AUS
NZ
UK
CA
USA
IND
Summary
- Emerald Clinics Limited (EMD) signed a contract with UK subsidiary of world’s largest cannabis company Canopy Growth to design and deliver a Real-World Evidence asset, which is focused on the safety and clinical outcomes for cannabis-based medicines produced by the subsidiary.
- EMD has also been selected as Program Manager for the development of a National Clinical Data and Analytical Platform in May 2020.
- Atomo Diagnostics Limited (AT1) has received approval from Australian Therapeutic Goods Administration for AtomoRapid™ COVID-19 (IgG/IgM) test for inclusion on the ARTG for supply to departments of health, laboratories, medical practitioners and health care professionals in residential and aged care facilities.
Since the onset of a pandemic, the health system of Australia has experienced both challenges and opportunities as a result of COVID-19. Many companies are involved in preparing a vaccine for the global pandemic, and some are in various stages of clinical trials. The S&P/ASX 200 Health Care, the representing index for the healthcare sector stood at 41,813.10, an increase of almost 20% since a year.
On that backdrop, let us glance through two companies which are operating in the healthcare space.
Good Read: Why Healthcare Stocks Seem to be Losing Some Fizz - A Glance at Pharmaxis
Emerald Clinics Limited
Emerald Clinics Limited (ASX: EMD) is engaged in the operation of a network of specialist medical clinics. Recently, the company announced that it had inked real-world evidence contract with Spectrum Biomedical UK, which is the UK subsidiary of Canopy Growth. As per the terms of the agreement, the company would design and deliver a Real-World Evidence asset, which is focused on the safety and clinical outcomes for cannabis-based medicines produced by Spectrum Biomedical UK. Emerald is expected to receive an upfront £150K (~A$270K) as a design and development, in addition to £300 (~A$542) per patient fee. The total fees are capped at £400K (~A$723K) as part of the initial contract with Emerald having two years from the day of commencement of the contract.
Recently, the company released operational and financial performance for the quarter ended 30 June 2020 and highlighted the following:
- In May 2020, the company has been named as Program Manager for the development of a National Clinical Data and Analytical Platform (CDAP) of COVID-19 patient cases in a partnership between several Australian state health bodies, the Federal Government and universities.
- Appointments of the monthly patient also continued to grow throughout its clinical network despite challenges created by COVID-19.
- The company received $240,000 as an advance against its accrued R&D Tax Credit rebate under the facility with Radium Capital.
- EMD paid $190,000 to Board of directors in the form of wages, fees and superannuation.
- The company closed the quarter with the cash balance of A$3.7 million.
The stock of EMD closed the day’s trading session at $0.079 per share on 14 August 2020, indicating a rise of 29.508% against its previous closing price. The market capitalisation of Emerald Clinics stood at $11.22 million as on 14 August 2020.
Atomo Diagnostics Limited
Atomo Diagnostics Limited (ASX: AT1) is a supplier of integrated rapid diagnostic test (RDT) devices to the global diagnostic market. As of now, the business focus of the company revolves around COVID-19, HIV Self-Test and OEM. The company is experiencing a high demand for its rapid test devices to respond to the global pandemic and increased testing. AT1’s HIV self-test is the only HIV self-test approved in Australia (TGA).
In a recent update, the company notified the market that it had received approval from Australian Therapeutic Goods Administration (TGA) for AtomoRapid™ COVID-19 (IgG/IgM) test for inclusion on the ARTG for supply to departments of health, laboratories, medical practitioners and health care professionals in residential and aged care facilities.
The company added that the test could identify whether a patient has developed antibodies to the COVID-19 virus, within 15 minutes.
Recently, the company released its results for the quarter ended June 2020 (Q4 FY20) and highlighted the following:
- In the month of March 2020, the company reached an agreement with existing customer NG Biotech, Inc for the supply of devices. The company has rapidly shifted to match the demand from NG Biotech committing to the purchase of over 1.75 million devices during the quarter.
- AT1 has extended its partnership with NG Biotech that includes supply of the finished products by NG Biotech to Atomo for sale to certain markets in its region.
- For FY20, the company reported unaudited revenue amounting to $5 million.
- The cash receipts for the June 2020 quarter stood at $1.84 million, indicating a strong ramp-up in sales and revenue due to new business related to COVID-19 antibody testing.
- The company has a cash balance of $27.1 million along with all pre-IPO debt and interest obligations fully repaid in line with the use of funds.
For FY21, the company would be focused to match demand created by the ongoing COVID-19 pandemic. The company would also be focused towards scaling up and ongoing global launch of the business in the HIV Self-Test market; Expansion of sales of OEM products to current as well as new OEM customers.
The stock of AT1 closed the day’s trading session at $0.375 per share on 14 August 2020, indicating a fall of 3.846% against its previous closing price. The market capitalisation of Atomo Diagnostics stood at $218.82 million as on 14 August 2020.
Also Read: How have these ASX healthcare newcomers fared so far? EMD, LGP, AT1, ICR
