Healthcare Space: Lens on ASX-listed Healius, Telix and Opthea

  • Jul 28, 2020 AEST
  • Team Kalkine
Healthcare Space: Lens on ASX-listed Healius, Telix and Opthea

Summary

  • Healius anticipates underlying EBIT in the range A$102-104 million and underlying NPAT from continuing operations between A$54 and A$56 million for FY2020.
  • The pathology division of Healius has seen a rapid rise in COVID-19 tests, and non-COVID-19 tests with the reopening of the economy; EBIT contribution anticipated to increase significantly in FY21.
  • During June quarter, Telix Pharmaceutical delivered nearly 2k individual patient doses prepared from TLX591-CDx prostate cancer imaging kits.
  • Telix acquired a licensed radiopharmaceutical production facility in Belgium from German Company EZAG in June quarter.
  • Opthea to host Key Opinion Leader Symposium on Wet AMD & DME on 6 August 2020.

With a world-class healthcare system in place and continuous efforts from the government and medical experts, Australia has managed to curb the spread of SARS-CoV-2 outbreak. However, with the rising number of cases in Victoria, COVID-19 pandemic remains the main concern for the country’s healthcare system.

COVID-19 has put pressure on the ability of the healthcare sector to deliver services in clinics and hospitals effectively. While there is still ambiguity about how this global medical emergency will unfold, the consequences for the healthcare system in the country might be long-felt.  

In this article, we will discuss three ASX-listed healthcare stocks- HLS, TLX, OPT

Healius Limited (ASX:HLS)

NSW-headquartered Healius Limited has a broad healthcare network of multi-disciplinary medical centres, diagnostic imaging centres and pathology laboratories. HLS provides topnotch facilities to the general practitioners (GPs), radiologists, and other health care specialists to provide quality care to the patients. The Company has 2,318 pathologies, 95 medical centres & day hospitals and 145 imaging centres.

On 27 July 2020, Healius revealed that the Company anticipate reporting underlying EBIT of approximately A$102-A$104 million and underlying NPAT from continuing operations in the range A$54-A$56 million for FY2020.

FY20 unaudited data from continuing operations is as follows:

Source: ASx Announcements

Pathology division has experienced trading recovery

Healius’ pathology division has experienced a good recovery in trading. Testing for COVID-19 has quickly escalated due to a variety of state-based testing initiatives. The Company is currently undertaking up to 16k COVID-19 tests per day as well as undertaking approximately 50% of private COVID-19 testing in Victoria.

Although uncertainty persists around the extent & timing of the COVID-19 turmoil and the consequent effect on trading, Pathology division’s EBIT contribution is anticipated to increase significantly in the fiscal year 2021.

Strong cash generation after selling Healius Primary Care

With the sale of Healius Primary Care, Healius will have balance sheet flexibility and a decent level of available liquidity collectively with a substantially lowered need for ‘business as usual’ capital spending from its continuing operations.

Given the current dynamic situation in the country due to COVID-19 outbreaks and the consequent impact, both positive and negative, on volumes across the Group, Healius anticipates updating the market on its trading regularly throughout the fiscal year 2021.

As a specialist diagnostics company with a rising day hospitals business, Healius is well-positioned to leverage its established market positions and scalable businesses with a clear pathway to growth.

Dr Malcolm Parmenter, CEO and Managing Director of Healius, stated:

Stock Information: On 28 July 2020, HLS quoted at A$3.200, down by 1.538% (at AEST 03:38 PM). The market cap of the Company stood at approximately A$2.02 billion.

Telix Pharmaceuticals Limited (ASX:TLX)

Melbourne-headquartered clinical-stage healthcare Company Telix Pharmaceuticals Limited is engaged in developing diagnostic & therapeutic products by using MTR (Molecularly Targeted Radiation) technology. Telix has its operations around the world in the US, Japan, and Belgium. The Company is into the development of clinical-stage oncology treatment portfolio for unmet medical needs in prostate, kidney, and brain carcinoma.

