different operations, they are closely related as they have strong inter-dependencies and flow of ideas among medical research organisations and local health care system.
The medical technologies and pharmaceuticals (MTP) sector is considered to involve participants that are involved in the research & development, clinical testing, funding, regulation and commercialisation of services and products that make a therapeutic claim and are regulated by the TGA (Therapeutic Good Act).
In this article, we will discuss how these four ASX-listed healthcare players are performing amid COVID-19 - NAN, RMD, PNV and OSP.
ASX-listed leader in infection prevention solutions, Nanosonics Limited is engaged in developing unique automated high-level disinfection devices and is an innovator in offering high-level disinfection devices for ultrasound probes.
The unique, automated trophon® EPR high-level disinfection device of Nanosonics is a comprehensive solution for reducing the spread of healthcare acquired infections (HAI) by lessening the infection among patients.
Business update in the wake of current COVID-19 situation-
In the third quarter of FY20, unaudited sales were up significantly on the same period a year ago, indicating continued underlying growth momentum for the business and a growing awareness and understanding of the ultrasound probe decontamination importance.
Consumables sales up to the end of third quarter are in line with the pre-COVID-19 expectations of the Company. And, in the fourth quarter of the financial year 2020, there is uncertainty regarding the COVID-19 impact on consumables sales at this stage.
It is anticipated that the timeline for adoption of planned new capital equipment may be extended by some hospital departments, consequently leading to lower growth in the installed base compared with expectations for the remainder of FY20.
Moreover, the Company mentioned that the supply chain is being closely managed and is presently well positioned to meet up demand from customers with increased inventory of raw materials and finished goods for capital equipment and consumables.
Currently, NAN is benefiting from a relatively stronger US dollar, and at this stage, the impact of coronavirus pandemic on revenue and profit for the fourth quarter of the fiscal year 2020 is not certain.
It is noteworthy that the Company has a strong balance sheet with cash reserves of approximately $82.0 million, as of 31 December 2019.
On 3 April 2020, NAN stock settled the day’s trade at $5.800, down by 5.997%, with a market cap of nearly $1.85 billion.
ResMed Inc (ASX:RMD)
A medical device and software company, ResMed Inc is into developing superior-quality medical devices to provide a better and improved life to individuals experiencing sleep apnoea, chronic obstructive pulmonary disease (COPD), and other chronic diseases. The outside hospital software platform of ResMed assists healthcare service providers in catering to patients.
Increased Demand for ResMed’s Ventilators amid COVID-19
As per a company press release, ResMed stands with the world in this challenging period due to the COVID-19 pandemic and is prepared to help in lessening its impact as well as assisting individuals to breathe while their immune system fights this deadly virus.
Further, the Company revealed that over 7.5k RMD employees are working in more than 140 countries to support during this situation.
The Company informed that requirement of its ventilators is higher than usual this time, especially from profoundly affected COVID-19 countries; however, RMD highlighted that new patient diagnoses for sleep apnoea might decrease as hospitals emphasis on the treatment of infected persons.
It is noteworthy that ResMed is working with governments, hospitals, physicians, health authorities and patients across the globe to assess their requirements, and to provide the ventilation therapy which is essential for the treatment of respiratory complications of coronavirus-affected individuals.
The Company is working to increase the availability of ventilators and other respiratory support devices for infected individuals who require them most. Moreover, ResMed is considering doubling or tripling the ventilator production as well as boost the production of ventilation masks by 10 times.
RMD stock closed the day’s trade at $23.980, up by 2.086%, on 3 April 2020, with the market capitalisation at nearly $33.98 billion.
PolyNovo Limited (ASX:PNV)
ASX-listed healthcare sector player delivering dermal regeneration solutions (NovoSorb BTM), PolyNovo Limited, designs, develops and manufactures NovoSorb BTM using its patented NovoSorb biodegradable polymer technology, in addition to providing solutions for breast sling, hernia, and orthopaedic applications.
Pause in Trading
Dated 3 April 2020, PolyNovo informed the market that there would be a temporary pause in the trading of its securities, pending a further announcement.
In requesting the trading halt, PolyNovo provided the following information-
- The trading halt is requested in respect of finalising an announcement on clinical study results, trading update and funding.
NovoSorb® Biodegradable Temporizing Matrix (BTM) Feasibility Study Results
PolyNovo unveiled the completion of its NovoSorb® BTM feasibility study (CP-002) with results to be submitted to the US Food and Drugs Administration (FDA) in April 2020 along with the Company’s Pivotal IDE package.
The feasibility study assessed the effectiveness and safety of the NovoSorb® BTM for the treatment of full thickness burn injuries.
The co-primary effectiveness endpoints were-
- After integration as well as at the time of sealing membrane removal, BTM ‘take’ rate assessed;
- After application, split-thickness skin graft ‘take’ rate at seven-ten days.
Moreover, the Company mentioned that data analysis for this study has been completed and will be submitted for review by the US Food and Drug Administration (FDA) as part of the approval for IDE for conducting a more extensive pivotal research of NovoSorb® BTM.
The stock of PNV last traded at $1.675 on 2 April 2020, with a market cap of nearly $1.11 billion.
A medical device technology company, Osprey Medical Inc. is engaged in the development of heart imaging procedures safer for patients with inadequate kidney function. The Company’s proprietary dye reduction and monitoring technologies are intended to assist physicians minimise usage of dye as well as monitor the dose of dye in real time throughout the procedure.
Capital raising and trading update
On 3 April 2020, Osprey Medical provided a capital raising and trading update, disclosing a three for one renounceable entitlement offer at an issue price of $0.012 per CHESS Depositary Interest to raise a maximum amount of $15.5 million.
The Company has entered into a non-binding term sheet with GE Healthcare Limited pursuant to which both the companies have agreed to negotiate in good faith toward the execution of an exclusive distribution agreement for four years. Under the deal, GE Healthcare will be able to commercialise Osprey’s product portfolio in the Middle East, Africa, Turkey, Europe, Russia, Africa and Central Asia.
The Company also disclosed that it is actively monitoring and implementing mitigation strategies. All these efforts are towards reducing the COVID-19 impacts on business continuity and optimising numerous key aspects relating to its products that support the continued use of DyeVertTM, which decreases contrast while retaining the quality of the picture in a model (self-adjusting easy-to-use) that observes usage of dye.
Successful commercialisation in the United States
Commercialisation of DyeVertTM Plus System has demonstrated positive momentum throughout the year with a unit sales growth of 38% as compared to 2019 sales.
OSP stock closed the day’s trade at $0.014, down by 6.667%, on 3 April 2020, with the market capitalisation at nearly $6.48 million.
