How are these ASX-listed healthcare stocks performing?

Highlights:

• The Parliament of Australia said that Australia is playing significant role in growing the global network of research and development in the field of medical science and technology.
• The ASX 200 Health Care index was 0.51% higher at 40,545.80 points at 11:04 AM AEDT on 27 October 2022.

Research and development (R&D) is an integral part of healthcare companies. It helps generate novel health technologies and new therapies globally. As highlighted by the Parliament of Australia, R&D can result in improvement in survival and patient outcomes. 

According to the Parliament of Australia, Australia is already playing a crucial role in expanding the global network of R&D in medical technology and science, and it needs to continuously build its strength in R&D to remain attractive and competitive worldwide.

In line with this, let’s have a look at the R&D investments made by some ASX-listed healthcare stocks: Cochlear Limited, ResMed Inc., Sonic Healthcare Limited, and Ramsay Health Care Limited.

Today (27 October 2022), the ASX 200 Health Care index (INDEXASX:XHJ) was 0.35% higher at 40,480.70 points at 10:54 AM AEDT. In one year, the index has lost 11.33%, and on a year-to-date basis, it has dropped 11.76%. In the past five years, the index has gained 68.93%.

Meanwhile, the Australian stock market benchmark index, the ASX 200, was 0.34% higher at 6,834.10 points. 

Cochlear Limited (ASX:COH)

A company with AU$12.98 billion market capitalisation, Cochlear began as a part of the Nucleus group in 1981 and was listed on the ASX in 1995. The company aims to improve accessibility and awareness about implantable hearing solutions. 

Cochlear sells its products in over 180 countries and has a direct presence in more than 30 countries. 

The company claims that it invests approximately 12% of its sales revenue in R&D annually. Globally, the company has participated in more than 100 collaborative research programs. 

The CEO and president of Cochlear, Dig Howitt, highlighted some of the company’s new products during the AGM (annual general meeting): 

• The Cochlear Nucleus 8 Sound Processor got CE Mark approval in August of this calendar year. This device is 13% lighter and 15% smaller than its predecessor. 
• The Cochlear Baha 6 Max Sound Processor has witnessed substantial demand since it entered the market. 
• The Cochlear Nucleus 7 SE Sound Processors and Nucleus 7 S were launched in late 2021.

In FY22, the group’s sales revenue increased by 10%, and underlying net profit grew by 18%. The company ended the year with a net cash balance of AU$587 million.

Cochlear shares were trading 1.53% higher at AU$200.48 per share at 10:41 AM AEDT.

ResMed Inc. (ASX:RMD)

Image source: © Rafaelhenriquepress | Megapixl.com

ResMed, a company with AU$51.55 billion market capitalisation, was founded by Peter Farrell. Since its launch, the company has been making CPAP machines, CPAP masks, and in-home life support ventilators easy to use, comfortable, and quieter. 

The company claims that it is a global leader in self-monitoring and remote software.

According to the company’s website, it sells a broad range of products in over 140 countries globally through a network of distributors and direct offices. 

In August 2022, the company shared its full-year 2022 financial results. For the 12 months ending on 30 June 2022, the company reported R&D expenses of AU$253.6 million – an increase of 13% over the previous year. During the final quarter of FY22, the company had R&D expenses of AU$64.3 million. 

In FY22, the company registered a 12% rise in revenue to AU$3.6 billion. 

ResMed shares were spotted trading 1.16% higher at AU$35.82 per share at 10:42 AM AEDT.

Sonic Healthcare Limited (ASX:SHL)

Sonic Healthcare was listed on the ASX in April 1987. It has a market capitalisation of AU$15.18 billion.  

Headquartered in Sydney, the company has evolved as a leading healthcare provider and operates in North America, Europe, and Australasia.

According Sonic’s website, it is one of the biggest occupational health providers and operators of medical centres in Australia as well as the second-biggest participant in the Australian radiology market.

The company reported a 7% rise in revenue over the previous year in FY22 and an 11% growth in EBITDA. The net profit and earnings per share also surged by 11%. The cash generated from operations grew by 9%.

The revenue was driven by base business growth, acquisition, and Covid-19 testing.

Colin Goldschmidt, Sonic’s CEO, said in a statement that the company had conducted more than 55 million PCR tests since the beginning of the pandemic across seven countries of operations.

Sonic shares were spotted trading 0.40% higher at AU$32.37 per share at 10:43 AM AEDT.

Ramsay Health Care Limited (ASX:RHC)

Image source: © Pvl | Megapixl.com

A company with AU$13.09 billion market capitalisation, Ramsay offers healthcare via its global network of research, teaching, and clinical practices. The group's global network extends across 10 countries and operates via more than 532 locations. Founded in 1964, the company’s operations are split across Australia, Europe, the UK, and Asia. 

In 2017, the Ramsay Hospital Research Foundation (RHRF) was established to deliver better services and outcomes.

Ramsay shares were spotted trading 0.79% lower at AU$57.75 apiece at 10:44 AM AEDT.