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Globally, markets seem to be on a roller coaster ride due to increasing uncertainty arising from COVID-19 pandemic. With every passing day, number of infected cases is growing; however, there are several good news too. Governments are coming up with financial support to minimise the impact, while several healthcare organisations and companies are boosting their research efforts towards developing a treatment for this virus.
Though several sectors and businesses are being severely hit by the impact, investors are expecting that few sectors like healthcare can save their wealth.
Do Read: COVID-19 Pandemic: An Economic Emergency to be Dealt With
In this article, we are discussing some of the ASX-listed healthcare sector companies along with their recent market updates.
Disclaimer - Please note that the below should be regarded as presentation of facts, not recommendation.
Cellmid Limited (ASX: CDY)
Cellmid Limited (ASX: CDY) is engaged in the development of products to treat various cancer and chronic inflammatory diseases.The Company, recently on 27 March 2020, with respect to its two-year growth strategy, gave a market update.
Market Update amid Coronavirus - The Company stated that sales of its consumer health products in Australia and Japan have experienced a moderate impact over the span of past few weeks. The Australian segment, which represents nearly 23% of sales historically, have performed well until the end of February. However, in the country, launch of products due for March 2020 were delayed. Consequently, sales would experience some impact from April onwards.
Moreover, the Japanese business representing 68% of its sales, is anticipated to deliver on budget for 2H FY20, with slightly increased export as well as lower domestic sales expectations.
Meanwhile, Cellmidhas been exploring new product lines that can bring additionalrevenues in the near term.
As of now, the Company has not witnessed any impact on its sales and businesses. However, considering the uncertainties arising from COVID-19, CDY has withdrawn its previous guidance for FY20.
Stock Information - The stock of CDY was trading at a price of $0.385, with a rise of 24.194% on 31 March 2020 (AEDT 03:02 PM). The stock has delivered returns of 40.91% and 31.91% during the last three months and six months, respectively.
ResApp Health Limited(ASX: RAP)
ResApp Health Limited (ASX: RAP) is in R&D (research & development) of digital healthcare solutions, targeted towards patients with respiratory disease.
New Agreement - RAP and Coviu, which is a leading telehealth platform of Australia, have recently wrapped up an initial integration of ResAppDx-EU into the latter’s platform. The Company added that the integration would enable clinicians who are using the platformto perform a remote respiratory assessment using clinically validated and Therapeutic Goods Administration (TGA) approved diagnostic test of ResApp.
Binding commercial terms sheet have been inked between the two companies and a per test fee have also been agreed forthe use of ResAppDx-EU on the telehealth platform. The per test fee received by ResApp is in the ambit of $5-10 per test. The non-exclusive licence would have an initial tenure of 2 years and may be extended by mutual agreement.
In another update, the Company announced that Mr Nathan Buzza has stepped down from his role as a Non-Executive Director on its board of directors, effective from 31March 2020.
Stock Information - The stock of RAPwas trading at a price of $0.190, declining by 7.317% on 31 March 2020 (AEDT 03:12 PM). The stock has delivered returns of -14.58% and -16.33% during the last three months and six months, respectively.
ECS Botanics Holdings Ltd(ASX: ECS)
ECS Botanics Holdings Ltd (ASX: ECS) is an early stage agribusiness and food company whose core focus is on industrial hemp. It officially got listed on ASX in 1986.
Hemp Harvest Program Commenced - The Company recently notified the market that its first major hemp harvest program has been commenced in Tasmania with the expectation of harvest being at full capacity in the upcoming weeks. ECS is not witnessing any supply chain issues because of COVID-19.
The Company has implemented non-essential cost-cutting measures in order to ensure the business remains in a strong cash position in 12 months’ time while maintaining focus on key business drivers to emerge in a stronger position. These steps have been undertaken due to the current share market turmoil as well as lack of visibility on how long COVID-19 related lockdowns may run.
Stock Information - The stock of ECSwas trading at a price of $0.028, up 21.739% on 31 March 2020 (AEDT 03:21 PM). The stock has delivered returns of -52.08% and -51.06% during the last three months and six months, respectively.
HeraMED Limited(ASX: HMD)
HeraMED Limited (ASX: HMD) is engaged in the development, manufacturing and distribution of foetal heartbeat monitors and other pregnancy-related solutions.
Strong Product Interest - The Company recently announced that it has received a significant increase in interest as well as demand for its in-home pregnancy monitoring products, namely, HeraCARE and HeraBEAT, driven by the global COVID-19 pandemic.
The Company’s in-home pregnancy management platform is believed to make a significant difference,as globally, healthcare systems are experiencing challenges in providing effective treatment to patients at this current period of pandemic.
Stock Information - The stock of HMD was trading at a price of $0.150, down 6.25% on 31 March 2020 (AEDT 03:24 PM). The Company has a market cap of $16.59 million.
Pro Medicus Limited(ASX: PME)
Medical imaging IT provider, Pro Medicus Limited (ASX: PME) has recently announced the commencement of a new on-market share buy-back, allowing PME to acquire up to 10% of the ordinary shares onissue during the last 12 months.
As part of the on-market share buy-for a period of 12 months announced on 2 April 2019, the Company, on 30 March 2020, announced buyback of 34,062 shares at a total consideration of $842,972.03.
First Half Revenue Up over 15% - During the six months ended 31December 2019, the Company inked two key contracts out of which one was a $9 million five-year contract with the Ohio State University, and another was a $6 million five-year deal with Nines Inc.
Revenue for the period stood at $29.3 million with a rise of 15.7% and net profit after tax amounted to $12.1 million, reflecting a rise of 32.7%. For 1H FY20, the company declared fully franked interim dividend amounting to 6 cents per share with a rise of 71.4%.
The cash balance of the Company witnessed a growth of more than 20% despite a bigger dividend, a share buy-back and increased tax payments.
Stock Information - The stock of PMEwas trading at a price of $19.560, up 0.051% on 31 March 2020 (AEDT 03:42 PM). The stock has delivered returns of -20.33% and -29.73% during the last three months and six months, respectively.
Mayne Pharma Group Limited(ASX: MYX)
Mayne Pharma Group Limited (ASX: MYX) is engaged in the development, manufacturing and marketing of branded and generic pharmaceutical products, globally.
Team Changes - The Company recently announced that Nick Freeman has resigned from the role of Chief Financial Officer (CFO) and Company Secretary. MYX has appointed Peter Paltoglou on the role of CFO till the time it appoints a new CFO in order to ensure continuity in the business.
Meanwhile, the Company has also appointed Laura Loftus as Company Secretary, effective from 26 March 2020, an experienced company lawyer with morethan 20 years of experience.
Mayne Pharma, which has a robust finance team, a strong balance sheet, record cash levels and robustunderlying liquidity, holds potential, considering demand for its three attractive business segments, namely specialty brands, generics and contract services.
Stock Information - The stock of MYXwas trading at a price of $0.307, down 6.97% on 31March 2020 (AEDT 03:43 PM). The stock has delivered returns of -28.26% and -36.54% during the last three months and six months, respectively.
