- With a growing demand for medical equipment and services in the present scenario, there is a significant opportunity to tap for healthcare companies.
- Starpharma Holdings launches its VivaGel® BV in central and eastern Europe.
- The National Pharmaceutical Services Association (NPSA) embraces the new government agreement to support the supply of sustainable medicine.
- After NPSA welcomed the new agreement, share prices of medicine wholesalers, Sigma Healthcare and API soared.
The healthcare sector is a significant and complex sector comprising a variety of companies engaged in manufacturing, developing, and selling of medical devices, drugs, and services. The healthcare system in Australia is one of the most robust ones around the world and has the latest technology and innovations at its disposal.
During these unprecedented times, market participants look for stocks that have the highest quality in the market as they are expected to weather the coronavirus storm and come out relatively unscathed. The Australian economy is on track to recover following the COVID-19 pandemic. Although the journey to recovery might be a long one, it creates an opportunity for the market participants to tap and boost their portfolio. At present, enhancing one’s portfolio by adding some healthcare stocks, considering the increasing demand for medical products and services due to the COVID-19-induced opportunities, might seem like an intelligent move.
In this article, we will discuss recent updates for three ASX-listed healthcare stocks - SPL, SIG and API.
Starpharma Launches VivaGel® BV in central and eastern Europe
Melbourne-headquartered biotech company Starpharma Holdings Limited (ASX:SPL) is a global leader in manufacturing therapeutic dendrimer formulations for life sciences, pharmaceuticals and other applications. The Company has two primary development programs: the VivaGel® portfolio and DEP® drug delivery.
SPL is working is focused on improving women health. The Company’s VivaGel® BV formulation is based on SPL7013 which is a proprietary dendrimer.
Starpharma Holdings Limited announced today that it had launched VivaGel® BV in Central and Eastern European region. The launch follows European launches in Germany, the United Kingdom, and some other European nations.
Starpharma has licensed Mundipharma for the sales and marketing of VivaGel® BV in Europe, Asia, CIS, Russia, the Middle East, Latin America, and Africa. Mundipharma anticipates launching VivaGel® BV in other European countries throughout 2020.
Notably, the launch of VivaGel® BV is also intended in other Mundipharma territories, including Asia. Moreover, regulatory events continue in several regions.
VivaGel® BV is now available as over the counter (OTC) medicine in Western and Eastern European nations, including the UK.
On 16 June 2020, SPL stock last traded at A$1.060, going up by 9.278%. The market capitalisation of Starpharma stood at A$361.39 million, with nearly 372.56 million shared trading on ASX. In the last three months, SPL stock has generated a return of 16.17%.
NPSA embraces new government agreement supporting the supply of sustainable medicine, Sigma Healthcare and API stock soared
Let us first shed some light on the new government agreement.
The National Pharmaceutical Services Association (NPSA) has welcomed increased Government funding for Australia’s network of medicine wholesalers which will provide ongoing certainty for the nation’s health infrastructure and medicine supply chain.
Effective 1 July 2020, the government has committed an additional A$92 million in funding through the Community Service Obligation. Moreover, the government also introduced a floor value to continue to support medicine supply via the wholesaler network over the next five years. The investment is essential to help offset years of funding erosion and ongoing Pharmaceutical Benefits Scheme reform and cost rises.
Wholesalers stock and distribute over 300 million medicines every year in Australia, providing a day-to-day delivery service to pharmacies in urban, rural as well as remote locations, generally within 24 hours of placing an order.
The new agreement recognises the critical role of wholesalers in the industry. Moreover, this agreement is also for maintaining high standards, supporting timely as well as equitable access to medicines.
The National Pharmaceutical Services Association is the industry body for wholesalers of medicine including API, Sigma, National Pharmacies and Symbion, that operate nearly 34 national distribution centres and employ a workforce of over 3.4k people in their operations.
Sigma Healthcare’s Share Price Rose by 5.1%
ASX-listed health care sector company Sigma Healthcare Limited (ASX:SIG) is into providing a variety of quality and affordable private & exclusive label products and is a leading network of independent as well as franchised pharmacy stores such as Amcal, Chemist King, Discount Drug Stores (DDS), Guardian, PharmaSave, and more.
Sigma Healthcare stated that industry funding agreement has now been reached with the government and the Department of Health concerning industry funding for the distribution of Pharmaceutical Benefits Scheme medicines for the next five years.
On 16 June 2020, SIG stock last traded at A$0.615, going up by 5.128%. The market capitalisation of Sigma Healthcare stood at A$619.72 million, with nearly 1.06 billion shared trading on ASX. In the last three months, SIG shares have generated a return of 14.71%.
Share Price of Australia Pharmaceutical Industries Climbed by 5.4%
ASX-listed leading pharmaceutical distributor Australian Pharmaceutical Industries Limited (ASX:API) is a pharmaceutical support player that offers wholesale distribution of pharmaceuticals as well as other related products to pharmacies, doctors as well as hospitals. API also provides various retail support services and financial services to pharmacies along with distributing dental as well as related products to dental practices.
Australian Pharmaceutical Industries is the parent company of Priceline Pharmacy, Pharmacist Advice and Soul Pattinson Chemist.
API stated today that it had embraced the increased Government funding for a network of medicine wholesalers across Australia. API is one of the four associates of the National Pharmaceutical Services Association (NPSA) that will gain profit from this commitment of additional funding for the upcoming five years, commencing 1 July 2020.
Moreover, the funding shall fortify critical national infrastructure as well as ensure equality of access to vital medicines for all Australians.
On 16 June 2020, API stock last traded at A$1.170, going up by 5.405%. The market capitalisation of API stood at A$546.85 million, with nearly 492.66 million shared trading on ASX. In the last three months, API shares have generated a return of 2.30%.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
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