ASX-listed healthcare companies in focus

Highlights:

• The benchmark S&P/ASX 200 was up 1.50 points at 12:21 PM AEDT (12 October 2022).
• However, seven out of eleven significant sectors were buzzing in the red zone.
• The Health Care sector, at the same time, was 0.82% down.

The Australian stock market benchmark index S&P/ASX 200 is marginally in green today (12 October 2022). It was seen marking a gain of 1.50 points to 6646.50 points at 12:21 PM AEDT. In the last five trading sessions, the index has dropped 2.40%, and in one year, it has lost 8.64%.

On Wednesday, more sectors were trading in the red, although the index marked some gains. The financial sector registered the highest gains, as it rose 1.31%. The utilities sector marked the maximum loses, it was down 1.31% at 12:50 PM AEDT.

The ASX 200 Health Care (INDEXASX:XHJ) index was down 0.82%. The index had opened in the red and has been buzzing in red territory since morning. In the past five trading days, the index has lost 1684.40 points, and it has lost 3,015.60 points in one month. In one year, it has dropped 9.35%, and on a YTD basis, it has declined 12.54%.

This article primarily discusses the recent updates shared by ASX50 healthcare companies – ResMed Inc., Sonic Healthcare Limited, Ramsay Health Care Limited, Fisher & Paykel Healthcare Corporation Limited, and Cochlear Limited.

ResMed In (ASX:RMD)

ResMed offers cloud-connected medical devices that transform care for people with COPD, sleep apnoea, and other chronic diseases. The company operates across 140 countries.

Recently (11 August 2022), the company shared its quarterly results for financial year 2022 (FY22) through an ASX announcement, where it reported a 4% surge in revenue and a 6% increase in income from operations. The gross margin increased to 57.1%, and diluted earnings per share reached AU$1.33.

In FY22, the company marked a 12% rise in revenue and an 11% growth in income from operations. Diluted earnings per share increased to AU$5.30.

Mick Farrell, the CEO of ResMed, highlighted that during the final quarter of FY22 the company experienced continued adoption of the 100% cloud-connectable Airsense 11. After witnessing strong sales in the United States, the company launched the solution in new European countries.

Shares of ResMed was down 0.78% to AU$34.20 per share at 12:13 PM AEDT today.

Sonic Healthcare Limited (ASX:SHL)

Sonic is a provider of medical diagnostics specialising in primary care medical services, radiology, and laboratory medicine/pathology. The company operates in North America, Europe, and Australasia. Headquartered in Sydney, the company was listed on the ASX on 30 April 1987 and is currently trading with a market cap of AU$14.79 billion.

The company released its full-year results for FY22 through an ASX announcement dated 24 August 2022. Compared with the previous year, the revenue of Sonic increased by 7%, the EBITDA by 11%, net profit by 11%, earnings per share by 11%, and cash generated from operations by 9%.

Reportedly, the revenues and earnings were driven by acquisitions, base business growth, and a surge in Covid testing. Sonic shared that AU$628 million was invested in joint ventures and synergistic acquisitions during the year. Covid-related revenue surged by 13% in FY22.

Shares of Sonic were spotted 0.49% lower at AU$30.40 per share at 12:15 PM AEDT.

Image source: © Kurhan | Megapixl.com

Ramsay Health Care Limited (ASX:RHC)

Ramsay Health Care owns and operates a range of healthcare facilities across the United Kingdom, Malaysia, Indonesia, France, and Australia.

The company was making headlines recently as it ended takeover discussions with a consortium of financial advisers led by KKR. Reportedly, the consortium proposed to acquire 100% shares of Ramsay on 13 September 2022. After discussions, it was evident that the consortium was not in a position to provide any alternative proposal, and it resulted in mutual termination of the discussions.

Ramsay informed the market that it would share a business update in November 2022.

Share price of Ramsay was down 0.21% to AU$57.04 apiece at 12:15 PM AEDT today.

Fisher and Paykel Healthcare Corporation Limited (ASX:FPH)

Fisher and Paykel Healthcare is a designer, marketer, and manufacturer of medical devices and technologies that are used in chronic and acute respiratory surgery and the care and treatment of sleep apnoea. The therapies and products provided by Fisher and Paykel allow patients to be treated in a home setting rather than a hospital.

The company recently (1 September 2022) shared that it has inked a sales and purchase agreement to buy a 105 hectare site in Auckland for AU$275 million. The company mentioned that the agreement is conditional on Overseas Investment Office approval.

According to the company, the acquired land will be used to construct its second New Zealand campus, which will complement the current location at Highbrook development in Auckland.

As per the announcement, the new campus development will occur over a period of 20 to 30 years. The focus of the development will be core infrastructure and earthworks over the coming five years. The company also informed that the purchase will be funded through debt facilities and operating cash flow.

Fisher and Paykel shares were 0.12% up at AU$16.34 apiece at 12:15 PM AEDT.

Image source: © Skypixel | Megapixl.com

Cochlear Limited (ASX:COH)

Cochlear highlights that the company is a global leader in implantable hearing solutions (on its official website), claiming to have provided over 600,000 implantable devices to its customers.

Through an ASX announcement, Cochlear informed the market that its sales revenue grew by 10% and underlying net profit improved by 18%. Statutory net profit dropped 11% and total dividends per share increased by 18%.

The company has stated that it expects the underlying net profit to be in the range of AU$290-305 million in FY23. The company anticipates significant growth in sales revenue. In the announcement, Cochlear forecasts that trading conditions will improve progressively across the year.

Cochlear shares were trading 2.01% down at AU$189.94 apiece at 12:17 PM AEDT on 12 October 2022.