Why Did the Share Price of Global Health and eSense-Lab Rise ~20%?

  • Jul 07, 2020 AEST
  • Team Kalkine
Why Did the Share Price of Global Health and eSense-Lab Rise ~20%?


  • While the benchmark index ended almost flat, two healthcare small cap stocks ended substantially higher.
  • Australian healthcare software provider Global Health Limited signed a 3-year contract with Peninsula Health. Post the announcement the stock skyrocketed and closed an impressive 26.19% higher.
  • eSense-Lab Limited announced a sales agency deal with US-based Blue Science for its terpenes-based sanitiser products.
  • With this agreement, Blue Science will offer several advantages to eSense, comprising a lucrative entry point in the US market via a proven supply chain network. The stock soared 20%.

The benchmark index, S&P/ASX 200, ended almost flat with a marginal decline of 0.03%, impacted significantly by the impending NSW-Victoria border closure. However, it was not all gloomy with two healthcare small cap players performing exceptionally well on the market on the back of their respective announcements.

COVID-19 has created significant opportunities for the healthcare industry, as many of the big pharmaceutical and biotech companies have joined the race to find out a safe & effective vaccine or treatment for this deadly viral infection. Meanwhile, it has also created opportunities for companies that are involved in providing preventive measures to avoid or slow the infection such as digital service providers and manufacturers of protective items including sanitisers, mask, PPE, and gloves, among others. 

Due to COVID-19 pandemic, the adoption of telehealth has accelerated as healthcare service providers were forced to operate online to reduce the risk of interacting with infected patients.

HAVE YOU READ: Telemedicine: A Game-Changer to Combat COVID-19

With this backdrop, let us zoom lens on two ASX-listed healthcare small cap stocks which are performing well amid the present scenario - GLH and ESE.

Global Health Signs Contract with Peninsula Health for Community Health, Stock Soared 26%

Australian healthcare software provider Global Health Limited (ASX:GLH) disclosed that the Company made a noteworthy inroad into Victoria’s community health sector by signing a 3-year contract with Peninsula Health, with the services and licensing revenue for the first year totalling approximately A$725,000.

With this contract, the number of users will increase on the MasterCare platform of Global Health. Besides, it will have MasterCare incorporate with DXC Technology’s i.PM Patient Administration System along with Cerner Corporation's Clinical Applications.

The MasterCare platform of Global Health will enable Peninsula Health to encounter the key reporting requirements for the National Disability Insurance Scheme (NDIS), Home & Community Care, Community Home Support Program, Victorian Alcohol & Drug Collection (VADC) and Victorian Integrated Non-Admitted Health (VINAH) programs, and also provide support for their Allied, Community and Mental Health users.

The MasterCare platform can be used for planning, claiming, billing, or referral management. The platform has a complete set of clinical elements adding significant value to all aspects of health services.

Moreover, the Company disclosed that it is continually investing in the MasterCare platform to ascertain that its functionality continues at the front of the Victorian Community Health landscape. This comprises new MasterCare+ platform development that is set to be the spark in attaining the vision of Global Health.

About Global Health Limited

ASX-listed Company Global Health Limited is a prominent provider of digital health solutions to the Australasian Healthcare market. The Company streamline the delivery of healthcare services and provide better health outcomes across various health industries, comprising acute and community settings.

Global Health offers a range of solutions for providing help to health businesses to be more effective and excellent care to patients. These solutions include electronic medical records (EMR), practice management systems and patient administration systems, clinical records, patient engagement platforms as well as consumer health records.

Stock Performance: On 7 July 2020, GLH stock ended at A$0.265, zooming 26.19% compared to its previous close. With nearly 42.1 million shares trading on ASX, the market capitalisation of the Company stood at A$8.84 million. In the last three months, the stock has generated an impressive return of 82.61%.

HAVE YOU READ: Virtual Care Technology Amidst Global Virus Crisis: Emerging Trends

eSense-Lab Limited entered into Exclusive Sales Agency Agreement with Blue Science for the US market

On 7 July 2020, eSense-Lab Limited (ASX:ESE) disclosed that it had signed and appointed a US-based distributor for its terpenes based sanitiser products. The Company stated that it has entered into an exclusive sales agency agreement with Blue Science Solutions LLC which marks the start of its expansion plans into the most extensive consumer base in the world for its future terpenes based sanitiser products into the US.

Blue Science has decided to lowest sales commitments for maintaining the exclusivity of nearly A$3 million in the first year of the contract and, assuming the deal is renewed after the initial 12-month term, for a combined total of A$10 million of products via its network for the first five years of the agreement.

Blue Science is an exclusive licensee & applicant of numerous patents for products used in sanitisation and disinfection for industries regulated by the EPA and FDA. The Company will bring immense knowledge for product development for eSense in the future.

Blue Science has informed eSense that it aims to take advantage of its North American market experience for identifying appropriate sales along with distribution channels. The Company will also act as the exclusive local representative for the products in the United States.

With this agreement, Blue Science will provide eSense several benefits, comprising an entry point (cost-effective) in the US market through a recognized supply chain network, and a logistically-feasible solution for entry of terpenes-based products of eSense into the largest consumer networks around the world.

HAVE YOU READ: Healthcare minnow eSense signs two JV Agreements

About eSense-Lab Limited

Israel-headquartered life sciences player eSense-Lab Ltd is producing virtual plant-based formulations for both medicinal and recreational usage. eSense combines mRNA expression, phytochemical characterisation, genetics, along with its distinctive formulations for creating extensive models of high-value plants.

Stock Performance: On 7 July 2020, ESE stock last quoted at A$0.024, a substantial jump of 20%. The Company’s market capitalisation stood at ~A$10.2 million, with ~510.04 million shares on ASX.  ESE stock has delivered an outstanding return of 100% in the previous three months and an impressive return of ~54% in the last six months.


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