A Glimpse At Three Healthcare Stocks: OVN, ANP & BIT

In this piece of writing, we would discuss the three stocks from healthcare sector traded on the ASX. The Australian benchmark index S&P/ASX 200 closed at 6793.4, down by 24.60 points or 0.4% from the previous close, on 26 July 2019.

Oventus Medical Ltd (ASX: OVN)

On 26 July 2019, Oventus Medical announced the commitments from institutional and sophisticated investors for the two tranche Placement of ordinary shares in Oventus. Accordingly, it is expected that the two tranche placement would raise approximately $7 million before costs. Also, a fully underwritten offer of 1 for 20 pro-rata non-renounceable entitlement offer would be provided to the eligible shareholders in Australia & New Zealand to raise ~$2.3 million.

Lab in Lab (Source: Investor Presentation, July 2019)

As per the release, the fresh capital would support the balance sheet and enable the company to advance the roll out of O₂Vent^TM line of products along with flagship device, the O₂Vent^TM Optima and the ExVent^TM valve accessory. Also, it would allow the company to adopt ‘lab in lab’ business model across sleep and dental channels. Besides, the capital raising follows the material agreements with sleep groups in Canada and the US, synergistic agreements with VirtuOx, Carestream Dental and Lyon Dental; these material agreements would underpin the transition of new ‘lab to lab’ business model.

Two Tranche Placement

Reportedly, the placement was collectively led by Bell Potter Securities Limited and Patersons Securities Limited. Also, the tranche 1 placement include 15,757,491 ordinary shares, issued under the Listing Rule 7.1 placement capacity, at an issue price of A$0.38 per tranche 1 placement share to raise ~ A$5,987,846.58 excluding costs. Besides, the tranche 2 placement include 2,747,922 ordinary shares, subject to approval under the Listing Rule 7.1 placement capacity, at an issue price of A$0.38 per tranche 2 share to raise ~ A$1,044,210.36 excluding costs.

Further, the tranche 1 placement shares are proposed to be issued on 1 August 2019 after the receipt of clear funds. Meanwhile, the tranche 2 placement shares are expected to be issued by 17 September 2019, following the approval under ASX Listing Rule 7.1 is received.

The Entitlement Offer

Oventus has also offered an opportunity for eligible shareholders with registered shareholders in Australia and New Zealand to subscribe for Oventus shares under a fully underwritten 1 for 20 pro-rata non-renounceable Entitlement offer at a price of $0.38 per Oventus share to raise ~2.3 million, the same price as for the placement.

Reportedly, the Entitlement offer would be consequential to the issue of approximately 6 million fully paid ordinary shares. Also, the offer is fully underwritten by Bell Potter Securities Limited and Patersons Securities Limited, subject to the Offer Booklet and the filling of 708AAA cleansing notice with ASX. Besides, the offer price equates to discount of ~18.3% over the share price of $0.46 as on 23 July 2019, and the participation in the offer is open to all eligible shareholders on the Record date at 7:00 PM (Melbourne Time) on 5 August 2019.

On 26 July 2019. OVN’s stock last traded at A$0.56, up by 20.43% from the previous close.

Antisense Therapeutics Limited (ASX: ANP)

In an announcement dated 26 July 2019, Antisense confirmed that five patients completed dosing in Phase II Clinical trial of ATL1102 Duchenne Muscular Dystrophy (DMD), and the company is left with four patients in various stages of the study. Also, the company has not faced any Serious Adverse Events (SAEs) to date, and the Data Safety Monitoring Board have continuously reviewed the safety of the trial while raising no concerns each time.

Reportedly, the dosing of all the patients is scheduled to complete by November 2019. Also, the neuromuscular centre of Royal Children’s Hospital has been a centre for conducting the trial of the open label six-month dosing trial of ATL1102 in nine non-ambulant patients with DMD aged between 10 to 18 years. Besides, the objective of the company is to develop ATL1102 as a novel treatment that improve the inflammation, which is responsible for muscle fibre damage in DMD patients.

ATL1102 for DMD (Source: Company’s Conference Presentation, June 2019)

Further, the existing treatment includes corticosteroids, which is associated with serious side effects if used for a continued period as required in DMD, and there are limited options available for the anti-inflammatory drugs in clinical development for DMD.

Antisense Therapeutics expects to release the results of the trial following the completion of dosing, as it is an open label study, which provides an option for non-statistical read outs on preliminary data before the completion of dosing in all patients. Admittedly, this requires a sufficient number of patients to complete the 24 weeks of dosing along with all patients passing the 12 week closing mark.

On 26 July 2019, ANP last traded at A$0.049, up by 8.889% from the previous close.

Biotron Limited (ASX: BIT)

On 11 July 2019, Biotron Limited released a letter to the shareholders. Accordingly, it was asserted that the company had a successful first half for the year 2019, underpinned by the outcome of the BIT225?009 phase 2 HIV?1 clinical trial. Also, the company continues to focus on progressing to achieve commercialisation for its core antiviral programs.

Pipeline (Source: Company’s Presentation at BIO 2019, June 2019)

Reportedly, the company has been developing BIT225 for several years, backed by the data to support the effects of HIV-1 macrophage cell, and it was the first time that BIT225 was tested in a HIV infected person over an extended 12 weeks period. Besides, the trial data depicted that BIT225 induces a more efficient immune response, which has encouraged the company from the outcome of the 009 HIV-1 phase 2 trial. Further, the effect is additional to the targeting of the virus in macrophage cells by BIT225, and these cells are key reservoirs of infection. Importantly, both of these effects of BIT225 depicts the potential to eliminate the HIV?1 virus.

As per the release, the company has a phase 2 drug with data generated in Humans, and which targets HIV-1 – the reservoirs of virus infection that are not cleared by current anti-HIV 1 drug. Also, the company is focusing on the Hepatitis B virus (HBV) and has developed a portfolio of small molecule drugs that effectively work against HBV in cell cultures. Besides, it is also performing preliminary safety studies on the two promising compounds.

The letter concluded with the fact that the development of drugs is not a fast process, and strict regulations in place denotes that there are no shortcuts. The company’s core antiviral treatment has key elements with relationships in pharmaceutical companies active in a similar space. Besides, the company appreciates the patience of shareholders while it aims to achieve long-awaited results.

On 26 July 2019, BIT’s stock last traded at A$0.1, down by 9.091% from the previous close.

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