Why These Two Healthcare Stocks Spiked Up In Last 5 Trading Days – HMD And KZA?

  • Jan 17, 2019 AEDT
  • Team Kalkine
Why These Two Healthcare Stocks Spiked Up In Last 5 Trading Days – HMD And KZA?

HeraMED Limited (ASX: HMD)

HeraMED Limited (ASX: HMD) is a technology-driven healthcare company which provides innovative pregnancy monitoring solutions to its customers. In December 2018, the company was listed on ASX after the successful completion of its over-subscribed $6 million IPO. The funds from the IPO will be used in the commercialization of the company’s proprietary product HeraBEAT device which recently received TGA (Therapeutic Goods Administration) approval. 

On January 14, 2018, the company signed a distribution deal with a leading distributor of baby and toddler product, Dale Group International. Under this deal, Dale Group International will distribute a minimum of 9,000 HeraBEAT devices over the first three years. Through this distribution deal, the company has taken a significant step in the expansion of its distribution network across countries. This helped the stock spike up in the last few trading days while it has been flat as at January 17, 2019.

Earlier the company had signed another distribution deal with TEVA, which will be responsible for funding sales and marketing initiatives in Israel. Through this deal, the company is expecting to earn more than $2 million over the first three years.

In half-year result to 30 June 2018, the company reported a gross loss of $4,000 and an operating loss of $582,000. The total comprehensive loss as at 30 June 2018 was $599K.

HeraMED is soon going to launch its comprehensive B2C platform which will include a designated e-commerce website. The company is building this platform to support cross-channel, multi-language, and multi-country content.

In the last one month, the share price of the company witnessed a fall of 5.26% as on 16 January 2019.  HMD’s shares last traded at $0.180 with a market capitalization of $17.25 million as on 17 January 2019. However, the group is expected to benefit from the presence in a fast growing healthcare space.

 Kazia Therapeutics Limited (ASX: KZA)

Australian oncology-focused biotechnology company, Kazia Therapeutics Limited (ASX: KZA) recently received an R&D cash rebate of $2.2 million under the R&D Tax Incentive Program. The funds received from this cash rebate will be invested in the company’s two clinical programs.

Currently, the company has four ongoing clinical trials across two novel programs namely GDC-0084 and Cantrixil. The company’s lead program, GDC-0084, is being developed to treat glioblastoma multiforme. Glioblastoma is an aggressive form of primary brain cancer which is most common in people who above 60. Every year around 133,000 cases of Glioblastoma Multiforme are reported, and as per the company’s report, glioblastoma is having an Indicative Market Opportunity of more than US$1 billion.

Current chemotherapy with temozolomide measures is ineffective in around 65 percent of GBM cases. Under the phase II human trials of GDC-0084, it was confirmed that GDC-0084 is unique as it is able to cross the blood-brain barrier and it appears generally safe and well-tolerated thus far.

Kazia’s another program Cantrixil is focusing on the treatment of Ovarian Cancer, and it has already completed the Part B of its phase 1 study. The company has progressed Cantrixil phase 1 study into Part B with data expected in 2019.

In the past six months, the share price Kazia Therapeutics decreased by 17.02 percent as on 16 January 2019. KZA’s shares last traded at $0.390 with a market capitalization $24.25 million as on 17 January 2019 (AEST 12:52 PM) and the stock has been up by 13% in last five trading days.


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