ASX healthcare stocks likely to cash in on COVID-19 tailwinds

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ASX healthcare stocks likely to cash in on COVID-19 tailwinds

Healthcare stocks likely to benefit from COVID-19
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  • Some healthcare stocks are in a good position to rake in revenue from their COVID-19 related research and findings in the upcoming quarter.
  • ACL, MXC, DXB, and BIT have some upbeat market updates related to COVID-19 research, which have brought them on investors’ radar.
  • ACL is performing steadily with a good return of 25% since last month.

The healthcare sector has progressed at a faster rate since the onset of the COVID-19 pandemic. Due to increasing demand for products and services, research and clinical trials are proceeding at a rapid speed and have gained traction as corona and its variants continue to impact populations across regions. This has placed certain healthcare stocks in a good position for growth and they are expected to perform well in the upcoming quarter.

In this piece, we will have a look at four healthcare stocks and how the companies’ research progress might jack up their revenues amid rising cases of COVID-19.

Australian Clinical Labs Limited (ASX: ACL)

ACL is based in Australia and specialises in providing pathology services. Recently, the firm announced an upgrade to its expectations for 1H FY22 total revenue and net profit after tax (NPAT). ACL is anticipating its total revenue to be between AU$497.3 million and AU$517.2 million, while its NPAT is pegged to be in the range of AU$116.3-AU$128.0 million.

ACL’s revised 1H FY22 total revenue expectation comes as a result of constant hike in demand for COVID-19 testing, notably in Victoria and NSW, as well as a resilient non-COVID-19 business with continued revenue growth.

As of 12 January, ACL is operating with a market capitalisation of AU$1.17 billion. Its share price has gained approximately 25% in the last month with steady growth.

Do read: Australian Clinical Labs (ASX:ACL) upgrades its expectations for 1H FY22

MGC Pharmaceuticals Ltd (ASX: MXC)

MGC Pharmaceuticals is a Europe-based bio-pharma company involved in the production and development of phytomedicines.

Last week (on 6 January 2022), MXC secured approval for importing ArtemicCTM Rescue to India. ArtemicCTM is MGC Pharma’s proprietary nutraceutical product which has proven itself in alleviating symptoms associated with COVID-19 in phase II clinical trial. This approval is likely to further widen ArtemiCTM Rescue's global presence for sale and distribution.

MXC operates with a market capitalisation of AU$121.43million and its share price is up by approximately 18% since last month.

Do read: MGC Pharma (ASX:MXC) begins clinical study on long covid syndrome patients

Dimerix Limited (ASX: DXB)

Dimerix Limited is a clinical-stage biopharmaceutical company based in Australia.

In December 2021, Dimerix received an additional AU$100,000 funding from the Australian government to further the commercialisation of Dimerix DMX-200 for COVID-19 patients. Dimerix was previously awarded funding worth AU$1 million from a competitive BTB program. Dimerix’s existing clinical drug candidate, DMX-200, was selected for inclusion in the global study for patients with respiratory complications associated with COVID-19. DMX-200 has also reached phase 3 study in India.

DXB operates with a market capitalisation of AU$89.84 million and its share price is up by around 16% since last month.

Also read: Dimerix (ASX:DXB) advances COVID-19 Phase 3 study, enrols multiple patients

Biotron Limited (ASX: BIT)

BIT specialises in conducting clinical trials, research, and commercialisation of several anti-viral drugs developed from biomedical projects.

In November 2021, BIT marked significant results from one of its drugs, BIT225, as it was able to significantly reduce viral load in the lungs and blood of animals challenged with SARS-CoV-2. Further, in December 2021, the company announced that its Phase 2 HIV-1 trial with its lead antiviral drug BIT225 had been extended to include a second Australian site.

BIT operates with a market capitalisation of AU$61.06 million and its stock price has gained approximately 5% since last month.

Also read: Biotron to Present Latest Clinical Trial on HIV-1 Data at CROI


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