According to an ASX announcement dated 27 July 2020, Telix disclosed its activities report including Appendix 4C for the June quarter (ending 30 June 2020) and sales update for second quarter 2020 for its prostate cancer imaging product, the TLX591- CDx kit. This kit is for the preparation of 68Ga-PSMA-11 injection.

Highlights from the financial front:

  • Telix Pharmaceuticals held cash reserves of A$24.38 million by quarter-end.
  • The operating expenditure was approximately A$6.90 million, down from A$14.48 million in the prior quarter, indicating lower R&D, clinical trial, drug product manufacturing and staff expenses.
  • R&D tax refund worth A$11.4 million received after the end of 2Q 2020, resulting in funds sufficient for at least five further quarters of operations (based on spending in June quarter).
  • Telix does not foresee any need for additional public market capital for the remaining CY2020.

Commercialization activities-

  • In May 2020, Telix revealed a commercial distribution agreement with Florida (US) based Pharmalogic Holdings Corp for providing nuclear pharmacy & logistics services to support TLX591-CDx.
  • In April 2020, the Company announced a definitive commercial distribution deal with the US-based Cardinal Health to offer radio-pharmacy as well as logistics services to assist prostate cancer imaging product of Telix ‘TLX591-CDx’.
  • Also, in the quarter, the Company completed the acquisition of a licensed radiopharmaceutical production facility in Belgium from German Company EZAG (Eckert & Ziegler Strahlen und Medizintechnik AG).

Quarterly Sales of TLX591-CDx / illumet® Kit

During the quarter, Telix delivered nearly 2k individual patient doses prepared from TLX591-CDx prostate cancer imaging kits. Moreover, the Company got A$0.95 million in cash from kit sales for the quarter, down ~16% on the Q1 while the pricing of the kit stayed stable during the period.

Source:ASX Announcements

Telix CEO Dr. Chris Behrenbruch said-

Stock Information: On 28 July 2020, TLX quoted at A$1.310, up by 0.769% (at AEST 03:38 PM). The market cap of the Company stood at approximately A$330.13 million.

Opthea Limited (ASX:OPT)

A clinical-stage healthcare player Opthea Limited is engaged in developing treatments for ophthalmic diseases. The Company has exclusive rights for significant worldwide intellectual property (IP) portfolio around VEGF-C, VEGF-D and VEGFR-3. The IP of Opthea is held within Vegenics Pty Ltd wholly-owned subsidiary of the Company.

Opthea to host Key Opinion Leader Symposium on Wet AMD & DME

On 28 July 2020, Opthea revealed that the Company would host a KOL symposium with a live Q&A for shareholders, investors & analysts focused on OPT-302. OPT-302 is Opthea’s first-in-class biologic inhibitor of VEGF-C/D, development for the treatment of wet AMD and DME (diabetic macular edema).

ALSO READ: Healthcare Corner: Lens on CSL and Opthea

The Company notified that the event would be held on 6 August 2020 at 9:00 AM AEST.

Opthea Presented New Data from Phase 1b/2a DME Trial at ASRS

On 27 July 2020, Opthea disclosed that new data from the Phase 1b/2a clinical trial of OPT-302 in DME had been presented at the 2020 Annual Meeting of the American Society of Retina Specialists (ASRS).

The Company reported favourable visual function as well as anatomical outcomes after OPT-302 combination therapy in patients having diabetic macular edema with continual disease despite previous treatment with the SoC anti-VEGF-A therapy.

Moreover, Opthea notified that the Phase 2a DME trial is in progress with additional analyses & the results for long-term safety and treatment durability to be completed in the H2 CY2020.

Addition to the undergoing Phase 2a trial, the Company continues to start planning for its Phase 3 trial in wet AMD, together with regulatory engagement in Europe and the US. The Company is also planning to progress manufacturing of OPT-302 for Phase 3 clinical trials.

CEO and Managing Director, Opthea Limited Dr Megan Baldwin commented-

Stock Information: On 28 July 2020, OPT quoted at A$2.550, down by 2.762% (at AEST 03:38 PM). The market cap of the Company stood at approximately A$705.19 million.

 


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